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 1st of November, 2013

Essential Air Service (EAS) at

WATERTOWN, NEW 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 why we should not select it to provide Essential Air Service (EAS) at 

the terms and conditions specified in that Order. Furthermore, that Order 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. We have reproduced

Appendix C of Order 2013-10-8 as Appendix C in this Order, and clarified aircraft/carrier 

substitutions.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b).

ACCORDINGLY,

1. We make final the tentative selection of American Airlines at Watertown, New York, as 

described in Order 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

Washington, DCA 359

Chicago, ORD 618
Appendix 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, 2016;

Service: Twelve (12) nonstop round trips per week to Chicago O’Hare (ORD);

Aircraft Type: Embraer-140 Regional Jet, 44 seats1

Annual Subsidy: $3,356,349

Annual Flights: 1,2272

Subsidy per Flight: $2,7353

Weekly Subsidy Ceiling: $65,6404

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 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 may not be available for performance under 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 Government 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 week 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.