Order 2015-6-8

Served: June 8, 2015

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 8th day of June, 2015

 Essential Air Service at

 PADUCAH, KENTUCKY

 HANCOCK/HOUGHTON, MICHIGAN

 MUSKEGON, MICHIGAN

 EAU CLAIRE, WISCONSIN

Under 49 U.S. C. § 47131 et seq.

 DOCKET DOT-OST-2009-0299

 DOCKET DOT-OST-2009-0302

 DOCKET DOT-OST-2009-0301

 DOCKET DOT-OST-2009-0306

 

 

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from air carriers interested in providing 

Essential Air Service (EAS) at Paducah, Kentucky; Hancock/Houghton, Michigan; Muskegon, 

Michigan; and/or Eau Claire, Wisconsin, with or without subsidy support, for a new term

beginning February 1, 2016. Proposals are due July 10, 2015. (See Appendix A for a map.) 

Background

By Order 2013-10-8, issued on October 21, 2013, the Department re-selected SkyWest Airlines 

(SkyWest) to provide subsidized EAS at the above communities, using 50-seat Canadair CRJ200 aircraft, with 14 nonstop round trips per week per community to Chicago O’Hare (ORD), for 

the period from January 1, 2014, through January 31, 2016, at a combined annual subsidy rate of 

$5,661,624 ($2,034,160 for Paducah, $1,546,536 for Eau Claire, $1,389,952 for Muskegon, and 

$690,976 for Hancock/Houghton).1

That Order, as well as the complete public file for EAS at the above communities, may be

accessed online through the Federal Docket Management System at www.regulations.gov, by 

entering each community’s respective docket number in the “SEARCH for: Rules, Comments, 

Adjudications or Supporting Documents:” field.

Request for Proposals

As the end of the current rate term approaches, the Department is requesting proposals from air 

carriers interested in providing EAS at Paducah, Hancock/Houghton, Muskegon, and Eau Claire,

 1 That Order also selected carriers to serve Pellston and Sault Ste. Marie, Michigan, and Watertown, New York. 

The Department will solicit proposals for a new term for those communities in a separate Order.
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with or without subsidy support, for the two-year period beginning February 1, 2016. Air 

carriers should file their proposals no later than July 10, 2015. After that date, Departmental

staff will docket the proposals, thereby making them public. Additionally, the Department

requests each air carrier serve a copy of its proposal on the civic parties at the above captioned

communities and on the other applicants. Shortly afterwards, the Department will provide a 

summary of the proposals to the civic officials representing the communities and ask them to 

submit any formal comments on this carrier-selection case. The Department will give full 

consideration to all proposals that are timely filed.2 

The following consists of some basic information to serve as guidance when air carriers

prepare their proposals, but the Department will not prescribe a precise format for proposals. 

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 formatted to be viewed online. The Department expects proposals to 

adequately describe the service being 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, the Department recommends they include information concerning proposed 

schedules and projected block hours. In addition, applicants are encouraged to provide 

financial data supporting their subsidy requests, including information on their projected 

expenses and revenues. The Department strongly encourages clear, well-documented 

proposals that will facilitate their evaluation by the affected community(s) and the 

Department.3

The Department encourages proposals that meet the communities’ requirements in an efficient 

manner. All of the above communities are strong traffic generators; therefore, the Department 

will request proposals consisting of 12 to 14 weekly round trips. Air carriers are also 

welcome to propose more than one service option, if they choose; they need not limit 

themselves to a single specific service pattern if they envision other, potentially more 

attractive service possibilities -- different hubs or length of contract, for example -- with 

subsidy requirements that remain competitive.

In order to assist air carriers in developing traffic and revenue projections for their proposals, 

Appendix B presents historical passenger levels at each community. In the most recent 

 2 Air carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide 

EAS without subsidy and the Department determines that service can be reliably provided without such 

compensation, the Department usually does not proceed with the carrier-selection case. Instead, the Department

simply relies on that carrier’s subsidy- free service as proposed.

3 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs the Department to consider five factors: (1) service reliability; (2) contractual and marketing arrangements 

with a larger air carrier at the hub; (3) interline arrangements with a larger air carrier at the hub (4) community 

views, giving substantial weight to the views of the elected officials representing the users; and (5) whether the air 

carrier has included a plan in its proposal to market the service. In addition, the Consolidated Appropriations Act, 

2012, Public Law 112-55, and continued by the Consolidated and Further Continuing Appropriations Act, 2015, 

Public Law No. 113-235, provides that when selecting a carrier to provide EAS, the Department may consider the 

relative subsidy requirements, thus codifying a factor that has been considered since the inception of the program. 

Interested air carriers should also be aware of the general provisions governing EAS, which will be included in the 

selection Order as part of the Department’s authorization of subsidy for the selected service. Appendix C of this 

Order contains those general provisions.
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12-month period for which data are available (January 1, 2015, through December 31, 2015) 

Paducah generated 41,555 total origin and destination passengers, Eau Claire generated 36,809

total origin and destination passengers, Muskegon generated 28,208 total origin and destination 

passengers, and Hancock/Houghton generated 45,962 total origin and destination passengers.

Interested air carriers should prepare their proposal with every expectation that their initial 

proposal will also be their final and only proposal. The Department retains the discretion to 

negotiate proposals with air carriers when deemed desirable; in such cases the Department

will give all applicants the same opportunity. The Department retains the discretion to reject 

outright all unreasonable or unrealistic proposals and solicit a new round of proposals. 

However, negotiations or rejections will remain only occasional exceptions to the rule.

