Order: 2014-11-15

Served: November 25, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th of November, 2014

ORDER REQUESTING PROPOSALS1

Summary

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

Essential Air Service (EAS) at Page, Prescott, and/or Show Low, Arizona, for a new contract

period beginning May 1, 2015, with or without subsidy. (See Appendix A for a map). Air 

carriers should file their proposals no later than December 22, 2014.

Background

By Order 2013-6-1 (June 3, 2013), the Department re-selected Great Lakes Aviation Ltd. 

(Great Lakes) to provide EAS at Kingman, Page, Prescott, and Show Low, Arizona, for the 

two-year period from May 1, 2013, through April 30, 2015, for a combined annual subsidy of 

$7,873,533 ($1,635,180 for Kingman, $2,472,028 for Page, $2,094,325 for Prescott, and 

$1,672,000 for Show Low).2 Page currently receives service to Denver, Los Angeles, and 

Phoenix; Prescott receives service to Los Angeles; and Show Low receives service to 

Phoenix. All of the above communities are served with Beechcraft 1900D aircraft.

The complete public file for EAS at the above communities may be accessed online through 

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

Docket number in the “Search for Rules, Comments, Adjudications, or Supporting 

Documents” field.

 1 As stated in Order 2014-9-21 (September 26, 2014), Kingman is now over the $1,000 subsidy-per-passenger 

cap. Therefore, the Department is not requesting proposals for Kingman; rather, the Department will address 

Kingman in a separate Order. 

Essential Air Service at

KINGMAN, ARIZONA

PAGE, ARIZONA

PRESCOTT, ARIZONA

SHOW LOW, ARIZONA

Under 49 U.S.C. § 41731 et seq.

DOCKET DOT-OST-1996-1899

DOCKET DOT-OST-1997-2694

DOCKET DOT-OST-1996-1899

DOCKET DOT-OST-1998-4409
- 2 -

Request for Proposals

As the end of the current contracts approach, the Department is requesting proposals from air 

carriers interested in providing EAS at Page, Prescott, and/or Show Low, with subsidy support

if necessary, for a new contract period beginning May 1, 2015. Carriers should file their 

proposals no later than December 22, 2014. Staff will then docket the proposals, thereby 

making them public. Shortly afterwards, the Department will provide a summary of the 

proposals to the community and ask them to submit their final comments. The Department

will give full consideration to all proposals that are timely filed.3

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

proposals will represent their final and only proposals. However, the Department retains the 

discretion to negotiate proposals with carriers when we deem it desirable; in such cases, of 

course, the Department will give all applicants the same opportunity. The Department also 

retains the discretion to reject outright all unreasonable or unrealistic proposals and re-solicit a 

new round of proposals. However, negotiation and rejection are only occasional exceptions to 

the rule.

The Department is providing interested carriers with some basic information to serve as 

guidance when they prepare their proposals, but it will not prescribe a precise format for their 

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 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, it is recommend 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. The Department strongly encourages clear, well-documented 

proposals that will facilitate their evaluation by the affected communities and the 

Department.4

 3 Carriers should not expect the Department to accept late filings. 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.

4 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: (a) service reliability; (b) contractual and marketing arrangements with a 

larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving 

substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has 

included a plan in its proposal to market its service to the community. In addition, the Consolidated 

Appropriations Act, 2014, Public Law No. 113-76, and continued in the Continuing Appropriations Resolution, 

2015, Public Law No. 113-164, 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 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.
- 3 -

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In 

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

Department has provided a summary of historical passengers in Appendix B. The Department 

expects proposals that are consistent with what the communities currently receive, 12 to 22 

weekly round trips at Page, and 12 to 18 weekly round trips at Show Low, depending on the 

seasonal demand, and 18 round trips at Prescott, using 19-passenger aircraft. The Department 

will contemplate 12 weekly round trips, if 30- to 50-passenger aircraft are proposed. If 

smaller aircraft (9-passenger) are proposed, the Department will consider additional 

frequencies. Air carriers are also welcome to propose more than one service option, if they 

choose. They also need not limit themselves to these requirements if they envision other, 

potentially more attractive service possibilities -- different hubs or length of contract, for 

example -- with subsidy requirements that remain competitive.

Service and Traffic History

For the fiscal year ending 2014 (10/1/13-9/30/14), Page averaged 16.2 enplanements per day, 

Prescott, 13.2, and Show Low, 7.2. Additional details can be found in Appendix B.

