Order: 2014-11-7

Served: November 7, 2014

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 7th day of November 2014

Essential Air Service at

ESCANABA, MICHIGAN DOT-OST-2003-15128

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

ORDER SELECTING AIR CARRIER

Summary

By this Order, the Department is selecting SkyWest Airlines, operating as Delta 

Connection (SkyWest), to provide 12 nonstop round trips per week from Escanaba, 

Michigan to Detroit Metropolitan Wayne County Airport (DTW) using 50-passenger 

Canadair Regional Jet (CRJ200) aircraft from January 1, 2015, through 

December 31, 2016, for an annual subsidy of $3,507,011.1

Background

By Order 2012-4-10 (April 6, 2012), the Department selected Delta Air Lines, Inc. (Delta) 

to provide 12 nonstop round trips per week to DTW using CRJ200 aircraft for a two year 

period ending December 31, 2014, for an annual subsidy of $2,833,558.

As the end of the contract was approaching, the Department issued Order 2014-6-14 

(June 24, 2014) requesting proposals from air carriers interested in providing EAS at 

Escanaba for a new contract term. In response to that Order, we received proposals from 

Charter Air Transport and SkyWest.

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.
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Each carrier’s complete proposal and community comments may be accessed online at 

www.regulations.gov by entering Docket number DOT-OST-2003-15128 in the search 

block.

Proposal of Charter Air Transport

Charter Air Transport submitted a proposal for a two-year term to provide 12 nonstop 

round trips per week to DTW using 30-passenger Embraer EMB120 aircraft for an annual 

subsidy of $2,833,558.

Proposal of SkyWest

SkyWest submitted a proposal for a two-year term to provide 12 nonstop round trips per 

week to DTW using CRJ200 aircraft for an annual subsidy of $3,507,011. SkyWest will 

operate the service as Delta Connection.2

Community Comments

On July 29, 2014, we requested comments from Escanaba regarding this EAS air carrierselection case. In response, we received letters from the City of Escanaba and Delta 

County Airport supporting the proposal put forth by SkyWest. Both entities state that 

SkyWest’s proposal “will maintain the consistency and continuity needed to increase the 

already established frequent flyer loyalty in our community.” In addition, the City and 

Airport both mention the superior on-time performance and customer service provided by 

SkyWest as further reasons for supporting the airline’s proposal.

Decision

After carefully reviewing each air carrier’s proposal and taking into account community 

feedback, the Department has decided to select SkyWest for a new, two-year term. We 

base our decision on the five factors 49 U.S.C. § 41733(c)(1) directs us to consider: 1)

service reliability; 2) contractual and marketing arrangements with a larger carrier at the 

hub; 3) interline agreements with a larger carrier at the hub; 4) community views, giving 

substantial weight to the views of the elected officials representing the users; 5) whether 

the carrier has included a plan in its proposal to market its service to the community. 

First, SkyWest has a proven record of providing reliable EAS at Escanaba, as well as 

several EAS communities. Since SkyWest’s service would operate as Delta Connection it 

will provide passengers access to Delta’s global network. In addition, SkyWest’s service 

to DTW, a large hub airport and the second largest hub for Delta, will provide customers 

with seamless connections to the national air transportation system. Furthermore, 

SkyWest has unanimous community support, a key carrier-selection criterion. While 

SkyWest did not include in their proposal a plan to market their service, neither did 

Charter Air Transport. Moreover, Charter Air Transport does not currently have the 

 2 The SkyWest proposal reflects a change from the previous Order in that SkyWest will be responsible for 

this service, rather than Delta, but will operate as Delta Connection, thus providing the community with 

virtually the same service it has been receiving under the previous contract.
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requisite authority from the Department of Transportation’s Economic Fitness Division to 

operate its proposed service.3

The Department shall make this selection of SkyWest at Escanaba contingent upon the 

Department’s receipt of 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.

4

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 requires that the Department find an air carrier fit, 

willing, and able to provide reliable service before we may subsidize it to provide EAS. 

SkyWest is subject to the Department’s continuing fitness requirements, and no 

information has come to our attention that would cause us to question the air carrier’s 

fitness at this time. The Federal Aviation Administration has been contacted, and it has 

raised no concerns that would negatively affect our fitness findings. The Department

therefore concludes that SkyWest is reliable and fit to conduct the operations proposed 

here.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b).

ACCORDINGLY,

1. We select SkyWest Airlines to provide Essential Air Service at Escanaba, Michigan and 

establish the annual subsidy rates as described in Appendix C;

2. The Department directs SkyWest Airlines 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 carriers may forfeit their compensation for any claim that is not 

supported under the terms of this Order;

 3 See Order 2011-4-11 (April 8, 2011) issuing effective commuter authority to Charter Air Transport. 4 The certifications are available online under “Reports and Publications” at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service
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3. We find that SkyWest Airlines is fit, willing and able to operate as a certificated air 

carrier, and capable of providing reliable Essential Air Service at Escanaba, Michigan;

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

5. The Department will serve a copy of this Order on the mayor of Escanaba, Michigan; 

the airport manager of Delta County Airport; SkyWest Airlines; and Charter Air Transport.

By:

BRANDON M. BELFORD

Deputy Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

www.regulations.gov
Appendix A

AREA MAP

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

 
 Appendix B

SkyWest Proposal at Escanaba, Michigan
Appendix C

SkyWest Airlines

Essential Air Service to be Provided at Escanaba, Michigan

DOT-OST-2003-15128

Annual Subsidy: $3,507,011

Contract Term: January 1, 2015, through December 31, 2016

Scheduled Service: 12 nonstop round trips per week

Hub: Detroit Metropolitan Wayne County Airport (DTW)

Aircraft: CRJ200

Rate per Flight:1 $2,868

Weekly Ceiling:2 $68,832

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 available for performance under this Order beyond December 11, 2014. The Government’s obligation for 

performance under this Order beyond December 11, 2014, 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 December 11, 2014, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond December 11, 2014, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the 

month for which compensation is being claimed. For example, claims for service provided in July must be filed by 

October 31; August claims must be submitted by November 30, and so on.

 1 Annual compensation of $3,507,011 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion)

2 24 arrivals and departures per week multiplied by $2,868 per flight