Order: 2013-1-5

Served January 4, 2013

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 4th day of January, 2013 

 Essential Air Service at

 MACON, GEORGIA

Under 49 U.S. C. 47131 et seq.

 DOCKET DOT-OST-2007-28671

 

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department of Transportation is requesting proposals from air carriers 

interested in providing EAS at Macon for a new contract, with or without subsidy. (See 

Appendix A for a map). Proposals are due by January 31, 2013. 

Background

The Department’s FY 2012 appropriation (P.L. 112-55) limited eligibility in the EAS program in 

the lower 48 states to certain communities, including those that received subsidized EAS “at any 

time between September 30, 2010, and September 30, 2011, inclusive.” Macon is eligible for 

subsidized service because it was receiving service on a subsidized basis from Pacific Wings

through January 24, 2011, and subsidy-free service starting January 25, 2011. However, on 

April 26, 2012, Pacific Wings filed a 90-day notice of its intent to terminate its unsubsidized 

service at Macon, which triggered a carrier-selection case.

 

Pacific Wings’ proposed termination of service at Macon would have left the community with no 

scheduled air service whatsoever. As a result, the Department issued Order 2012-5-25, on 

May 24, 2012, which prohibited Pacific Wings from terminating service for 30 days beyond the 

end of the 90-day notice period, i.e. August 25, 2012, and requested proposals from air carriers 

interested in providing EAS at Macon, with or without subsidy. In response to that Order, we 

received two proposals.

By Order 2012-9-6, issued on September 6, 2012, the Department selected Sun Air Express,

LLC d/b/a Sun Air International (“Sun Air”) to provide subsidized EAS at Macon for a two-year 

contract. However, on December 20, 2012, Sun Air sent an e-mail to the Department 

withdrawing from the case and encouraging the re-solicitation of proposals for EAS at Macon. 

Sun Air explained that it is undergoing an aggressive expansion, experiencing challenges in 

completing pilot recruiting and training, and establishing maintenance bases in Texas, Maryland, 

and Pennsylvania has proven more difficult than anticipated. In response to Sun Air’s 
2

notification, we contacted the community and it supports our issuance of a new request for 

proposals. As a result, we will now solicit proposals from carriers interested in providing service 

to Macon. 

Legislative Changes Which May Affect Future EAS Eligibility at Macon

The FAA Modernization and Reform Act of 2012 (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 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, 2012.1 The legislation exempts locations in Alaska 

and Hawaii and communities that are more than 175 driving miles from the nearest large or 

medium hub airport. As Macon is only about 81 miles from the Atlanta airport, the community 

must meet the 10-enplanement-a-day threshold for EAS to continue after FY2013, barring a 

waiver from the Secretary. 

In the most recent fiscal year for which data are available, FY2012 (October 2011-September 

2012), Pacific Wings generated a total of 1,389 passengers (inbound and outbound), or an 

average of fewer than three enplanements per day.2 The Department will continue to monitor 

Macon’s eligibility to receive EAS in light of these new requirements throughout the life of any 

executed contract. The Department may terminate a contract for any community receiving EAS 

if enplanements remain below 10 per day during FY2013, barring a waiver from the Secretary. 

Additionally, communities are not eligible for subsidized air service if their per passenger 

subsidy exceeds $1,000.3 The Department strongly encourages the community and any air 

carrier proposing to serve Macon, to work together to increase enplanements and maintain a 

reasonable subsidy per passengers level in order to avoid termination of eligibility for subsidy 

under the EAS program. We will monitor both the subsidy per passenger rate and the 

10-enplanement threshold during this upcoming contract to ensure compliance with the statute. 

Request for Proposals

We are here requesting proposals from air carriers interested in providing service at Macon, 

with or without subsidy support, for a new two-year period. Air carriers should file their 

proposals no later than January 31, 2013. After that date, our staff will docket all proposals, 

thereby making them public, and direct each air carrier to serve a copy of its proposal on the 

civic parties and other applicants. Shortly thereafter, we will provide a summary of the 

proposals to community officials and ask them to submit their final comments. We will give 

full consideration to all proposals filed in a timely manner.4 

 1 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).

