Or der: 2011

- 1

- 24

Served : January 28, 2011



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 28 th of January , 2010

Essential Air Service at

MUSCLE SHOALS, ALABAMA

Under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 2000

- 7856

ORDER ESTABLISHING TEMPORARY RATE

Summary By this order

, the Department is establishing a temporary subsidy rate for Mesaba Airlines, Inc., operating as Delta Connection (Mesaba) for it s subsidized essential air service (EAS) at Muscle

Shoals

, Alabama

, for the period from February 1, 2011, until a rep lacement carrier is selected

and inaugurates full EAS

.

Background By Order 2008

- 10

- 17

, O ctober 16, 2008 , the Department selected Mesaba to serve Muscle

Shoals to Memphis fo r the period from February 1, 2009 , t hrough January 31 , 2011 , for an annual subsidy rate of $1,782,928. Order 2009

- 4

- 24, Apri l 28, 2009, approved a request from the community and Mesaba to change Muscle Shoals’ service pattern from Memphis to Atlanta, with no change in subsidy.

By Order 2010

- 10

- 13

, October 19, 2010

, the Department requested proposals from intereste d

airlines to serve Muscl e Shoals with a due date of November 22. Because the Department

received several requests to extend the deadline for proposals, as well as the due date for community comments, we do not have enough time to issue a carrier

- selection decision before

the con tract expiration date of January 31

. Therefore, we need to establish a subsidy rate for

Mesaba to serve Muscle Shoals from February 1 until a carrier is selected and starts service

there.- 2

-

D ecision Consistent with established program policy, we typically use a carrier’s prospective proposal that was submitted during the competitive bid process to establish a bridge rate until the new carrier inaugurates service. However, in this case Mesaba did not submit a proposal to co ntinue service

at Muscle Shoals. We contacted the carrier about a short

- term, temporary rate, and the carrier agreed to extend the term s of the existing contract. We will therefore est ablish it as the final rate for the period from February 1, 2011 , until a replacement carrier inaugurat es service

.

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

ACCORDINGLY,

1. We extend the subsidy rate set by Order 2008

- 10

- 17 for Mesaba Airlines, Inc. for essenti al air

service at Muscle Shoals

, Alabama, as described in Appendix B ;

2

. We direct Mesaba Airlines, Inc. 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 carrier may forfeit its compensation for any claim that is not supported under the terms of this order;

3

. Th is docket will remain open until further order of the Department; and

4 . We will serve copies of this order on the City and Airport Manager s of Muscle Shoals and Mesaba Airlines, Inc.

By:

SUSAN L. KURLAND Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of th is document is available online at www.regulations.govAppendix AAppendix B

Mesaba Airlines, Inc.

Essential Air Service to be p rovided at Muscle Shoals, Alabama

Effective Period : February 1, 2011 , until another airline inaugurates full EAS.

Scheduled Service : 14 nonstop round trips per week to Atlanta Rate per Eligible Flight 1 Weekly Ceilin g per Community : $ 1,262

2 : $ 35,336

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

aircr aft 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 considere d 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 a ny 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 circumst ances 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 d etermining 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 ly , 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 Depar tment 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 s ubsidy 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 Depart ment 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 order beyond March 3, 2011

. The Governmen t’s obligation for performance under this order beyond March 3, 2011 , 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 March 3, 2011 , until funds are made available to the Department for performance. If funds are not made available for performance beyond March 3, 2011 , 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 Annual compensation of $1,782,928, divided by 1,412 annual departures (28 weekly flights x 52 weeks x 97 percent completion).

2 28 arrivals and departures per week multiplied by $ 1,262 per flight.