Order: 2010-3-27

Served: March 25, 2010

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation

on the 22nd of March, 2010

Essential Air Service at

PLATTSBURGH, NEW YORK

SARANAC LAKE/LAKE PLACID, NEW YORK

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

Docket DOT-OST-2003-14783

Docket DOT-OST-2000-8025

ORDER SELECTING CARRIERS AND ESTABLISHING SUBSIDY RATES

Summary

By this order, the Department is selecting: (a) Colgan Air, Inc. (Colgan Air), operating as 

US Airways Express, to provide subsidized essential air service (EAS) at Plattsburgh, New York, 

utilizing 34-seat Saab 340 aircraft, for a two-year term beginning when the carrier inaugurates 

full service, at an annual subsidy rate of $2,117,101; and (b) Hyannis Air Service, Inc., d/b/a 

Cape Air (Cape Air), to provide subsidized EAS at Saranac Lake/Lake Placid, New York, for a 

four-year term beginning March 1, 2010, with 9-seat Cessna 402s, at an annual subsidy rate of

$1,366,5381. (See Appendix A for a map.)

Background 

By Order 2008-1-12, January 16, 2008, the Department selected Cape Air to provide subsidized 

EAS at Plattsburgh and Saranac Lake/Lake Placid through February 28, 2010. Under that order, 

Cape Air provides each community with three daily nonstop round trips to Boston with 9-seat 

Cessna 402 aircraft at annual subsidy rates of $1,379,257 for Plattsburgh, and $1,431,875 for 

Saranac Lake/Lake Placid.

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
- 2 -

In anticipation of the end of the rate term, the Department issued Order 2009-9-9 on 

September 15, 2010, soliciting proposals to provide efficient EAS, with or without subsidy 

support if necessary, at Plattsburgh and Saranac Lake/Lake Placid.

Based on historical service levels, we stated in Order 2009-9-9 that we would entertain proposals 

that were consistent with what the communities were currently receiving (three daily round trips 

with nine-seat aircraft). We noted that EAS at the communities calls for service with 15-seat 

aircraft; however, during the current two-year contract, the communities approved the service 

with nine-seat aircraft and the service has been highly successful. Carriers were encouraged to 

propose more than one service option if they chose and were not limited to those requirements if 

they envisioned other, potentially more attractive possibilities -- different hubs or longer-term 

contracts, for example -- with subsidy requirements that remained competitive. In response to 

Order 2009-9-9, we received proposals from Cape Air, Colgan Air and Charter Air Transport, 

Inc. (Charter Air) for service at both communities.

Plattsburgh supported Colgan; however, Colgan’s only proposal was an inseparable package also 

proposing service at Saranac Lake/Lake Placid, which supported Cape Air. In order to accede to 

each community's wishes, the Department issued a request for a second round of proposals by 

Order 2009-12-24, on December 28, 2009, while keeping all the original EAS service options on 

the table for consideration. Specifically, we requested stand-alone Plattsburgh proposals. As 

expected, we received several addition proposals for Plattsburgh but no new proposals for 

Saranac Lake/Lake Placid.

Proposals 

In response to Orders 2009-9-9 and Order 2009-12-24, the Department received proposals from 

the three carriers identified above. The service options proposed by each carrier in response to 

both rounds of requests for proposals are summarized below. Copies of the proposals, additional 

information, and the community comments that have been submitted may also be accessed 

online through the Federal Docket Management System at: http://www.regulations.gov, by doing 

a simple search on Dockets DOT-OST-2003-14783 (Plattsburgh) or DOT-OST-2000-8025 

(Saranac Lake/Lake Placid).

Cape Air 

As summarized in the table below, Cape Air submitted proposals with various service options, 

all utilizing 9-passenger seat Cessna 402 aircraft, with service to Boston Logan. Cape Air also 

expects to provide enhanced seamless connectivity to JetBlue Airways, Inc. service at Boston 

Logan towards the end of the first quarter of 2010. JetBlue submitted a letter affirming Cape 

Air’s statement in this regard.

Level of Service/

Service Options

Annual Subsidy Requirements

Two-Year Contract Four-Year Contract

Plattsburgh Saranac Lake/

Lake Placid Plattsburgh Saranac Lake/Lake Placid

1st Round of Proposals (in response to Order 2009-9-9)

3 daily round trips (year round) $1.329M $1.388M $1.309M $1.367M

4 daily round trips (June – September)

3 daily round trips (October – May) $1.459M $1.521M $1.437M $1.497M
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Level of Service/

Service Options

Annual Subsidy Requirements

Two-Year Contract Four-Year Contract

Plattsburgh Saranac Lake/

Lake Placid Plattsburgh Saranac Lake/Lake Placid

2nd Round of Proposals (in response to Order 2009-12-24)

3 daily round trips (year round) $1.334M

4 daily round trips (June – September)

3 daily round trips (October – May) $1.463M

In response to Order 2009-9-9, Cape Air also proposed additional service between Plattsburgh 

and Albany; however, this is above and beyond the level of service requested and therefore will 

not be considered by the Department.

