Order 2013

- 5

- 7

Served: M ay 7, 2013



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 7 th day of May , 2013

Essential Air Service at

RUTLAND, VERMONT

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 2005

- 21681



### ORDER REQUESTING PROPOSALS

Summary By this O rder, the Departme nt is requesting proposals from airlines interested in providing

Essential Air S ervice (EAS) at Rutland

, Vermont, with or without subsidy , for a new rate term beginning November 1, 2013 . Pr oposals are due June 12, 2013

. (See Appendix A for a map.)

Background By Order 2009

- 8

- 11

, August 18, 2009 , the Department re

- selected Hyannis Air Service, Inc. d/b/a Cape Air (C ape Ai r), to provide EAS at Rutland for a four

- year term ending

October 31, 2013 . Under that Order, Cape Air provides three daily (21 a week) n o nstop round trips to Boston Logan International Airport (Boston) with nine

- seat Cessna 402 aircraft for an

annu al subsidy rate of $ 797,141

.

Request for Proposals Air carriers should file their prop osals no later than June 12, 2013

. After that date, our staff will docket proposals, thereby making them public, and shortly afterwards will provide a summary of the proposals to the community and ask them for their final comments. We will give full consideration to all proposals filed in a timely manner.

Interested carriers should prepare their proposals with every expectation that their initial proposals will also be their final and only proposals. We retain the discretion to negotiate proposals with carriers when we deem it desirable. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and solicit a new round of proposals. Air carrier proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on www.regulations.gov , each page should be form atted to be viewed online.- 2

-

We are here providing interested carriers with some basic information to serve as guidance when they prepare their proposals, but we will not prescribe a precise format. We expect proposals to adequately describe the service b eing proposed and the annual amount of subsidy being requested. The applicants can make their own judgments as to the level of detail they wish to present; however, they might want to include proposed schedules as well as supporting data for their subsidy requests, such as projected block hours, revenues and expenses. We strongly encourage clear, well

- documented proposals that will facilitate their evaluation by the affected community and the Department. 1

Air c arriers are also welcome to propose more than one option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities

-- different hubs, frequency or equipment, for example

-- with subsidy requirements that remain competitive. The communities and air carriers are encouraged to work together in advance of the due date for proposals to craft a service pattern that is desirable

to the communit y and meets the operational needs o f the airline s

.

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to assist carriers in developing traffic and revenue projections for their proposals, we have provided a summar y of historical passengers i n Appendix B. During the year ended

December 31

, 2012

, Rutland averaged 19 enplanements per day. W e expect service levels that

are c ons istent with what the community currently receive s , with service to any large

- or medium

- hub airport that offers access to the national air transportation system utilizing twin

engine aircraft

. Specifically, air carriers should propose two round trips a day (12 a week) with

19

- 30

- seat or larger aircraft; or three round trips a day (18 a week) with 8/9

- seat aircraft. As

a lways, we will formally solicit the community ’ s views on any service options we receive before making a long

- term carrier selection decision.

Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobb ying activities, drug

- free workplaces and nondiscrimination. 2 Consequently, all carriers receiv ing Federal subsidy to support Essential Air S ervice must certify that they are in compliance with Department regulations regarding drug

- free workplaces and nondiscrimination, and those carriers whose subsidies exceed $100,000 over the life of the rate term must also certify that they are in complianc e with the regulations governing lobbying activities. All air carriers that

1 In selecting a carrier to provide subsidized EAS, 49 U.S.C. § 41733(c) (1) directs us to consider four factors: (1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; (3) interline arrangements with a larger c arrier at the hub (4) community views; and (5) whether the carrier has included a plan in its proposal to market the service

. In addition

, the Consolidated Appropriations Act, 2008, Public Law 110

- 161, provides that when selecting a carrier to provide EA S, the Department may consider the relative subsidy requirements, thus codifying a factor that we have considered since the inception of the program. Interested carriers should also be aware that our general provisions governing Essential Air Service will be included in the selection Order as part of our authorization of subsidy for the selected service. Appendix C of this Order contains those general provisions.

