Order 2012-10-22

Served: October 24, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 24th day of October, 2012

ORDER EXTENDING SERVICE OBLIGATION

Summary

By this Order, the Department of Transportation extends the Essential Air Service 

(“EAS”) obligation of Chautauqua Airlines, Inc., a wholly owned subsidiary of Republic 

Airways Holdings and doing business as Frontier Airlines (“Chautauqua”), at 

Rhinelander, Wisconsin, for an additional 30 days, through December 6, 2012.

Background

On September 12, 2011, Chautauqua filed a 90-day notice with the Department of its 

intent to terminate its unsubsidized service at Rhinelander, effective December 11, 2011. 

By Order 2011-10-15, issued October 20, 2011, the Department prohibited Chautauqua 

from suspending service through December 11, 2011, and requested proposals from 

carriers interested in providing replacement service.

By Order 2012-3-5, issued on March 7, 2012, the Department selected Great Lakes 

Aviation, Ltd. to provide EAS at Rhinelander and Ironwood, Michigan/Ashland, 

Wisconsin, for a two-year period beginning when it inaugurates full service at both 

communities through the end of the 24th month thereafter.

On June 11, 2012, however, Great Lakes sent an e-mail to the Department explaining 

that it has recently experienced an aggressive expansion, is in the process of reengineering its business model (including its approach to code-sharing and the 

associated reservation system infrastructure), has concerns regarding availability of 

gates and facilities to expand further at Minneapolis/St. Paul, and did not want to hinder 

communities from considering other alternatives. Great Lakes’ e-mail encouraged the 

Department to re-solicit proposals for EAS at Rhinelander and three other communities. 

Essential Air Service at:

RHINELANDER, WISCONSIN

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

Docket DOT-OST-2011-0109
- 2 -

By Order 2012-6-9, issued on June 15, 2012, the Department requested proposals to 

provide EAS at Rhinelander and the three other communities from interested air carriers

by July 16, 2012. The due date for proposals was subsequently extended until 

July 23, 2012.

By Order 2012-9-11, issued on September 11, 2012, the Department selected SkyWest 

Airlines to provide subsidized EAS at Rhinelander; however, the carrier transition will

not be completed by November 6, 2012, the end of the current 30-day hold-in period. In 

accordance with 49 U.S.C. § 41734(c), we must extend Chautauqua’s service obligation 

for an additional 30 days, or until replacement service actually begins, whichever occurs 

first.

This Order is issued under the authority delegated in 14 CFR Part 1.56(a)(f). 

ACCORDINGLY,

1. We require Chautauqua Airlines, Inc., a wholly owned subsidiary of Republic 

Airways Holdings and doing business as Frontier Airlines, to maintain its current level of 

service at Rhinelander, Wisconsin, as set forth in Appendix A, for an additional 30-day 

period through December 6, 2012, or until SkyWest Airlines actually begins service, 

whichever is first;1

2. We direct Chautauqua Airlines, Inc., a wholly owned subsidiary of Republic Airways 

Holdings and doing business as Frontier Airlines to retain all books, records, and other 

source and summary documentation to support subsidy 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;

3. This Docket will remain open until further order of the Department; and

 1 In accordance with 49 U.S.C. § 41734(c), we will extend Chautauqua’s service obligation for successive 

30-day periods as necessary until replacement service actually begins.
-3-

4. We will serve copies of this Order on the parties listed in Appendix B.

By:

SUSAN L. KURLAND

Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the World Wide Web at 

http://www.regulations.gov
Appendix A

Chautauqua Airlines, Inc., d/b/a Frontier Airlines

Provision of Essential Air Service at Rhinelander, Wisconsin

Summary of Service To Be Provided

Effective Period: Beginning November 6, 2012, through December 6, 2012

Scheduled Service: 12 nonstop round trips each week to Milwaukee

Aircraft type: Embraer 135 (37-seats) or Embraer 145 (50-seats).

Intermediate stops and 

upline service:

No service to any other intermediate point is contemplated under the 

terms of the carrier’s proposal; accordingly, no such service may be 

provided on subsidized flights without prior Department approval.

Timing of flights: Flights must be well-timed and well-spaced in order to ensure full 

compensation.
Appendix B

SERVICE LIST

Chautauqua Airlines, Josh Pascoe

Frontier Airlines, Daniel Shurz

Rhinelander/Oneida County Airport, Joseph Brauer