Order: 2015-5-13

Served: May 19, 2015

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 19th of May, 2015

Essential Air Service at

GREENVILLE, MISSISSIPPI

Under 49 U.S.C. 41731 et seq.

DOCKET DOT-OST-2008-0209

ORDER PROHIBITING TERMINATION OF SERVICE

AND REQUESTING PROPOSALS

Summary

By this Order, the Department prohibits SeaPort Airlines, Inc. (SeaPort), from terminating 

service at Greenville, Mississippi, for 30 days beyond the end of the air carrier’s 90-day notice 

period, i.e. through September 4, 2015. The Department is also requesting proposals from air 

carriers interested in providing Essential Air Service (“EAS”) at Greenville. Proposals are due 

June 11, 2015. (See Appendix A for an area map).

Background

By Order 2014-10-21 (October 24, 2014), the Department selected SeaPort to provide 

subsidized EAS to Memphis, with 18 weekly nonstop round trips, using 9-passenger Cessna 

Caravan aircraft at an annual subsidy of $1,483,080.

On May 5, 2015, SeaPort filed a 90-day notice to terminate air service at Greenville effective 

on August 5, 2015. In its notice, SeaPort states, “The Federal Aviation Administration’s new 

flight and duty limitations and the implementation of the FAA Air Transport Pilot (ATP) 1,500 

hour requirement for First Officers has created a nationwide shortage of pilots in compliance, 

and, it has prevented the carrier from operating at Greenville with a high-degree of schedule 

reliability.” Also, the Mayor of Greenville wrote to the Department expressing his

disappointment with SeaPort’s “poorly executed start of service.” Many flights were 

cancelled, although most flights had no passengers booked at the time of cancellation.

The complete public file for EAS at Greenville may be accessed online through the Federal 

Dockets Management System at: www.regulations.gov by entering “DOT-OST-2008-0209”

in the “Search for Rules, Comments, Adjudications, or Supporting Documents” field.
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Hold-In

SeaPort’s proposed termination of service at Greenville would leave the community with no 

scheduled air service. Thus, the Department must prohibit the air carrier from terminating 

such service for 30 days beyond the end of the 90-day notice period, i.e. through September 4, 

2015. The Department will require SeaPort to continue to maintain its current level of service 

at the community for successive 30-day periods until the Department has completed 

processing the air carrier-replacement case and the selected air carrier has actually started 

service.1

Recent Legislative Changes Affecting Greenville

The FAA Modernization and Reform Act of 2012 amended 49 U.S.C. § 41731(a)(1)(B) to

change the definition of “eligible place” for the purpose of receiving EAS. The amendment

states that to be eligible, a community must maintain an average of 10 enplanements or more

per service day, as determined by the Secretary, during the most recent fiscal year beginning 

after September 30, 2012. The legislation exempts locations in Alaska and Hawaii and 

communities that are more than 175 driving miles from the nearest large or medium hub 

airport.2 The Secretary also has the authority to waive the 10-enplanement standard, on an 

annual basis, if the community can demonstrate that the reason the location averages fewer 

than 10 enplanements per day is due to a temporary decline in enplanements.3

By Order 2014-4-26, issued on April 24, 2014, the Department issued a show-cause Order

tentatively terminating Greenville’s eligibility in the EAS program for failing to meet the 10-

enplanement standard. The Department ultimately granted Greenville a waiver from that 

provision through September 30, 2015, from the 10-enplanement standard by Order 2014-9-

21.

Request for Proposals

In order to provide sufficient time to complete the carrier-selection process before SeaPort 

terminates its service, the Department is hereby requesting proposals from air carriers 

interested in providing service at Greenville, with or without subsidy support. Air carriers 

should file their proposals no later than June 11, 2015 After that date, proposals will be 

docketed, thereby making them public, and the Department will serve copies of the 

proposals on the civic parties and other applicants. Shortly thereafter, the Department will 

provide a summary of the proposals to community officials and ask them to submit their 

final comments. The Department will give full consideration to all proposals filed in a 

timely manner.4

The Department expects proposals that are consistent with what the community currently

 1 In accordance with 49 U.S.C. 41734(c), we will extend SeaPort’s service obligation for successive 30-day periods 

as necessary until replacement service actually begins.

