Order 2013-10-14

Served: October 28, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 28th of October, 2013

Essential Air Service at

DEVILS LAKE, NORTH DAKOTA

JAMESTOWN, NORTH DAKOTA

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

DOCKET DOT-OST-1997-2785

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals by November 26, 2013, from carriers 

interested in providing Essential Air Service (EAS) at Devils Lake and Jamestown, North 

Dakota, beginning April 1, 2014, for a period of two or more years, with or without subsidy. 

Carriers should file their proposals no later than November 26, 2013.

Background

By Order 2012-1-17, January 23, 2012, we selected Great Lakes Aviation, Ltd. (Great 

Lakes), to provide 18 nonstop round trips per week with 19-seat Beech 1900 aircraft 

between Jamestown and Minneapolis/St. Paul International Airport, MSP (Minneapolis),

for a two-year period from the start of its service for an annual subsidy of $1,987,655. As 

the carrier inaugurated service in mid-March 2012, the rate is set to end on March 31, 

2014.

By Order 2011-12-6, December 14, 2011, we selected Great Lakes to provide 14 nonstop 

round trips per week between Devils Lake and Minneapolis with 19-seat Beech 1900 

aircraft until further Department action for an annual subsidy of $2,797,467.1 Order 

2012-11-25, November 21, 2012, specified March 31, 2014, as the end of the contract, 

thereby making the rates at the two communities expire at the same time. 

Request for Proposals

As the end of the current rate term approaches, we are requesting proposals from carriers 

interested in providing service at Devils Lake and/or Jamestown, with or without subsidy, 

for the period beginning April 1, 2014. Carriers should file their proposals by 

 1 According to published schedules, in addition to the 14 nonstop round trips each week, Great Lakes 

currently provides 7 one-stop round trips between Devils Lake and Minneapolis, on an unsubsidized basis.
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November 26, 2013. Staff will then docket the proposals, thereby making them public. 

Shortly afterwards, we will provide a summary of the proposals to the communities and 

ask them to submit their final comments. We will give full consideration to all proposals 

filed in a timely manner.2 Interested carriers should prepare their proposals with every 

expectation that their initial proposals will also be their final and only proposals. We 

retain the discretion to negotiate proposals with carriers when we deem it desirable. We 

also retain the discretion to reject outright all unreasonable or unrealistic proposals and, if 

necessary, solicit a new round of proposals. However, we anticipate that negotiation or 

rejection will remain only occasional exceptions to the rule.

We are here providing interested carriers with some basic information to serve as 

guidance when they prepare their proposals, but we will not prescribe a precise format for 

their proposals. We expect proposals to adequately describe the service being proposed 

and the annual amount of subsidy being requested. The applicants can make their own 

judgments as to the level of detail they wish to present; however, we recommend that 

they include information concerning proposed schedules and projected block hours. In 

addition, applicants are urged to provide financial data supporting their subsidy requests, 

including information on their projected expenses and revenues. We strongly encourage 

clear, well-documented proposals that will facilitate their evaluation by the communities

and the Department.3 

As always, we will formally solicit the communities’ views on any service options we 

receive before making a long-term, carrier-selection decision. The communities and air 

carriers are encouraged to work together in advance of the due date for proposals to craft 

a service pattern that is both desirable to the communities and meets the operational 

needs of the airlines, as carriers cannot amend their proposals after the due date.

With specific respect to Devils Lake, the Department expects proposals consisting of two 

nonstop round trips each day (14 total per week) to Minneapolis. At Jamestown, we 

expect three nonstop or one-stop round trips each day (18 total per week) to Minneapolis

utilizing 19-seat aircraft. For service using larger aircraft, two one-stop round trips each 

weekday and weekend (12 total per week) would be sufficient to accommodate recent

traffic levels at each community. We encourage proposals that meet those requirements 

in an efficient manner. Carriers are also welcome to propose more than one service 

option, if they choose. They need not limit themselves to the requirements specified 

 2 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to 

provide EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. §41732, can be 

reliably provided without such compensation, we typically do not proceed with the carrier-selection case. 

Instead, we simply rely on that carrier’s subsidy-free service as proposed.

3 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)

directs us to consider five factors: (1) service reliability; (2) contractual and marketing arrangements with a 

larger carrier at the hub; (3) interline arrangements with a larger carrier at the hub; (4) community views; 

and (5) whether the carrier has included a plan in its proposal to market the service. In addition, The 

Consolidated and Further Continuing Appropriations Act, 2012, Public Law No. 112-55, and continued by 

the Full-Year Continuing Appropriations Act, 2013, Public Law No. 113-6, and Continuing Appropriations 

Act, 2014, Public Law No. 113-46, provides that when selecting a carrier to provide EAS, the Department 

may consider the relative subsidy requirements, thus codifying a factor that we have considered since the 

inception of the program. Interested carriers should also be aware that our general provisions governing 

EAS will be included in the selection Order as part of our authorization of subsidy for the selected service. 

Appendix C of this Order contains those general provisions.
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above if they envision other, potentially more attractive service possibilities – different 

hubs, for example – with subsidy requirements that remain competitive.

Filing Format

Carrier proposals should be submitted to the Department with all materials merged into a 

single document. In addition, because the document will be published on 

Regulations.gov, each page should be formatted to be viewed online.

Historical Traffic

In order to assist carriers in making traffic and revenue projections, we have included 

historical traffic for the communities in Appendix B for the most recent annual periods. 

