Order : 2010-12-3 1 Served : Decembe r 23 , 201 0 

# P i UNITE D STATE S O F AMERIC A

DEPARTMEN T O F TRANSPORTATIO N OFFIC E O F TH E SECRETAR Y WASHINGTON , D.C

.

Issue d b

yth e Departmen t o f Transportatio n
o n th e 23r d da yo f December , 201 0

Essentia l Ai r

Servic e a t

MAYAGUEZ , PUERTO RIC O PONCE , PUERT

O RIC O

Unde r 4 9 U.S.C

. 4173 1 e t

seq
. DOCKE T DOT-OST-2004-1962 2 DOCKE T DOT-OST-1999-659 2



## ORDE R REQUESTIN

G PROPOSAL S Summary B y thi s order , th e Departmen t i s requestin g proposals , b y Januar y 21 , fro mcarrier s intereste din providin g essentia l ai r

servic e (EAS ) a

t Mayaguez , for

ane w two-year

perio dbeginnin g Ma y 1 , 2011 , wit h o r withou t subsidy

. (Se e Appendi x A for map. ) Backgroun d B y Orde r 2009-3-1 , Marc h 3 , 2009 , th e Departmen t selecte dHyanni s Ai r

Service , Inc

. d/b/ a Cap e Ai r (Cap e Air ) t o continu e providin g EA S at Mayague z an dPonc e for th e two-year perio dthroug h Apri l 30 , 2011

. That orde r establishe dannua l subsid y rate s o f $980,98 0 an d $740,41 6 a

t Mayague z an dPonce , respectively , for servic e consistin g o f

four dail y nonsto p roun dtrip s t o San Juan , wit h 9-seat Cessn a40 2 aircraft

. Specia l Discussio n Concernin g Ponc e Fo r severa l years , Mayague z an dPonc e hav e bee n handle dunde r th e sam e contrac t

becaus e th e communitie s ar e o n th e sam e island , receivin g servic e provide db y th e sam e carrier

. However , wit h respec t t o thi s order , w e ar e solicitin g proposal s fo r servic e t o Mayague z only

. I n additio n t o th e servic e provide db y Cap e Air , Ponc e receive s subsidy-fre e je t servic e o n adail y basi s - on e roun dtri p t o Orland o an don e roun dtri p t o Ne w Yor k - provide db y JetBlue , with 150-sea t Airbu s A-32 0 aircraft

. That leve l o f servic e fa

r exceed s Ponce' s EA S requirements ; therefore , consisten t with progra mpractice , w e wil l no t see k proposal s fo

r replacemen t

servic e at

thi s time , but , rather , w e wil l rel y JetBlue' s subsidy-fre e servic e t o continu e connectin g th ecommunit y t o th e nationa l ai r transportatio n system

. W e not e that Ponce' s receivin g subsidy

fre e servic e doe s no t

chang e it s statu s a s a

n EA S community

. Shoul dJetBlu e in th e future decid e that

it n o longe r

intende dt o serv e Ponce , i t woul dfirs t

hav e t o fil e a90-day notic e o f it s inten t t o suspen dservice. At

tha t point , th e Departmen t

woul dinitiat e th e carrier-selectio n proces s b y issuin g a

n orde r requestin g proposal s fo r replacemen t

servic e an dprohibitin g JetBlu e fro mleavin g unti l replacemen t servic e was i n place

. 

### Reques t fo rProposal s a t Mayague z A s th e en do f

th e curren t

rat e termapproaches , i n orde r t o provid e sufficien t

tim e t o complet e th e carrier-selectio n proces s befor e th e curren t contrac t expires , w e ar e her e requestin g proposal s fro mcarrier s intereste di n providin g servic e a t Mayaguez , with o r

withou t subsid y support , for

th e two-year

perio dbeginnin g Ma y 1 , 2011

. Carrier s shoul dfil e thei r proposal s n o late r than Januar y 21

. Staf

f wil l the n docke t

proposals , thereb y makin g the mpublic , an d shortl y afterward s wil l provid e asummar y o f th e proposal s t o th e communit y an das k the mfor thei r final comments

. W e wil l giv e full consideratio n t o al l proposal s file di n atimel y manner. '
Intereste dcarrier s shoul dprepar e thei r proposal s wit

h ever y expectatio n that

thei r initial proposal s wil l als o b e thei r fina l an donl y proposals

. W e retai n th e discretio n t o negotiat e proposal s with carrier s whe n w e deemit desirable