2 49 U.S.C. § 41731(c) & (d).

3 49 U.S.C. § 41731(e).

4 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide EAS 

without subsidy and we determine that basic EAS, required by 49 U.S.C. § 41732, can be reliably provided without 

such compensation, we typically do not proceed with the carrier-selection case. Instead, the Department simply 

relies on that carrier’s subsidy-free service as proposed.
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receives, namely, 18 weekly nonstop round trips, using 9-passenger aircraft to Memphis or 

another suitable hub airport. If service is provided with larger aircraft, we expect proposals for 

12 round trips a week. The Department encourages proposals that meet these guidelines in 

an efficient manner. Air carriers are also welcome to propose more than one service option, 

if they choose. They also need not limit themselves to these requirements if they envision 

other, potentially more attractive service possibilities -- different hubs or length of contract, 

for example -- with subsidy requirements that remain competitive.

The Department is hereby providing interested air carriers with some basic information to 

serve as guidance when they prepare their proposals, but the Department will not prescribe 

a precise format for their proposals. The Department expects proposals to adequately 

describe the service being proposed and the annual amount of subsidy being requested. The 

applicants can make their own judgments as to the level of detail they wish to present; 

however, the Department recommends they include information concerning proposed 

schedules and projected block hours. In addition, applicants are encouraged to provide 

financial data supporting their subsidy requests, including information on their projected 

expenses and revenues. The Department strongly encourages clear, well-documented 

proposals that will facilitate their evaluation by Greenville and the Department.5

Filing Procedures

Carrier proposals should be submitted to the Department with all materials merged into a 

single document. In addition, because the document will be published on Regulations.gov, 

each page should be formatted to be viewed online.

Service and Traffic History

In order to assist carriers in making their passenger and revenue forecasts, we have included 

historical traffic data is in Appendix B.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying

activities, drug-free workplaces, and nondiscrimination.6 Consequently, all carriers receiving 

Federal subsidy for EAS must certify that they are in compliance with Department regulations 

regarding drug-free workplaces and nondiscrimination, and those carriers whose subsidies 

 

5 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs us to consider five factors: (a) service reliability; (b) contractual and marketing arrangements with a larger 

carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving substantial 

weight to the views of the elected officials representing the users; and (e) whether the carrier has included a plan in 

its proposal to market its service to the community. In addition, the Consolidated Appropriations Act, 2014, Public 

Law No. 113-76, and continued in the Continuing Appropriations Resolution, 2015, Public Law No. 113-164, 

provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy 

requirements, thus codifying a factor that we have considered since the inception of the program. 6 The regulations applicable to these areas are: (1) 49 CFR Part 20 -- New Restrictions on Lobbying; 

 (2) 49 CFR Part 21 -- Nondiscrimination in Federally-Assisted Programs of the Department of Transportation -- 

Effectuation of Title VI of the Civil Rights Act of 1964; (3) 49 CFR Part 27 -- Nondiscrimination on the Basis of 

Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4) 

14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29 --

Government-Wide Debarment and Suspension (Non-Procurement) and Government-Wide Requirements for DrugFree Workplace (Grants).
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exceed $100,000 over the life of the contract must also certify that they are in compliance with 

the regulations governing lobbying activities. Because the Department is prohibited from 

paying subsidy to carriers that do not submit these documents, all carriers that plan to submit 

proposals involving subsidy should be aware that the selected carrier will be required to 

complete the required certifications. Interested carriers requiring more detailed information 

regarding these requirements should contact the Office of Aviation Analysis at (202) 366-

5903.7

Community Comments

Civic officials and the states are welcome to submit comments at any time. The Department

encourages prospective applicants to contact communities before they submit their proposals 

so that they can tailor them to the community’s needs, as they will not be able to amend them 

after the due date. As noted earlier, the Department will provide a summary of the proposals 

to the civic parties shortly after the deadline for carrier proposals, and ask them to submit their 

final comments.