Charter Air

In response to Order 2009-9-9, Charter Air submitted five service options, utilizing either 19- or 

30-seat aircraft. Subsequently (and in response to Order 2009-12-24), the carrier revised its 

annual subsidy requirements for two of its originally proposed service options. The table below 

summarizes the carrier’s service options (submitted in response to both rounds of requests for 

proposals) to be considered by the Department.2

Service 

Option Level of service Weekly Round Trips

Aircraft Type

(Passenger Seats)

Hub 

Served

Annual Subsidy 

Requirement

Package Bid Service Options – Plattsburgh and Saranac Lake/Lake Placid

1 Combination of onestop and nonstops

12 at each 

community

Embraer EMB-120ER

(30) Boston

$1.498M at each 

community

($2.997 for both 

communities)

Options Proposed At Each Community

2 Nonstop 12 Jetstream 3200

(19)

New York

(JFK)

$1.891M

($3.783 for both 

communities)

3 Nonstop 12 Embraer EMB-120ER

(30)

New York

(JFK)

$2.330M

($4.660 for both 

communities)

4 Nonstop 12 Jetstream 3200

(19) Boston

$1.662M

($3.325 for both 

communities)

5 Nonstop 12 Embraer EMB-120ER

(30) Boston

$1.868M

($3.735 for both 

communities)

Colgan Air 

In response to Order 2009-9-9, Colgan Air, operating as a US Airways code-share partner, 

submitted an inseparable (due to aircraft routing) package bid to provide EAS at both 

communities, utilizing 34-passenger Saab 340 aircraft. Plattsburgh and Saranac Lake would 

each receive 19 round trips each week operated as a combination of one-stop and nonstop service 

 2 All of Charter Air’s options proposing to serve JFK would require that Charter Air obtain the requisite landing 

rights from the Federal Aviation Administration.
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to Boston Logan. The combined (for both communities) annual subsidy requirement for the first 

year would be $3,203,554 and $3,130,895 for the second year.

In response to Order 2009-12-24, the carrier, operating as US Airways Express, submitted a bid 

to provide EAS at Plattsburgh only, utilizing 34-passenger Saab 340 aircraft. Plattsburgh would 

receive 12 nonstop round trips each week to Boston Logan. The annual subsidy requirement 

would be $2,117,101. Colgan Air also proposed to operate an additional round trip each

weekday and on Sunday or 18 round-trips per week for a six-month trial period, to stimulate 

traffic and market its service. The Department would neither subsidize nor require the third 

round trip, and we will not consider its promise as a decisional criterion.

Community Comments 

By letters dated November 5 and 13, 2009, and email correspondence sent January 15, 2010, the 

Department solicited the views of the civic officials, airport managers at the respective 

communities, and the New York State Department of Transportation (NYDOT) as to which 

carriers’ proposal they would prefer. We advised both communities to note that the aircraft type 

proposed by Cape Air does not meet the 15-seat standard required by our governing statutes 

(49 U.S.C. 41732(b)(3)) and that we would not select Cape Air’s proposal unless we received 

written support for such a selection from the community involved. We received comments from 

each community, summarized below. NYDOT did not endorse a specific carrier.

At Plattsburgh, the Clinton County Council, which represents Plattsburgh and several other 

towns, endorses the selection of Colgan Air. The Council states that it bases its recommendation 

after evaluating service reliability, fares, size of aircraft, frequency of service, connectivity at 

Boston, and code-share relationships. The Council also specifically states that it is not willing to 

waive the community’s right to 15-seat or larger aircraft. In contrast, the Mayor Kasprazak of 

Plattsburgh strongly endorses the reselection of Cape Air, noting that Cape Air: has more than 

doubled passenger levels in less than two years; has received a letter of support from its partner 

JetBlue Airlines; has reduced its passenger fares; and is co-located with JetBlue, a low-fare 

airline that serves 13 of Plattsburgh’s 15 top destinations.

