Order 2013-10-6

Served: October 18, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 18th day of October, 2013

Essential Air Service at

GLASGOW, MONTANA

GLENDIVE, MONTANA

HAVRE, MONTANA

SIDNEY, MONTANA

WOLF POINT, MONTANA

under 49 U.S.C. § 41731 et seq. 

Docket DOT-OST-1997-2605

ORDER EXTENDING SERVICE OBLIGATION

Summary

By this Order, the Department prohibits Silver Airways (“Silver”), from terminating Essential 

Air Service (“EAS”) operations at Glasgow, Glendive, Havre, Sidney, and Wolf Point, Montana, 

for 30 days, through November 25, 2013. 

Background

By Order 2011-1-27, served on February 3, 2011, the Department selected Gulfstream 

International Airlines, subsequently re-named Silver Airways, to provide subsidized EAS with 

19-passenger Beechcraft B-1900D aircraft at Lewistown, Miles City, Glasgow, Glendive, Havre, 

Sidney, and Wolf Point, Montana, for a two-year period beginning when the carrier inaugurated 

service through the end of the 24th month thereafter. The carrier inaugurated full EAS at the 

Montana communities on May 15, 2011, thus setting an expiration date of May 31, 2013. 

Subsequently, by Order 2013-6-3, issued on June 4, 2013, the Department extended that contract 

until further Departmental action to ensure that Silver will continue to receive EAS subsidy for 

its service and to prevent a service hiatus at the above communities. By Order 2013-6-13, issued

on June 12, 2013, the Department finalized the termination of eligibility of Lewistown and Miles 

City, and allowed Silver to suspend service at both communities, if it chose to, effective 

July 16, 2013.1 That Order also solicited proposals for a new contract period for the remaining 

five Montana communities. 

 1 In addition to Order 2013-6-13, see Order 2013-3-13, issued on March 28, 2013, for a complete discussion of 

legislative changes that affected Lewiston and Miles City’s eligibility in the EAS program.
2

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

the Federal Dockets Management System at: http://www.regulations.gov by entering “DOTOST-1997-2605” in the “SEARCH for: Rules, Comments, Adjudications or Supporting 

Documents:” field. 

Notice of Silver to Terminate Service and Subsequent Developments

On June 28, 2013, Silver filed a 90-day notice of its intent to terminate its subsidized service at 

Lewistown, Miles City, Glasgow, Glendive, Havre, Sidney, and Wolf Point effective 

September 26, 2013. On July 19, 2013, the Department issued Order 2013-7-16, prohibiting 

Silver from terminating service for 30 days beyond the end of the 90-day notice period, until 

October 26, 2013.

Proposals and Selection Order

As noted above, by Order 2013-6-13, the Department requested proposals from air carriers interested 

in providing EAS at Glasgow, Glendive, Havre, Sidney, and Wolf Point. In response to that Order, 

the Department received three proposals, and by Order 2013-9-4, issued on September 5, 2013, the 

Department selected Hyannis Air Service, Inc., D/B/A Cape Air (“Cape Air”), to provide EAS 

with 9-passenger Cessna 402 aircraft at Glasgow, Glendive, Havre, Sidney, and Wolf Point, 

Montana, for a two-year period beginning when Cape Air begins full EAS operations at all five 

of the above communities through the end of the 24th month thereafter. 

Hold-In

Cape Air intends to start providing EAS at Glasgow, Glendive, Havre, Sidney, and Wolf Point 

on December 10, 2013. Therefore, in accordance with 49 U.S.C. § 41734(c), we must extend the 

service obligation of Silver for an additional 30 days, through November 25, 2013, or until Cape 

Air actually begins service at all five of the above communities, whichever occurs first.2 

This Order is issued under the authority delegated in 49 CFR Part 1.25a(b). 

ACCORDINGLY,

1. The Department prohibits Silver Airways from suspending its service at Glasgow, 

Glendive, Havre, Sidney, and Wolf Point, Montana, for an additional 30 days and requires it 

to maintain its current level of service, as specified in Order 2011-1-27, through 

November 25, 2013, or until Hyannis Air Service, Inc., D/B/A Cape Air actually begins EAS 

operations, whichever comes first;

2. We direct Silver Airways 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 date of service 

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 air 

 2 In accordance with 49 U.S.C. § 41734(c), the Department will extend Silver’s service obligation for successive 

30-day periods as necessary until replacement service actually begins. During this process, we will continue to 

compensate Silver at rates pursuant to Order 2013-6-3. 
3

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 

4. We will serve copies of this Order on the mayors of Glasgow, Glendive, Havre, Sidney, and 

Wolf Point, Montana, and the airport managers of Wokal Field/Glasgow International Airport, 

Dawson Community Airport (Glendive), Havre City-County Airport, Sidney-Richland 

Municipal Airport, L.M. Clayton Airport (Wolf Point), and the service list for this docket.

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

Aviation Economic 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 at

http://www.regulations.gov