Order: 2011-1-11 

Served: January 14, 2011 

^ ^ 

UNITED STATES OF AMERICA 

^||?1 ^ DEPARTMENT OF TRANSPORTATION 

f •FJ R * OFFICE OF THE SECRETARY 

%!(^K/ WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 14* day of January, 2011 

Essential Air Service at 

VICTORIA, TEXAS 

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

DOCKET DOT-OST-2005-20454 

ORDER REQUESTING PROPOSALS 

Summary 

By this order, the Department is requesting proposals from airlines interested in providing 

essential air service (EAS) at Victoria, Texas, for the two-year period beginning July 1, 2011, 

with or without subsidy. Proposals are due by February 23, 2011. (See Appendix A for a 

map.) 

Background 

By Order 2009-6-10, June 11,2009, the Department selected Colgan Air, Inc., operating as 

Continental Connection (Colgan), to provide EAS at Victoria, TX, for the period from 

July 1, 2009, through June 30, 2011, for an armual subsidy of $1,593,922 for 13 nonstop round 

trips per week to Houston-Bush Intercontinental Airport. 

Request for Proposals 

As the end of the current rate term approaches, we are here requesting proposals from carriers 

interested in providing service at Victoria, with or without subsidy support, for the two-year 

period beginning July 1, 2011. Carriers should file their proposals no later than February 23. 

After that date, our staff will docket proposals, thereby making them public, and shortly 

afterwards will provide a summary of the proposals to the community and ask them for their 

final comments. 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/ina/ and only proposals. We retain the discretion to negotiate 
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proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and 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. 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 community and the Department.' 

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

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

have provided a summary of historical passengers in Appendix B. We expect service levels 

that are consistent with what the community currently receives, with service to Houston, or any 

hub that offers access to the national air transportation system utilizing 15-seat or larger 

aircraft. With specific respect to Victoria, for proposals with 30 to 34-seat aircraft, the 

Department expects proposals for two round trips each weekday and three each weekend (13 a 

week). For proposals with 19-seat aircraft, we would expect proposals for three round trips a 

day (18 a week). We would also entertain proposals with 8/9-seat aircraft and additional 

frequencies. Should the community agree to aircraft with fewer than 15 passenger seats, in 

effect waiving their right to 15-seat or larger aircraft, we would consider the waiver to apply 

only to the two-year carrier-selection at hand, i.e. we would not assume that the community 

would waive their rights for all time. As always, we will formally solicit the conmiunity's 

views on any service options we receive before making a long-term carrier selection decision. 

Carriers are also welcome to propose more than one option, if they choose; they need not limit 

themselves to those requirements if they envision other, potentially more attractive service 

possibilities ~ different hubs, frequency or equipment, for example — with subsidy 

requirements that remain competitive. The communities 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 airlines. 

New Filing Procedures 

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 Regulations.gov, each page 

should be formatted to be viewed online. 

' In selecting a carrier to provide subsidized essential air service, 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 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 C of this order contains those general provisions. 
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Other Carrier Requirements 

The Department is responsible for implementing various Federal statutes governing lobbying 

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

Federal subsidy to support essential air service 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 rate term must also certify that 

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

to submit proposals involving subsidy should submit the required certifications along with tfieir 

proposals. Interested 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 carriers that 

do not submit these documents.^ 

Community and State Comments 

Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, 

we will provide a summary of the proposals to the civic parties and ask them to submit their 

final comments shortly after February 23, the due date for carrier proposals. 

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

Director, Office of Aviation Analysis. 

ACCORDINGLY, 

1. We request that carriers interested in providing essential air service at Victoria, Texas, 

submit their proposals, with or without subsidy requests, no later than February 23, 2011. The 

proposals should be emailed to: EAS@dot.gov with the title "Proposal to Provide Essential Air 

Service at Victoria, Texas";'* 

2. This docket will remain open until further order of the Department; and 

3. The Department will serve a copy of this order on the mayor and airport manager of 

Victoria; Colgan Air, Inc. (Colgan), and the parties listed in Appendix D. 

Persons entitled to petition the Department for review of this order under the Department's 

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

after the date of service of this order. 

2 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). 

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

•* Questions regarding filings in response to this order should be directed to Michael Martin at 202-366-6494, or 

via email at michael.f.martin@dot.gov. 
This order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness. 

By: 

(SEAL) 

TODD M. ROMAN 

Director 

Office of Aviation Analysis 

An electronic version of this document is available online at 

www, regulations, eov 
Appendix A 

Area Map 

HOUSTON 
APPENDIX B 

Historical Origin-Destination Plane Traffic^ 

Victoria. Texas 

Quarter Year Deplanements Enplanements 

4 

1 

2 

3 

Annual 

Totals 

4 

1 

2 

3 

Annual 

Totals 

4 

1 

2 

3 

Annual 

Totals 

2007 

2008 

2008 

2008 

2008 

2009 

2009 

2009 

2009 

2010 

2010 

2010 

2,656 

2,160 

2,209 

1,932 

8,957 

1,900 

1,274 

1,405 

1,406 

5,985 

1,346 

1,095 

1,270 

1,246 

4,957 

2,750 

2,208 

2,260 

2,036 

9,254 

1,860 

1,333 

1,473 

1,447 

6,113 

1,372 

1,208 

1,303 

1,260 

5,143 

Total 

Traffic 

5,406 

4,368 

4,469 

3.968 

18,211 

3,760 

2,607 

2,878 

2.853 

12,098 

2,718 

2,303 

2,573 

2.506 

10,100 

Enplanements 

per Dav^ 

34 

28 

29 

25 

29 

24 

17 

18 

18 

19 

17 

15 

16 

16 

16 

' Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100. 

