Subject:

From: 

# Memorandum

U.S.

### Departmentq~ 7 ')

### ~ 

## T

## ?3 p I?: L,l 1, 

### Transportation '··· - - Y Office ofthe Secretary 

### ofTransportation 

### Clarification onEAS payout for SeaPort Airlines at Excursion Inlen

# /[/~**~11~·---··** Dennis J.

# De~y, Chief .e:;r

### EAS and Domestic Analysis, X-53 Date: October 23, 2012

Michael Martin, X-53 Ext. 66494

To: 

### Gregory Frazier, S-3.6

Reference: Order 2012-9-8

Please see the attached Appendix clarifying the bridge rate paid to SeaPort Airlines at Excursion Inlet. As explained inthe above order and consistent with programpolicy, we will use SeaPort'sprospective proposal that was submitted during the competitive bid process as the bridge rate.

cc: Jeannie Vanek, SeaPortAirlines Tim Sieber, SeaPort Airlines

### SeaPort Airlines, Inc. dba Wings ofAlaska EssentialAir Service to be Provided at Excursio:Q Inlet, Alaska


### Effective Period: September 1, 2012 through September 10, 2012 Scheduled Service:**(Off~peak)** 

### One nonstop round trip per week to Juneau Aircraft: Cessna 207 Rate per Eligible Flight: $200 1 

### Weekly Ceiling: Off-peak, $4002

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulations ofthe rate Order, including the service plans outlined in the Order and any other significant elements ofthe required service, without pricr approval. The carrierunderstands that an aircraft take-offand landing at its scheduled destination constitutes a completed flight; absent an explanation supporting subsidy eligibility for a flight that has not been completed, such as certain weather**~ancellations,** only completed flights are considered eligible for subsidy. In addition, ifthe carrier does not schedule or operate its flights in full conformance with the Order for a significantperiod, it mayjeopardize its entire subsidy claim for the period in question. Ifthe carrier contemplates any such changes beyond the scope ofthe Order during the applicable period ofthis rate, it must first notify the Office ofAviation Analysis in writing and receive written approval from the Departmentto 

### be ensured offull compensation. Should circumstances warrant, the Department may locate and select a replacement carrier to provide service on these routes. The carrier must complete all flights that can be safely operated; flights that overfly points fcr lack oftraffic will not be compensated. In determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will consider the extentto which the goals ofthe program are met and the extent ofaccess to the mtional air transportation system provided to the community.

Ifthe Department unilaterally, either partially or completely, terminates or reduces payments for service or changes service requirements at a specific location provided for under this Order, fum, at the end ofthe period for which the department does make payments in the stipulated service levels, the carriermay cease to provide service to that specific location withoutregards to any requirement for notice ofsuch cessation. Those adjustments in the levels ofsubsidy and/or service that are mutually agreed to in writing by the Department and carrier do not constitute a total or partial reduction or cessation ofpayment. Subsidy contract are subjectto, and incorporate by reference, relevantstatutes and Departmentregulations, as they may be amended from time to time. However, any such statutes, regulations, or amendments' thereto shall not operate to controvert the foregoing paragraph.

Funds are not currently available for performance underthis OrderbeyondMarch 31, 2013. The Government's obligation for performance under this Order beyondMarch 31, 2013, is subjectto the availability ofappropriated funds from which payment for services can be made. No legal liability on the part oftheGovernmentfor any paymentmay arise for performance underthis OrderbeyondMarch 31, 2013, until funds are made available to the Department for performance. Iffunds are not made available for performance beyondMarch 31, 2013, the Departmentwill provide notice in writing to the carrier.

All claims for paymentmustbe submitted within 60 days ofthe last day ofservice provided under this Order.

1 Annual compensation of$33,527 divided by the estimated annual completed departures and arrivals: Peak: 3 flights per week multiplied by 16 weeks; offpeak: I flight perweek multipliedby 36 weeks= 84 flights in each direction multipliedby 2 =168.

2 Peak: Off-peak: 2 flights multiplied by $200