Order 2010-11-17

Served: November 17, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

 on the 17th day of November, 2010

Essential Air Service at

KINGMAN, ARIZONA

PAGE, ARIZONA

PRESCOTT, ARIZONA

SHOW LOW, ARIZONA

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

DOCKET DOT-OST-1996-1899

DOCKET DOT-OST-1997-2694

DOCKET DOT-OST-1996-1899

DOCKET DOT-OST-1998-4409

 

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is requesting proposals from airlines interested in providing 

essential air service (EAS) at Kingman, Page, Prescott, and Show Low, Arizona, for the twoyear period beginning May 1, 2011, with or without subsidy. Proposals are due by

December 21, 2010. (See Appendix A for a map.)

Background

Great Lakes Aviation Ltd. (Great Lakes) serves all four communities under two different 

contracts. After Air Midwest, the then-incumbent carrier at Kingman and Prescott, ceased all 

operations on June 1, 2008, by Order 2008-6-11, June 10, 2008, the Department selected Great 

Lakes to provide EAS at both communities for two years. Great Lakes started service at 

Prescott in September 2008, and Kingman in April 2009. As a result, their current contract 

ends April 30, 2011, the same date the contracts for Page and Show Low expire. For Kingman, 

that order established an annual subsidy rate of $1,275,771 for service consisting of 12 nonstop

round trips a week to Las Vegas. At Prescott, the order established an annual subsidy rate of 

$1,622,719 for 18 nonstop round trips per week to Phoenix or Las Vegas. By 

Order 2008-8-12, August 13, 2008, the Department approved a request by Great Lakes and the 

community for an alternate service pattern at Prescott, with service to Ontario, California. 
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By Order 2009-8-5, August 10, 2009, the Department selected Great Lakes to provide EAS at 

Page and Show Low for the period from October 1, 2009, through April 30, 2011. For Page, 

that order established an annual subsidy of $1,995,273 for 19 nonstop or one-stop round trips

per week to Phoenix, and Denver or Las Vegas. At Show Low, the order established an annual 

subsidy of $1,407,255 for 19 nonstop round trips per week to Phoenix.

Request for Proposals 

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

interested in providing service at Kingman, Page, Prescott, and/or Show Low, with or without 

subsidy support, for the two-year period beginning May 1, 2011. Carriers should file their 

proposals no later than December 21. After that date, our staff will 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. 

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

proposals will also be their final and only proposals. We retain the discretion to negotiate 

proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and solicit a new round of proposals.

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 

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 community and the Department.1

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In 

order to assist carriers in developing traffic and revenue projections for their proposals, we 

have provided a summary of historical passengers in Appendix B. We expect service levels

that are consistent with what the communities currently receive, with service to Phoenix, Las 

Vegas, Denver, or any hub that offers access to the national air transportation system utilizing 

15-seat or larger aircraft. With specific respect to Kingman, the Department expects proposals 

for two round trips each weekday and weekend (12 a week) and for Page, Prescott, and Show 

Low, we expect proposals for three round trips each day (18 a week). We would also entertain 

proposals with 8/9-seat aircraft and an additional frequency. Should the communities agree to 

aircraft with fewer than 15 passenger seats, in effect waiving their right to 15-seat or larger 

aircraft, we would consider the waiver to apply only to the two-year carrier-selection at hand, 

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

four 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; and (4) community views. 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. Interested carriers should also be aware that our general 

provisions governing EAS will be included in the selection order as part of our authorization of subsidy for the 

selected service. Appendix C of this order contains those general provisions.
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i.e. we would not assume that the communities’ views on any service options we receive before 

making a long-term carrier selection decision. Carriers are also welcome to propose more than 

one option, if they choose; they need not limit themselves to those requirements if they 

envision other, potentially more attractive service possibilities -- different hubs, frequency or 

equipment, for example -- with subsidy requirements that remain competitive. 

The communities and air carriers are encouraged to work together in advance of the due date 

for proposals to craft a service pattern that is desirable to the community and meets the 

operational needs of the airlines. In addition, carriers should be very clear as to whether a 

specific community’s proposal is on a stand-alone basis, or whether it is part of a larger, 

inseparable package with other communities.