At Saranac Lake/Lake Placid, Mr. Larry Miller, the Supervisor of the Town of Harrietstown, 

where the airport is located, strongly supports the re-selection of Cape Air. Supervisor Miller 

cites Cape Air’s exemplary customer service, community support and excellent track record. In 

addition, he affirmed the community’s willingness “to waive our right to the 15 passenger seat or 

more standard required by 49 U.S.C. 41732(b)(3) and (b)(6).”

Decision 

After carefully reviewing all of the facts in this case, including the comments submitted by the 

elected officials at each community, the Department has decided to select Colgan Air to provide 

EAS at Plattsburgh, and Cape Air to serve Saranac Lake/Lake Placid.

Regarding the proposal of Charter Air, there was not support from either community, and the 

carrier does not have the requisite operating authority from either the Federal Aviation 

Administration or the Department of Transportation to operate its proposed service. Moreover, 
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only one of its five service options would offer any significant subsidy savings. Thus, the 

decision comes down to selecting between Colgan and Cape Air.

The decision for these communities cannot be compartmentalized, as the decision for one 

necessarily affects the other. In narrowing the field of options, we must first eliminate Cape 

Air’s proposal to serve Plattsburgh because the community has affirmatively not waived its right 

to 15-seat or larger aircraft. While the Mayor fully supports Cape Air, the County Council 

supports Colgan. Our governing statutes, specifically 49 U.S.C. 41732(b)(3)(B), guarantee that

Plattsburgh receive service with 15-seat or larger aircraft, “unless the affected community agrees 

with the Secretary in writing to the use of smaller aircraft to provide service to the place.” We 

have not received such a statement; in fact, we have received an affirmative declination to accept 

smaller than 15-seat aircraft from the County Council.

That leaves two combinations on the table for selection. The first is to select Colgan’s original 

option to serve both Plattsburgh and Saranac Lake/Lake Placid with three round trips a day to 

Boston with 34-seat Saab aircraft for $3,203,554 and $3,130,895 for the second year. The 

second combination would be to select Cape Air to serve Saranac Lake/Lake Placid with three 

round trips a day to Boston with nine-seat Cessnas for $1,366,538 and Colgan to serve 

Plattsburgh with two round trips a day with Saab 340 aircraft for $2,117,101 (a total of 

$3,483,639).

Although the difference in subsidy is significant -- about $280,000 -- we note that it is really 

spread over two communities, or $140,000 per community. Given that, we will defer to the 

communities’ wishes. Colgan Air’s proposal to provide Plattsburgh with 12 nonstop round trips 

each week to Boston Logan, utilizing 34-passenger Saab 340 aircraft, with an annual subsidy 

requirement of $2,117,101, meets all of the statutory carrier-selection criteria. The carrier has a 

long history of providing reliable EAS. Its code-share agreement with US Airways at Boston 

Logan provides the community with online connections to the national air transportation system. 

The majority of Plattsburgh’s civic officials support Colgan Air and we find both the service and 

subsidy levels to be reasonable. In addition, this option will provide Plattsburgh with all nonstop 

service, whereas its original proposal linked with Saranac Lake/Lake Placid would have been a 

mix of nonstop and one-stop service.

At Saranac Lake/Lake Placid, the community has affirmatively waived its right to minimum 

aircraft requirements and strongly supports the re-selection of Cape Air. The community has 

argued that a longer contract-term (four years) and four round trips a day during its peak tourist 

season in a well-timed manner would provide the best service to its residents and tourists. The 

community is also confident that Cape Air’s enhanced relationship with JetBlue Airways, Inc. 

will help increase enplanements at Saranac Lake/Lake Placid. Further, based on the increase in 

enplanements since Cape Air inaugurated service at the community, the use of 9-passenger 

Cessna 402 equipment may ensure a more effective utilization of aircraft and may provide a 

better balance between the demand for air service and the supply of aircraft seats at Saranac 

Lake/Lake Placid than would service with larger aircraft. Despite the extension in the term of a 

four-year contract, when compared to a two-year option, the slight annual cost saving is 

noteworthy, especially given the recent trends of higher costs in providing air service and the 

volatility in fuel prices. Regarding the community’s desire for increased service during the 
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summer season, we note (as we did in our November 5, 2009 letter soliciting community views) 

that the additional service is above and beyond the level of service requested. We also point out 

that the EAS program typically provides a “safety-net” level of service, and not all the service 

the community may desire. In deferring to each communities carrier of choice at an increased 

cost, we find the additional cost associated with increased service during the summer season at 

Saranac Lake/Lake Placid is not warranted.

Based on the above, we select Cape Air’s service option to provide Saranac Lake/Lake Placid 

with three daily round trips to Boston Logan for an annual subsidy rate of $1,366,538.

