Order: 2012-4-32

 Served: April 30, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30th of April, 2012

Essential Air Service at

BECKLEY, WEST VIRGINIA

CLARKSBURG/FAIRMONT, WEST VIRGINIA

MORGANTOWN, WEST VIRGINIA

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

 Docket DOT-OST-1997-2761

 Docket DOT-OST-2005-20736

 Docket DOT-OST-2005-20735

 

ORDER SELECTING CARRIER

Summary

By this Order, the Department is selecting Silver Airways (“Silver”) to provide Essential Air 

Service (EAS) at Beckley, Clarksburg/Fairmont (“Clarksburg”) and Morgantown, West Virginia,

for a combined annual subsidy of $5,968,744 ($2,512,494 for Beckley; $3,456,250 for 

Clarksburg and Morgantown), for the two-year period beginning when the carrier begins full 

EAS at all three communities.1

Background

By Order 2012-2-16, February 23, 2012, the Department solicited proposals from all interested 

air carriers to provide service at these three West Virginia communities for a new two-year term 

beginning August 1, 2012. Subsequent to that Order, on March 8, 2012, Pinnacle Airlines Corp. 

(“Pinnacle”), the parent company of Colgan Air (“Colgan”), the incumbent, filed a 90-day 

termination notice with the Department. That notice stated Pinnacle’s intention to end Colgan’s 

service at all three communities, in addition to four other communities not discussed here, 

effective June 8, 2012. We then issued an Order prohibiting the suspension of service at all of 

the noticed communities and requesting proposals for the other four. Since the request for 

proposals for the three West Virginia communities was already issued, we did not set a new due 

date for proposals, leaving it April 3, 2012, as in Order 2012-2-16.

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
Proposal from Silver Airways

In response to that Order, Silver was the only carrier to submit a proposal. Silver was previously 

known as Gulfstream International Airlines but assumed its new name in December 2011. Silver 

provides subsidized EAS at several communities in Montana, Pennsylvania, New York, and 

West Virginia.

For Morgantown and Clarksburg, Silver proposes 18 nonstop or one-stop round trips per week to 

Washington Dulles International Airport (“Dulles”) for an annual combined subsidy of 

$3,456,250. Flights would operate on a Dulles-Morgantown-Clarksburg-Dulles or DullesClarksburg-Morgantown-Dulles routing. For Beckley, Silver proposes 13 round trips per week 

(seven nonstops and six one-stops at an intermediate point to be determined at a later date) to 

Dulles for an annual subsidy of $2,664,565. The service proposed is one round trip per week 

more than what the Department requested for Beckley. As result, in its proposal, Silver “would 

be amenable” to providing 12 round trips at a prorata subsidy adjustment. All service to the 

three communities would be operated with 34-passenger Saab 340B+ aircraft. Silver states that 

it is proposing to operate flights under its existing codeshare with United Airlines (“United”);

however, a definitive agreement extending that code-share had not been reached at the time of 

filing and, therefore, the proposal was contingent upon that agreement being finalized.

Silver’s complete proposal may be accessed online at: http://www.regulations.gov/ by entering 

“DOT-OST-1997-2761” (Beckley), “DOT-OST-2005-20735” (Morgantown), or “DOT-OST2005-20736” (Clarksburg/Fairmont) in the “Enter Keyword or ID” field. 

Community and State Comments

On April 4, 2012, we requested community comments regarding the carrier selection at three 

communities.

Beckley

In an April 17 letter, the Raleigh County Memorial Airport Authority (BKW) notified the 

Department that it “has unanimously chosen the proposal offered by Silver Airways, with 

26 weekly frequencies.” It notes that the proposal is contingent upon an agreement with United, 

but if that fails, it requests DOT’s “consideration of a link with Greenbrier Valley Airport, 

Lewisburg, WV (LWB) service to Atlanta.”

Clarksburg

The Interim Airport Director at the North Central West Virginia Airport (CKB) sent the 

Department a letter stating that CKB and the Benedum Airport Authority are “pleased that Silver 

wishes to continue a similar service to what Colgan Air is currently providing.” He says that

“serving Clarksburg and Morgantown with 18 round trips per week is very important” and “any 

aircraft smaller than the 34-passenger Saab 340B+ would not be opportune” for the community. 

He further explains that while he understands the flight schedule has not been finalized, he has 

some operational concerns about how the “round robin” flights will be scheduled. Because 

Clarksburg’s runway is longer, he proposes the flights be routed Dulles-Morgantown-Clarksburg

for afternoon and evening flights, and cites operational statistics to substantiate his reasoning.
Morgantown

In an April 11 letter, the director of Morgantown Municipal Airport, stated that the university, 

business, and residents of the region need “a carrier that can provide connectivity and service” 

for business and leisure travelers and “Silver Airways proposal does that.” He says that 

Washington Dulles with domestic and international flights will serve the community well.

