Order 2010-5-28

Served: May 25, 2010

DELTA STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th of May, 2010.

Essential Air Service at

MERIDIAN, MISSISSIPPI

Under 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, Mississippi, 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 13 nonstop round trips per week to 

Atlanta with 50-seat CRJ-200 aircraft, for the two-year period ending June 30, 2010, at the 

annual subsidy rate of $686,489. In anticipation of the end of the current contract, by 

Order 2010-3-9 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 14 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 nonstop 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.
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Community Comments

We have received comments from the Mayor of Meridian. The mayor noted that she is 

“extremely pleased to endorse the ASA bid. I have heard from a number of local residents, all of 

whom agree that 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 we 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 Lines at the Atlanta hub. 

ASA’s proposal reflects 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 

years. In brief, we find ASA’s proposal to be reasonable for the service proposed.

Carrier Fitness

49 U.S.C. 41737(b) requires 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, 

Inc. is subject to the Department’s continuing fitness requirements, and no information 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 findings. DOT therefore concludes that the carriers remain fit to 

conduct the operations proposed here.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We reselect Atlantic Southeast Airlines, Inc., to provide essential air service at Meridian, 

Mississippi, as described in Appendix C;

2. We direct Atlantic Southeast Airlines, Inc., 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 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 Atlantic Southeast Airlines, Inc., continues to be fit, willing and able to operate 

as a certificated carrier and capable of providing reliable essential air service at Meridian, 

Mississippi; 

4. This docket will remain open until further order of the Department; and
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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 World Wide Web at

http://www.regulations.gov
Appendix 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® AirVisionTM 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 

Meridian, Mississippi, Dockets OST-2008-0112

Effective Period: July 31, 2010, through June 30, 2012.

Scheduled Service: 13 nonstop round trips per week to Atlanta.

Aircraft: CRJ-200, 50-seats

Rate per Eligible Flight: $516 1

Weekly Ceiling: $13,416 2

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 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.