The Department shall make this selection at both communities contingent upon the Department’s 

receiving properly executed certifications from Colgan Air and Cape Air that they are in 

compliance with the Department’s regulations regarding drug-free workplaces and 

nondiscrimination, as well as the regulations governing lobbying activities.

Carrier Transition 

As a final matter, we expect Cape Air and Colgan Air to work together to make a smooth 

transition at Plattsburgh. In that regard, before Cape Air suspends its service at Plattsburgh, we 

expect it to contact all passengers holding reservations for travel after the final date of service, to 

inform them of the change in service, and to assist them in arranging alternate transportation or 

to provide a refund of the ticket price, without penalty, if requested. In this regard, Cape Air’s 

current contract expires on February 28. Colgan did not commence service on March 1, and as a 

result, we will compensate Cape Air at the subsidy rate contained in its two-year proposal for 

Plattsburgh from March 1, until Colgan inaugurates full EAS at Plattsburgh.

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 compensate it for essential air service. Cape Air is subject to the 

Department’s continuing fitness monitoring, and no information has come to our attention that

would cause us to question the carriers’ 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 remains fit to conduct the operations proposed 

here. Colgan Air also remains is subject to the Department’s continuing fitness monitoring and

there is no basis to alter that fitness finding at this time. We have also contacted the Federal Aviation 

Administration, and it has presented no facts that would negatively affect our fitness finding.3 We 

therefore find that there is no basis to alter that fitness finding at this time.

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

ACCORDINGLY, 

1. We select Colgan Air, Inc., d/b/a US Airways Express, to provide essential air service at 

Plattsburgh, New York, and establish the subsidy rates, as described in Appendix C, for the twoyear period, beginning when the carrier inaugurates full EAS at the communities;

 3 The National Transportation Safety Board (“NTSB”) has issued a preliminary report on an accident of a Colgan 

Air on February 12, 2009, near Buffalo. NY. Should the NTSB investigation final report reveal findings adverse to 

the air carrier, we would reassess the air carrier’s fitness in light of those findings.
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2. We select Hyannis Air Service, Inc., d/b/a Cape Air, to provide essential air service at 

Saranac Lake/Lake Placid, New York, and establish the subsidy rates, as described in 

Appendix C, for the four-year period from March 1, 2010, through February 28, 2014;

3. We set a short-term subsidy rate for Cape Air’s provision of EAS at Plattsburgh beginning 

March 1, 2010, as described in Appendix C, until Colgan Air begins full EAS;

4. The Department directs Colgan Air, Inc., d/b/a US Airways Express and 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 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;

5. We find that Hyannis Air Service, Inc., d/b/a Cape Air, continues to be fit, willing and able to 

operate as a commuter air carrier and capable of providing reliable essential air service at 

Saranac Lake/Lake Placid, New York;

6. We find that Colgan Air, Inc., d/b/a US Airways Express, continues to be fit, willing and able 

to operate as a certificated air carrier and capable of providing reliable essential air service 

Plattsburgh and Saranac Lake/Lake Placid, New York; and

7. These Dockets will remain open until further order of the department; and

8. Docket Operations will serve copies of this order on the parties listed in Appendix D.

By:

SUSAN L. KURLAND 

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the Internet at

http://www.regulations.gov
Appendix A 

AREA MAP 
Appendix B 

Page 1 of 3

Colgan Air, Inc., d/ b/ a US Airw ays Express 

Provision of Essential Air Service at Plattsburgh, New York 

Calculation of Compensation Requirement

 
Appendix B 

Page 2 of 3 

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

Provision of Essential Air Service at Saranac Lake/Lake Placid, New York

Calculation of Compensation Requirement

Daily RTs 3

Stage (naut. Miles) 185

Seats per Dpt. 9

Annual Scheduled Departures 2,189

Completion Rate 97%

Annual Actual Departures 2,123

PDEW 13.2

Passengers/Departure 4.4

Load Factor 49%

Annual Passengers 9,363

Avg. Net Fare $74.93

Passenger Revenue $701,595

Fuel $747,742

Maintenance $558,385

Pilots $196,080

Ownership $47,711

Stations $177,102

Landing Fees $67,675

Marketing $41,040

General & Admin./Other $128,992

Operating expense $1,964,727

Return of 5% $103,407

Economic Expense ($2,068,133)

Passenger Revenue $701,595

Profit ($1,366,538)