2 Source: Bureau of Transportation Statistics; Form 41, Schedule T-100. Daily averages are based on one-half of 

the O&D passengers, divided by 313 service days (314 during leap years).

3 See 49 USC §§ 41731(a)(1)(C). 

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

Essential Air Service without subsidy and we determine that service can be reliably provided without such 
3

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

proposal will also be their final and only proposal. We retain the discretion to negotiate 

proposals with air carriers when we deem it desirable; in such cases, of course, we will give 

all applicants the same opportunity. We also retain the discretion to reject outright all 

unreasonable or unrealistic proposals and solicit a new round of proposals. However, we 

anticipate that negotiation or rejection will remain only occasional exceptions to the rule.

We are here providing interested air 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, 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 communities and the Department.5

With specific respect to Macon, given the very low passenger levels, we ask that carriers 

submit proposals for two nonstop round trips per day (12 a week) to Atlanta with any sized 

aircraft. We will also entertain proposals to serve other hubs that provide access to the 

national air transportation system in order to give the Department and the community as broad 

an array of proposals as possible from which to choose. Of course, as always, we will 

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

long-term, carrier-selection decision. The community 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 community and meets the operational needs of the airline interested in submitting a 

proposal.

We encourage proposals that meet these 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 those requirements if they envision other, potentially more attractive service possibilities –

different length of contract, for example -- with subsidy requirements that remain competitive.

 compensation, we typically do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s 

subsidy- free service as proposed.

5 In selecting an air 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 carrier at the hub; and (4) community views. In addition, the Consolidated 

Appropriations Act, 2008, Public Law 110-161, provides that when selecting an air 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 C 

of this Order contains those general provisions.
4

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

have summarized historical passengers in Appendix B. In 2012, Macon generated 1,389 O&D 

passengers, averaging fewer than three enplanements a day.6 

Other Air Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces and nondiscrimination.7 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. 8

Community Comments

Civic officials and the State 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 communities’ needs, as they will not be able to amend them after 

the due date. As noted earlier, we will provide a copy of the proposals to the civic parties and 

ask them to submit their final comments shortly after January 31, 2013, the due date for air 

carrier proposals.

Finally, by separate Orders, we will continue to require Pacific Wings to continue to serve 

Macon pending the conclusion of this carrier-selection case. 

This Order is issued under authority delegated in 49 CFR Part 1.56a(f) and re-delegated to the

Director, Office of Aviation Analysis.

ACCORDINGLY,

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

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

January 31, 2013. The proposals should be emailed to: EAS@dot.gov with the title 

 6 See Appendix B for historical traffic data. Enplanements represent one-half of total origin-and-destination traffic, 

and average enplanements per day are based on weekdays and weekends each quarter, except as noted.

7 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).

8 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.
5

“Proposal to Provide Essential Air Service at Macon, Georgia (Docket DOT-OST-2007-

28671);”9

2. The Department will serve copies of this Order on the civic officials of Macon, Georgia, 

Pacific Wings, L.L.C., d/b/a Georgia Skies, and the parties listed in Appendix D; and 

3. Dockets DOT-OST-2007-28671 will remain open until further Order of the Department.

This Order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness.