. W e als o retai n th e discretio n t o rejec t outrigh t al l unreasonabl e o r

unrealisti c proposal s an dsolici t ane w roun do f

proposals

. W e ar e her e providin g intereste dcarrier s wit h som e basi c informatio n t o serv e a s guidanc e whe n the y prepar e thei r

proposals , bu t

w e wil l not

prescrib e aprecis e format for thei r proposals

. W e expec t

proposal s t o adequatel y describ e th e servic e bein g propose dan dth e aimual amoun t

o f subsid y bein g requested

. Th e applicant s can mak e thei r ow n judgment s a s t o th e leve l o f

detai l the y wis h t o present ; however , the y migh t wan t t o includ e propose d schedule s a s wel l a s supportin g dat afor thei r subsid y requests , suc h a s projecte dbloc k hours , revenue s an dexpenses
. W e strongl y encourag e clear , well-documente dproposal s that wil l facilitat e thei r

evaluatio n b y th e affecte dcommunit y an dth e Department. ^ Proposal s shoul dprovid e sufficien t capacit y t o accommodat e historica l level s o f traffic

. In orde r t o assis t carrier s i n developin g traffi c an drevenu e projection s for thei r proposals , w e hav e include dasummary o f historica l passenger s i n Appendi x B

. Specificall y for Mayaguez , w e expec t proposal s that

are consisten t

with wha t

th e communit y currentl y receive s (four nonsto p roun dtrip s aday t o Sa n Juan)

. W e not e that

EA S a t th e communit y call s for

servic e wit h 15-sea t aircraft

. However , durin g th e curren t two-year contract , th e communit y approve d th e servic e with nine-sea t aircraft

. Fo r

carrier s proposin g 15-sea t o r large r aircraft , w e expec t

' Carrier s shoul dno t

expec t th e Departmen t

t o accep t lat e filings

. In case s wher e acarrie r propose s t o provid e essentia l ai r

servic e withou t

subsid y an dw e determin e that servic e can b e reliabl y provide dwithou t suc h compensation , w e d o no t

procee dwit

h th e carrier-selectio n case
. Instead , w e simpl y rel y o n that carrier' s subsidy

fre e servic e a s proposed

. 2 I n selectin g acarrie r

t o provid e subsidize dessentia l ai r service , 4 9 U.S.C

. 41733(c)(1 ) direct s u s t o conside r fou r factors : (1 ) servic e reliability ; (2 ) contractua l an dmarketin g arrangement s wit h alarge r carrie r at th e hub ; (3 ) interlin e arrangements wit h alarge r carrie r at th e hub ; an d(4 ) community views

. I n addition , th e Consolidate dAppropriation s Act , 2008 , Publi c La w 110-161 , provide s that whe n selectin g acarrie r

t o provid e EAS , th e Departmen t

ma y conside r

th e relativ e subsid y requirements , thu s codifyin g afacto r that w e hav e considere dsinc e th e inceptio n o f th e program
. Intereste dcarrier s shoul dals o b e awar e that our general provision s governin g EA S wil l b e include di n th e selectio n orde r a s part o f ou r authorizatio n o f

subsid y fo

r th e selecte dservice

. Appendi x C o f thi s orde r

contain s thos e general provisions

.proposal s for tw o roun dtrip s aday

. Carrier s ar e als o welcom e t o propos e mor e than on e option , i f the y choose ; the y nee dno t limi t themselve s t o thos e requirement s i f the y envisio n other , potentiall y mor e attractiv e servic e possibilitie s —different hubs , frequenc y o r

equipment , for exampl e —

with subsid y requirement s that remai n competitive

. Th e communit y an dai r carrier s ar e encourage dt o wor k togethe r i n advanc e o f

th e du e dat e for

proposal s t o craf

t a servic e pattern that

i s desirabl e t o th e communitie s an dmeet s th e operationa l need s o f th e airline s submittin g proposals

. Traffi c IHistor y In orde r t o assis t carrier s i n makin g traffi c an drevenu e forecasts , w e hav e include dhistorica l traffi c dat ai n Appendi x B

. Fo r th e year ende dJun e 30 , 2010 , Mayaque z generate datota l o f 8,60 9 O& D passengers , a n average o f

13. 7 enplanement s pe r

day

. Thi s represent s asligh t increas e fro mth e prio r

yea r whe n ther e wer e 8,11 7 O& D passengers , o r an average o f

1 3 enplanement s pe r

day

. Ne w Filin g Procedure s Carrie r proposal s shoul db e submitte dt o th e Departmen t with al l material s merge dint o asingl e document

. In addition , becaus e th e documen t wil l b e publishe do n Regulations.gov , eac h pag e shoul db e formatte dt o b e viewe donline

