Order 2010
- 5
- 28 Served: May

25, 2010 

### DELTA STATES OF AMERICA DEPARTMENT OF TRANSPORTATION 

### OFFICE OF THE SECRETARY WASHINGTON, D.C.

Is sued by the Department of Transportation on the 25 th of May , 2010. Essential Air Service at MERIDIAN , MISSISSIPPI Und er 49 U.S.C. 41731 et seq . DOCKET OST - 2008 - 0112

ORDER RESELECTING CARRIER Summary By this order , the Department is reselecting Atlantic Southeast Airlines, Inc., d/b/a Delta Connection (ASA) , to provide essential air service (EAS) at Meridian , Mississ ippi , at an annual subsidy rate of $678,936
. 1 The selection extends from July 1, 2010, through June 30 , 2012
. Background Order 2008
- 5
- 12 , May

13 , 2008, selected ASA to provide 1 3 nonstop round trips per week to Atlanta with 50
- seat CRJ
- 200 aircraft , for the two - ye ar period end ing June 30 , 20 10 , at the annual subsidy rate of $686,489
. Inanticipation of the end of the current contract , b y Order 20 10
- 3
- 9 we requested proposals for replacement service , with proposals due April 7 . We received a timely

filed proposal from only

one carrier, ASA , and requested comments from the community
. On May 1 4 we received comments from the community , and the issue is ripe for decision. Carrier Proposal ASA was the only

carrier to submit a proposal, and its proposal included only one option. The carrier proposes to operate thirteen non stop round trips per week between Meridian and Atlanta , the same level of service selected by Order 2008
- 5
- 12 . All of the service would be with 50
- seat CRJ
- 200 aircraft, and ASA requests $678,936 annual subsidy for this service
.

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

Community Comments W e have received comment s from the Mayor of Meridian . The mayor noted that she is “extremely

pleased to endorse the ASA bid. Ihave heard from a number of local residents, all of whom agree th at ASA provides high quality air service. The City

of Meridian strongly

urges DOT to award the bid for passenger air service to ASA, d/b/a Delta Connection. ” Decision ASA is the only

carrier to submit a proposal, it submitted only one option, and w e have decided to select it
. ASA ’s proposal will provide excellent access to the national air transportation system with its code
- share arrangements with Delta Air L ines at the Atlanta hub. ASA ’s proposal refl ects recent historical traffic, and it is worth noting that notwithstanding the recession, ASA has been able to maintain its historical and projected traffic consistent with prior ye ars . Inbrief, w e find ASA ’s proposal to be reasonable for the service pro posed
. Carrier Fitness 49 U.S.C. 41737(b) re quires that DOT find an air carrier fit, willing, and able to provide reliable service before DOT may

subsidize it to provide essential air service. Atlantic Southeast Airlines , In c. is subject to the Department’s continuing fitness requirements, and no i nformation has come to our attention that would cause us to question the carrier ’ s fitness at this time. DOT has contacted the Federal Aviation Administration, and it has raised no concerns that would negatively

affect our fitness finding s . DOT therefore concludes that the carrier s remain fit to conduct the operations proposed here. This order is issued under authority delegated in 49 CFR 1.56a(f). ACCORDINGLY, 1. We re select Atlantic Southeast Airlines , In c., to provide essential air service at Merid ian , Mississippi , as described in Appendix C ; 2 . We direct Atlantic Southeast Airlines , In c., to retain all books, records, and other source and summary documentation to support claims for pay ment, 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 or until the Department indicates that the records may be destroyed, whichever comes first. Copies of flight log s 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 Atlantic Southeast Airlines , In c., continue s to be fit, willing and able to operate as a certificated carrier and capable of providing reliable essential air service at Meridian , Mississippi ; 4 . Th is docket will remain open until further order of the Department; and- 3
-

5 . We will serve copies of this order on the city of Meridian , the airport manager, and Atlantic Southeast Airlines, Inc.

. By :

Susan L. Kurland Assistant Secretary

for Aviation and International Affairs (SEAL) An electronic version of this document is available on the W orld W ide W eb at http://www.regulations.govAppendix A

Nonstop, Great Circle Miles from Meridian (MEI) Atlanta, ATL 267 Memphis, MEM 200 New Orleans, MSY 185 Jackson, JAN 78 Birmingham, BHM 143 Columbus, GTR 136 Hattiesburg, PIB 69

This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.Appendix B Proposal of Atlantic Southeast Airlines, Inc., for EAS at Meridian, Mississippi, Docket 2008-0112 Round trips per Week 13 Completion Factor 97% Total Passengers 35,506 Total Block Hours 1,657 Total Departures 1/ 1,315 Passenger Revenue $4,331,751 Other Revenue $438,963 Total Revenue $4,770,714 Pilots $539,101 Fuel $1,140,193 Maintenance $756,361 Aircraft $728,761 Total Directs $3,164,416 Total Indirects $1,998,916 Total Operating $5,153,333 Projected Inflation, 0.75% $38,650 Return at 5% $257,667 Economic Cost $5,449,650 Annual Subsidy $678,936 1/ 26 flights/week x 52 weeks x 365/364 days x .97 = 1,315.Appendix C Atlantic Southeast Airlines , Inc., Essential Air Service to be Provided to

Meridi an , Mississippi , Dockets OST - 2008 - 0112 Effective Period : July

31 , 20 1 0 , through June 30 , 2012
. Scheduled Service : 1 3 nonstop round trips per week to Atlanta
. Aircraft : CRJ
- 200 , 50
- seat s Rate per Eligible Flight: $ 516 1 Weekly Ceiling : $ 13,416 2 Note: Th e 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 th e 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 comp leted, 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 per iod, it may jeopardize i ts 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 wr iting and receive written a pproval 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 an d the extent of access to the national air transportation system provided to the community. If the Department unilaterally, either partially or complete ly , terminates or reduces payments for service or changes service requirements at a specific location p rovided for under this order, then, at the end of the period for w hich 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 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 are not currently available for performance under this order beyond September 30, 2010 . The Government’s obligation for performance under this order beyond September 30, 2010 , 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 order beyond September 30, 2010 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30, 2010 , the Department will provide notice in writing to the carrier. All claims for payment must be submitted within 60 days of the last day of service provided under this order.

1 Annual compensation of $678,936 divided by the estimated annual completed departures and arrivals: 26 flights/week x 52 weeks 365/364 days x .97 completion = 1,315 total. 2 26 flights/week x $ 516
.