Special discussion concerning Kingman 

Based on the most recent 12-month period for which data are available (October 1, 2009, 

through September 30, 2010), 2,027 passengers were enplaned and deplaned at Kingman. The 

annual subsidy amount for Kingman is $1,275,771. Therefore, the subsidy per passenger at 

Kingman is $629. While we are aware that Kingman suffered a nine-month service hiatus, the 

Department is prohibited from subsidizing air service at a community where the subsidy per 

passenger exceeds $200, unless the community is more than 210 highway miles from the 

nearest large or medium hub airport.2

 

 Kingman exceeds the $200 per passenger cap and is 121

miles from Las Vegas McCarren Airport. Rather than terminate the community’s eligibility, at 

this stage, the Department will solicit proposals for EAS, and evaluate all proposals submitted 

before committing to a two-year contract or making a final determination on Kingman’s 

continuing eligibility. During the 30-day window for proposals, we expect both communities 

to work aggressively with all potential applicants to mitigate some of the risks that the carriers 

may face in an attempt to lower their subsidy levels.

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.3

 2 Congress first established the $200 ceiling under P.L. 101-164 for fiscal year 1990, and reestablished it in fiscal 

years 1994-1999. The ceiling was made permanent by P.L. 106-69, the Department of Transportation and Related 

Agencies Appropriations Act of 2000.

 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. All carriers that plan 

3 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants).
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to submit proposals involving subsidy should submit the required certifications along with their 

proposals. 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.4

Community and State Comments 

Civic officials are welcome to submit 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 December 21, the due date for carrier proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY, 

1. We request that carriers interested in providing essential air service at Kingman, Page,

Prescott, and Show Low, Arizona, submit their proposals, with or without subsidy requests, no 

later than December 21, 2010. The proposals should be emailed to: EAS@dot.gov with the 

title “Proposal to Provide Essential Air Service at Kingman, Page, Prescott, and/or Show Low, 

Arizona”;5

2. These dockets will remain open until further order of the Department; and

3. The Department will serve a copy of this order on the mayors and airport managers of 

Kingman, Page, Prescott, Show Low, Great Lakes Aviation, Ltd. (Great Lakes), and 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.

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 online at

www.regulations.gov

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

5 Questions regarding filings in response to this order should be directed to Michael Martin at 202-366-6494, or 

via email at michael.f.martin@dot.gov.
Appendix A

Area Map
APPENDIX B

Page 1 of 4

Historical Origin-Destination Plane Traffic1

Kingman, Arizona2

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day3

4 2006 602 606 1,208 8

1 2007 444 460 904 6

2 2007 572 554 1,126 7

3 2007 574 552 1,126 7

Annual 

Totals 2,192 2,172 4,364 7

4 2007 775 554 1,329 8

1 2008 694 552 1,246 8

2 2008 528 865 1,393 9

3 2008 0 0 0 0

Annual 

Totals 1,997 1,971 3,968 6

4 2008 0 0 0 0

1 2009 0 0 0 0

2 2009 240 182 422 3

3 2009 388 343 731 5

Annual 

Totals 628 525 1,153 2

4 2009 433 334 767 5

1 2010 235 268 503 3

2 2010 248 190 438 3

3 2010 146 173 319 2

Annual 

Totals 1,062 965 2,027 3

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100. 2 Kingman received no air service from June 1, 2008 through April 7, 2009. 

