Order 2010-11-6

Served: November 8, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 5th day of November, 2010

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is soliciting proposals from air carriers interested in providing 

essential air service (EAS) at any or all of the seven communities identified above, for a new

two-year period, beginning May 1, 2011, with or without subsidy. (See Appendix A for a service 

area map.) Carriers should file their proposals no later than December 9, 2010.

Background 

By Order 2007-12-22, December 21, 2007, the Department selected Great Lakes Aviation, Ltd., 

Inc. (Great Lakes), operating as both a United Airlines and Frontier Airlines code-share partner, 

to provide subsidized EAS at the seven Montana communities, utilizing 19-seat Beech-1900D 

aircraft, for a two-year period at a combined annual subsidy rate of $8,201,992. Great Lakes’ 

original proposal was for service to Billings with the prospect of later changing the communities' 

hub from Billings to Denver if such a change could be agreed upon with the communities. Great 

Lakes commenced full EAS under Order 2007-12-22 in April 2009.

By Order 2008-7-9, July 3, 2008, the Department approved Great Lakes’ request to provide 

service to Denver, instead of Billings, at Lewistown, Miles City and Sidney. Similarly, by 

Order 2010-6-8, June 7, 2010, the Department approved the carrier’s request to alter its service 

pattern at Glendive and provide 6 round trips a week to Denver and 6 to Billings. Great Lakes 

obtained support from the communities before we approved these service pattern changes.

 

Essential Air Service at

GLASGOW, MONTANA

GLENDIVE, MONTANA

HAVRE, MONTANA

LEWISTOWN, MONTANA

MILES CITY, MONTANA

SIDNEY, MONTANA

WOLF POINT, MONTANA

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

Docket DOT-OST-1997-2605
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Request for Proposals 

As the end of the current contract approaches, we are here requesting proposals from carriers 

interested in providing service at any or all of the seven Montana communities, with or without 

subsidy, for the two-year period beginning May 1, 2011. Carriers should file their proposals no 

later than December 9, 2010. Staff will then docket proposals, thereby making them public, and 

shortly afterwards will provide a summary of the proposals to the communities and ask them for 

their final comments. We will give full consideration to all proposals filed in a timely manner.1

Interested carriers should prepare their proposals with every expectation that their initial 

proposals will represent their final and only proposals. However, we retain the discretion to 

negotiate proposals with carriers when we deem it desirable; in such cases, of course, we will 

give all applicants the same opportunity. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and re-solicit a new round of proposals. However, 

negotiation or rejection are only an occasional exception to the rule.

We are here providing interested carriers with some basic information to serve as guidance when 

they prepare their proposals, but we will not prescribe a precise format for their proposals. We 

expect 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, they might want to include proposed schedules as well as 

supporting data for their subsidy requests, such as projected block hours, revenues and expenses. 

We strongly encourage clear, well-documented proposals that will facilitate their evaluation by 

the affected communities and the Department.2

With specific respect to the seven Montana communities, the Department expects proposals, at a 

minimum, with two-pilot, twin-engine aircraft, and offering 12 round trips a week from each of 

the communities (except 17 from Sidney) to Denver and/or Billings. Such service is generally 

consistent with what the communities have historically received, and fully satisfies their essential 

air service requirements3. We encourage proposals that meet those requirements in an efficient 

manner.4

 1 Carriers should not expect the Department to accept late fillings. In cases where a carrier proposes to provide 

essential air service without subsidy and we determine that service can be reliably provided without such 

compensation, we do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s subsidyfree service as proposed.

 Carriers are also welcome to propose more than one service option, if they choose; 

they need not limit themselves to those requirements if they envision other, potentially more 

2 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c)(1) directs us to consider four 

factors: (a) scheduled service reliability; (b) contractual and marketing arrangements with a larger carrier to ensure 

service beyond the hub; (c) interline arrangements that the applicant has made with a larger carrier at the hub; and (d)

community views, giving substantial weight to the views of the elected officials representing the users. In addition, 

the Consolidated Appropriations Act, 2008, Public Law 110-161, 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. 3 The communities’ essential air service determinations, as last established by Order 94-10-4, October 6, 1994, 

required at least two round trips to Billings each weekday and weekend with no more than one intermediate stop 

(nonstop-only for Lewistown), providing a minimum of 10 inbound and outbound seats for Glasgow, 5 for Glendive, 

8 for Havre, 6 for Lewistown, 5 for Miles City, 13 for Sidney, and 10 for Wolf Point.

4 For example, in most cases here, two communities are served together on a single route.
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attractive service possibilities -- different hubs, for example -- with subsidy requirements that 

remain competitive.

Communities and air carriers are encouraged to work together in advance of the due date for 

proposals to craft service patterns that are desirable to the communities and meet the operational 

requirements of the airline interested in submitting a proposal. In addition, carriers should be 

very clear as to whether a specific community’s proposal is a stand-alone option, or whether it is 

part of a larger, inseparable package connected to other communities.