. Othe rCarrie rRequirement s Th e Departmen t

i s responsibl e for

implementin g variou s Federa l statute s governin g lobbyin g activities , drug-fre e workplace s an dnondiscrimination. ^ Consequently , al l carrier s receivin g Federa l subsid y t o support essentia l ai r

servic e mus t

certif y that the y ar e i n complianc e with Departmen t

regulation s regardin g drug-fre e workplace s an dnondiscrimination , an dthos e carrier s whos e subsidie s excee d$100,00 0 ove r th e lif e o f th e rat e ter mmus t

als o certif

y that the y ar e i n complianc e with th e regulation s governin g lobbyin g activities

. Al l carrier s that pla n t o submi t proposal s involvin g subsid y shoul dsubmi t th e require dcertification s alon g with thei r proposals

. Intereste dcarrier s requirin g mor e detaile dinformatio n regardin g thes e requirements , a s wel l a s copie s o f th e certifications , shoul dcontac t th e Offic e o f

Aviatio n Analysi s a

t (202 ) 366-5903

. Th e Departmen t i s prohibite dfro mpayin g subsid y t o carrier s that d o not submi t thes e documents.' * Communit yComment s Civi c official s are welcom e t o submi t comment s o n th e proposal s at an y time

. A s note dearlier , w e wil l provid e asummary o f th e proposal s t o th e civi c partie s an das k the mt o submi t

thei r fina l comment s shortl y after

Januar y 21 , th e du e dat e for carrie r proposals

. Thi s orde r

i s issue dunde r

authority delegate di n 4 9 CF R1.56a(f ) an dre-delegate dt o th e Director , Offic e o f

Aviatio n Analysis

.

^ Th e regulation s applicabl e t o thes e area s are : (1 ) 4 9 CF RPart 2 0 - Ne w restriction s o n lobbying ; (2 ) 4 9 CFR Part 2 1 - Nondiscriminatio n in federally-assiste dprogram s o f th e Departmen t

o f Transportatio n - Effectuatio n o f titl e V I o f th e Civi l Right s Ac t

o f 1964 ; 4 9 CF RPar t

2 7 - Nondiscriminatio n o n th e basi s o f disabilit y i

n program s an dactivitie s receivin g or benefitin g fromFedera l financial assistance ; an d1 4 CF RPar t 38 2 - Nondiscriminatio n o n th e basi s o f

disability in air

travel ; an d(3 ) 4 9 CF RPar t 2 9 - Government-wid e debarmen t an dsuspensio n (non

procurement ) an dgovernment-wid e requirement s fo r drug-fre e workplac e (grants)

. • * Th e certification s ar e als o availabl e o n th e web a t http://ostpxweb.dot.gov/aviation/index.html

.

### ACCORDINGLY ,

1

. W e reques t

tha t carrier s intereste din providin g essentia l ai r servic e a t Mayaguez , Puert o Rico , submi t

thei r proposals , wit

h o r withou t subsid y requests , n o late r tha n Januar y 21 , 2011

. Proposal s shoul db e emaile dto : EAS@dot.go v with th e titl e "Proposa l t o Provid e Essentia l Ai r Servic e a t Mayaguez , Puert o Rico , Docke t DOT-OST-2004-19622"; 5
2

. Thes e dockets wil l remai n ope n unti l further orde r o f th e Department ; an d
3

. Th e Departmen t

wil l serv e acop y o f

thi s orde r

o n th e Puert o Ric o Port

Authority , th e Mayor s an dAirport

Manager s o f

Mayague z an dPonce , Hyanni s Ai r Service , Inc. , d/b/ a Cap e Air, an dth e partie s liste di n Appendi x D

. Person s entitle dt o petitio n th e Departmen t fo r revie w o f

thi s orde r

unde r th e Department' s Aviatio n Economi c Regulations , 1 4 CF R385.50 , mus t fil e suc h petition s withi n te n (10 ) day s afte r th e dat e o f

servic e o f

thi s order

. Thi s orde r

wil l b e effectiv e immediately , an dth e filin g o f apetitio n for

revie w shal l no t preclud e it s effectiveness

. By :

(SEAL ) TODDM/HOMA N Directo r Offic e o f Aviatio n Analysi s

An electroni c versio n o f

thi s documen t

i s availabl e onlin e a t www , regulations , fio

v

^ Question s regardin g filing s i n respons e t o thi s orde r

shoul db e directe dto Rene e William s at 202-366-1058 , o r vi aemai l at

renee.williams@dot.gov

.

