Order: 2015-2-4

Served Februrary 9, 2015

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 9th day of Februrary, 2015

 Essential Air Service at

 TATITLEK, ALASKA

Under 49 U.S. C. § 47131 et seq.

 DOCKET DOT-OST-2013-0030

 

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from air carriers interested in providing 

Essential Air Service (EAS) at Tatitlek, Alaska, with or without subsidy support, beginning 

October 1, 2015. Proposals are due March 20, 2015. (See Appendix A for a map.) 

Background

By Order 2013-8-1, issued on August 2, 2013, the Department selected Reeve Air Alaska, LLC 

(Reeve), to provide subsidized EAS at Tatitlek, using Piper Navajo PA-31 aircraft with up to 7 

passenger seats, with two nonstop round trips per week to Anchorage, for the period of 

October 1, 2013, through September 30, 2015, at an annual subsidy rate of $93,080. 

That Order, as well as the complete public file for EAS at Tatitlek, may be accessed online 

through the Federal Docket Management System at http://www.regulations.gov, by entering

“DOT-OST-2013-0030” in the “SEARCH for: Rules, Comments, Adjudications or Supporting 

Documents:” field.

Request for Proposals

As the end of the current rate term approaches, the Department is requesting proposals from air 

carriers interested in providing EAS at Tatitlek, with or without subsidy support, for the two-year 

period beginning October 1, 2015. Air carriers should file their proposals no later than 

March 20, 2015. After that date, Departmental staff will docket the proposals, thereby making 

them public. Additionally, the Department requests each air carrier serve a copy of its proposal 

on the civic parties at Tatitlek and on the other applicants. Shortly afterwards, the Department

will provide a summary of the proposals to the community and ask them to submit any formal 
2

comments on this carrier-selection case. The Department will give full consideration to all 

proposals that are timely filed.1 

The following consists of some basic information to serve as guidance when air carriers

prepare their proposals, but the Department will not prescribe a precise format for proposals. 

Air 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

www.regulations.gov, each page should be formatted to be viewed online. The Department

expects 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, the Department recommends they include information 

concerning proposed schedules and projected block hours. In addition, applicants are 

encouraged 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 affected community and the Department.2

Proposals should provide sufficient capacity to accommodate historical levels. Specifically, the 

Department requests proposals for two nonstop round trips a week between Tatitlek and 

Anchorage, or another suitable hub airport, with small aircraft (9-seats or less). Appendix B 

contains historical traffic levels to assist air carriers in making traffic and revenue forecasts. 

Typically in Alaska, mail and freight flows are asymmetrical, with up to 90% of the total mail 

and freight flowing outbound from the hub airport to the EAS community. Historical traffic data 

(Appendix B) show that two round trips a week is sufficient to fulfill the EAS needs of Tatitlek.

Interested air carriers should prepare their proposal with every expectation that their initial 

proposal will also be their final and only proposal. The Department retains the discretion to 

negotiate proposals with air carriers when the Department deems it desirable; in such cases

the Department will give all applicants the same opportunity. The Department also retains the 

discretion to reject outright all unreasonable or unrealistic proposals and solicit a new round 

of proposals. However, negotiation or rejections will remain only occasional exceptions to 

the rule.

 1 Air 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 service can be reliably provided without such compensation, we 

usually do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s subsidy- free service 

as proposed.

2 In selecting a carrier to provide subsidized EAS in Alaska, 49 U.S.C. § 41733(c)(1) directs the Department to 

consider six factors: (1) service reliability; (2) contractual and marketing arrangements with a larger air carrier at 

the hub; (3) interline arrangements with a larger air carrier at the hub (4) community views; (5) the experience of 

the applicant in providing air service in Alaska, scheduled air service or significant patterns of non-scheduled air 

service; and (6) whether the air carrier has included a plan in its proposal to market the service. In addition, the 

Consolidated Appropriations Act, 2012, Public Law 112-55, and continued by the Consolidated and Further 

Continuing Appropriations Act, 2015, Public Law No. 113-235, provides that when selecting a carrier to provide 

EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that has been

considered since the inception of the program. Interested air carriers should also be aware of the general provisions 

governing EAS, which will be included in the selection Order as part of the Department’s authorization of subsidy 

for the selected service. Appendix C of this Order contains those general provisions.
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Other Air Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying

activities, drug-free workplaces and nondiscrimination. Consequently, all air 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 air 

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. All air carriers that 

plan to submit proposals involving subsidy should submit the required certifications along 

with their proposals. Interested air 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. The Department is prohibited from paying subsidy to 

air carriers that do not submit these documents. 3

Community Comments

Civic officials and the State are welcome to submit comments at any time. The Department

encourages prospective applicants to contact the community before they submit their 

proposals so that they can tailor them to the community’s needs, as they will not be able to 

amend them after the due date. As noted earlier, the Department will provide a copy of the 

proposals to the civic parties and ask them to submit their final comments shortly after 

March 20, 2015, the due date for air 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 that air carriers interested in providing Essential Air Service at 

Tatitlek, Alaska, submit their proposals, with or without subsidy requests, no later than 

March 20, 2015. The proposals should be emailed to: EAS@dot.gov with the title “Proposal 

to Provide Essential Air Service at Tatitlek, Alaska;”4

2. Docket DOT-OST-2013-0030 will remain open until further Order of the Department; and 

 3 The regulations applicable to these areas are: (1) 49 CFR Part 20 – New restrictions on lobbying; (2) 49 CFR 

Part 21 – Nondiscrimination in federally-assisted programs of the Department of Transportation – Effectuation of 

title VI of the Civil Rights Act of 1964; 49 CFR Part 27 – Nondiscrimination on the basis of disability in programs 

and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382 – Nondiscrimination 

on the basis of disability in air travel; and (3) 49 CFR Part 29 – Government-wide debarment and suspension (nonprocurement) and government-wide requirements for drug-free workplace (grants). The certifications are available 

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

4 Questions regarding filings in response to this Order should be directed to Mr. Scott Faulk at scott.faulk@dot.gov 

or (202) 366-9967.
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3. The Department will serve copies of this Order on the civic officials of Tatitlek, Alaska, the 

Alaska Department of Transportation and Public Facilities, 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(a), 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

An electronic version of this document is available

online at www.regulations.gov.
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.
Appendix B

Tatitlek, Alaska 1

Year Quarter

Freight 

PEQ

Mail 

PEQ PAX Total Year Quarter

Freight 

PEQ

Mail 

PEQ PAX Total Year Quarter

Freight 

PEQ

Mail 

PEQ PAX Total

2011 4 0 2 0 2 2011 4 14 49 0 63 2011 4 14 51 0 65

2012 1 1 1 0 2 2012 1 22 48 0 70 2012 1 23 49 0 72

2012 2 1 3 7 11 2012 2 2 33 7 43 2012 2 3 36 14 54

2012 3 1 6 0 7 2012 3 11 42 0 53 2012 3 12 48 0 60

3 12 7 22 49 173 7 229 52 185 14 251

2012 4 1 3 0 4 2012 4 15 40 0 54 2012 4 16 43 0 58

2013 1 1 2 0 3 2013 1 1 37 0 38 2013 1 2 39 0 41

2013 2 1 2 0 3 2013 2 5 31 0 36 2013 2 6 33 0 39

2013 3 0 2 7 9 2013 3 8 37 6 51 2013 3 8 39 13 60

3 9 7 19 28 145 6 179 31 154 13 198

2013 4 0 2 29 31 2013 4 48 35 28 111 2013 4 48 37 57 142

2014 1 5 2 30 37 2014 1 53 32 41 126 2014 1 58 34 71 163

2014 2 2 3 62 67 2014 2 106 30 48 184 2014 2 108 34 110 251

2014 3 1 12 60 73 2014 3 83 35 58 176 2014 3 84 46 118 248

8 19 181 208 289 132 175 596 297 151 356 804

Origination Destination Total Origin and Destination

 1 Source: Bureau of Transportation Statistics; Schedule T-100. PEQs: Passenger Equivalents. Every 200 pounds of freight or mail is 

the equivalent of one passenger. 
Appendix C

Example of General Terms and Conditions for Eassential Air Service

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 air 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 air 

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 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. 

All claims for payment, including 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 31st; August claims must be submitted by November 

30th, and so on.