Service and Traffic History 

Big Sky had operated subsidized service at the seven communities since 1980, when it replaced

Frontier Airlines, Inc., until it ceased all service on March 8, 2008. During the year ended 2009, 

the most recent calendar year period for which data are available, Glasgow averaged 3.7

enplanements a day, Glendive 0.8, Havre 2.3, Lewistown 3.3, Miles City 2.8, Sidney 8.8 and 

Wolf Point 2.9. Traffic is rebounding slowly after the 2008 hiatus in air service at all seven 

communities.5

New 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.

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 essential air service must certify that they are in compliance with Department 

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

subsidies exceed $100,000 over the life of the rate-term 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

 5 See Appendix B for historical traffic data. Enplanements represent one-half of total origin-and-destination traffic, 

and average enplanements per day are based on 313 weekdays and weekends a year.

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; 49 CFR Part 27 -- Nondiscrimination on the basis of 

disability in programs and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382 -

- Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29 -- Government-wide debarment 

and suspension (non-procurement) and government-wide requirements for drug-free workplace (grants).

7 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.
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Community and State Comments

The communities and State are welcome to submit comments at any time. We encourage 

prospective applicants to contact the communities before they submit their proposals so that they 

can tailor them to the communities’ needs, as they will not be able to amend them after the due 

date. As noted earlier, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after December 9, the end of the 30-day period for 

carrier proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We request that carriers interested in providing essential air service at Glasgow, Glendive, 

Havre, Lewistown, Miles City, Sidney, and/or Wolf Point, Montana, submit their proposals, with 

or without subsidy requests, no later than December 9, 2010. The proposals should be e-mailed 

to: EAS@dot.gov with the title “Proposal to Provide Essential Air Service at Glasgow, 

Glendive, Havre, Lewistown, Miles City, Sidney, and/or Wolf Point, Montana, Docket DOTOST-1997-2605”;8

2. This docket will remain open until further order of the Department; and

3. We will serve copies of this order on the parties listed in Appendix D.

Persons entitled to petition the Department for review of this order under the Department’s 

Aviation Economic Regulations, 14 CFR 385.50, must file such petitions within ten (10) days 

after the date of service of this order.

 8 Questions regarding filings in response to this order may be directed to Brian Swanson at (202) 366-5392 or 

brian.swanson@dot.gov.
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This order will be effective immediately, and the filing of a petition for review shall not preclude 

its effectiveness.

By:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available

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

AREA MAP
Appendix B

Page 1 of 3

Historical Enplanements

Glasgow, Montana

Year Ended

Origin & 

Destination

Passengers2

Enplanements1

Average 

Enplanements Per 

Service Day3 

31-Dec-05 3,548 1,774 5.7

31-Dec-06 2,800 1,400 4.5

31-Dec-07 3,056 1,528 4.9

31-Dec-08 - - -

31-Dec-09 2,296 1,148 3.7

Jan.-Sept. 2010 2,288 1,144

Glendive, Montana

Year Ended

Origin & 

Destination

Passengers1

Enplanements2

Average 

Enplanements Per 

Service Day3 

31-Dec-05 1,868 934 3.0

31-Dec-06 1,726 863 2.8

31-Dec-07 1,466 733 2.3

31-Dec-08 - - -

31-Dec-09 486 243 0.8

Jan.-Sept. 2010 408 204

Havre, Montana

Year Ended

Origin & 

Destination

Passengers1

Enplanements2

Average 

Enplanements Per 

Service Day3 

31-Dec-05 3,052 1,526 4.9

31-Dec-06 2,610 1,305 4.2

31-Dec-07 2,266 1,133 3.6

31-Dec-08 - - -

31-Dec-09 1,458 729 2.3

Jan.- Sept. 2010 1,190 595

Notes:

1. Enplanements multipled by two.

2. Source: Montana Aeronautics Division

3. Average annual enplanements divided by 313 effective annual 

service days.
Appendix B

Page 2 of 3

Historical Enplanements

Lewistown, Montana

Year Ended

Origin & 

Destination

Passengers1

Enplanements2

Average 

Enplanements Per 

Service Day3 

31-Dec-05 1,496 748 2.4

31-Dec-06 1,248 624 2.0

31-Dec-07 1,066 533 1.7

31-Dec-08 892 446 -

31-Dec-09 2,072 1,036 3.3

Jan.- Sept. 2010 1,046 523

Miles City, Montana

Year Ended

Origin & 

Destination

Passengers1

Enplanements2

Average 

Enplanements Per 

Service Day3 

31-Dec-05 2,350 1,175 3.8

31-Dec-06 2,098 1,049 3.4

31-Dec-07 1,822 911 2.9

31-Dec-08 - - -

31-Dec-09 1,774 887 2.8

Jan.- Sept. 2010 1,406 703

Sidney, Montana

Year Ended

Origin & 

Destination

Passengers1

Enplanements2

Average 

Enplanements Per 

Service Day3 

31-Dec-05 6,802 3,401 10.9

31-Dec-06 5,784 2,892 9.2

31-Dec-07 5,598 2,799 8.9

31-Dec-08 1,196 598 -

31-Dec-09 5,524 2,762 8.8

Jan.- Sept. 2010 4,900 2,450

Notes:

1. Enplanements multipled by two.

2. Source: Montana Aeronautics Division

3. Average annual enplanements divided by 313 effective annual service 

days.
Appendix B

Page 3 of 3

Historical Enplanements

Wolf Point, Montana

Year Ended

Origin & 

Destination

Passengers1

Enplanements2

Average 

Enplanements Per 

Service Day3 

31-Dec-05 3,878 1,939 6.2

31-Dec-06 3,342 1,671 5.3

31-Dec-07 2,824 1,412 4.5

31-Dec-08 - - -

31-Dec-09 1,800 900 2.9

Jan.- Sept. 2010 808 404

Notes:

1. Enplanements multipled by two.

2. Source: Montana Aeronautics Division

3. Average annual enplanements divided by 313 effective annual 

service days.
Appendix C

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 completely, 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.

