Order : 2011-1-1 1 Served : Januar y 14 , 201 1

^ ^ UNITE D STATE S O F AMERIC A ^||?1 ^ DEPARTMEN T O F TRANSPORTATIO N f •FJ R* OFFIC E O F TH E SECRETAR Y %!(^K /

WASHINGTON , D.C

.

Issue db y th e Departmen t o f Transportatio n o n th e 14 * da y o f

January , 201 1
Essentia l Ai r

Servic e at

VICTORIA , TEXA S
Unde r 4 9 U.S.C

. 4173 1 e t

seq
. DOCKE T DOT-OST-2005-2045 4



### ORDE RREQUESTIN G PROPOSAL S Summar y B y thi s order , th e Departmen t i s requestin g proposal s fro mairline s intereste di n providin g essentia l ai r

servic e (EAS ) a

t Victoria , Texas , for

th e two-year

perio dbeginnin g Jul y 1 , 2011 , with o r withou t subsidy

. Proposal s ar e du e b y Februar y 23 , 2011

. (Se e Appendi x A for a map. ) Backgroun d B y Orde r 2009-6-10 , Jun e 11,2009 , th e Departmen t selecte dColga n Air, Inc. , operatin g a s Continenta l Connectio n (Colgan) , t o provid e EA S a t Victoria , TX , for

th e perio dfro m Jul y 1 , 2009 , throug h Jun e 30 , 2011 , for an armua l subsid y o f

$1,593,92 2 for

1 3 nonsto p roun d trip s pe r wee k t o Houston-Bus h Intercontinenta l Airport

. Reques t fo rProposal s A s th e en do f

th e curren t

rat e ter mapproaches , w e ar e her e requestin g proposal s fro mcarrier s intereste di n providin g servic e at Victoria , with o r

withou t subsid y support , for

th e two-year perio dbeginnin g Jul y 1 , 2011

. Carrier s shoul dfil e thei r proposal s n o late r

tha n February 23

. After tha t date , ou r staf f wil l docke t

proposals , thereb y makin g the mpublic , an dshortl y afterward s wil l provid e asummar y o f th e proposal s t o th e communit y an das k the mfor thei r final comments

. W e wil l giv e ful l consideratio n t o al l proposal s file di n atimel y manner
. Intereste dcarrier s shoul dprepar e thei r proposal s with every expectatio n tha t thei r initia l proposal s wil l als o b e their/ina / an donl y proposals

. W e retai n th e discretio n t o negotiat e- 2

-

proposal s with carrier s whe n w e deemi t desirable

. W e als o retai n th e discretio n t o rejec t outrigh t al l unreasonabl e o r

unrealisti c proposal s an dsolici t ane w roun do f

proposals

. W e ar e her e providin g intereste dcarrier s with som e basi c informatio n t o serv e a s guidanc e whe n the y prepar e thei r

proposals , bu t

w e wil l not

prescrib e aprecis e format

. W e expec t proposal s t o adequatel y describ e th e servic e bein g propose dan dth e annua l amoun t o f subsid y bein g requested

. Th e applicant s ca n mak e thei r ow n judgment s a s t o th e leve l o f detai l the y wis h t o present ; however , the y migh t wan t t o includ e propose dschedule s a s wel l a s supportin g dat afor thei r subsid y requests , suc h a s projecte dbloc k hours , revenue s an dexpenses
. W e strongl y encourag e clear , well-documente dproposal s tha t wil l facilitat e thei r

evaluatio n b y th e affecte dcommunit y an dth e Department. ' Proposal s shoul dprovid e sufficien t capacit y t o accommodat e historica l level s o f traffic

. I n orde r t o assis t carrier s i n developin g traffi c an drevenu e projection s for thei r proposals , w e hav e provide dasummar y o f historica l passenger s i n Appendi x B

. W e expec t servic e level s tha t ar e consisten t

with what

th e communit y currentl y receives , with servic e t o Houston , o r an y hu b tha t offer s acces s t o th e nationa l ai r transportatio n syste mutilizin g 15-seat o r large r aircraft

. With specifi c respec t t o Victoria , fo r

proposal s with 3 0 t o 34-sea t aircraft , th e Departmen t

expect s proposal s fo r

tw o roun dtrip s eac h weekda y an dthre e eac h weeken d(1 3 a week)

