Order: 2011-1-10 

Served: January 14, 2011 

.i^^^^^r . 

f^^X UNITED STATES OF AMERICA 

§ ^ H s DEPARTMENT OF TRANSPORTATION 

%\^^^$ OFFICE OF THE SECRETARY 

''''sl^ ^ WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 14* day of January, 2011 

Essential Air Service at 

ALLIANCE, NEBRASKA 

CHADRON, NEBRASKA 

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

DOT-OST-2000-8322 

ORDER REQUESTING PROPOSALS 

Summary 

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

essential air service (EAS) at Alliance and Chadron, Nebraska, for the next two-year period from 

June 1,2011, through May 31,2013, with or without subsidy. Proposals are due February 17, 

2011. (See Appendix A for an area map.) 

Background 

By Order 2009-4-19, April 27, 2009, the Department selected Great Lakes Aviation, Ltd. (Great 

Lakes) to provide 12 nonstop or one-stop round trips per week from Alliance and Chadron to 

Denver using 19-passenger Beechcraft 1900-D aircraft, from June 1, 2009, through May 31, 

2011, for an annual subsidy rate of $1,955,217, for both communities. 

Request for Proposals 

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

interested in providing service at Alliance and Chadron, with or without subsidy, to be filed no later 

than February 17, 2011. After that date, our staff will docket the proposals, thereby making them 

public. Shortly afterwards, we will provide a summary of the proposals to the communities and ask 
- 2 -

them to submit their final comments. We will give full consideration to all proposals that are timely 

filed.' 

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

will represent \h&ii final and only proposals. However, 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 rovmd 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 for their proposals. 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 communities and the Department.^ 

With respect to Alliance and Chadron, we ask that carriers submit proposals for two nonstop or 

one-stop round trips per day (12 round trips per week) with 15-seat or larger aircraft to Denver 

International Airport, or another suitable hub where numerous connections to the national air 

transportation system can be made. 

Both communities are guaranteed service with 15-seat or larger aircraft; however, we would also 

entertain proposals for eight- or nine-seat aircraft with an additional frequency (18 round trips 

per week) for either or both communities. If the Department receives proposals for eight- or 

nine-seat, and the community ultimately supports the service, in effect waiving their right to 15-

seat or larger aircraft, we would consider the waiver to apply only to the carrier-selection at 

hand, i.e. we would not assume that the community would waive their rights for all time. As 

always, we will formally solicit the conmiunities' views on any service options we receive 

before making a long-term carrier selection decision. If service with eight- or nine-seat aircraft 

is proposed, service from each conununity to the hub should be nonstop. 

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 airline. In addition, carriers should be very clear as to whether a specific 

' Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide 

essential air service without subsidy and we determine that service can be reliably provided without such 

compensation, we do not proceed with the carrier-selection case. Instead, we simply rely on that carrier's subsidyfree service as proposed. 

2 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 

essential air service 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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community's proposal is on a stand-alone basis, or whether it is part of a larger, inseparable 

package with the other community. 

We encourage proposals that meet these requirements in an efficient manner. Carriers are also 

welcome to propose more than one service option, if they choose; they need not limit themselves 

to those requirements if they envision other, potentially more attractive service possibilities ~ 

different hubs or length of service terms, for example - with subsidy requirements that remain 

competitive. 

New Filing Procedures 

Carrier proposals should be submitted to the Department with all materials merged into a single 

docimient. The document will be published on Regulations.gov and each page should be 

formatted to be viewed online. 

Service and Traffic History 

For the 12-month period ended October 31, 2010, the most recent period for which traffic data are 

available, Alliance averaged 4.5 enplanements per day and Chadron averaged 6.0.3 j ^ order to assist 

carriers in making their traffic and revenue forecasts, we have included historical traffic data in 

Appendix B. 

Other Carrier Requirements 

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.'* Consequently, all carriers receiving 

Federal subsidy for 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. Because the Department is 

prohibited from paying subsidy to carriers that do not submit these documents, all carriers that 

plan to submit proposals involving subsidy should be aware that the selected carrier will be 

required to complete the required certifications. Interested carriers requiring more detailed 

information regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.5 

Community and State Comments 

The communities and state are welcome to submit comments on the proposals at any time. As 

noted earlier, however, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after February 17, 2011, the due date for proposals. 

