Order: 2011-11-24

Served: November 18, 2011

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 18th day of November, 2011

Essential Air Service at

CODY, WYOMING DOCKET DOT-OST-2011-0121

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

ORDER SELECTING CARRIER

Summary

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

(Delta Connection), to provide essential air service (EAS) at Cody, Wyoming, from 

October 4, 2011, through May 31, 2012, and from October 4, 2012, through May 31, 2013. 

Delta Connection’s service will be to Salt Lake City International Airport (Salt Lake City) 

using 50-seat Canadair Regional Jet 200 aircraft for an annual subsidy of $352,058.

1

Background

Cody is an EAS community by virtue of its being listed on a certificated airline’s 

certificate on October 24, 1978, the date of enactment of the Airline Deregulation Act.

Currently, Delta Connection operates two daily nonstop round trips (14 a week) to Salt 

Lake City on 30-seat Brasilia EMB-120 aircraft. In addition, SkyWest also operates 

service to Denver as United Express (United Express) providing two daily round trips 

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

funds.
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during the four-month peak season and one daily round trip the other eight months of the 

year, all on 50-seat Canadair regional jet aircraft.

On June 27, 2011, SkyWest filed a 90-day notice of its intent to terminate service as Delta 

Connection to Salt Lake City, effective September 25. In response to Delta Connection’s

filing, we issued Order 2011-8-26, August 30, 2011, requesting proposals from carriers 

interested in providing EAS at the community. Because United Express operates two daily 

round trips to Denver four months of the year and one daily round trip to Denver the other 

eight months, we requested proposals for only one round trip a day for eight months of the 

year. In response to that order, we received a proposal from the incumbent, SkyWest.

The carrier’s complete proposal and community comments may be accessed online at 

http://www.regulations.gov/ by entering Docket number DOT-OST-2011-0121 in the 

search block. 

Proposal of SkyWest

SkyWest proposed one daily round trip (7 a week) operating as Delta Connection to Salt 

Lake City from October 4, 2011, through May 31, 2011, and from October 4, 2012, 

through May 31, using 50-seat Canadair Regional Jet 200 aircraft for an annual subsidy of 

$352,058. 

Community Comments

On September 14, 2011, we requested community comments regarding this carrierselection case. In response, we received a letter from Cody Yellowstone Air Improvement 

Resources, an organization of leading community officials including Mayor Nancy Tia 

Brown and Yellowstone Regional Airport Manager Bob Hooper that is committed to 

enhancing Cody’s air service. Speaking on behalf of the community, Cody Yellowstone 

Air Improvement Resources expressed support for Delta Connection’s proposal and 

strongly encouraged its selection. The organization stated that Cody has enjoyed a long 

relationship with SkyWest and Delta and that the Salt Lake City hub is an important 

medical and educational destination for Cody’s residents. 

Decision

The decision is straightforward and clearly points to the selection of Delta Connection to 

provide EAS in the off peak season. The community fully supports Delta Connection’s

proposal and the airline has served Cody for several years. In addition, the Salt Lake City 

hub is a crucial link for the community to the national air transportation system. Finally, 

we find that the subsidy proposed is reasonable for the service to be provided.

We shall make this selection of Delta Connection at Cody contingent upon the

Department’s receiving properly executed certifications from the 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.

Carrier Fitness
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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 subsidize it to provide essential air service. 

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 carrier's 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 the 

carrier is reliable and remains fit to conduct the operations proposed here.

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

ACCORDINGLY,

1. We select SkyWest Airlines, operating as Delta Connection, to provide essential air 

service at Cody, Wyoming, and establish an annual subsidy rate of $352,058, as described 

in Appendix C; 

2. We direct 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 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. We find that SkyWest Airlines continues to be fit, willing and able to operate as a 

certificated carrier, and capable of providing reliable essential air service at Cody;

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

5. We will serve copies of this order on the Mayor of Cody, the airport manager of 

Yellowstone Regional Airport, Cody Yellowstone Air Improvement Resources, and 

SkyWest Airlines.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)
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An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

 
Appendix B
 Appendix C

SkyWest Airlines

Essential Air Service to be Provided at Cody, Wyoming

Effective Period: October 4, 2011, through May 31, 2012, and October 4, 2012, through 

May 31, 2013

Scheduled Service: One daily round trip (7 a week) to Salt Lake City

Aircraft: 50-seat passenger Canadair Regional Jet 200 (CRJ200)

Rate per Eligible Flight: $7461

Weekly Ceiling: $10,4442

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 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 the 

carrier do not constitute a total or partial reduction or cessation of payment.

Funds are not currently available for performance under this order beyond November 18, 2011. The Department’s 

obligation for performance under this order beyond November 18, 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 November 18, 2011, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond November 18, 2011, 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 $352,058 divided by 472 annual departures (2 flights a day x 241 days x 98 percent 

completion).

2 14 arrivals and departures per week multiplied by $746 per flight.