. Fo r

proposal s with 19-seat

aircraft , w e woul dexpec t proposal s for

thre e roun dtrip s a da y (1 8 aweek)

. W e woul dals o entertai n proposal s with 8/9-seat aircraf t an dadditiona l frequencies

. Shoul dth e communit y agre e t o aircraf t with fewe r

tha n 1 5 passenge r

seats , i n effec t waivin g thei r

righ t t o 15-seat

o r large r aircraft , w e woul dconside r th e waive r

t o appl y onl y t o th e two-year

carrier-selectio n at

hand , i.e

. w e woul dnot

assum e tha t

th e communit y woul dwaiv e thei r

right s for al l time

. A s always , w e wil l formall y solici t th e conmiunity' s view s o n an y servic e option s w e receiv e befor e makin g along-ter mcarrie r selectio n decision

. Carrier s ar e als o welcom e t o propos e mor e tha n on e option , if the y choose ; the y nee dno t limi t themselve s t o thos e requirement s if the y envisio n other , potentiall y mor e attractiv e servic e possibilitie s ~ differen t

hubs , frequenc y o r

equipment , for

exampl e —with subsid y requirement s tha t

remai n competitive

. Th e communitie s an dai r carrier s ar e encourage dt o wor k togethe r i n advanc e of

th e du e dat e fo r

proposal s t o craf

t aservic e patter n tha t

i s desirabl e t o th e communit y an dmeet s th e operationa l need s o f th e airlines

. Ne w Filin g Procedure s Carrie r proposal s shoul db e submitte dt o th e Departmen t with al l material s merge dint o asingl e document

. I n addition , becaus e th e documen t wil l b e publishe do n Regulations.gov , eac h pag e shoul db e formatte dt o b e viewe donline

.

' In selecting acarrie

r t o provid e subsidizedessentia

l ai r service , 4 9 U.S.C

. 41733(c)(1 ) direct s us t o conside r fou r factors : (1 ) servic e reliability ; (2 ) contractua l an dmarketing arrangement s wit h alarge r carrie r a t th e hub ; (3 ) interline arrangements wit h alarge r carrie r a t the hub ; an

d(4 ) communit

y views

. I n addition , th

e ConsolidatedAppropriation s Act, 2008 , Publi c La w 110-161 , provide s tha

t whe n selecting acarrie

r t o provid e EAS , the Departmen

t ma y conside r th e relativ e subsid

y requirements , thu s codifyin g afacto r tha t w e have consideredsinc e the inception o f th e program
. Interestedcarrier s shoul dals o b e awar

e tha t ou r genera l provision s governing EAS wil l b e includedi

n the selection orde

r as par t o f ou r authorization o

f subsid y fo r th e selectedservice

. Appendi

x C o f thi s orde r contain s thos e genera

l provisions

.- 3

-

Othe r Carrie r Requirement s Th e Departmen t

i s responsibl e for

implementin g variou s Federa l statute s governin g lobbyin g activities , drug-fre e workplace s an dnondiscrimination. ^ Consequently , al l carrier s receivin g Federa l subsid y t o support essentia l ai r

servic e mus t

certif y tha t the y ar e i n complianc e with Departmen t

regulation s regardin g drug-fre e workplace s an dnondiscrimination , an dthos e carrier s whos e subsidie s excee d$100,00 0 ove r th e lif e o f th e rat e ter mmus t

als o certif

y tha t the y ar e i n complianc e wit h th e regulation s governin g lobbyin g activities

. Al l carrier s tha t pla n t o submi t proposal s involvin g subsid y shoul dsubmi t th e require dcertification s alon g wit h tfieir proposals

. Intereste dcarrier s requirin g mor e detaile dinformatio n regardin g thes e requirements , a s wel l a s copie s o f th e certifications , shoul dcontac t th e Offic e o f

Aviatio n Analysi s a

t (202 ) 366-5903

. Th e Departmen t i s prohibite dfro mpayin g subsid y t o carrier s tha t d o not submi t thes e documents. ^
Communit y an d Stat e Comment s Civi c official s ar e welcom e t o submi t comment s o n th e proposal s at an y time

. A s note dearlier , w e wil l provid e asummar y o f th e proposal s t o th e civi c partie s an das k the mt o submi t

thei r final comment s shortl y after Februar y 23 , th e du e dat e for carrie r proposals