3 See Appendix B for historical traffic data. Enplanements represent one-half of total origin-and-destination traffic, 

and average enplanements per day are based on 77 weekdays and weekends each quarter, except as noted. 

'* 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). 

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

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 Alliance and Chadron, 

Nebraska, for the two-year period from June 1, 2011, through May 31, 2013, submit their 

proposals, with or without requests for subsidy, no later than February 17, 2011. The proposals 

should be e-mailed to EAS@dot.gov, with the title: "Proposal to Provide Essential Air Service at 

Alliance and/or Chadron, Nebraska (Docket DOT-OST-2000-8322)" ;6 

2. This docket will remain open until further order of the Department; and 

3. We will serve copies of this order on the Mayors of Alliance and Chadron, the managers of 

Alliance Municipal Airport and Chadron Mimicipal Airport, 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. ROMAN 

Director 

Office of Aviation Analysis 

(SEAL) 

An electronic version of this document is available at http://www.resulations.sov 

^ Questions regarding filings in response to this order may be directed via electronic mail to Kevin Schlemmer at 

kevin.schlemmer@dot.gov or via phone at (202) 366-3176. 
Appendix A 

AREA MAP 

J X -

/ 

•-I -

- ( 

This map is provided by Sabre® AirVision'^''^ Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®. 
Appendix B 

Page 1 of 2 

Traffic History 7 

Alliance, N E (AIA) 

Year Month Quarter Inbound Outbound Totals 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

1 

1 

1 

2 

2 

2 

3 

3 

3 

4 

4 

4 

1 

1 

1 

2 

2 

2 

3 

3 

3 

4 

104 

73 

84 

120 

120 

138 

128 

142 

114 

72 

103 

111 

99 

63 

119 

100 

134 

197 

123 

121 

98 

157 

113 

88 

81 

116 

133 

153 

133 

145 

124 

60 

128 

121 

88 

71 

129 

85 

122 

141 

126 

125 

112 

134 

217 

161 

165 

236 

253 

291 

261 

287 

238 

132 

2,241 

231 

232 

187 

134 

248 

185 

256 

338 

249 

246 

210 

291 

2,807 

Average daily enplanements at Alliance (12-months ending 10/31/2010) - 4.5^ 

' Source - T-lOO Market Report, Passengers in Scheduled Passenger Service. Great Lakes Airlines service only. 

° Average daily enplanements= total traffic for the most recent 12-month period (2,807 passengers) divided by 313 

service days divided by 2. 
Appendix B 

Page 2 of 2 

Chadron, NE(CDR)' 

Year Month Quarter Inbound Outbound Totals 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2009 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

2010 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

1 

1 

1 

2 

2 

2 

3 

3 

3 

4 

4 

4 

1 

1 

1 

2 

2 

2 

3 

3 

3 

4 

155 

121 

143 

155 

144 

167 

200 

191 

144 

178 

214 

160 

157 

120 

191 

115 

154 

196 

213 

172 

158 

158 

119 

132 

104 

161 

170 

176 

187 

149 

151 

179 

183 

164 

128 

106 

127 

108 

150 

157 

179 

158 

145 

138 

274 

253 

247 

316 

314 

343 

387 

340 

295 

357 

3,126 

397 

324 

285 

226 

318 

223 

304 

353 

392 

330 

303 

296 

3,751 

Average daily enplanements at Chadron (12-months ending 10/31/2010) - 6.0'° 

" Source - T-lOO Market Report, Passengers in Scheduled Passenger Service. Great Lakes Airlines service only. 

^^ Average daily enplanements= total traffic for the most recent 12-month period (3,751 passengers) divided by 313 

service days divided by 2. 
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 circiunstances 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 [DATE]. 

The Government's obligation for performance imder this solicitation beyond [DATE], 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 [DATE], until funds are made available to the 

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

[DATE], 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 imder this order. 
Appendix D 

Scheduled Air Carriers, Contiguous US and Puerto Rico 

Air GrecoAVings Air 

Air Sunshine, Inc. 