### Appendi xA



# PUERT O RIC O

^v P
May i l::: ?



# Ponc e

### Appendi xB

Historica l O& D Traffi c an dAverag e Daily Enplanement s

a t Mayaguez , Puert o Rico^

Dail y Averag e Y E 6/30/201 0 3Q0 9 4Q0 9 IQI O 2Q1 0 TOTAL :

Y E 6/30/200 9 3Q0 8 4Q0 8 1Q0 9 2Q0 9 TOTAL : O&D Traffi c

1,78 6 2,21 1 2,49 1 2.12 1 8,60 9

1,70 4 2,04 2 2,39 1 1.98 0 8,11 7 Enplanement s

11. 3 14. 0 16. 0 13. 6 13. 7

10. 8 12. 9 15. 5 12. 7 13. 0

' Source : USDO T Bureau o f Transportatio n Statistics , TransStat s Intermoda l Database , Schedul e T-100

. Dail y average s ar e base do n 31 3 (31 4 durin g leap years ) annual servic e day s (tota l O&D traffi c divide d b y 2 , the n divide db y 31 3 servic e days)

.

### Appendi xC

Exampl e o f Genera l Term s an d Condition s fo rEssentia l Ai rServic e Th e carrie r

understand s tha t

i t may forfei t

it s compensatio n for

an y flight s tha t

i t doe s no t operat e i n conformanc e with th e term s an dstipulation s o f th e rat e order , includin g th e servic e plan s outline di n th e orde r

an dan y othe r

significan t

element s o f

th e require dservice , withou t prio r approval

. Th e carrie r

understand s tha t

a n aircraf t take-of f an dlandin g a

t it s schedule d destinatio n constitute s acomplete dflight ; absen t a n explanatio n supportin g subsid y eligibilit y for afligh t that ha s no t bee n completed , suc h a s certai n weathe r cancellations , onl y complete d flight s ar e considere deligibl e for subsidy

. In addition , i

f th e carrie r

doe s no t schedul e o r

operat e it s flight s i n full conformanc e wit h th e orde r

for asignifican t

period , it

may jeopardiz e it s entir e subsid y clai mfor

th e perio din question

. I f th e carrie r

contemplate s an y suc h change s beyon d th e scop e o f

th e orde r durin g th e applicabl e perio do f thes e rates , i t

mus t firs t notif y th e Offic e o f Aviatio n Analysi s i n writin g an dreceiv e writte n approva l fro mth e Departmen t t o b e ensure dof full compensation

. Shoul dcircumstance s warrant , th e Departmen t may locat e an dselec t

a replacemen t

carrie r t o provid e servic e o n thes e routes

. Th e carrie r mus t complet e al l flight s that can b e safel y operated ; flight s that overfl y point s fo r

lac k o f traffi c wil l no t

b e compensated

. I

n determinin g whethe r

subsid y paymen t

fo r adeviatin g fligh t

shoul db e adjuste do r

disallowed , th e Departmen t

wil l conside r

th e exten t

t o whic h th e goal s o f

th e progra mare me t

an dth e exten t

o f acces s t o th e nationa l ai r

transportatio n syste mprovide dt o th e community

. I f th e Departmen t

unilaterally , eithe r

partiall y o r

completely , terminate s o r reduce s payment s for servic e o r change s servic e requirement s a t aspecifi c locatio n provide dfor unde r thi s order , then , a t th e en do f

th e perio dfo r

whic h th e Departmen t

doe s mak e payment s in th e stipulate damount s o r a t th e stipulate dservic e levels , th e carrie r may ceas e t o provid e servic e t o that specifi c locatio n withou t

regar dt o an y requiremen t for notic e o f suc h cessation

. Thos e adjustment s i n th e level s o f

subsid y and/o r

servic e tha t

ar e mutuall y agree dt o in writin g b y th e Departmen t an d carrie r d o no t constitut e atota l o r

partia l reductio n o r

cessatio n o f

payment

. Subsid y contract s are subjec t to , an dincorporat e b y reference , relevan t statute s an dDepartmen t regulations , a s the y ma y b e amende dfro mtim e t o time

. However , an y suc h statutes , regulations , o r amendment s theret o shal l no t operat e t o controvert

th e foregoin g paragraph

. Fund s ar e no t

currentl y availabl e for

performanc e unde r

thi s solicitation beyon d[DATE]

. Th e Department' s obligatio n for performanc e unde r

thi s solicitation beyon d[DATE] , i s contingen t upo n th e availability o f

appropriate dfund s fro mwhic h paymen t for service s can b e made

. N o legal liability o n th e part

o f th e Governmen t

for an y paymen t

may aris e for

performanc e unde r thi s orde r beyon d[DATE] , unti l fund s ar e mad e availabl e t o th e Departmen t for performance

. I

f fund s are no t

mad e availabl e for

performanc e beyon d[DATE] , th e carrie r wil l receiv e notic e i n writin g b y th e Department

. Al l claim s for

paymen t mus t b e submitte dwithi n 6 0 day s o f th e las t day o f servic e provide d unde r thi s order

.

