# Order 2012

- 6

- 8 Served: June 12, 2012



# UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12 th 

# of June, 2012

Essential Air Service at

LAKE MINCHUMINA AND RAMPART , ALASKA

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 200 8

- 0237 DOCKET DOT

- OST

- 2008

- 0201

ORDER REQUESTING PROPOSALS Summary By this Order , the Department is requesting proposals by July 9
, 201 2
, from carriers interested in providing Essential Air Service (EAS) at Lake Minchumina and Rampart , Alaska
, for a new contract period, beginning October 1 , 2012
, with or without subsidy.
Background By Order 2010

- 7

- 20
, July 27 , 2010, the Department selected Wright Air Service, Inc., to provide subsidized EAS to Lake Minchumina
, Alaska
, for the two

- year period ending September 30 , 201 2

. Under that Order , the Department authorized $93,080 annual subsidy for service consisting of two nonstop round trips per week to Fairbanks , one with a 4

- seat Cessna 206 and the other with a 9

- seat Cessna 208

. By Order 2010

- 7

- 10, July 15, 2010, the Department selected Warbelow’s Air Ventures, Inc., to provide su bsidized EAS to Rampart, Alaska, for the two

- year period ending September 30, 2012. Under that Order, the Department authorized $97,679 annual subsidy for service consisting of two nonstop round trips per week to Fairbanks with 9

- seat Piper Navajo aircraf t.
Request for Proposals As the end of the current rate term s approach, we will request proposals from carriers interested in providing service at Lake Minchumina and Rampart , with or without subsidy, for a new contract beginning October 1 , 2012

. Carriers should file their proposals by July 9
, 2012

. S taff will then docket the proposals, thereby making them public. Shortly afterwards, we will provide a summary of the proposals to the communities and S tate and as k them to

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-

submit 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 also be their final and only proposals. We retain the dis cretion to negotiate proposals with carriers when we deem it desirable. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and , if necessary, solicit a new round of proposals. However, we anticipate that negotiatio n or rejection will remain only occasional exceptions 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. We expect proposa ls 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 we ll 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 community and the Department. We do not anticipate any change in our selection criteria, or in the general provisions governing subsidy payments for Essential Air Service

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# With specific respect to Lake Minchumina and Rampart , we expect proposals consisting of a minimum of two nonstop or one

- stop round trips per week with small aircraft at each community

. Carriers may also propose different service for a typical two

- year contract for each community, so long as deplaned traffic , i.e., on the critical outbound leg
, can be reasonably acco mmodated. 3


# We encourage proposals that meet the communit ies ’ requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to the current service pattern if they envision other, potentially

1 

### Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide E ssential A ir S ervice without subsidy and we determine that service can be reliably provided without such compensation, we typically do not pro ceed with the carrier

- selection case. Instead, we simply rely on that carrier’s subsidy

- free service as proposed. 2 

### In selecting a carrier to provide subsidized E ssential A ir S ervice in Alaska , 49 U.S.C. 41733(c) (1) directs us to consider f ive factors. ( 1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; (3) interline arrangements with a larger carrier at the hub; (4) community views ; and (5) experience of the applicant in providing, in Alaska, scheduled air service or significant non

- scheduled air service. 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 co difying a factor that we have considered since the inception of the program. Interested carriers should also be aware that our general provisions governing Essential Air Service will be included in the selection Order as part of our authorization of subsi dy for the selected service. Appendix C of this Order contains those general provisions. 3 

### In Alaska, mail and freight deplaning at the EAS community makes up approximately 90 percent of mail and freight flowing in both directions. While passenger flows are generally symmetrical, the volume of mail and freight often dictates that more service be provided than a simple focus on the average in both directions would suggest.

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more attractive service possibilities

– different hubs, or longer terms for the contracted service

– with subsidy requir e ments that remain competitive.
We encourage carriers to work with the communit ies in advance of the due date for proposals when proposals can still be adjusted so that they can craft them to best meet the communit ies’ needs. As always, we will fully consider the community ’ s views before making a long

- term carrier

- selection decision.
Filing Format 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 www.regulations.gov , each page should be formatted to be viewed online.