3 Average daily enplanements are calculated by dividing total enplanements and deplanements by 77,78, 79, and 79 

service days, for the first quarter, second quarter, third quarter, and fourth quarter, respectively, then by 2. Average 

annual daily enplanements are calculated by diving the total enplanements and deplanements by 2, then by 313.
APPENDIX B

Page 2 of 4

Historical Origin-Destination Plane Traffic1

Page, Arizona

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per day2

4 2006 1,268 1,316 2,584 16

1 2007 782 803 1,585 10

2 2007 1,639 1,448 3,087 20

3 2007 1,988 1,906 3,894 25

Annual 

Totals 5,677 5,473 11,150 18

4 2007 1,076 1,142 2,218 14

1 2008 883 831 1,714 11

2 2008 1,672 1,526 3,198 21

3 2008 1,956 1,919 3,875 25

Annual 

Totals 5,587 5,418 11,005 18

4 2008 958 1,007 1,965 12

1 2009 715 711 1,426 9

2 2009 1,361 1,215 2,576 17

3 2009 1,841 1,695 3,536 22

Annual 

Totals 4,875 4,628 9,503 15

4 2009 1,072 1,086 2,158 14

1 2010 868 802 1,670 11

2 2010 1,790 1,627 3,417 22

3 2010 2,248 2,172 4,420 28

Annual 

Totals 5,978 5,687 11,665 19

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100. 2 Average daily enplanements are calculated by dividing total enplanements and deplanements by 77,78, 79, and 79 

service days, for the first quarter, second quarter, third quarter, and fourth quarter, respectively, then by 2. Average 

annual daily enplanements are calculated by diving the total enplanements and deplanements by 2, then by 313.
APPENDIX B

Page 3 of 4

Historical Origin-Destination Plane Traffic1

Prescott, Arizona2

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per day3

4 2006 915 1,081 1,996 13

1 2007 682 634 1,316 9

2 2007 698 701 1,399 9

3 2007 615 619 1,234 8

Annual 

Totals 2,910 3,035 5,945 9

4 2007 1,697 1,998 3,695 23

1 2008 1,130 1,266 2,396 16

2 2008 775 844 1,619 10

3 2008 566 595 1,161 7

Annual 

Totals 4,168 4,703 8,871 14

4 2008 2,933 2,990 5,923 37

1 2009 2,132 2,123 4,255 28

2 2009 2,918 2,920 5,838 37

3 2009 3,239 3,217 6,456 41

Annual 

Totals 11,222 11,250 22,472 36

4 2009 3,324 3,388 6,712 42

1 2010 2,026 1,910 3,936 26

2 2010 2,486 2,484 4,970 32

3 2010 1,742 1,719 3,461 22

Annual 

Totals 9,578 9,501 19,079 30

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100. 2 Prescott received no service from an EAS carrier from June 1, 2008 – September 7, 2008. Prescott continued to 

receive non-subsidized EAS service from Horizon Air during this period and the numbers above reflect that traffic.

3 Average daily enplanements are calculated by dividing total enplanements and deplanements by 77,78, 79, and 79 

service days, for the first quarter, second quarter, third quarter, and fourth quarter, respectively, then by 2. Average 

annual daily enplanements are calculated by diving the total enplanements and deplanements by 2, then by 313.
APPENDIX B

Page 4 of 4

Historical Origin-Destination Plane Traffic1

Show Low, Arizona

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per day2

4 2006 1,219 1,219 2,438 15

1 2007 932 1,057 1,989 13

2 2007 1,585 1,680 3,265 21

3 2007 2,100 2,163 4,263 27

Annual 

Totals 5,836 6,119 11,955 19

4 2007 1,474 1,540 3,014 19

1 2008 914 1,020 1,934 13

2 2008 1,220 1,373 2,593 17

3 2008 1,743 1,813 3,556 23

Annual 

Totals 5,351 5,746 11,097 18

4 2008 1,085 1,118 2,203 14

1 2009 672 784 1,456 9

2 2009 833 863 1,696 11

3 2009 1,140 1,201 2,341 15

Annual 

Totals 3,730 3,966 7,696 12

4 2009 797 796 1,593 10

1 2010 508 584 1,092 7

2 2010 742 797 1,539 10

3 2010 654 742 1,396 9

Annual 

Totals 2,701 2,919 5,620 9

 1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100. 2 Average daily enplanements are calculated by dividing total enplanements and deplanements by 77,78, 79, and 79 

service days, for the first quarter, second quarter, third quarter, and fourth quarter, respectively, then by 2. Average 

annual daily enplanements are calculated by diving the total enplanements and deplanements by 2, then by 313.
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 December 3, 

2010. The Department’s obligation for performance under this solicitation beyond December 3, 

2010, is contingent upon the availability of appropriated 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 3, 2010, until funds are made available to the 

Department for performance. If funds are not made available for performance beyond 

December 3, 2010, 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

Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Greco/Wings Air

Air Sunshine, Inc.

