Order: 2014-4-22

Served: April 22, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22nd of April, 2014

Essential Air Service at

FORT DODGE, IOWA

MASON CITY, IOWA

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

DOCKET DOT-OST-2001-10682DO

DOCKET DOT-OST-2001-10684

ORDER RESOLICITING PROPOSALS

Summary

By this Order, the Department is re-soliciting proposals from air carriers interested in 

providing Essential Air Service (EAS) at Fort Dodge and Mason City, Iowa, with or without 

subsidy. Carriers should file their proposals no later than June 2, 2014. (See Appendix A for 

an area map).

Background

By Order 2014-1-20 (January 31, 2014), the Department requested expedited proposals from

carriers interested in providing EAS at Fort Dodge and/or Mason City with a due date of 

February 21, 2014. The communities have been without air service since February 1, 2014, 

when Great Lakes Aviation, Ltd. (Great Lakes) suspended all service at both communities.

In response to our request for proposals, we received proposals from Great Lakes and MultiAero, Inc. d/b/a Air Choice One (Air Choice One).

Summary of Proposals

At Fort Dodge, Great Lakes proposed two options. 18 weekly round-trips to Minneapolis/St. 

Paul International Airport (Minneapolis) or Chicago O’Hare International Airport (Chicago), 

utilizing 19-seat (reconfigured for 9 seats) Beech 1900D aircraft, or, 12 weekly round-trips to 

Chicago utilizing 30-seat Embraer Brasilia EMB-120 aircraft for an annual subsidy of 

$2,577,749.

At Mason City, Great Lakes proposed two options as well. 24 weekly round-trips to 

Minneapolis or Chicago on Beech 1900D aircraft or 12 weekly round-trips to Chicago on 

Brasilia EMB-120s for an annual subsidy of $2,676,869.
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Air Choice One proposed a multitude of combined service to Fort Dodge and Mason City 

along with stand-alone service to Fort Dodge and Mason City. They would utilize either a 9-

seat Cesssna Grand Caravan or an 8-seat Piper Navajo for these communities.

Combined Option 1 consists of 18 weekly round-trips from Ft. Dodge to St. Louis 

International Airport (St. Louis), 18 weekly round-trips from Mason City to Chicago and 6 

weekly one-stop round-trips from Mason City to Ft. Dodge to St. Louis, for an annual subsidy 

of $6,940,841 for a 2 year contract, discounted to $6,871,433 for a 3 or 4 year contract.

Combined Option 2 consists of 18 weekly round-trips from Ft. Dodge to St, Louis, 6 weekly 

one-stop round-trips from Ft. Dodge to Mason City to Chicago, 18 weekly round-trips from 

Mason City to Chicago and 6 weekly one-stop round-trips from Mason City to Ft. Dodge to 

St. Louis for an annual subsidy of $7,431,905 for a 2 year contract, discounted to $7,357,586 

for a 3 or 4 year contract.

The Fort Dodge stand-alone Option consists of 18 weekly round trips from Ft. Dodge to St. 

Louis for an annual subsidy of $3,685,509 for a 2 year contract, discounted to $3,648,653 for 

a 3 or 4 year contract.

The Mason City stand-alone option consists of 18 weekly round trips from Mason City to 

Chicago for an annual subsidy of $4,290,533 for a 2 year contract, discounted to $4,247,628 

for a 3 or 4 year contract.

Community Comments

The Department solicited community comments on these proposals, with a due date of March 

14, 2014. The community requested additional time and we gave them until March 21, 2014 

to submit comments.

On March 19, 2014 , we received a joint letter from the Mayors of Mason City and Fort 

Dodge, and a letter from the Mason City Airport Manager on March 20, 2014. The 

communities rejected proposals submitted by both Great Lakes and Air Choice One for 

several reasons. The Mayors of both communities along with the Airport Manager of Mason 

City expressed concern with Great Lakes because of their past experience of unreliability and 

non-competitive fares. Their concerns with Air Choice One relate to its use of a single-engine 

aircraft as opposed to a twin-engine aircraft, which the communities are entitled to, and the 

effect that has on the duration of the flight. Therefore, we are requesting proposals for a 

second time. 

The complete public file for EAS at Fort Dodge and Mason City may be accessed online 

through the Federal Dockets Management System at: www.regulations.gov by entering 

“DOT-OST-2001-10682” or “DOT-OST-2001-10684”: in the “Search for Rules, Comments, 

Adjudications, or Supporting Documents” field.

 
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Request for Proposals1

As outlined above, at the communities’ request, we are requesting proposals from carriers 

interested in providing EAS at Fort Dodge and Mason City, Iowa, with or without subsidy.