Historical Traffic In order to assist carriers in making their traffic and revenue projections, we have included historical traffic for the communities in Appendix B

. For the year ended April 30 , 201 2 , the most re cent annual period for which we have data
, Lake Minchumina and Rampart generated an average of six and five d eplaned passenger equivalents per week , respectively

. 4


# Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workplaces
, and nondiscrimination. 5 

# Consequently, all carriers receiving Federal subsidy to support 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 prohibite d from paying subsidy to carriers that do not submit these documents, the selected carrier will be required to submit them in order to receive subsidy. Interested carriers requiring more detailed information regarding these requirements, as well as copies of the certifications, should contact the Office of Aviation Analysis at (202) 366

- 5903 . The Department is prohibited from paying subsidy to carriers that do not submit these documents.
Community Comments Civic officials and the State are welcome to sub mit comments on the proposals at any time. 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 July 9 , the due date for carrier proposals.

This Order is issued under authority delegated in 49 CFR 1.56a(f) and re

- delegated to the Directo r, Office of Aviation Analysis.

4 

### For payload purposes, 200 pounds of mail/freight is “equivalent” to one passenger

. 5 

### The certifications are available on the web at http://ostpxweb.dot.gov/aviation/index.html.

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ACCORDINGLY,
1. The Department requests proposals from carriers interested in providing E ssential A ir S ervice at Lake Minchumina and Rampart , Alaska

. Carriers should submit their proposals, with subsidy if necessary, by June 13
, 201 2

. Proposals should be emailed to EAS@dot.gov, with the title “Proposal to Provide Essential Air Service at Lake Minchumina , Docket 2008

- 0237, and /or Rampart , Alaska , DOT

- OST

- 200 8

- 0201

. ” Questions regarding filings may be directed to Kevin Adams at 202

- 366

- 1047 or Kevin.Adams@dot.gov ;

2

. Th ese D ocket s will remain open until further Order of the Department; and

3 . We will serve this Order on the s ervice l ist for th is Docket.
Persons entitled to petition the Department for review of this Order under the Department’s Regulations, 14 CFR 385.50, must file such petitions within ten (10) days after the date of service of this Order

.
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 on the World Wide Web at http://www.regulations.gov

# Appendix A

Nonstop Great Circle Miles from Fairbanks ( FAI ) Lake Minchumina ( LMA ) 148 Ramparts (RMP 82 Anchorage (ANC) 261 Minto (MNT) 50 Manley (MLY) 83 Stevens Village (SVS) 90 Central (CEM) 104Appendix B-1

Historical Traffic at Lake Minchumina (LMA), T-100 Market Report, Scheduled Service

Origin, Lake Minchumina Dest, Lake Minchumina O&D, Lake Minchumina

Passenger Equivalents (PEQ) Passenger Equivalents (PEQ) Passenger Equivalents (PEQ) Year Month Pax. Frt. Mail Total Pax. Frt. Mail Total Pax. Frt. Mail Total 2009 5 1 0.1 0.5 1.5 1 0.6 5.4 7.0 2 0.7 5.8 8.5 2009 6 5 0.6 1.5 7.1 5 2.3 8.3 15.7 10 2.9 9.8 22.7 2009 7 0 0.0 0.4 0.4 4 0.2 2.3 6.4 4 0.2 2.6 6.8 2009 8 1 0.1 0.9 2.0 4 7.3 10.2 21.5 5 7.5 11.1 23.5 2009 9 1 2.9 0.8 4.7 10 5.1 13.9 29.0 11 8.0 14.7 33.8 2009 10 4 1.0 0.3 5.3 3 0.7 10.9 14.6 7 1.6 11.2 19.9 2009 11 1 0.6 1.2 2.7 3 6.0 13.6 22.7 4 6.6 14.8 25.4 2009 12 1 0.2 0.5 1.7 1 3.9 12.0 17.0 2 4.1 12.5 18.6 2010 1 1 0.0 0.9 1.9 2 6.8 11.2 20.0 3 6.8 12.1 21.9 2010 2 0 0.0 0.6 0.6 2 2.1 7.0 11.2 2 2.1 7.6 11.7 2010 3 5 0.8 0.5 6.4 7 3.2 19.7 29.9 12 4.0 20.2 36.3 2010 4 0 0.1 0.5 0.7 2 1.5 3.0 6.5 2 1.6 3.6 7.1 YE 4/30/10 20 6.3 8.5 34.8 44 39.9 117.5 201.4 64 46.2 126.0 236.2

