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 25th day of April, 2013

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 this Order, 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 

Airport (Salt Lake City) using 50-passenger Canadair Regional Jet 200 aircraft from 

October 1, 2013, through May 31, 2014, and October 1, 2014, 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 fiscal year basis, subject to the availability of funds.
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filing, 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 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.

By Order 2011-11-24, November 18, 2011, the Department selected SkyWest 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 provides the 

community one daily round trip (seven a week) to Salt Lake City International 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 approaching, 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 complete 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 May 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 submit 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 carrier that it is in compliance with 
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the Department’s regulations 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 cause 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 conduct 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 Service 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 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 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 terms of this Order;

 2 The certifications are available on the Web at http://ostpxweb.dot.gov/aviation/index.html.
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3. We find that SkyWest Airlines, Inc., operating as Delta Connection, is fit, willing and 

able to operate as a certificated air carrier, and capable of providing reliable Essential Air 

Service 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.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.

 
 Appendix B
 Appendix 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: $1,3131

Weekly Ceiling for each community: $18,3822

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 this rate, 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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 foregoing 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 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 $627,696 divided by 478 annual departures (2 flights a day x 244 days x 98 percent 

completion). 2 14 arrivals and departures per week multiplied by $1,313 per flight.