2 

Carriers should file their proposals by June 2, 2014. Staff will then docket the proposals, 

thereby making them public. Shortly afterwards, we will provide copies of all timely filed 

proposals to the communities and request community comments by a specified date. 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 proposals and, if necessary, 

solicit a new round of proposals. 

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 for their 

proposals. We expect 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, we recommend that they include 

information concerning proposed schedules and projected block hours. In addition, applicants 

are urged to provide financial data supporting their subsidy requests, including information on 

their projected expenses and revenues. We strongly encourage clear, well-documented 

proposals that will facilitate their evaluation by the communities and the Department.3

As always, we will formally solicit each community’s views on any service options we receive 

before making a long-term, carrier-selection decision. The communities and air carriers are 

encouraged to work together, in advance of the due date for proposals, to craft service patterns 

that are both desirable to the communities and meet the operational needs of the airlines, as 

carriers cannot amend their proposals after the due date.

We encourage proposals that meet the communities’ requirements in an efficient manner. 

With specific respect to Fort Dodge, the Department expects proposals consisting of three 

 

1 Carriers should not expect the Department to accept late fillings. In cases where a carrier proposes to provide 

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, can be reliably 

provided without such compensation, we typically will not proceed with the carrier-selection case. Instead, we 

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

2 Applicants should be aware of the provisions of 49 U.S.C. § 41731(a)(1)(B), the ten enplanement rule, 

discussed above, when preparing their proposals. Staff will be available to answer any questions.

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

directs us to consider five factors: (1) service reliability; (2) contractual and marketing arrangements with a larger 

carrier at the hub; (3) interline arrangements with a larger carrier 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, 2014, Public Law No. 113-76, provides that when selecting a carrier to provide EAS, 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 EAS 

will be included in the selection Order as part of our authorization of subsidy for the selected service. Appendix 

B of this Order contains those general provisions.
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nonstop round trips each day (a total of 18 per week) to Minneapolis, Chicago O’Hare, or 

another large or medium hub airport with numerous connections to the national air 

transportation system using 19-seat aircraft. At Mason City, we expect four nonstop or onestop round trips each day (a total of 24 per week), also to a large or medium-hub airport using 

19-seat aircraft. For service using larger aircraft, we are asking for two nonstop or one-stop 

round trips each weekday and weekend (a total of 12 per week). If smaller aircraft are 

contemplated (e.g. 9-seat aircraft), additional frequencies will be considered, although we 

would expect the service to be nonstop from each community to the hub airport. We 

encourage proposals that meet those requirements in an efficient manner. Carriers are also 

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

themselves to the requirements specified above if they envision other, potentially more 

attractive service possibilities – different hubs, for example – with subsidy requirements that 

remain competitive.

Filing Format

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 formatted to be viewed online.

Historical Traffic

Refer to Appendix B in Order 2014-1-20 (January 31, 2014).

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy for EAS 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 contract must also certify that they are in compliance with 

the regulations governing lobbying activities. Because the Department is prohibited from 

paying subsidy to carriers that do not submit these documents, all carriers that plan to submit 

proposals involving subsidy should be aware that the selected carrier will be required to 

complete the required certifications. Interested carriers requiring more detailed information 

regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.

Community Comments

The communities are welcome to submit comments at any time. We encourage prospective 

applicants to contact the communities 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, we will provide a summary of the proposals to the civic parties shortly after the 

deadline for carrier proposals, and ask them to submit their final comments.

 

4 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service
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This Order is issued under authority delegated in 49 CFR Part 1.25a(b).

ACCORDINGLY

1. The Department requests proposals from carriers interested in providing EAS at Fort 

Dodge, Iowa, and/or Mason City, Iowa. Carriers should submit proposals, with subsidy if 

necessary, by June 2, 2014. Proposals should be emailed to EAS@dot.gov, with the title 

“Proposal(s) to Provide EAS at Fort Dodge and/or Mason City”5;

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

3. We will serve this Order on Mayors of Fort Dodge and Mason City, the airport managers at 

Fort Dodge Regional Airport and Mason City Municipal Airport, the service list for these 

Dockets.

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

Regulations, 14 CFR Part 385.31, 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.

SUSAN KURLAND

Assistant Secretary

Aviation and International Affairs

(SEAL)

An electronic version of this document is available

Online at www.regulations.gov. 

 

5 Questions regarding filings may be directed to Michael Gormas at 202-366-1053 or Michael.Gormas@dot.gov.
Appendix A

AREA MAP

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

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 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 complete, 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.

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.

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.

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.