Order 2015

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Served: January 13, 2015



### UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13 th day of January , 201 5

Essential Air Service at

VISALIA, CALIFORNIA

Under 49 U.S.C. 41731 et seq

. DOT

- OST

- 2004

- 19916

ORDER APPROVING ALTERNATE SERVICE PATTERN

Summary By this O rder, the Department is approving the request submitted by SeaPort Airlines, Inc. ( SeaPort ) to alter its Essential Air Service (EAS) service pattern at Visalia, California , from Oakland International Airport to Sacramento International Airport

, effective February 9, 2015

, the date SeaPort intends to inaugurate service at Visalia

. Service to Burbank Bob Hope Airport

will continue as originally planned.

Background By Order 2014

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- 7, issued on December 11, 2014 , the Department selected SeaPort to provide

subsidized EAS at Visalia

, using 9

- seat Cessna Caravan aircraft, for the period from January 1, 201 5 , through December 31 , 201 6

. 1 That Order established an annual subsidy rate of $ 1,990,563 for service consisting of 12 nonstop round trips per we ek to Oakland and 12 nonstop round trips per week to Burbank (24 total roun d trips per week).

Carrier Request By letter dated January 6 , 2015

, SeaPort requested that the Department allow it to alter its service

pattern at Visalia to provide 12 weekly nonstop round trips to Sacramento rather than 12 weekly nonstop round trips to Oakland

. SeaPort will maintain its proposed service of 12 weekly nonstop round trips to Burbank, as mentioned in its original proposal to serve Visalia.

In that letter, SeaPort cites three factors for requesting this alternate service pattern: 1) Sacramento provides comparable connectivity to Oakland; 2) there is local demand for service between Visalia and Sacramento; and 3) SeaPort’s request does not change the subsidy rate or frequency of service. Additionally, SeaPort believe s that this change will benefit the citizens of Visalia by providing access to all three global alliances

- SkyTeam, OneWor l d , and Star Alliance, as well as connectivity to low

- cost carrie rs such as Southwest and JetBlue.

1 Also in SeaPort’s letter

, the carrier stated it is scheduled to commence full EAS at Visalia on February 9, 2015.- 2

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Community Comments By letter dated January 8 , 2015

, the Honorable Steve Nelsen, Mayor of the City of Visalia, provided support for SeaPort’s request to alter its service pattern. In his let ter, Mayor Nelsen explained t hat the community has wanted air transportation to the state capit a l, Sacramento, for

many years

. SeaPort has now proposed a viable option to Visalia

, which is fully supported by the community

. Mayor Nelsen further explained that in addition to being the only route that

links Central Valley California to the state capit a l, the new hub destination will also allow

passengers to connect to air transportation provided by two larger air carriers that do not have a

presenc e at Oakland

, United Airlines and American Airlines

. In addition, the M ayor stated that

the new routing of Visalia

– Sacramento aligns well with the users of Essential Air Service, which is primarily business travelers.

Decision The Department will app rove SeaPort’s request, which meets the three conditions necessary for approval under authority assigned under 14 CFR Part 385.12(k)(3) of the Department’s Regulations: (1) the alternate service pattern is equal or greater than that determined to be

essent ial; (2) the community does not object to the alternate service pattern; and (3) the alternate service pattern will not increase SeaPort’s subsidy.

Because we are simply allowing the alternate service pattern and not requiring it, SeaPort may revert to the original service pattern at any time.

This Order is issued under authority delegated in 14 CFR Part 385.12k(3).

ACCORDINGLY,

1. The Department approves the alterna te service pattern requested by SeaPort Airlines, Inc. to

serve Visalia, California , from Sacramento International Airport and Burbank Bob Hope Airport;

2. This docket will remain open until further order of the Department; and- 3

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3

. The Department will serve copies of this Order on the civic officials of Visalia, California, the Manager of Visalia Municipal Airport, SeaPort Airlines, Inc., and the service list for this docket.

Persons entitled to petition the Department for review of this Order under the Department’s Regulations, 14 CFR Part 385. 31 , 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 www.regulations.govAppendix A

SeaPort Airlines, Inc.

Essential Air Service to be provided at Visalia, California

Effective Period : January 1, 2015 , through December 31, 2016

Scheduled Service : 12 nonstop round trips each week to Sacramento and 12 nonstop round trips each

week to Burbank (24 total round trips per week) 1

Aircraft : 9

- Seat Cessna Caravan Rate per Eligible Flight: $803 2
Weekly Ceiling : $38,544 3

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 significan t elements of the required service, without prior approval. The carrier understands that an aircraft take

- off and land ing 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 subsid y. In addition, if the carrier does not schedule or operate its flights in full conformance with the Order for a significant per iod, it may jeopardize its entire subsidy claim for the period in question. If the carrier contemplates any such changes beyon d 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 Depa rtment 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. I n determining whether subs idy 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 Dep artment 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 payment s 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 i n 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 t o 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, 2015

. The Government’s obligation for perfor mance under this order beyond September 30, 2015 , 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 Septe mber 30, 2015 , until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2015 , the Department will provide notice in writing to the carrier.

All claims for payment, i ncluding 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 3 0, and so on.

1 SeaPort could serve Oakland International Airport as it was originally selected to do, if conditions warrant.

2 Annual compensation of $1,990,563 divided by 2,479 annual departures (313 service days x 8 flights per service x 99 percent completion).

3 48 flights per week multiplied by $803 per flight.