2010 5 1 0.0 0.4 1.4 2 0.6 1.3 3.8 3 0.6 1.7 5.3 2010 6 1 0.4 0.8 2.1 2 1.0 7.6 10.6 3 1.3 8.4 12.7 2010 7 1 0.0 0.5 1.5 3 1.1 4.8 8.9 4 1.1 5.3 10.4 2010 8 17 0.9 0.3 18.2 8 3.1 14.0 25.1 25 4.0 14.3 43.3 2010 9 2 0.4 0.3 2.7 2 4.2 6.9 13.1 4 4.6 7.2 15.8 2010 10 1 0.4 0.6 2.0 0 2.8 9.6 12.4 1 3.2 10.2 14.4 2010 11 0 0.0 0.9 0.9 2 7.5 5.4 14.9 2 7.5 6.4 15.9 2010 12 5 0.3 1.2 6.5 5 3.2 19.3 27.5 10 3.5 20.5 34.0 2011 1 7 0.2 0.6 7.8 8 0.5 16.7 25.3 15 0.7 17.3 33.1 2011 2 5 0.0 1.2 6.2 2 2.1 2.9 7.0 7 2.1 4.2 13.3 2011 3 7 0.7 0.3 8.0 4 1.1 19.2 24.2 11 1.7 19.5 32.2 2011 4 5 0.0 1.0 6.0 7 8.7 17.8 33.5 12 8.7 18.8 39.5 YE 4/30/11 52 3.2 8.2 63.3 45 35.9 125.5 206.4 97 39.1 133.6 269.7

2011 5 4 0.0 0.3 4.3 10 6.1 4.0 20.0 14 6.1 4.2 24.3 2011 6 12 0.2 0.6 12.9 11 6.5 6.0 23.5 23 6.8 6.7 36.4 2011 7 14 0.0 0.4 14.4 20 8.3 5.7 34.0 34 8.3 6.1 48.3 2011 8 8 0.3 0.5 8.8 12 8.9 8.9 29.8 20 9.2 9.4 38.6 2011 9 26 3.3 1.8 31.0 24 9.0 10.1 43.1 50 12.3 11.9 74.2 2011 10 9 0.0 1.1 10.2 9 7.1 11.2 27.4 18 7.1 12.4 37.5 2011 11 7 0.5 0.6 8.1 8 8.1 5.3 21.5 15 8.6 5.9 29.5 2011 12 1 0.0 1.2 2.2 3 4.4 15.0 22.3 4 4.4 16.1 24.5 2012 1 2 0.0 0.4 2.4 1 1.1 9.8 11.9 3 1.1 10.2 14.4 2012 2 1 0.6 0.6 2.2 3 2.5 8.7 14.1 4 3.1 9.3 16.3 2012 3 4 0.0 0.3 4.3 8 2.9 21.1 31.9 12 2.9 21.3 36.2 2012 4 10 0.3 0.5 10.8 7 0.9 10.4 18.2 17 1.2 10.9 29.1 YE 4/30/12 98 5.2 8.2 111.4 116 65.7 116.1 297.8 214 71.0 124.3 409.2

For payload purposes, 200 lbs. of mail or freight is one passenger equivalent (PEQ).Appendix B-2 Historical Traffic at Rampart (RMP), T-100 Market Report, Scheduled Service

