### 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

o n the 22 nd day of February

, 20 1 3

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 th is O rder, the Department is re

- selecting H yannis 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 Airpor t (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.- 2

-

As the end of the contract was approaching, we issued Order 2012

- 10

- 25,

October 26, 2012 , requesting proposals from air carriers interested i n 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 two

year 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

- s election of Cape Air for a two

- year term. Supervisor Gr ay 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 acce de to the communi ty
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 regu lations 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 befor e 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 Fed eral 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

.- 3

-

ACCORDINGLY,

1. We re

- select Hyannis Air Service, Inc. d/b/a Cape Air to provide Essential Air S ervice

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 f i nd that Hyannis Air Service, Inc. d/b/a Cape Air is fit, willing and able to operate

as a commuter air carrie r
, and capable of providing reliable Essential Air S ervice 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.

B y:

SUSAN L. KURLAND Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is ava ilable at http://www.regulations.govAppendix A



## AREA MAP

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.Appendix BAppendix 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

- passen ger Cessna 402 aircraft Rate per Eligible Flight: $ 9 87 1
Weekly Ceiling for each community : $ 4 1,454 2

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 signif icant 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 th at 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 per iod, 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 a nd 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 ca n 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 th e 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 require ment 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.

Fun ds 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 mad e. 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 A nnual compensation of $2,090, 949 divide d by 2,119 annual departures (42 wee kly departures x 52 weeks x 97 percent completion)

. 2 42 arrivals and depart ures per week multiplied by $987 per flight

.