Subject: 

From: 

Memorandum 

U.S. Departmentq~ 7 ') ~ T ? 3 p I?: L,l 1 , Transportation '· ·· - - Y 

Office of the Secretary 

of Transportation 

Clarification on EAS payout for SeaPort Airlines at Excursion 

Inlen 

Dennis 

/[/~ J. De~y, ~11~·---·· Chief .e:;rEAS 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 in the above order and consistent with program policy, we 

will use SeaPort's prospective proposal that was submitted during the competitive bid 

process as the bridge rate. 

cc: 

Jeannie Vanek, SeaPort Airlines 

Tim Sieber, SeaPort Airlines 
SeaPort Airlines, Inc. dba Wings of Alaska 

Essential Air 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 of the rate Order, including the service plans outlined in the Order and 

any other significant elements of the required service, without pricr approval. The carrier understands that an 

aircraft take-off and 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, if the carrier does not schedule or operate its 

flights in full conformance with the Order for a significant period, it may jeopardize its entire subsidy claim for the 

period in question. Ifthe carrier contemplates any such changes beyond the scope of the Order during the 

applicable period of this rate, it must first notify the Office of Aviation Analysis in writing and receive written 

approval from the Department to be ensured of full 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 of traffic will not be compensated. In 

determining whether subsidy payment for a deviating flight should be adjusted or disallowed, the Department will 

consider the extent to which the goals of the program are met and the extent of access to the mtional air 

transportation system provided to the community. 

If the 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 of the 

period for which the department does make payments in the stipulated service levels, the carrier may cease 

to provide service to that specific location without regards to any requirement for notice of such cessation. 

Those adjustments in the levels of subsidy 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 of payment. 

Subsidy contract are subject to, and incorporate by reference, relevant statutes and Department regulations, 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 Order beyond March 31, 2013. The Government's 

obligation for performance under this Order beyond March 31, 2013, is subject to the availability of appropriated 

funds from which payment for services can be made. No legal liability on the part oftheGovernment for any 

payment may arise for performance under this Order beyondMarch 31, 2013, until funds are made available to the 

Department for performance. If funds are not made available for performance beyondMarch 31, 2013, the 

Department will provide notice in writing to the carrier. 

All claims for payment must be submitted within 60 days of the last day of service 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 per week multiplied by 36 weeks= 84 

flights in each direction multiplied by 2 =168. 

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