Other Air Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying

activities, drug-free workplaces and nondiscrimination. Consequently, all air carriers

receiving Federal subsidy to support EAS must certify that they are in compliance with 

Department regulations regarding drug-free workplaces and nondiscrimination, and those air 

carriers whose subsidies exceed $100,000 over the life of the rate term must also certify that 

they are in compliance with the regulations governing lobbying activities. All air carriers that 

plan to submit proposals involving subsidy should submit the required certifications along

with their proposals. Interested air 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 

air carriers that do not submit these documents. 4

Community Comments

Civic officials and the States are welcome to submit comments at any time. The Department

encourages prospective applicants to contact the community before they submit their 

proposals so that they can tailor them to the community’s needs, as they will not be able to 

amend them after the due date. As noted earlier, the Department will provide a copy of the 

proposals to the civic parties and ask them to submit their final comments shortly after 

July 10, 2015, the due date for air carrier proposals.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the

Director, Office of Aviation Analysis.

 4 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 of 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants). The certifications are available 

on the web at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service. 
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ACCORDINGLY,

1. The Department requests that air carriers interested in providing Essential Air Service at 

Paducah, Kentucky; Hancock/Houghton, Michigan, Muskegon, Michigan; and/or Eau Claire, 

Wisconsin, submit their proposals, with or without subsidy requests, no later than 

July 10, 2015. The proposals should be emailed to: EAS@dot.gov with the title “Proposal to 

Provide EAS at [name of community(s)];”5

2. These Dockets will remain open until further Order of the Department; and 

3. The Department will serve copies of this Order on the civic officials of Paducah, Kentucky; 

Hancock/Houghton, Michigan; Muskegon, Michigan; and Eau Claire, Wisconsin; the Directors 

of the Barkley Regional Airport, Chippewa Valley Airport, Muskegon County Airport, and 

Houghton County Airport; and the service list for this docket.

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

Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) days after the date 

of service of this Order.

This Order 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

An electronic version of this document is available

online at www.regulations.gov.

 5 Questions regarding filings in response to this Order should be directed to Mr. Scott Faulk at scott.faulk@dot.gov 

or (202) 366-9967.
Appendix A

AREA MAP

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

Page 1 of 4

Paducah, Kentucky1

Year Quarter Enplanements Deplanements Total

2012 1 3,869 3,860 7,729

2012 2 5,650 5,631 11,281

2012 3 5,650 5,744 11,394

2012 4 5,334 5,397 10,731

Total 20,503 20,632 41,135

Year Quarter Enplanements Deplanements Total

2013 1 4,130 4,143 8,273

2013 2 5,324 4,986 10,310

2013 3 5,402 5,246 10,648

2013 4 5,330 5,529 10,859

Total 20,186 19,904 40,090

Year Quarter Enplanements Deplanements Total

2014 1 4,019 4,084 8,103

2014 2 5,768 5,689 11,457

2014 3 5,392 5,571 10,963

2014 4 5,465 5,567 11,032

Total 20,644 20,911 41,555

 1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix B

Page 2 of 4

Eau Claire, Wisconsin1

Year Quarter Enplanements Deplanements Total

2012 1 5,396 5,109 10,505

2012 2 5,349 5,269 10,618

2012 3 5,036 4,955 9,991

2012 4 4,706 4,604 9,310

Total 20,487 19,937 40,424

Year Quarter Enplanements Deplanements Total

2013 1 4,941 4,748 9,689

2013 2 4,920 4,611 9,531

2013 3 5,204 5,219 10,423

2013 4 4,741 4,739 9,480

Total 19,806 19,317 39,123

Year Quarter Enplanements Deplanements Total

2014 1 4,319 4,239 8,558

2014 2 4,899 4,646 9,545

2014 3 4,838 4,944 9,782

2014 4 4,492 4,432 8,924

Total 18,548 18,261 36,809

 1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix B

Page 3 of 4

Muskegon, Michigan1

Year Quarter Enplanements Deplanements Total

2012 1 4,236 3,660 7,896

2012 2 4,231 4,750 8,981

2012 3 4,930 4,601 9,531

2012 4 3,779 3,842 7,621

Total 17,176 16,853 34,029

Year Quarter Enplanements Deplanements Total

2013 1 3,959 3,583 7,542

2013 2 3,635 3,996 7,631

2013 3 4,491 4,305 8,796

2013 4 3,739 3,637 7,376

Total 15,824 15,521 31,345

Year Quarter Enplanements Deplanements Total

2014 1 3,486 3,265 6,751

2014 2 3,534 3,850 7,384

2014 3 4,101 3,869 7,970

2014 4 2,944 3,159 6,103

Total 14,065 14,143 28,208

 1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix B

Page 4 of 4

Hancock/Houghton, Michigan1

Year Quarter Enplanements Deplanements Total

2012 1 5,567 5,454 11,021

2012 2 6,210 6,539 12,749

2012 3 7,362 7,345 14,707

2012 4 6,396 5,877 12,273

Total 25,535 25,215 50,750

Year Quarter Enplanements Deplanements Total

2013 1 5,473 5,137 10,610

2013 2 5,695 5,968 11,663

2013 3 7,747 7,810 15,557

2013 4 6,045 5,691 11,736

Total 24,960 24,606 49,566

Year Quarter Enplanements Deplanements Total

2014 1 5,078 4,833 9,911

2014 2 5,404 5,515 10,919

2014 3 6,805 6,850 13,655

2014 4 6,025 5,452 11,477

Total 23,312 22,650 45,962

 1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix C

Example of General Terms and Conditions for Eassential Air Service

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 air 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 air 

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 [DATE]. The 

Government’s obligation for performance under this Order beyond [DATE], 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 

[DATE], until funds are made available to the Department for performance. If sufficient funds 

are not made available for performance beyond [DATE], 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 for service 

provided in July must be filed by October 31st; August claims must be submitted by November 

30th, and so on.