Order: 2013

- 4

- 18

Served: April 25, 2013



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25 th day of April , 20 1 3

Essential Air Service at

CODY, WYOMING DOCKET DOT

- OST

- 2011

- 0121

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



### ORDER RE

- SELECTING AIR CARRIER

Summary By th is O rder, the Department is re

- selecting SkyWest Airlines, operating as Delta Connection ( SkyWest ), to provide Essential Air Service (EAS) at Cody

, Wyoming, for an annual subsidy of $627,696

. 1 SkyWest ’s service will be to Salt Lake City International Airpor t (Salt Lake City) using 50

- p assenger Canadair Regional Jet 200 aircraft from

October 1, 2013, through May 31, 2014, and October 1, 201 4 , through May 31, 2015.

Background Prior to the most recent selection order, SkyWest operated two daily nonstop round trips (14 a week) to Salt Lake City on 30

- seat Brasilia EMB

- 120 aircraft. In addition, SkyWest operated as United Express (United Express) to Denver International Airport (Denver) providing two daily round trips 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, 2011. In response to SkyWest ’s

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

-

fil ing, we issued Order 2011

- 8

- 26, August 30, 2011, requesting proposals from air carriers interested in providing EAS at the community. Because United Express operated two daily round trips to Denver four months of the year and one daily round trip to Denve r 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

.

By Order 2011

- 11

- 24, November 18, 2011, the Department selected Sk yWest Airlines, Inc., operating as Delta Connection ( SkyWest ), to provide EAS at Cody from

October 4, 2011, through May 31, 2012, and from October 4, 2012, through May 31, 2013, for an annual subsidy of $352,058. Under the EAS subsidy contract, SkyWest pr ovides the community one daily round trip (seven a week) to Salt Lake City Int ernational Airport using 50

- passenger Canadair Regional Jet 200 aircraft; the balance of its service is provided subsidy

- free.

As the end of the current contract was approac hing, we issued Order 2013

- 1

- 9, January 16, 2013 , requesting proposals from air carriers interested in providing EAS at the community for a new term. In response to that Order, we received only one proposal from the incumbent, SkyWest

.

The airline’s comp lete proposal and the community’s comments may be accessed online at www.regulations.gov by entering DOT

- OST

- 2011

- 0121 in the search block.

Proposal of SkyWest SkyWest proposed the status

- quo service of one daily round trip (7 a week) operating as

Delta Connection to Salt Lake City from October 1, 2013, through Ma y 31, 2014, and

from October 1, 2014, through May 31, 2015 , using 50

- passenger Canadair Regional Jet 200 aircraft for an annual subsidy of $627,696.

Community Comments The Honorable Nancy Tia Brown submitted a letter on behalf of the City of Cody supporting SkyWest’s proposal adding, “SkyWest has been a great partner to the Yellowstone Regional Airport for many years and we are encouraged that this partnership will continue.” In addition, we received letters from the Cody

- Yellowstone Air Improvement Resources and Powell Valley Chamber of Commerce, both expressing support for SkyWest’s proposal.

Decision

The decision to re

- select SkyWest to provide EAS in the off

- peak season is clear

. SkyWest is the only air carrier to subm it a proposal for EAS at Cody , and the community fully supports their proposal. In addition, the Salt Lake City hub provides 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 SkyWest at Cody contingent upon the Department’s receiving properly executed certifications from the air car rier that it is in compliance with- 3

-

the Department’s regu lations regarding drug

- free workplaces and nondiscrimination, as well as the regulations concerning lobbying activities. 2

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 subsidize it to provide EAS

. SkyWest is subject to the Department’s continuing fitness requirements, and no information has come to our

attention that would caus e us to questions the air 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 SkyWest is reliable and

fit to co nduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR Part 1. 56a(f)

.

ACCORDINGLY,

1. We re

- select SkyWest Airlines, Inc., operating as Delta Connection, to provide Essential

Air S ervice at Cody, Wyoming , and establish an annual subsidy rate as described in Appendix C;

2

. We direct SkyWest Airlines Inc., operating as Delta Connection, to retain all books, records, and other source and summary documentation to support claims for payment, and to preserve and ma intain 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 from the service date of this Order 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 te rms of this Order ;

2 The certifications are available on the Web at http://ostpxweb.dot.gov/aviation/index.html

.- 4

-

3 . We f i nd that SkyWest Airlines, Inc., operating as Delta Connection, is fit, willing and able to operate as a certificated air carrie r
, and capable of providing reliable Essential Air

S ervice at Cody, Wyoming ;

4

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

5 . We will serve copies of this Order on the Mayor, the airport manager of Yellowstone Regional Airport

, and SkyWest Airlines, Inc., operating as Delta Connection

.

B y:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is ava ilable at http://www.regulations.govAppendix A



## AREA MAP

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.Appendix BAppendix C

SkyWest Airlines, Inc., operating as Delta Connection

Essential Air Service to be Provided at Cody, Wyoming

Effective Period : October 1, 2013, through May 31, 2014, and October 1, 2014, through May 31

, 2015

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

Aircraft : 50

- passenger Canadair Regional Jet (CRJ200) Rate per Eligible Flight: $ 1,313 1
Weekly Ceiling for each community : $ 18,382 2

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 eligibi lity 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 this rate, it must first notify the Office of Aviation A nalysis 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 w hich 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

servi ce 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 service levels, the carrier may cease to provide service to that specific location without re gards 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 contract 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 foreg oing paragraph.

Funds may not be available for performance under this order beyond March 27, 2013. The Government’s obligation for performance under this order beyond March 27, 2013 is subject to the availability of 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 27, 2013, until funds are made available to the Department for performance. If funds are not made available for performance beyond March 27, 2013, the De partment 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 A nnual compensation of $627,696 divide d by 478 annual departures ( 2 flights a day x 244 days x 98 percent completion)

. 2 14 arrivals and depart ures per week multiplied by $1,313 per flight

.