2 Average daily enplanements are calculated by dividing total enplanements and deplanements by 77,78, 79, and 79 

service days, for the first quarter, second quarter, third quarter, and fourth quarter, respectively, then by 2. Average 

annual daily enplanements are calculated by diving the total enplanements and deplanements by 2, then by 313. 
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 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 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. 

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 [DATE]. The 

Department's obligation for performance under this solicitation beyond [DATE], is contingent 

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

funds are not made available for performance beyond [DATE], the carrier will receive notice in 

writing by the Department. 

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

under this order. 
Appendix D 

Scheduled Air Carriers. Contiguous US and Puerto Rico 

Air GrecoAVings Air 

Air Sunshine, Inc. 

Air Sunshine, Mirmohammad Adiii 

Air Wisconsin, Annette Daly 

Air Wisconsin, Jim Rankin 

Airline Associates, Bill Mishk 

Alaska Airlines, Jeff Cole 

Alaska Airlines, Sandy Sinick 

Allegiant Air, Brian Davis 

American Airlines, Carl Nelson 

American Eagle, Jeffrey Hartz 

Bemidji Aviation, Cori Rude 

Bemidji Aviation, Arlen Rinkenberger 

Cape Air, Andrew Bonney 

Cape Air, Dan Wolf 

Cape Air, J.Flaherty 

Colgan Air, Kevin Scott 

Colgan Air, Mike Colgan 

CommutAir, Andy Price 

CommutAir, Joel Raymond 

Consultant, Robert Silverberg 

Continental, Bruce Keiner 

Continental, Dan Weiss 

Continental, Lorry Halloway 

Delta, Anthony Canitano 

Delta, Dan Shuman 

Delta, Jeff Morgan 

Delta, Joe Esposito 

Delta, Karen Zachary 

Delta, Kristal Murphy 

Delta, Sascha Vanderbellen 

DHS, Bill Ragan 

DHS, David Bemier 

Era Aviation, Mike Lenorman 

Executive Airlines, Kate Soled 

Frontier Flying, Bob Hajducovich 

GemAir/Salmon Air, Dan Schroeder 

GemAir/Salmon Air, JoAnn Wolters 

Great Lakes, Chuck Howell 

Great Lakes, Doug Voss 

Great Lakes, Greg Stephens 

Gulfstream, Dave Hackett 

Gulfstream, Mickey Bowman 

Gulfstream, T. Cooper 

Horizon Air, Dan Russo 

Horizon Air, Jennifer Thompson 

Horizon Air, Mike McQueen 

Horizon, Jeff Cole 

ICEPR, Luis Irizarry 

Intrepid InterntI Air, Rick Eyk 

Island Air Charters, Linda House 

Jet Air, Daniel Wolford 

Kenmore Air, Tim Brooks 

Mesa Air, Michael Lotz 

Mesaba, John Spanjers 

Mesaba, Max Shemesh 

Midwest Airlines, Greg Aretakis 

MN Aviation, Jose Maldonado 

Multi Aero, Darnea 

Multi Aero, Shane Storz 

Northwest Airlines, Aaron Murray 

Northwest, Tim McDonald 

NYDC, Henok Araya 

OST, Brian Swanson 

OST, Dennis DeVany 

OST, Kevin Adams 

OST, Kevin Schlemmer 

OST, Michael Martin 

OST, Renee Williams 

Pacific Wings, Greg Kahlstorf 

PenAir, Danny Seybert 

PenAir, Scott Bloomquist 

Pinnacle Airlines, Joe Williams 

Pinnacle Airlines, Phil Reed 

Planemasters, Inc., John Kessler 

Planemasters, Inc., Paul Berliner 

Planemasters, Inc., Todd DeSimone 

Public Charters, Jim Gallagher 

Scenic, Mary Schneider 

Scenic, Mitzi Daines 

SeaPortAVings of Alaska, Jim Day 

SeaPortAVings of Alaska, Nate Vallier 

Seaport/Wings of Alaska, Rob McKinney 

Shuttle America, Jerry Balsano 

SkyWest, Eric Christensen 

SkyWest, Michael Thompson 

SkyWest, Steve Hart 

Sovereign Air, Bob Karns 

Sovereign Air, Lois R. Barton 

Tradewind, Eric Zipkin 

Trans States, Fred Oxley 

Trans States, Gerry Wigmore 

United, Alicia Gabriel 

United, James Stames 

US Airways, Benjamin Slocum 

US Airways, Howard Kass 

US Airways, Jason Reisinger 

Warbelows Air Ventures, Art Warbelow