For the most recent 12-month period for which data are available, Devils Lake had 9.1 

enplanements per day, and Jamestown had 8.0. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy to support EAS must certify that they are in compliance with Department 

regulations regarding drug-free workplaces and nondiscrimination, and those carriers whose 

subsidies exceed $100,000 over the life of the rate term must also certify that they are in 

compliance with the regulations governing lobbying activities. Because the Department is 

prohibited from paying subsidy to carriers that do not submit these documents, the selected 

carrier will be required to submit them in order to receive subsidy. Interested carriers 

requiring more detailed information regarding these requirements, as well as copies of the 

certifications, should contact the Office of Aviation Analysis at (202) 366-5903. 

Community Comments

Civic officials and the State are welcome to submit comments on the proposals at any time. 

As noted earlier, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after November 26, 2013, the due date for 

carrier proposals.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated 

to the Director, Office of Aviation Analysis.

ACCORDINGLY,

1. The Department requests proposals from carriers interested in providing EAS at Devils 

Lake and/or Jamestown, North Dakota. Carriers should submit proposals, with subsidy if 

necessary, by November 26, 2013. Proposals should be emailed to EAS@dot.gov, with the 

title “Proposal to Provide EAS at Devils Lake and/or Jamestown, North Dakota”5;

2. This Docket will remain open until further Order of the Department; and

 

4 The certifications are available on the web at

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

5 Questions regarding filings may be directed to Kevin Adams at 202-366-1047 or Kevin.Adams@dot.gov
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3. We will serve this Order on the mayors of Devils Lake and Jamestown, the airport 

managers at Devils Lake Regional Airport and Jamestown Regional Airport, 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

http://www.regulations.gov
Appendix A

Nonstop Great Circle Miles to Minneapolis/St. Paul (MSP)

BIS, Bismarck 386

DVL, Devils Lake 351

FAR, Fargo 223

GFK, Grand Forks 284

JMS, Jamestown 299

TVF, Thief River Falls 261

Nearby Service

DVL to JMS 83

DVL-GFK 81

JMS-FAR 88
Appendix B-1

 Historical Traffic at Devils Lake, ND (DVL), Scheduled Passenger Service

Enplaned Pax. Deplaned Pax. O&D Pax

2008 3 Mesaba 970 939 1,909

2008 4 Mesaba 743 719 1,462

2009 1 Mesaba 881 839 1,720

2009 2 Mesaba 912 930 1,842

YE 6-30-09 3,506 3,427 6,933

2009 3 Mesaba 953 795 1,748

2009 4 Mesaba 988 703 1,691

2010 1 Mesaba 984 907 1,891

2010 2 Mesaba 1,217 1,163 2,380

YE 6-30-10 4,142 3,568 7,710

2010 3 Mesaba 1,419 1,369 2,788

2010 4 Mesaba 1,372 1,300 2,672

2011 1 Mesaba 1,371 1,368 2,739

2011 2 Mesaba 1,336 1,376 2,712

YE 6-30-11 5,498 5,413 10,911

2011 3 Mesaba 1,554 1,521 3,075

2011 4 Pinnacle 19 34 53

2011 4 Great Lakes 231 189 420

2011 4 Mesaba 1,088 997 2,085

2012 1 Great Lakes 634 672 1,306

2012 2 Great Lakes 673 756 1,429

YE 6-30-12 4,199 4,169 8,368

2012 3 Great Lakes 889 820 1,709

2012 4 Great Lakes 780 728 1,508

2013 1 Great Lakes 596 633 1,229

2013 2 Great Lakes 607 642 1,249

YE 6-30-13 2,872 2,823 5,695

Source: T-100 Market Report
Appendix B-2

 Historical Traffic at Jamestown, ND, (JMS) Scheduled Passenger Service

Enplaned Deplaned O&D Pax

2008 3 Mesaba 715 731 1,446

2008 4 Mesaba 918 910 1,828

2009 1 Mesaba 695 723 1,418

2009 2 Mesaba 699 765 1,464

YE 6-30-09 3,027 3,129 6,156

2009 3 Mesaba 819 928 1,747

2009 4 Mesaba 1,020 1,210 2,230

2010 1 Mesaba 858 1,077 1,935

2010 2 Mesaba 966 1,018 1,984

YE 6-30-10 3,663 4,233 7,896

2010 3 Mesaba 1,244 1,299 2,543

2010 4 Mesaba 1,250 1,269 2,519

2011 1 Mesaba 1,234 1,294 2,528

2011 2 Mesaba 1,124 1,239 2,363

YE 6-30-11 4,852 5,101 9,953

2011 3 Mesaba 1,210 1,282 2,492

2011 4 Endeavor 225 203 428

2011 4 Mesaba 1,385 1,286 2,671

2012 1 Pinnacle 1,549 1,545 3,094

2012 1 Great Lakes 126 199 325

2012 2 Great Lakes 500 647 1,147

YE 6-30-12 4,995 5,162 10,157

2012 3 Great Lakes 595 655 1,250

2012 4 Great Lakes 750 719 1,469

2013 1 Great Lakes 585 635 1,220

2013 2 Great Lakes 522 548 1,070

YE 6-30-13 2,452 2,557 5,009

Source: T-100 Market Report
Appendix C

Example of General Terms and Conditions for Essential Air Service

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 these rates, 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 complete, 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.

Funds may not be available for performance under this Order beyond [DATE]. The 

Government’s obligation for performance under this Order beyond [DATE], 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 [DATE], until funds are made available to the Department for 

performance. If sufficient funds are not made available for performance beyond [DATE], 

the Department will provide notice in writing to the carrier.

Subsidy contracts 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.

All claims for payment, including any amended claims, must be submitted within 80 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 31st; August claims must be 

submitted by November 30th, and so on.