Air Sunshine, Mirmohammad Adili 

Air West, Inc., John Raatz 

Air Wisconsin, Annette Daly 

Air Wisconsin, Jim Rankin 

Airline Associates, Bill Mishk 

Alaska Airlines, Jeff Cole 

Alaska Airiines, Sandy Sinick 

Allegiant Air, Brian Davis 

American Airiines, Carl Nelson 

American Eagle, Jeffrey Hartz 

Atlantic Southeast, Jon Lindlief 

Atlantis Southeast, Roger Weston 

Aviation Technologies/Charter Air Transport 

Bemidji Aviation, Cori Rude 

Bemidji Aviation, Arlen Rinkenberger 

Cape Air, Andrew Bonney 

Cape Air, Dan Wolf 

Cape Air, J. Flaherty 

Classic Aviation, Tony Henderson 

Colgan Air, Mike Colgan 

Colgan Air, Kevin Scott 

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 Bemier 

Dorado Jets 

Dorado Jets, Mark McKenna 

Era Aviation, Lori Goodman 

Executive Airiines, Kate Soled 

Frontier Flying, Bob Hajducovtch 

Frontier, Daniel Shurz 

Frontline Aviation 

Gem Air, Dan Schroeder 

Gem Air, JoAnn Wolters 

Great Lakes, Chuck Howell 

Great Lakes, Doug Voss 

Gulfstream, Dave Hackett 

Gulfstream, Mickey Bowman 

Gulfstream, T. Cooper 

Horizon Air, Dan Russo 

Horizon Air, Jennifer Thompson 

Horizon Air, Mike McQueen 

Horizon Air, Jeff Cole 

ICEPR, Luis Irizarry 

Intrepid Intematl Air, Rick Eyk 

Island Air Charters, Linda House 

Jet Air, Daniel Wolford 

Kenmore Air, Tim Brooks 

McCall Aviation, Dan Scott 

McCall Aviation, Michelle 

Mesaba, John Spanjers 

Mesaba, Max Shemesh 

MidStar Airiines, Jeffrey Fonner 

Midwest Airlines, Greg Aretakis 

MN Aviation, Jose Maldonado 

Multi Aero, Damea 

Multi Aero, Shane Storz 

Northern Air Cargo, David Karp 

Northern Air Cargo, Eric Van Andel 

Northwest, Tim McDonald 

Northwest, Aaron Murray 

NYDC, Henok Araya 

OST, Brian Swanson 

OST, Dennis DeVany 

OST, Kevin Adams 

OST, Kevin Schlemmer 

OST, Michael Martin 

Pacific Aviation Group, Craig Garrick 

Pacific Aviation Group, Ron Pye 

Pacific Wings, Frank Ford 

Pacific Wings, Greg Kahlstorf 

PenAir, Danny Seybert 

PenAir, Scott Bloomquist 

Pinnacle Airiines, Jennifer Gammill 

Pinnacle Airiines, Megan Rosia 

Pinnacle Airiines, Phil Reed 

Planemasters, Inc. John Kessler 

Planemasters, Inc. Paul Berliner 

Planemasters, Inc. Todd DeSimone 

Raytheon, Mike Scheldt 

Saab Group, Polly Prelinger 

Scenic, Mary Schneider 

Scenic, Mitzi Daines 

Seaborne Airiines, Shawn Lewis 

SeaPort Airlines, Daniel Helland 

SeaPortAVings of Alaska, Jim Day 

SeaPort/Wings of Alaska, Nate Vallier 

SeaPortAVings of Alaska, Rob McKinney 

Shuttle America, Jerry Balsano 

SkyWest, Brad Rawson 

SkyWest, Eric Christensen 

SkyWest, Michael Thompson 

Sovereign Air, Bob Kams 

Sovereign Air, Lois R. Barton 

Tatonduk, Robert Everts 

Tatonduk, Robert Ragar 

Tradewind, Eric Zipkin 

TransStates, Fred Oxley 

TransStates, Gerry Wigmore 

Transport Azumah, Joel Anabilah-Azumah 

United, Alicia Gabriel 

United, James Stames 

US Airways, Benjamin Slocum 

US Airways, Howard Kass 

US Airways, Jason Reisinger 

Warbelows Air Ventures, Art Warbelow