Order: 2013-2-21

 Served: February 22, 2013 

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22nd day of February, 2013

Essential Air Service at

MASSENA, NEW YORK DOCKET DOT-OST-2012-0163

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

ORDER RE-SELECTING AIR CARRIER

Summary

By this Order, the Department is re-selecting Hyannis Air Service, Inc. d/b/a Cape Air 

(Cape Air) to provide Essential Air Service (EAS) at Massena, New York, for an annual 

subsidy of $2,090,949.1 Cape Air will provide three daily one-stop round trips to Boston

Logan International Airport (Boston) via Albany International Airport (Albany) using 9-

passenger Cessna 402 aircraft for a two-year term beginning April 1, 2013, through 

March 30, 2015.

Background

By Order 2011-1-6, January 7, 2011, the Department re-selected Cape Air to provide EAS 

at Massena for the two-year term ending March 31, 3013, for an annual subsidy rate of 

$1,708,911.2

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.

2 Massena has traditionally been packaged with Ogdensburg and Watertown, New York. Cape Air was 

selected to provide EAS at Ogdensburg for a four-year term ending April 30, 2015. See Order 2011-1-6. 

American Eagle Airlines, a wholly owned subsidiary of AMR Corporation, was selected in a separate order to 

provide EAS at Watertown for a two-year term ending November 30, 2013. See Order 2011-3-34.
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As the end of the contract was approaching, we issued Order 2012-10-25, 

October 26, 2012, requesting proposals from air carriers interested in providing EAS at the 

community for a new term. In response to that Order, we received only one proposal from 

the incumbent, Cape Air.

The airline’s complete proposal and the community’s comments may be accessed online at 

www.regulations.gov by entering DOT-OST-2012-0163 in the search block. 

Proposal of Cape Air

Cape Air proposes status-quo service of three daily one-stop round trips to Boston via 

Albany on 9-passenger Cessna 402 aircraft for an annual subsidy of $2,090,949 for a twoyear term, or an annual subsidy of $2,039,094 for a four-year term.

Community Comments

Mr. Joseph D. Gray, Town Supervisor for Massena, expressed support for re-selection of 

Cape Air for a two-year term. Supervisor Gray writes, “For the past four years, Cape Air 

has provided reliable, affordable service to air travelers from the greater Massena area...”, 

adding, “...ridership has soared and we are very pleased with the dramatic rise in 

enplanements.”

Decision

The decision to re-select Cape Air is very straightforward. Cape Air is the only air carrier 

to submit a proposal for EAS at Massena, and the community fully supports their proposal. 

As between Cape Air’s two- or four-year proposal, we will accede to the community 

wishes for a two-year term.

We shall make this selection of Cape Air at Massena contingent upon the Department’s 

receiving properly executed certifications from the air carrier that it is in compliance with 

the Department’s regulations regarding drug-free workplaces and nondiscrimination, as 

well as the regulations concerning lobbying activities.3

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide EAS. Cape Air is subject to 

the Department’s continuing fitness requirements, and no information has come to our 

attention that would cause us to questions the air carrier’s fitness at this time. We have 

contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness findings. We therefore conclude that Cape Air is reliable and 

fit to conduct the operations proposed here.

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

 3 The certifications are available on the Web at http://ostpxweb.dot.gov/aviation/index.html.
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ACCORDINGLY,

1. We re-select Hyannis Air Service, Inc. d/b/a Cape Air to provide Essential Air Service 

at Massena, New York, and establish an annual subsidy rate as described in Appendix C;

2. We direct Hyannis Air Service, Inc. d/b/a Cape Air to retain all books, records, and 

other source and summary documentation to support claims for payment, and to preserve 

and maintain such documentation in a manner that readily permits its audit and 

examination by representatives of the Department. Such documentation shall be retained 

for seven years from the service date of this Order or until the Department indicates that the 

records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or 

disposed of must be retained. The carrier may forfeit its compensation for any claim that is 

not supported under the terms of this Order;

3. We find that Hyannis Air Service, Inc. d/b/a Cape Air is fit, willing and able to operate 

as a commuter air carrier, and capable of providing reliable Essential Air Service at 

Massena, New York;

4. This docket will remain open pending further Department action; and

5. We will serve copies of this Order on the Mayor, Town Supervisor, and Airport 

Manager of Massena, New York, and Hyannis Air Service, Inc. d/b/a Cape Air.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

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

 
 Appendix B
 Appendix C

Hyannis Air Service, Inc. d/b/a Cape Air

Essential Air Service to be Provided at Massena, New York

Effective Period: April 1, 2013, through March 31, 2015

Scheduled Service: Three daily one-stop round trips (21 a week) to Boston via Albany

Aircraft: 9-passenger Cessna 402 aircraft

Rate per Eligible Flight: $9871

Weekly Ceiling for each community: $41,4542

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 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 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 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 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 may not be currently available for performance under this order beyond March 27, 2013. The Government’s 

obligation for performance under this order beyond March 27, 2013 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 March 27, 2013, until funds are made available to the Department for performance. If 

funds are not made available for performance beyond March 27, 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 $2,090,949 divided by 2,119 annual departures (42 weekly departures x 52 weeks x 97

percent completion). 2 42 arrivals and departures per week multiplied by $987 per flight.