. Thi s orde r

i s issue dunde r

authorit y delegate di n 4 9 CF R1.56a(f ) an dre-delegate dt o th e Director , Offic e o f

Aviatio n Analysis

. ACCORDINGLY , 1

. W e reques t

tha t carrier s intereste di n providin g essentia l ai r servic e at

Victoria , Texas , submi t thei r proposals , with o r

withou t subsid y requests , n o late r tha n Februar y 23 , 2011

. Th e proposal s shoul db e emaile dto : EAS@dot.go v with th e titl e "Proposa l t o Provid e Essentia l Ai r Servic e a t Victoria , Texas";' *
2

. Thi s docke t

wil l remai n ope n unti l furthe r orde r o f th e Department ; an d
3

. Th e Departmen t

wil l serv e acop y o f

thi s orde r

o n th e mayo r

an dairport

manage r o f Victoria ; Colga n Air, Inc

. (Colgan) , an dth e partie s liste di n Appendi x D

. Person s entitle dt o petitio n th e Departmen t fo r revie w o f

thi s orde r

unde r th e Department' s Aviatio n Economi c Regulations , 1 4 CFR385.50 , mus t fil e suc h petition s withi n te n (10 ) day s afte r th e dat e o f

servic e o f

thi s order

.

2 Th e regulation s applicable t

o thes e area s are : (1 ) 4 9 CF RPar t 20 - Ne w restriction s on lobbying ; (2 ) 4 9 CF R Par t 2 1 - Nondiscrimination i

n federally-assistedprogram s o f the Departmen

t o f Transportatio n - Effectuatio n o f titl e V I o f th e Civil Right s Ac

t o f 1964 ; 4 9 CF

RPar t 27 - Nondiscrimination o

n the basi s o

f disabilit y i n program s an dactivitie s receiving o

r benefitin g fro mFedera l financial assistance ; an

d1 4 CF RPar t 38 2 - Nondiscrimination o n th e basi s o f disabilit y i n ai r travel ; an d(3 ) 4 9 CF

RPar t 29 - Government-wid

e debarmen

t an dsuspension (non

procurement

) an dgovernment-wid

e requirement s fo

r drug-fre e workplac e (grants)

. 3 The certification s ar

e als o availabl e on the we

b a t http://ostpxweb.dot.gov/aviation/index.html

. • * Question s regarding filings i n respons e t

o thi s orde r shoul db e directedt

o Michae l Marti n a t 202-366-6494 , o

r viaemail a t michael.f.martin@dot.gov

.

### Thi s orde

r will b e effective immediately , an dth e filing o

f apetitio n fo

r review shall not preclud e it s effectiveness

. By :

(SEAL ) 

### TOD D M

. ROMA N Director Office o f Aviatio n Analysi s

A n electroni c version o

f thi s documen

t i s availabl e onlin e a t www , regulations , eov

### Appendi x A


## Are aMa p

HOUSTO N

### APPENDI X B

Historica l Origin-Destinatio n Plan e Traffic^



### Victoria

. Texa s

Quarte rYea rDeplanement s Enplanement s 4 1 2 3 Annua l Total s
4 1 2 3 Annua l Total s
4 1 2 3 Annua l Total s 

### 200 7 200 8 200 8 200 8

200 8 200 9 200 9 200 9

200 9 201 0 201 0 201 0 2,65 6

2,16 0 2,20 9 1,93 2 8,95 7 1,90 0 1,27 4 1,40 5 1,40 6
5,98 5 1,34 6 1,09 5 1,27 0 1,24 6
4,95 7 2,75 0

2,20 8 2,26 0 2,03 6
9,25 4 1,86 0 1,33 3 1,47 3 1,44 7 6,11 3 1,37 2 1,20 8 1,30 3 1,26 0 5,14 3 Tota l

Traffi c 5,40 6 4,36 8 4,46 9 3.96 8 18,21 1 3,76 0 2,60 7 2,87 8 2.85 3 12,09 8
2,71 8 2,30 3 2,57 3 2.50 6 10,10 0 Enplanement s

pe rDav ^ 

### 3 4 2 8 2 9 2 5
2 9
2 4 1 7 1 8 1 8
1 9
1 7 1 5 1 6 1 6
1 6

' Source : USDO T Bureau o f Transportatio n Statistics , TransStat s Intermoda l Database , Schedul e T-100

. 2 Averag e dail y enplanement s ar e calculate db y dividin g tota l enplanement s an d deplanement s b y 77,78 , 79 , an d 7 9 servic e days , for

th e first quarter , secon dquarter , thir dquarter , an d fourt h quarter , respectively , the n by 2

. Averag e annual dail y enplanement s ar e calculate db y divin g th e total enplanement s an d deplanement s b y 2 , the n b y 313

.