### Appendi xD

Schedule dAi r

Carriers

. Contiguou s U S an dPuert o Ric o Ai r Greco/Wing s Ai r Ai r Sunshine , Inc

. Ai r Sunshine , Mirmohamma dAdil i Ai r Wisconsin , Annett e Dal y Ai r Wisconsin , Ji mRanki n Airlin e Associates , Bil l Mishk Alask aAirlines , Jef

f Col e Alask aAirlines , Sand y Sinic k Allegian t Air , Brian Davi s American Airlines , Car

l Nelso n America n Eagle , Jeffre y Hart z Bemidj i Aviation , Cori Rud e Bemidj i Aviation , Arle n Rinkenberge r Cap e Air , Andre w Bonne y Cap e Air , Dan Wol f Cap e Air , J.Flaherty Colga n Air , Kevi n Scott Colga n Air , Mik e Colga n CommutAir, And y Pric e CommutAir, Joe l Raymon d Consultant , Robert

Silverber g Continental , Bruc e Keine r Continental , Dan Weis s Continental , Lorr

y Hallowa y Delta , Anthon y Canitan o Delta , Dan Shuma n Delta , Jef f Morga n Delta , Jo e Esposit o Delta , Kare n Zachary Delta , Kristal Murph y Delta , Sasch aVanderbelle n DHS , Bil l Ragan DHS , Davi dBernie r Er aAviation , Mik e Lenorma n Executiv e Airlines , Kat e Sole d Frontie r Flying , Bob Hajducovic h GemAir/Salmo n Air , Da n Schroede r GemAir/Salmo n Air , JoAn n Wolter s Great Lakes , Chuc k

Howel l Great Lakes , Dou g Vos s Great Lakes , Gre g Stephens Gulfstream , Dav e Hacket t Gulfstream , Micke y Bowma n Gulfstream , T

. Coope r Horizo n Air , Dan Russ o Horizo n Air , Jennife r

Thompso n Horizo n Air , Mik e McQuee n Horizon , Jef

f Col e ICEPR , Lui s Irizarry Intrepi dInterntI Air , Ric k Ey k Islan dAi r

Charters , Lind aHous e Je t Air , Danie l Wolford Kenmor e Air , Ti mBrook s Mes aAir , Michae l Lot z Mesaba , Joh n Spanjer s Mesaba , Max Shemes h Midwes t Airlines , Gre g Aretaki s M N Aviation , Jos e Maldonad o Multi Aero , Darne a Multi Aero , Shan e Stor z Northwes t

Airlines , Aaro n Murra y Northwest , Ti mMcDonal d NYDC , Heno k

Aray a OST , Brian Swanso n OST , Denni s DeVan y OST , Kevi n Adam s OST , Kevi n Schlemme r OST , Michae l Marti n OST , Rene e William s Pacifi c Wings , Gre g Kahlstor f PenAir , Dann y Seybert PenAir , Scott

Bloomquis t Pinnacl e Airlines , Jo e William s Pinnacl e Airlines , Phi l Ree d Planemasters , Inc. , Joh n Kessle r Planemasters , Inc. , Pau l Berline r Planemasters , Inc. , Tod dDeSimon e Publi c Charters , Ji mGallaghe r Scenic , Mary Schneide r Scenic , Mitz i Daine s SeaPort/Wing s o f

Alaska , Ji mDa

y SeaPort/Wing s o f

Alaska , Nat e Vallie r Seaport/Wing s o f

Alaska , Rob McKinne y Shuttl e America , Jerry Balsan o SkyWest , Eri c Christense n SkyWest , Michae l Thompso n SkyWest , Stev e Hart Sovereig n Air , Bo b Karn s Sovereig n Air , Loi s R

. Barto n Tradewind , Eri c Zipki n Tran s States , Fre dOxle y Tran s States , Gerry Wigmor e United , Alici aGabrie l United , Jame s Starne s U S Airways , Benjami n Slocu m U S Airways , Howar dKas s U S Airways , Jaso n Reisinge r Warbelow s Ai r

Ventures , Ar

t Warbelo w