### Order 2013

- 11

- 1 Served: November 1, 2013



### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION 

### OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation
on the 1 st 

### of November, 2013

Essential Air Service (EAS) at

WATERTOWN, N EW YORK

Under 49 U.S.C. 41731 et seq

. DOCKET



### - DOT

- OST

- 2013

- 0188

( DOCKET DOT

- OST

- 1997

- 2842 ) 1



### ORDER FINALIZING CARRIER SELECTION AT WATERTOWN, NEW YORK

By Order 2013

- 10

- 8, October 21, 2013, we directed American Airlines (American) to show
cause within ten (10) days wh y we should not select it to provide Essential Air Service (EAS) at the terms and conditions specified in that Order. Furthermore, t h at O rder delegated to the Director, Office of Aviation Analysis, authority to make the Order final if no objections were
submitted

.

The time provided for objections has expired. The only comment received was from American, dated October 23, 2013, indicating that it would not object to the Order. W e have reproduced Appendix C of Order 2013

- 10

- 8 as Appendi x C in this Order

, and clarified aircraft/carrier
substitutions

.

This Order is issued under authority delega ted in 49 CFR Part 1. 25a(b)

.

ACCORDINGLY,

1. We make final the tentative selection of American Airlines at Watertown, New York, a s described in O rder 2013

- 10

- 8; and

1 By Notice dated November 1 , 2013, we created a new docket for Watertown, Docket 2013

- 0188, replacing the prior docket, Docket 1997

- 2842.

### - 2

-

2 . We will serve copies of this Order on the civic officials of Watertown, New York

, and on
American Airlines

.

By:

TODD M. HOMAN
Director Office of Aviation Analysis (SEAL)

An electronic version of this document is available at http://www.regulations.gov

### Appendix A (Per Order 2013

- 10

- 8)

Nonstop Great Circle Miles to Watertown (ART) Syracuse, SYR 61 Albany, ALB 141 Newark, EWR 247 Boston, BOS 277 Philadelphia, PHL 287 Pittsburgh, PIT 324
Cleveland , CLE 346
Washin g ton, DCA 359 Chicago, ORD 618Appendix B (Per Appendix B of Order 2013-10-8)

Essential Air Service to be Provided to Eau Claire, WI; Hancock/Houghton, Muskegon, Pellston, Sault Ste. Marie, MI; and Paducah, KY; and Watertown, NY 2/

Carrier American 1/ Delta SkyWest Community Watertown Pellston Sault Ste. Marie Eau Claire Houghton Muskegon Paducah
Docket 1997-2842 2011-0133 2009-0303 2009-0306 2009-0302 2009-0301 2009-0299 Weekly Round Trips 12 13 13 14 14 14 14
Hub ORD DTW DTW ORD ORD ORD ORD Aircraft Type RJs RJs RJs RJs RJs RJs RJs
Seats 44 50 50 50 50 50 50 Departures 1,227 1,330 1,330 1,427 1,427 1,427 1,427 Stage Length 617 293 341 268 359 118 342
Available Seat Miles 33,301,324 19,484,500 22,676,500 19,121,800 25,614,650 8,419,300 24,401,700 Revenue Passenger Miles 22,911,678 12,373,390 13,889,612 10,720,000 17,950,000 3,976,600 13,680,000
Block Time 2.12 1.17 1.25 1.13 1.20 0.77 1.30
Block Hours 2,606 1,553 1,662 1,617 1,712 1,094 1,855 Passengers 37,134 42,230 40,732 40,000 50,000 33,700 40,000 Passenger Fare $132.00 $112.96 $108.73 $93.00 $98.00 $73.00 $97.00

Passenger Revenue $4,918,901 $4,770,498 $4,428,872 $3,719,999 $4,900,000 $2,460,100 $3,880,001

Other Revenue $0 $653,559 $606,756 $0 $0 $0 $0

Total Revenue $4,918,901 $5,424,057 $5,035,628 $3,719,999 $4,900,000 $2,460,100 $3,880,001

Direct Expenses $6,654,388 $3,767,625 $4,031,811 $3,784,086 $4,006,679 $2,559,823 $4,340,569 Indirect Expenses $1,226,802 $2,308,515 $2,324,283 $1,231,662 $1,318,060 $1,106,893 $1,291,965 Operating Expenses $7,881,190 $6,076,140 $6,356,094 $5,015,748 $5,324,739 $3,666,716 $5,632,534

Profit $394,060 $425,330 $444,927 $250,787 $266,237 $183,336 $281,627

Economic Cost $8,275,250 $6,501,470 $6,801,021 $5,266,535 $5,590,976 $3,850,052 $5,914,161

Annual Subsidy $3,356,349 $1,077,413 $1,765,393 $1,546,536 $690,976 $1,389,952 $2,034,160

1/ Reflects an application of the factor of 12/13 to American's proposal. 2/ Only Watertown is addressed in this Order.

### Appendix C (Per Appendix C of Order 2013

- 10

- 8)

American, Essential Air Service to be Provided to Watertown, New York Docket 1997

- 2842 and 2013

- 1088

Effective Period : December 1, 2013, through January 31, 201 6 ; Service: Twelve (12) nonstop round trips p er week to Chicago O’Hare (ORD) ; Aircraft Type : Embraer

- 140 Regional Jet , 44 seats 1 

### Annual Subsidy : $ 3,356,349 Annual Flights : 1,227 2 

### Subsidy per Flight : $ 2,735 3 

### Weekly Subsidy Ceiling : $ 65,640 4

The carrier understands that it may forfeit its compensatio n 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 r equired 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 cert ain weather cancellations, only comple ted 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 per iod, 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 receiv e written approval from the Department to be ensured of full com pensation. 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 op erated; flights that overfly points for lack of traffic wil l 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 e xtent of access to the national air transporta tion 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 spec ific location without regard to any requirement for notice of such cessation. Those adj ustments 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 pa yment.

Subsidy contracts are subject to, and incorporate by reference, r elevant 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 forego ing paragraph.

Funds may not be available for performance unde r this Order beyond January 15, 2014 . The Government’s obligation for performance under this Order beyond January 15, 2014 , is subject to the availability of funds from which payment for services can be made. No legal liability on the part of the Governmen t for any payment may arise for performance under this Order beyond January 15, 2014 , until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond January 15, 2014

, the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 days of the last day of the month for which compensation is being claimed. For example, claims filed for service provided in July must be filed by October 31; August claims must be submitted by November 30, and so on.

1 Flights may be operated by American Eagle , ExpressJet

, Chautauqua

, or other code

- share partners as American
deems it appropriate with comparable equipment.
2 12 trips per w eek x two directions x 52 weeks x 313/312 days x .98 completion = 1,227 flights.
3 $ 3,356,349 ÷ 1,227 flights.
4 $ 2,735 per flight x 24 flights per week.