### Appendi x C

Exampl e o f Genera l Term s an d Condition s fo rEssentia l Ai rServic e Th e carrie r

understand s that

it ma y forfei t

it s compensatio n for

an y flight s that

it doe s no t operat e i n conformanc e with th e term s an dstipulation s o f th e rat e order , includin g th e servic e plan s outline di n th e orde r

an dan y othe r

significan t

elements o f

th e require dservice , withou t prio r approval

. Th e carrie r

understand s that

a n aircraf t take-of f an dlandin g a

t it s schedule d destinatio n constitute s acomplete dflight ; absen t a n explanatio n supportin g subsid y eligibilit y for afligh t tha t ha s no t bee n completed , suc h a s certai n weathe r cancellations , onl y complete d flight s ar e considere deligibl e for subsidy

. I n addition , i

f th e carrie r

doe s no t schedul e o r

operat e it s flight s i n full conformanc e wit h th e orde r

for asignifican t

period , i t

may jeopardiz e it s entir e subsid y clai mfor

th e perio di n question

. I f th e carrie r

contemplate s an y suc h change s beyon d th e scop e of

th e orde r durin g th e applicabl e perio do f thes e rates , i t

mus t firs t notif y th e Offic e of Aviatio n Analysi s i n writin g an dreceiv e writte n approva l fro mth e Departmen t t o b e ensure do f full compensation

. Shoul dcircumstance s warrant , th e Departmen t ma y locat e an dselec t

a replacemen t

carrie r t o provid e servic e o n thes e routes

. Th e carrie r mus t complet e al l flight s tha t can b e safel y operated ; flight s tha t overfl y point s fo r

lac k o f traffi c wil l no t

b e compensated

. In determinin g whethe r

subsid y paymen t

for adeviatin g fligh t

shoul db e adjuste do r

disallowed , th e Departmen t

wil l conside r

th e exten t

t o whic h th e goal s o f

th e progra mar e me t

an dth e exten t

of acces s t o th e nationa l ai r

transportatio n syste mprovide dt o th e community

. I f th e Departmen t

unilaterally , eithe r

partiall y o r

completely , terminate s o r reduce s payment s for servic e o r change s servic e requirement s a t aspecifi c locatio n provide dfor unde r thi s order , then , a t th e en do f

th e perio dfor

whic h th e Departmen t

doe s mak e payment s i n th e stipulate damount s o r a t th e stipulate dservic e levels , th e carrie r may ceas e t o provid e servic e t o tha t specifi c locatio n withou t

regar dt o an y requiremen t for notic e o f suc h cessation

. Thos e adjustment s i n th e level s o f

subsid y and/o r

servic e tha t

ar e mutuall y agree dt o i n writin g b y th e Departmen t an d carrie r d o no t constitut e atota l o r

partia l reductio n o r

cessatio n o f

payment

. Subsid y contract s ar e subjec t to , an dincorporat e b y reference , relevan t statute s an dDepartmen t regulations , a s the y may b e amende dfro mtim e t o time

. However , an y suc h statutes , regulations , o r amendment s theret o shal l no t operat e t o controvert

th e foregoin g paragraph

. Fund s ar e no t

currentl y availabl e for

performanc e unde r

thi s solicitatio n beyon d[DATE]

. Th e Department' s obligatio n for performanc e unde r

thi s solicitatio n beyon d[DATE] , i s contingen t upo n th e availability of

appropriate dfund s fro mwhic h paymen t for service s can b e made

. N o legal liabilit y o n th e part

o f th e Governmen t

for an y paymen t

ma y aris e for

performanc e unde r thi s orde r beyon d[DATE] , unti l fund s ar e mad e availabl e t o th e Departmen t for performance

. I

f fund s ar e no t

mad e availabl e for

performanc e beyon d[DATE] , th e carrie r wil l receiv e notic e i n writin g b y th e Department

. Al l claim s for

paymen t mus t b e submitte dwithi n 6 0 day s o f th e las t da y o f servic e provide d unde r thi s order

.