Subsidy Required

Annual $1,366,538

Per Departure $644

Per Passenger $146
Appendix B 

Page 3 of 3 

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

Provision of Essential Air Service at Plattsburgh, New York

Calculation of Compensation Requirement

Daily RTs 3

Stage (naut. Miles) 177

Seats per Dpt. 9

Annual Scheduled Departures 2,189

Completion Rate 97%

Annual Actual Departures 2,123

PDEW 15.4

Passengers/Departure 5.1

Load Factor 57%

Annual Passengers 10,892

Avg. Net Fare $65.00

Passenger Revenue $707,960

Fuel $736,595

Maintenance $549,998

Pilots $193,344

Ownership $52,019

Stations $154,067

Landing Fees $66,016

Marketing $44,746

General & Admin./Other $143,324

Operating expense $1,940,110

Return of 5% $102,111

Economic Expense ($2,042,222)

Passenger Revenue $707,960

Profit ($1,334,262)

Subsidy Required

Annual $1,334,262

Per Departure $628

Per Passenger $123
Appendix C 

Page 1 of 3

Colgan Air, Inc., d/ b/ a US Airw ays Express 

Essential Air Service to be Provided at Plattsburgh, New York 

Effective Period: Beginning with the start of full EAS through the end 

of the 24th month thereafter.

Scheduled Service: 12 nonstop round trips to Boston each week

Aircraft: Saab 340, 34 seats

Rate per Eligible Flight: $1,7281

Weekly Ceiling: $41,4722

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 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 complete, 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.

Funds are not currently available for performance under this order beyond September 30, 2010. The Department’s 

obligation for performance under this order beyond September 30, 2010, is subject to 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 September 30, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010 the 

Department will provide notice in writing to the carrier.

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.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 1 Annual compensation of $2,117,101, divided by 1,211 annual departures (24 flights per week x 52 weeks x 

97% completion).

2 24 arrivals and departures per week multiplied by $1,728 per flight.
Appendix C 

Page 2 of 3 

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

Essential Air Service to be Provided at Saranac Lake/ Lake Placid, New York 

Effective Period: March 1, 2010, through February 28, 2014.

Scheduled Service: 18 nonstop round trips to Boston each week

Aircraft: Cessna 402, 9 seats

Rate per Eligible Flight: $6433

Weekly Ceiling: $27,0064

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 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 complete, 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.

Funds are not currently available for performance under this order beyond September 30, 2010. The Department’s 

obligation for performance under this order beyond September 30, 2010, is subject to 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 September 30, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010, the 

Department will provide notice in writing to the carrier.

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.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 3 Annual compensation of $1,366,538, divided by 2,124 annual departures (6 daily flights x 365 days x 

97% completion).

4 42 arrivals and departures per week multiplied by $654 per flight.
Appendix C 

Page 3 of 3 

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

Essential Air Service to be Provided at Plattsburgh, New York 

Effective Period: March 1, 2010, until Colgan inaugurates full EAS.

Scheduled Service: 18 nonstop round trips to Boston each week

Aircraft: Cessna 402, 9 seats

Rate per Eligible Flight: $6285

Weekly Ceiling: $26,3766

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 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 complete, 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.

Funds are not currently available for performance under this order beyond September 30, 2010. The Department’s 

obligation for performance under this order beyond September 30, 2010, is subject to 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 September 30, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010, the 

Department will provide notice in writing to the carrier.

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.

All claims for payment must be submitted within 60 days of the last day of service provided under this order.

 5 Annual compensation of $1,334,262, divided by 2,124 annual departures (6 daily flights x 365 days x 

97% completion).

6 42 arrivals and departures per week multiplied by $628 per flight.
Appendix D 

SERVICE LIST

Mr. Andrew Bonney

Hyannis Air Service

660 Barnstable Road

Hyannis, Massachusetts 02601

Mr. George Casey

Senior – Vice President

Colgan Air, Inc.

Nonconnah Blvd/

Memphis, Tennessee 38132

Mr. Seth Edelman

Director, Aviation Bureau

New York State Dept. of Transportation

Office of Integrated Modal Services, Aviation Bureau 

50 Wolf Road, POD 54

Albany, New York 12232

Mr. Ross Dubarry

Airport Manager

Adirondack Regional Airport

96 Airport Road

Saranac Lake, New York 12983

The Honorable Donald Kaspizak

Mayor of Plattsburgh

41 City Hall Place

Plattsburgh, New York 12901

Mr. Rodney Brown

Interim Airport Manager

Plattsburgh International Airport

42 Airport Lane, Suite 201

Plattsburgh, NewYork 12903

Mr. Larry Miller

Supervisor

Town of Harrietstown

39 Main Street

Saranac Lake, New York 12983

Mr. Michael E. Zurlo

County Administrator

Clinton County Government Center

137 Margaret Street, Suite 208

Plattsburgh, New York 12901