Special Discussion on Eligibility

To maintain eligibility in the EAS program, communities must comply with all eligibility 

requirements. The Department of Transportation and Related Agencies Appropriations Act 

2000, prohibits the Department from subsidizing EAS to communities located within the 48 

contiguous States receiving per passenger subsidy amounts exceeding $200, unless the 

communities are located more than 210 miles from the nearest large or medium hub.5 

Prescott and Show Low are located approximately 102 miles and 154 miles, respectively, of 

Phoenix Sky Harbor International Airport (PHX), a large hub airport, and therefore are 

subject to the $200 cap. Based on the most recent data available, both Prescott and Show 

Low’s subsidy per passenger exceeds $200 (Prescott at $253 and Show Low at $370).6 The 

Department fully expects the communities to work cooperatively with the prospective carrier 

to ensure subsidy rates are in compliance with the $200 per passenger cap to remain eligible 

for EAS.7 

Additionally, Prescott and Show Low must maintain an average of 10 enplanements per 

service day. Public Law No. 112-95 amended 49 U.S.C. §41731(a)(1)(B) to change the 

definition of “eligible place” for the purpose of receiving EAS. The amendment states that to 

 5 Congress first established the $200 ceiling under P.L. 101-164 for fiscal year 1990, and reestablished it in fiscal 

years 1994-1999. The ceiling was made permanent by P.L. 106-69, the Department of Transportation and 

Related Agencies Appropriations Act of 2000. 6 The most recent data shows that Prescott had 8,281 total passengers and Show Low had 4,521 total passengers. 

The annual subsidy for Prescott is $2,094,325 and $1,672,000 for Show, resulting in subsidy per passenger 

calculations of $253 and $370, respectively.

7 On May 1, 2014, a Notice of Proposed Enforcement Policy on the $200 per passenger subsidy cap was 

published in the Federal Register (Volume 79, Issue 84). After a 60-day public comment period and review, the 

Department issued a final notice of enforcement policy on the $200 cap in October 2014. All communities in the 

48 contiguous States within 210 miles of the nearest large or medium hub airport receiving subsidized air service 

under EAS program have until September 30, 2015, based on data from October 1, 2014, through September 30, 

2015, to ensure compliance with the $200 subsidy cap or face termination of subsidy eligibility.
- 4 -

be eligible, a community must maintain an average of 10 enplanements or more per service 

day, as determined by the Secretary, during the most recent fiscal year beginning after 

September 30, 2012, except for those communities located more than 175 driving miles from 

the nearest large or medium hub.8 As noted above, Prescott and Show Low are both within 

175 miles of PHX, a large hub airport. Prescott’s current average enplanements per day is 

13.2. Show Low’s is 7.2, below the statutory requirement of 10.9

Community Comments

The communities and State are welcome to submit comments at any time. The Department

encourages prospective applicants to contact the communities before they submit their 

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

amend them after the due date. As noted earlier, a summary of the proposals will be provided 

to the civic parties shortly after the deadline for carrier proposals, asking them to submit their 

final comments.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.10 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) 366-5903.11

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

Director, Office of Aviation Analysis.

 8 The Secretary also has authority to waive the 10 passenger requirement, on an annual basis, if the community 

can demonstrate that the reason the location averages fewer than 10 passengers per day is due to a temporary 

decline in enplanements. See 49 U.S.C. § 41731(e). Additionally, the Secretary may waive the $200 subsidyper-passenger cap, on a case-by-case basis for a limited period of time. See Pub. L. 112-95, Sec. 426(c) (Feb. 

14, 2012). 9 The Department intends to address all communities under the 10-enplanement standard for FY2014 in one 

Order once all the data are available. Thus, Show Low’s long-term eligibility in the EAS program is unclear at 

this time.

10 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; (3) 49 CFR Part 27 -- Nondiscrimination on the Basis of 

Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4) 

14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Part 29 --

Government-Wide Debarment and Suspension (Non-Procurement) and Government-Wide Requirements for 

Drug-Free Workplace (Grants).

11 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/smallcommunity-rural-air-service/essential-air-service. 
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ACCORDINGLY,

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

Prescott, and/or Show Low, Arizona, submit their proposals, with subsidy support if 

necessary, no later than December 22, 2014. The proposals should be e-mailed to: 

eas@dot.gov with the title “Proposal to Provide EAS at Page, Prescott, and/or Show Low”;12

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

3. The Department will serve copies of this Order on the Mayors, civic and airport officials of 

Kingman, Page, Prescott, and Show Low, Arizona.