Decision

All three communities support Silver Airways’ proposal and Silver Airways is a well-established 

airline in the EAS program, serving communities in Montana, New York, Pennsylvania, and 

West Virginia. Furthermore, the proposed service to Washington Dulles would provide the 

communities with excellent, seamless access to the National air transportation system. While 

we understand that this proposal is contingent upon Silver Airways’ obtaining a United 

codeshare agreement to include the Beckley, Clarksburg, and Morgantown flights, we are 

optimistic this can be achieved given that Silver Airways has an existing United code-share at 

Cleveland-Hopkins International Airport and in Florida and the Bahamas.

While we recognize that Beckley would appreciate the additional weekly round trip that Silver 

proposed, the EAS is designed to provide a safety-net level of service of access to the national air 

transportation system, and the current level of service (12 weekly round trips with 34-passenger 

Saab 340B+ aircraft) will provide enough capacity to accommodate current passenger traffic.

Overall, we find the requested subsidy reasonable for the service proposed. Thus, we select 

Silver to provide EAS at the three communities for a combined annual subsidy of $5,968,744

($2,512,494 for Beckley; $3,456,250 for Clarksburg and Morgantown), for the two-year period 

beginning when the carrier begins full EAS at all three communities. Beckley’s subsidy rate will 

be prorated to reflect seven nonstop and five one-stop round trips per week, rather than the seven

nonstop and six one-stop round trips per week, as Silver initially proposed.

We shall make Silver’s selection at Beckley, Clarksburg, and Morgantown contingent upon the 

Department’s receiving properly executed certifications from Silver that it is in compliance with 

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

the regulations governing lobbying activities.

As a final matter, we expect Silver and Colgan to work together to make a smooth transition at 

all three communities. In that regard, before Colgan suspends its service, we expect it to contact 

all passengers holding reservations for travel after the final date of service, to inform them of the 

change in service, and to assist them in arranging alternate transportation or to provide a refund 

of the ticket price, without penalty, if requested.

Carrier Fitness

49 U.S.C. 41737(b) requires that we find an air carrier fit, willing, and able to provide reliable 

service before we may subsidize it to provide essential air service. Silver is subject to the 

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

would cause us to question either 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 
finding. We therefore conclude 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 select Silver Airways, to provide Essential Air Service at Beckley, Clarksburg/Fairmont, 

and Morgantown, West Virginia;

2. We set the final rate of compensation for Silver Airways, for the provision of essential air 

service at Beckley, Clarksburg/Fairmont, and Morgantown, West Virginia, as described in 

Appendix C;

3. We direct Silver Airways, 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 when EAS begins 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;

4. We find that Silver Airways, continues to be fit, willing and able to operate as a commuter

carrier and capable of providing reliable Essential Air Service at Beckley, Clarksburg/Fairmont, 

and Morgantown, West Virginia

5. These dockets will remain open until further order of the Department; and

6. We will serve copies of this Order on the Mayors of Beckley, Clarksburg, Fairmont, and 

Morgantown, West Virginia, and the managers of Morgantown Municipal Airport, North Central 

West Virginia Airport (Clarksburg/Fairmont), and Raleigh County Memorial Airport (Beckley), 

Silver Airways, and Colgan Air.

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

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

Page 1 of 2

Beckley’s prorated subsidy – 5/6th of $912,427=$760,356 + $1,752,138 = $2,512,494
Appendix B

Page 2 of 2
Appendix C

Page 1 of 2

Silver Airways

Essential Air Service to be Provided at Beckley, WV

Effective Period: Beginning with full EAS at Beckley, Clarksburg, and Morgantown, through the 

end of the 24th month thereafter

Scheduled Service: 12 weekly round trips (7 nonstop and 5 one-stops) to Washington Dulles

International Airport

Intermediate stops and upline service: An intermediate stop is permitted on five (5) of the 

12 weekly round trips 

Aircraft: Saab 340B+, 34 seats

Rate per Eligible Flight: $2,0541

Weekly Ceiling: $49,2962

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 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 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 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.

Funds are not currently available for performance under this order beyond September 30, 2012. The Government’s 

obligation for performance under this order beyond September 30, 2012, 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, 2012, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2012, 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 $2,512,494, divided by 1,223 annual departures (24 weekly departures x 52 weeks x 98 

percent completion). 2 24 flights per week multiplied by $2,054 per flight.
Appendix C

Page 2 of 2

Silver Airways

Essential Air Service to be Provided at Clarksburg/Fairmont and Morgantown, WV

Effective Period: Beginning with full EAS at Beckley, Clarksburg, and Morgantown, through the 

end of the 24th month thereafter

Scheduled Service: 18 weekly nonstop or one-stop round trips over a Clarksburg-MorgantownWashington Dulles or Morgantown-Clarksburg-Washington Dulles routing

Intermediate stops and upline service: Service may be routed over Morgantown or Clarksburg

Aircraft: Saab 340B+, 34 seats

Rate per Eligible Flight: $9421

Weekly Ceiling: $33,912 per community2

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 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 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 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.

Funds are not currently available for performance under this order beyond September 30, 2012. The Government’s 

obligation for performance under this order beyond September 30, 2012, 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, 2012, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2012, 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 $3,456,250, divided by 3,669 annual departures (36 weekly departures x 52 weeks x 98 

percent completion x 2 communities).

2 36 flights per week per community multiplied by $942 per flight.