Order 2013-11-7

Served November 12, 

2013

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 12th day of November , 

2013

Essential Air Service at

CEDAR CITY, UTAH DOCKET DOT-OST-2003-16395

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

ORDER RE-SELECTING AIR CARRIER

Summary

By this Order, the Department is re-selecting SkyWest Airlines, Inc., operating as Delta 

Connection (SkyWest), to provide Essential Air Service (EAS) at Cedar City, Utah, for an

annual subsidy of $2,317,439.

1

 SkyWest will provide 12 weekly round trips to Salt Lake 

City International Airport (Salt Lake City) using 50-passenger Canadair Regional Jet

CRJ200 (CRJ200) aircraft for a two-year term beginning January 1, 2014.

Background

By Order 2011-9-10, issued on September 15, 2011, the Department re-selected SkyWest 

to provide EAS at Cedar City for an annual subsidy of $2,272,395 through 

December 31, 2013. It provides two nonstop round trips a day to Salt Lake City using 50-

passenger CRJ200 aircraft 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds.
- 2 -

As the end of the contract was approaching, we issued Order 2013-7-22 on July 30, 2013, 

requesting proposals from air carriers interested in providing EAS at the community for a 

new term. In response to that Order, the incumbent, SkyWest, was the only airline to 

submit a proposal.

The airline’s complete proposal and the community’s comments may be accessed online at 

www.regulations.gov by entering DOT-OST-2003-16395 in the search block. 

Proposal of SkyWest

SkyWest submitted a proposal for 12 weekly nonstop round trips to Salt Lake City using 

50-passenger CRJ200 aircraft for an annual subsidy of $2,317,439.

Community Comments

On September 11, 2013, the Department solicited comments from the community 

regarding this air carrier selection case. We received letters from the Honorable Joe 

Burgess, Mayor of Cedar City, as well as Russ Volk, Airport Manager at Cedar City 

Regional Airport. Both expressed support for SkyWest’s proposal. Mayor Burgess noted 

that SkyWest has served the community for over 40 years and “...has earned a sterling 

reputation for reliable quality performance.” Mr. Volk mentioned that since SkyWest 

introduced regional jet service in the Cedar City market as of the most recent EAS 

contract, passenger enplanements have increased significantly. Mr. Volk attributes the use 

of the larger aircraft to increased economic development opportunities in the local area.

Decision

Since SkyWest was the only airline to submit a proposal for Cedar City’s EAS case, the 

decision to re-select them is clear. The community fully supports SkyWest’s proposal and, 

as Mayor Burgess noted, the airline has served the community for over 40 years. We find 

the service and subsidy levels to be reasonable.

We shall make this selection of SkyWest at Cedar City contingent upon the Department’s 

receiving properly executed certifications from the air carrier that it is in compliance with 

the Department’s regulations regarding drug-free workplaces and nondiscrimination, as 

well as the regulations concerning lobbying activities.2

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide EAS. SkyWest is subject to 

the Department’s continuing fitness requirements, and no information has come to our 

attention that would cause us to question the air carrier’s fitness at this time. We have 

contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness findings. We therefore conclude that SkyWest is reliable and 

fit to conduct the operations proposed here.

 2 The certifications are available online under “Reports and Publications” at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service
- 3 -

This Order is issued under authority delegated in 49 CFR Part 125a(b).

ACCORDINGLY,

1. We re-select SkyWest Airlines, Inc., operating as Delta Connection, to provide Essential 

Air Service at Cedar City, and establish the annual subsidy rate as described in 

Appendix C;

2. We direct SkyWest Airlines, Inc., operating as Delta Connection, to retain all books, 

records, and other source and summary documentation to support 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 service date 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 carrier may forfeit its compensation for any claim that is 

not supported under the terms of this Order;

3. We find that SkyWest Airlines, Inc., operating as Delta Connection, is fit, willing and 

able to operate as a certificated air carrier, and capable of providing reliable Essential Air 

Service at Cedar City, Utah;

4. This docket will remain open pending further Department action; and

5. We will serve copies of this Order on the Mayor, Airport Manager of Cedar City, Utah

and SkyWest Airlines, Inc., operating Delta Connection.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix A

AREA MAP

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

 
 Appendix B

SkyWest Proposal for EAS at Cedar City

 
 Appendix C

SkyWest Airlines, Inc.

Essential Air Service to be Provided at Cedar City

Effective Period: January 1, 2014, through December 31, 2015

Scheduled Service: Twelve weekly nonstop round trips to Salt Lake City

Aircraft: 50-passenger CRJ200

Rate per Eligible Flight: $1,8951

Weekly Ceiling for each community: $45,4802

Note: 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 this rate, 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 service levels, the carrier may cease to provide service to that 

specific location without regards 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 contract 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 may not be available for performance under this order beyond September 30, 2013. The Government’s obligation for 

performance under this order beyond September 30, 2013, 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 September 30, 2013, until funds are made available to the Department for performance. If sufficient funds are 

not made available for performance beyond September 30, 2013, the Department will provide notice in writing to the carrier.

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 31; August claims must be submitted by November 30, and so on.

 1 Annual compensation of $2,317,439 divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion). 2 24 arrivals and departures per week multiplied by $1,895 per flight.