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

(SEAL)

An electronic version of this document is available

online at www.regulations.gov. 

 12 Questions regarding filings in response to this Order may be directed to Michael Gormas at (202) 366-1853 or

michael.gormas@dot.gov.
Appendix A

AREA MAP

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

Page 1 of 3

Passenger Traffic at Page1/2

Page, AZ

PGA

FY2012 Enplanements Deplanements Total

Enplanements

Per day

2011--10 315 327 642

2011--11 256 303 559

2011--12 202 199 401

2012--1 161 196 357

2012--2 227 159 386

2012--3 291 274 565

2012--4 677 506 1183

2012--5 723 631 1354

2012--6 836 665 1501

2012--7 927 769 1696

2012--8 981 943 1924

2012--9 849 957 1806

6445 5929 12374 19.8

FY2013

2012--10 514 567 1081

2012--11 395 402 797

2012--12 249 195 444

2013--1 254 239 493

2013--2 240 242 482

2013--3 439 386 825

2013--4 488 437 925

2013--5 711 615 1326

2013--6 845 664 1509

2013--7 875 807 1682

2013--8 859 818 1677

2013--9 700 738 1438

6569 6110 12679 20.3

FY2014

2013--10 352 398 750

2013--11 391 366 757

2013--12 247 236 483

2014--1 176 193 369

2014--2 174 144 318

2014--3 203 186 389

2014--4 474 231 705

2014--5 653 335 988

2014--6 793 440 1233

2014--7 878 454 1332

2014--8 1198 492 1690

2014--9 624 473 1097

6163 3948 10111 16.2

 

1 Source: Bureau of Transportation Statistics: Schedule T-100; FY = Fiscal Year

2 Enplanements per Day = Total Traffic/2/313 annual service days (314 in leap years).
Appendix B

Page 2 of 3

Passenger Traffic at Prescott

Prescott, AZ

PRC

FY2012 Enplanements Deplanements Total

Enplanements

Per day

2011--10 470 427 897

2011--11 471 470 941

2011--12 513 503 1016

2012--1 383 385 768

2012--2 332 311 643

2012--3 427 411 838

2012--4 396 440 836

2012--5 446 429 875

2012--6 519 479 998

2012--7 493 478 971

2012--8 466 425 891

2012--9 427 394 821

5343 5152 10495 16.8

FY2013

2012--10 450 443 893

2012--11 449 462 911

2012--12 470 490 960

2013--1 360 306 666

2013--2 325 321 646

2013--3 472 395 867

2013--4 436 420 856

2013--5 450 487 937

2013--6 571 525 1096

2013--7 594 538 1132

2013--8 540 462 1002

2013--9 421 410 831

5538 5259 10797 17.2

FY2014

2013--10 442 431 873

2013--11 336 339 675

2013--12 473 515 988

2014--1 230 214 444

2014--2 214 205 419

2014--3 342 339 681

2014--4 327 317 644

2014--5 366 370 736

2014--6 375 367 742

2014--7 357 388 745

2014--8 389 344 733

2014--9 291 310 601

4142 4139 8281 13.2
Appendix B

Page 3 of 3

Passenger Traffic at Show Low

Show Low, AZ

SOW

FY2012 Enplanements Deplanements Total

Enplanements

Per day

2011--10 389 371 760

2011--11 288 319 607

2011--12 317 243 560

2012--1 220 328 548

2012--2 231 202 433

2012--3 270 252 522

2012--4 258 250 508

2012--5 383 383 766

2012--6 370 380 750

2012--7 393 429 822

2012--8 429 463 892

2012--9 305 332 637

3853 3952 7805 12.5

FY2013

2012--10 316 315 631

2012--11 276 245 521

2012--12 259 258 517

2013--1 178 258 436

2013--2 158 133 291

2013--3 222 224 446

2013--4 211 214 425

2013--5 345 339 684

2013--6 405 422 827

2013--7 450 457 907

2013--8 444 494 938

2013--9 397 441 838

3661 3800 7461 11.9

FY2014

2013--10 317 280 597

2013--11 231 250 481

2013--12 260 232 492

2014--1 161 234 395

2014--2 167 155 322

2014--3 159 123 282

2014--4 119 127 246

2014--5 125 137 262

2014--6 154 162 316

2014--7 177 172 349

2014--8 210 212 422

2014--9 144 213 357

2224 2297 4521 7.2
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 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.