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

Aviation Economic Regulations, 14 CFR Part 385.50, must file such petitions within ten (10) 

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 on the World Wide Web at 

http://www.regulations.gov

 9 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
Appendix B

Historic Traffic at Macon, Georgia1

 1 Source: Bureau of Transportation Statistics: Schedule T-100

Fiscal 

Year Quarter

Inbound 

Passengers

Outbound 

Passengers Total

2010 1 223 224 447

2010 2 318 227 545

2010 3 463 376 839

2010 4 303 365 668

2,499 Total

Fiscal 

Year Quarter

Inbound 

Passengers

Outbound 

Passengers Total

2011 1 259 236 495

2011 2 222 185 407

2011 3 252 219 471

2011 4 339 2763 615

1,988 Total

Fiscal 

Year Quarter

Inbound 

Passengers

Outbound 

Passengers Total

2012 1 247 184 431

2012 2 197 153 350

2012 3 191 184 375

2012 4 126 107 233

1,389 Total
Appendix C

Example of General Terms and Conditions for Essential 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 are not currently available for performance under this Solicitation beyond

March 31, 2013. The Government's obligation for performance under this Solicitation beyond 

March 31, 2013, is subject to the availability of appropriated 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 solicitation beyond March 31, 2013, until funds are made

available to the Department for performance. If funds are not made available for performance

beyond March 31, 2013, the Department will provide notice in writing to the air carrier.

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

under this Order.
Appendix D

Aero Twin, AACA, Tony Cestnik DHS, Randy Webb

Alaska Air Carriers Association, Joy Journeay Northern Air Cargo, John Eckles

Alaska Airlines, Joe Sprague Northern Air Cargo, Keven Schlosstein

Alaska Airlines, Sandy Sinick Pacific Airways, Steve Montanus

Alaska Central Express, John Seamon PenAir Consultant, Patrick Rizzi

Alaska Central Express, Mike Bergt PenAir, Betty Gonzalez

Alaska Central Express, Steve Endlich PenAir, Danny Seybert

Alaska DOT, Christine Klein PenAir, Orin Seybert

Alaska DOT, Rebecca Cronkhite PenAir, Robert Cohn

Alaska DOT-Medicaid Passenger Fares PenAir, Scott Bloomquist

Alaska Seaplanes, Craig Loken PM Air, d/b/a Promech, Marc Sessoms

Alsek Air, Les and Debra Hartley RITA, Benard Stankus

Arctic Circle, Donald Singsaas Servant Air, Wes Osowski

Arctic Circle, Kelly Harris Skagway, Ben Lingle

Arctic Transportation Services (ATS), Wilfred Ryan Smokey Bay Air, Claire McCann

Arctic Transportation Services, (ATS), Jim Hjelm Spernak Airways, Mike Spernak

Baker Aviation, Marjorie Baker Tanana Air Service, Brian Martin

Bering Air, Allen Haddadi Taquan Air Service, Brien Salazaar

Bering Air, Jim Rowe Taquan, Beckie Allen

Congressional, Murkowski, Arne Fuglvog Tatonduk, Controller, Tina Paylor

Congressional, Begich, Amanda Clausen Tatonduk, Marketing, Robert Ragar

Congressional, Young, Jeremy Price Tatonduk, Owner, Robert Everts

Consultant, Hank Myers USPS, Greg Garcia

Consultant, Ken Acton USPS, Joel Rosen

Consultant, Norm Israelson USPS, Mary Tobias

Ellis Air Taxi, Lynn Ellis USPS, Meredith Chavez, Consultant

Era Aviation, Mike Lenorman USPS, Steve Deaton

ERA, David M. Richards USPS, Taylor, Mary T

Frontier Flying, Bob Hajducovich USPS, Tina Campbell

Grant Aviation, Bruce McGlasson USPS, William Jones

Hageland, Mike Hageland Warbelows Air Ventures, Arthur Warbelow

Hageland, Patrick Thurston Ward Air, Ed Kiesel

Hageland, Steve Wahrnke Wings of Alaska, Bob Jacobsen

Harris Air, Fly Hackett Wings of Alaska, Michelle Donohue

Harris Air, Scott Wright Air Service, Bob Bursiel

Harris Air, Scott Harris Yute, Tim Vottis

Homer Air, Andy Smircich

Iliamna Air, Tim LaPorte

Inland Aviation, Stephen Hill

Island Air Service, Bob Stanford

Katmai Air, Sonny Peterson