### Appendi x D

Schedule dAir

Carriers

. Contiguou s U S an dPuert o Ric o Ai r GrecoAVing s Ai r Ai r Sunshine , Inc

. Ai r Sunshine , Mirmohamma dAdii i Ai r Wisconsin , Annett e Dal y Ai r Wisconsin , Ji mRanki n Airlin e Associates , Bil l Mish k Alask aAirlines , Jef

f Col e Alask aAirlines , Sandy Sinic k Allegian t Air , Bria n Davi s America n Airlines , Car

l Nelso n America n Eagle , Jeffrey Hart z Bemidj i Aviation , Cori Rud e Bemidj i Aviation , Arle n Rinkenberge r Cap e Air , Andre w Bonne y Cap e Air , Dan Wol f Cap e Air , J.Flaherty Colga n Air , Kevi n Scott Colga n Air , Mik e Colga n CommutAir , Andy Pric e CommutAir , Joe l Raymon d Consultant, Robert

Silverber g Continental , Bruc e Keine r Continental , Dan Weis s Continental , Lorry Halloway Delta , Anthon y Canitan o Delta , Dan Shuman Delta , Jef f Morga n Delta , Jo e Esposit o Delta , Kare n Zachary Delta , Krista l Murph y Delta , Sasch aVanderbelle n DHS , Bil l Ragan DHS , Davi dBemie r Er aAviation , Mik e Lenorma n Executiv e Airlines , Kat e Sole d Frontie r Flying , Bob Hajducovic h GemAir/Salmo n Air , Dan Schroede r GemAir/Salmo n Air , JoAn n Wolter s Great Lakes , Chuc k

Howel l Grea t Lakes , Dou g Vos s Great Lakes , Gre g Stephen s Gulfstream , Dav e Hackett Gulfstream , Micke y Bowma n Gulfstream , T

. Coope r Horizo n Air , Dan Russ o Horizo n Air , Jennife r

Thompso n Horizo n Air , Mik e McQuee n Horizon , Jef

f Col e ICEPR , Lui s Irizarry Intrepi dInternt I Air , Ric k

Ey k Islan dAi r Charters , Lind aHous e Je t Air , Danie l Wolford Kenmor e Air , Ti mBrook s Mes aAir , Michae l Lot z Mesaba , Joh n Spanjer s Mesaba , Max Shemes h Midwes t Airlines , Gre g Aretaki s M N Aviation , Jos e Maldonad o Multi Aero , Darne a Multi Aero , Shan e Stor z Northwes t

Airlines , Aaro n Murray Northwest, Ti mMcDonal d NYDC , Heno k

Aray a OST , Bria n Swanso n OST , Denni s DeVan y OST , Kevi n Adam s OST , Kevi n Schlemme r OST , Michae l Marti n OST , Rene e William s Pacifi c Wings , Gre g Kahlstor f PenAir , Dann y Seybert PenAir , Scott

Bloomquis t Pinnacl e Airlines , Jo e William s Pinnacl e Airlines , Phi l Ree d Planemasters , Inc. , Joh n Kessle r Planemasters , Inc. , Pau l Berline r Planemasters , Inc. , Tod dDeSimon e Publi c Charters , Ji mGallaghe r Scenic , Mar

y Schneide r Scenic , Mitz i Daine s SeaPortAVing s o f

Alaska , Ji mDa

y SeaPortAVing s o f

Alaska , Nat e Vallie r Seaport/Wing s o f

Alaska , Ro b McKinne y Shuttl e America , Jerry Balsan o SkyWest , Eri c Christense n SkyWest , Michae l Thompso n SkyWest , Stev e Har t Sovereig n Air , Bob Karn s Sovereig n Air , Loi s R

. Barto n Tradewind , Eri c Zipki n Tran s States , Fre dOxle y Tran s States , Gerry Wigmor e United , Alici aGabrie l United , Jame s Stame s U S Airways , Benjami n Slocu m U S Airways , Howar dKas s U S Airways , Jaso n Reisinge r Warbelow s Air

Ventures , Ar

t Warbelo w