2 The regulations applicable to these areas are: (1) 49 CFR Part 20

– New restrictions on lobbying; (2) 49 CFR

Part 21

– Nondiscrimination in federally

- assisted programs of the Department of Transportation

– Effectuation of title VI of the Civil Rights Act of 1964; 49 CFR Part 27

– Nondiscrimination on the basis o f disability in programs and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382

– Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29

– Government

- wide debarment and suspension (non

proc urement) and government

- wide requirements for drug

- free workplace (grants).- 3

-

plan to submit proposals involving subsidy should submit the required certifications along with their proposals. Interested carriers requiring more detailed information regarding these requirements, as well as copies of the certifications, should contact the Office of Aviation Analysis at (202) 366

- 5903. The Department is prohibited from paying subsidy to carriers that

do not submit these documents. 3

Community and State Comments Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, we will provide a summary of the proposals to the civic parties and ask them to submit their final comments shortly after June 12, 2013

, the due date for carri er proposals.

This O rder is issued under authority delegated in 49 CFR Part 1. 25a(b) and re

- delegated to the Director, Office of Aviation Analysis.

ACCORDINGLY, 1. We request that air carriers interested in providing Essential Air Service at Rutland

, Ve rmont, submit their proposal , with or without subsidy requests, no later than June 12, 2013

. The proposal should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential

Air Service at Rutland, Vermont ”; 4

2. This docket will remain open until further order of the Department; and

3. The Department will serve a copy of this O rder on the Mayor and Airport M anager of Rutland, the Vermont Department of Transportation, Hyannis Air Service, Inc. d/b/a Cape A ir,

and the service list for this Docket

.

Persons entitled to petition the Department for review of this O rder under the Department’s

Aviation Economic Regulations, 14 CFR Part 385.31(a) , must fil e such petitions within seven (7) days aft er the date of se rvice of this O rder.

This O rder will be effective immediately, and the filing of a petition for review shall not preclude its effectiveness.

By:

TODD M. HOMAN

Director Office of Aviation Analysis

(SEAL)

An electronic version of this document is available on line at www.regulations.gov

3 The certifications are available online under “Reports and Publications” at http://www.dot.gov/policy/aviation

policy/small

- community

- rural

- air

- service/essential

- air

- service

4 Questions regarding filings in response to this order should be directed to Michael Martin at 202

- 366

- 6494, or

via email at michael.f.martin@dot.gov

.

### Appendix A



## Area Map

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.

### APPENDIX B

Historical Origin

- Destination Plane Traffic 1



### Rutland, Vermont

Quarter Year Deplanements Enplanements Total
Traffic Enplanements per Day

1 2010 1,034 1,101 2,135 14

2 2010 1,324 1,280 2,604 17

3 2010 1,685 1,711 3,396 21

4 2010 1,383 1,361 2,744 17

Annual

Totals 5,426 5,453 10,879 17

1 2011 1,317 1,404 2,721 18

2 2011 1,325 1,373 2,698 17

3 2011 1,639 1,675 3,314 21

4 2011 1,438 1,439 2,877 18

Annual

Totals 5,719 5,891 11,610 19

1 2012 1,355 1,447 2,802 18

2 2012 1,375 1,302 2,677 17

3 2012 1,731 1,709 3,440 22

4 2012 1,423 1,414 2,837 18

Annual

Totals 5,884 5,872 11,756 19

1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T

- 1 00

.

### Appendix C

Example of General Terms and Conditions for Essential Air Service

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 land ing 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 subsid y. 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 beyon d 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 De partment 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 su bsidy 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 D epartment 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 payme nts 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 solicitation beyond [DATE] . The Departme nt’s obligation for performance under this soli citation beyond [DATE] , is contingent

upon 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 und er this order beyond [DATE] , until funds are made available to the Department for performance. If funds are not made available for performance beyond [DATE] , the carrier will receive notice in writing by the Department.

All claims for payment must be sub mitted within 60 days of the last day of service provided

under this order.