ACCORDINGLY,

1. The Department prohibits SeaPort Airlines, Inc. from suspending service at Greenville, 

Mississippi, at the end of the 90-day notice period (August 5, 2015), and require it to maintain 

its current level of service at the community, as set forth in Appendix C, for an initial 30-day 

period through September 4, 2015, or until an air carrier capable of providing reliable EAS 

actually begins service, whichever is first;

2. The Department requests that air carriers interested in providing EAS at Greenville, 

Mississippi submit their proposal, with or without subsidy requests, no later than 

June 11, 2015. The proposal should be emailed to: EAS@dot.gov with the title “Proposal to 

Provide EAS at Greenville ”;8

3. This docket will remain open until further Order of the Department; and

 7 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 8 Questions regarding filings in response to this Order may be directed to Michael Martin (for Crescent City) at 

(202) 366-6494 or michael.f.martin@dot.gov.
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4. The Department will serve copies of this Order on the mayor of Greenville, Mississippi, 

the airport managers at Greenville Mid-Delta Airport, and the service list for this docket.

By:

BRANDON M. BELFORD

Deputy Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available

online at http://www.regulations.gov. 
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz
Appendix B

EAS Carrier Traffic at Greenville (GLH)1

Quarter Year Deplanements Enplanements Total Traffic

Enplanements 

per Day

4 2011 2010 2008 4,018 25

1 2012 1289 1277 2,566 17

2 2012 1544 1563 3,107 20

3 2012 1463 1484 2,947 19

Annual 

Totals 6,306 6,332 12,638 20

4 2012 814 793 1,607 10

1 2013 764 753 1,517 10

2 2013 583 734 1,317 8

3 2013 716 679 1,395 9

Annual 

Totals 2,877 2,959 5,836 9

4 2013 635 658 1,293 8

1 2014 468 469 937 6

2 2014 553 531 1,084 7

3 2014 534 499 1,033 7

Annual 

Totals 2,190 2,157 4,347 7

Greenville, Mississippi

 1 T100 Market Enplanement Data FY ending September 30.
Appendix C

Essential Air Service to be Maintained

Effective Period: September 4, 2015, until further Department action

Scheduled Service:

• 18 weekly nonstop round trips from Greenville (GLH) to Memphis (MEM)

Aircraft: 9-passenger Cessna Grand Caravan

 
Appendix D

Example of General Terms and Conditions for Essential Air Service

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 prior 

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 cancellations, 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. If the carrier contemplates any such changes beyond 

the scope of the Order during the applicable period of these rates, 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 for 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 national air transportation system provided to the community.

If the Department unilaterally, either partially or complete, terminates or reduces payments for 

service or changes service requirements at a specific location provided for under this Order, then, 

at the end of the period for which the Department does make payments in the stipulated amounts 

or at the stipulated service levels, the carrier may cease to provide service to that specific 

location without regard 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.

Funds may not be available for performance under this Order beyond [DATE]. The 

Government’s obligation for performance under this Order beyond [DATE], is subject to the 

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

of the Government for any payment may arise for performance under this Order beyond 

[DATE], until funds are made available to the Department for performance. If sufficient funds 

are not made available for performance beyond [DATE], the Department will provide notice in 

writing to the carrier.

Subsidy contracts 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.

All claims for payment, including any amended claims, must be submitted within 90 days of the 

last day of the month for which compensation is being claimed. For example, claims for service 

provided in July must be filed by October 31st; August claims must be submitted by November 

30th, and so on.