Air Sunshine, Mirmohammad Adili

Air Wisconsin, Annette Daly 

Air Wisconsin, Jim Rankin

Airline Associates, Bill Mishk

Alaska Airlines, Jeff Cole

Alaska Airlines, Sandy Sinick

Allegiant Air, Brian Davis

American Airlines, Carl Nelson

American Eagle, Jeffrey Hartz

Bemidji Aviation, Cori Rude 

Bemidji Aviation, Arlen Rinkenberger

Cape Air, Andrew Bonney 

Cape Air, Dan Wolf 

Cape Air, J.Flaherty

Colgan Air, Kevin Scott

Colgan Air, Mike Colgan 

CommutAir, Andy Price

CommutAir, Joel Raymond

Consultant, Robert Silverberg

Continental, Bruce Keiner

Continental, Dan Weiss

Continental, Lorry Halloway

Delta, Anthony Canitano

Delta, Dan Shuman

Delta, Jeff Morgan 

Delta, Joe Esposito 

Delta, Karen Zachary 

Delta, Kristal Murphy

Delta, Sascha Vanderbellen

DHS, Bill Ragan

DHS, David Bernier

Era Aviation, Mike Lenorman

Executive Airlines, Kate Soled

Frontier Flying, Bob Hajducovich

GemAir/Salmon Air, Dan Schroeder

GemAir/Salmon Air, JoAnn Wolters

Great Lakes, Chuck Howell

Great Lakes, Doug Voss 

Great Lakes, Greg Stephens

Gulfstream, Dave Hackett

Gulfstream, Mickey Bowman

Gulfstream, T. Cooper 

Horizon Air, Dan Russo

Horizon Air, Jennifer Thompson

Horizon Air, Mike McQueen

Horizon, Jeff Cole

ICEPR, Luis Irizarry

Intrepid Interntl Air, Rick Eyk

Island Air Charters, Linda House

Jet Air, Daniel Wolford

Kenmore Air, Tim Brooks 

Mesa Air, Michael Lotz 

Mesaba, John Spanjers

Mesaba, Max Shemesh 

Midwest Airlines, Greg Aretakis

MN Aviation, Jose Maldonado 

Multi Aero, Darnea

Multi Aero, Shane Storz

Northwest Airlines, Aaron Murray

Northwest, Tim McDonald 

NYDC, Henok Araya

OST, Brian Swanson

OST, Dennis DeVany

OST, Kevin Adams

OST, Kevin Schlemmer

OST, Michael Martin

OST, Renee Williams

Pacific Wings, Greg Kahlstorf

PenAir, Danny Seybert

PenAir, Scott Bloomquist

Pinnacle Airlines, Joe Williams 

Pinnacle Airlines, Phil Reed

Planemasters, Inc., John Kessler

Planemasters, Inc., Paul Berliner

Planemasters, Inc., Todd DeSimone

Public Charters, Jim Gallagher

Scenic, Mary Schneider

Scenic, Mitzi Daines

SeaPort/Wings of Alaska, Jim Day 

SeaPort/Wings of Alaska, Nate Vallier

Seaport/Wings of Alaska, Rob McKinney

Shuttle America, Jerry Balsano 

SkyWest, Eric Christensen

SkyWest, Michael Thompson

SkyWest, Steve Hart

Sovereign Air, Bob Karns

Sovereign Air, Lois R. Barton

Tradewind, Eric Zipkin 

Trans States, Fred Oxley

Trans States, Gerry Wigmore

United, Alicia Gabriel

United, James Starnes

US Airways, Benjamin Slocum

US Airways, Howard Kass

US Airways, Jason Reisinger

Warbelows Air Ventures, Art Warbelow