Origin, Rampart Destination, Rampart O&D, Rampart

Year Month Pax. Frt. Mail Total Pax. Frt. Mail Total Pax. Frt. Mail Total 2009 5 9 0.0 13.8 22.9 16 6.9 3.4 26.3 25 6.9 17.3 49.2 2009 6 7 0.0 9.7 16.8 13 6.8 6.2 26.0 20 6.8 15.9 42.7 2009 7 14 0.6 0.1 14.7 15 10.1 3.3 28.4 29 10.7 3.4 43.1 2009 8 9 0.6 0.5 10.1 11 3.9 3.3 18.2 20 4.5 3.8 28.3 2009 9 10 0.1 1.0 11.1 11 3.2 3.2 17.4 21 3.3 4.2 28.5 2009 10 16 0.8 15.5 32.3 6 2.6 2.7 11.3 22 3.5 18.2 43.7 2009 11 10 0.4 17.6 28.0 10 5.3 2.0 17.3 20 5.7 19.6 45.3 2009 12 9 0.0 1.1 10.1 12 9.2 2.7 23.9 21 9.2 3.8 34.0 2010 1 7 0.0 0.5 7.5 7 2.5 3.1 12.7 14 2.6 3.6 20.1 2010 2 4 0.0 0.5 4.5 8 0.4 2.2 10.7 12 0.4 2.7 15.2 2010 3 20 0.0 0.3 20.3 17 5.2 1.3 23.5 37 5.2 1.6 43.8 2010 4 12 1.4 0.2 13.6 9 4.9 2.8 16.7 21 6.4 3.0 30.3 YE 4/30/10 127 4.0 60.9 191.9 135 61.1 36.3 232.5 262 65.1 97.2 424.3

2010 5 7 0.0 0.7 7.7 12 5.6 2.3 19.9 19 5.6 3.0 27.6 2010 6 13 0.6 0.1 13.7 17 5.8 4.0 26.8 30 6.4 4.1 40.5 2010 7 24 1.0 0.8 25.7 21 24.8 3.6 49.4 45 25.7 4.4 75.1 2010 8 13 0.8 0.6 14.4 10 5.8 3.7 19.5 23 6.6 4.3 33.9 2010 9 11 1.2 0.7 12.9 6 4.7 2.3 12.9 17 5.8 3.0 25.8 2010 10 8 0.2 0.9 9.1 8 7.7 1.3 17.1 16 8.0 2.2 26.2 2010 11 8 0.4 0.2 8.6 8 1.6 1.9 11.5 16 1.9 2.2 20.1 2010 12 9 0.1 0.4 9.5 9 7.2 1.1 17.3 18 7.3 1.5 26.8 2011 1 8 0.2 0.4 8.6 7 3.1 2.1 12.3 15 3.4 2.5 20.9 2011 2 2 5.1 0.6 7.7 5 7.1 3.3 15.4 7 12.1 3.9 23.1 2011 3 14 0.0 5.3 19.4 11 3.1 4.1 18.2 25 3.1 9.5 37.6 2011 4 19 0.0 0.3 19.3 19 4.4 1.3 24.7 38 4.4 1.5 44.0 YE 4/30/11 136 9.5 11.1 156.6 133 80.9 31.0 244.8 269 90.4 42.0 401.4

2011 5 8 0.1 0.5 8.6 15 1.8 3.4 20.2 23 1.9 3.9 28.8 2011 6 15 0.2 0.3 15.5 15 9.0 3.6 27.6 30 9.1 3.9 43.1 2011 7 11 1.4 1.5 14.0 14 9.9 4.5 28.4 25 11.3 6.0 42.3 2011 8 7 0.3 1.3 8.5 7 4.8 2.6 14.4 14 5.1 3.9 22.9 2011 9 11 0.8 0.5 12.3 9 5.2 2.3 16.5 20 6.0 2.8 28.8 2011 10 11 0.0 0.5 11.5 13 2.4 2.2 17.6 24 2.4 2.7 29.1 2011 11 13 0.0 0.7 13.7 11 4.8 2.3 18.1 24 4.8 3.0 31.8 2011 12 6 0.0 0.3 6.3 10 10.5 2.9 23.4 16 10.5 3.2 29.7 2012 1 8 0.2 0.7 8.9 6 3.6 3.0 12.6 14 3.8 3.7 21.5 2012 2 14 0.9 0.7 15.6 12 4.7 2.9 19.6 26 5.6 3.5 35.1 2012 3 20 0.6 0.8 21.4 15 7.6 2.4 25.0 35 8.3 3.1 46.4 2012 4 16 0.3 0.5 16.8 23 4.9 0.7 28.6 39 5.2 1.2 45.4 YE 4/30/12 140 4.7 8.3 152.9 150 69.2 32.7 251.9 290 73.9 41.0 404.8

For payload purposes, 200 lbs. of mail or freight is one passenger equivalent (PEQ).

# 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 co mpleted, 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 writt en 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 oper ated; 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 me t 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 locati on 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 pa ragraph.
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 paym ent 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 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.