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.

Funds are not currently available for performance under this solicitation beyond [DATE]. The 

Department’s obligation for performance under this solicitation beyond [DATE] is contingent 

upon the availability of appropriated funds from which payment for services can be made. No 

legal liability on the part of the Department for any payment may arise for performance under 

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

funds are not made available for performance beyond [DATE], the carrier will receive notice in 

writing by the Department.

All claims for payment must be submitted within 60 days of the last day of service provided 

under this order.
Appendix D

SERVICE LIST

Air Sunshine, Inc. Jet Air, Daniel Wolford

Air Sunshine, Mirmohammad Adili Kenmore Air, Tim Brooks

Air West, Inc., John Raatz McCall Aviation and Salmon Air, Dan Scott

Air Wisconsin, Barbara Jones McCall Aviation, Michelle

Airline Associates, Bill Mishk Mesa Air Group, Jonathan Ornstein

Alaska Airlines, Jeff Cole Mesa Air Group, Michael Lotz

Alaska Airlines, Sandy Sinick Mesa Air Group, Mike Holcomb

Allegiant Air, Robert Ashscroft Mesaba, Max Shemesh

American Airlines, Carl Nelson Mesaba, John Spanjers

American Eagle, Jeff Hartz Midstar Airlines, Jeffrey Fonner

Atlantic Southeast, Jon Lindlief Midwest Airlines, Greg Aretakis

Atlantic Southeast, Roger Weston MN Aviation, Jose Maldonado

Bemidji Aviation, Arlen Rinkenberger Multi Aero, Darnea

Bemidji Aviation, Cori Rude Multi Aero, Shane Storz

Cape Air, Andrew Bonney Northwest, Tim McDonald

Cape Air, Dan Wolf NYDC, Henok Araya

Cape Air, J. Flaherty OST, Brian Swanson

Classic Aviation, Tony Henderson OST, Dennis DeVany

Colgan Air, Mike Colgan OST, Kevin Adams

CommutAir, Andy Price OST, Kevin Schlemmer

CommutAir, Joel Raymond OST, Michael Martin

Consultant, Robert Silverberg OST, Renee Williams

Continental, Bruce Keiner Pacific Wings, Frank Ford

Continental, Dan Weiss Pacific Wings, Greg Kahlstorf

Continental, Lorry Halloway Penn Air, Danny Seybert

Delta Air Lines Amy Martin Penn Air, Scott Bloomquist

Delta Air Lines, Jeff Morgan Pinnacle Airlines, Joe Williams

Delta Air Lines, Dan Shuman Pinnacle Airlines, Phil Reed

Delta Air Lines, Joe Esposito Public Charters, Jim Gallagher

Delta Air Lines, Sascha Vanderbellen Scenic, Mary Schneider

Delta Air Lines, Karen Zachary Scenic, Mitzi Daines

Dorado Jets Seaborne Airlines, Wayne D’Amico

Dorado Jets, Mark McKenna SeaPort Airlines. Jim Day

Era Aviation, Mike Lenorman SeaPort Airlines. Rob McKinney

Executive Airlines, Kate Soled Shuttle America, Jerry Balsano

Frontier Flying, Bob Hajducovich SkyWest, Eric Christensen

Gem Air, Dan Schroeder SkyWest, Michael Thompson

Gem Air, JoAnn Wolters Sovereign Air, Bob Karns

Great Lakes Airlines, Chuck Howell Sovereign Air, Lois R. Barton

Great Lakes Airlines, Doug Voss Tradewind, Eric Zipkin

Gulfstream, Dave Hackett Trans States, Fred Oxley

Gulfstream, Mickey Bowman Trans States, Gerry Wigmore

Gulfstream, T. Cooper United, Alicia Gabriel

Homeland Security, Bill Ragan United, James Starnes

Homeland Security, David Bernier US Airways, Benjamin Slocum

Homeland Security, Randy Webb US Airways, Howard Kass

Horizon Air, Dan Russo US Airways, Jason Reisinger

Horizon Air, Jennifer Thompson Warbelows Air Ventures, Art Warbelow

Horizon Air, Jeff Cole Wings Air (Air Greco), Aaron Goerlich

ICEPR, Luis Irizarry State of Montana, Debbie Alke

Intrepid Internatl Air, Rick Eyk State of Montana, Patty Kautz

Island Air Charters, Linda House EAS Taskforce, John Rabenberg