Order: 20 1 2

- 1 2

- 6

Served: December 14 , 2012



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 14 th of December , 201 2

Essential Air Service at

JOPLIN

, MISSOURI

Under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 200 6

- 23932

ORDER RE SELECTING CARRIER

Summary By this O rder

, the Department is re s electing American Eagle Airlines (American Eagle) to provide E ssential Air S ervice (EAS) at Joplin

, Missouri, for an annual subsidy of $ 342,560 , for

the two

- year period beginning March 1, 2013

. 1

Background By Order 2010

- 9

- 9, September 8, 2010, the Department selected Executive Airlines dba

American Eagle Airlines , to provide EAS at Joplin for the two

- year period ending February 28,

2013. Under that Order, American Eagle provides 14 weekly nonstop round trips to Dallas/Fort Worth International Airport (DFW) wi th ERJ 140/145 regional jets or 66

- seat ATR

- 72 turboprop aircraft, for an annual subsidy of $2,778,756. In anticipation of the expiration of that contract,

we issued Order 2012

- 9

- 15 (September 12, 2012) soliciting proposals from carriers interested in

pro viding EAS at Joplin for a new contract period. In response to our request , we received only one proposal, from American Eagle, to continue their existing level of service at Joplin.

Proposal of American Eagle American Eagle proposes to continue their ex isting level of service at Joplin, consisting of two daily (14 weekly) nonstop round trips to Dallas/Fort Worth International Airport for an annual subsidy of $342,560

. Service would be provided on 50

- seat regional jets (CRJ200 or EMB145). American Eagle also requested that Joplin and the Department agree to waive their hold

- in authority and instead agree to allow American Eagl e to terminate service upon 120 days ’ notice

.

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

On October 19, 2012 , we requested co mmunity co mment s regarding t he carrier selection at Joplin

. In response to that request, we received a letter from Steve Stockam, Airport Manager at Joplin Regional Airport. The letter states that “We wholeheartedly endorse the proposal of American Airlines to provide American Eagl e service at Joplin for the next two year EAS cycle.” The letter goes on to praise American Eagle’s service, increased passenger traffic, and the reduced subsidy requirement in their prospective bid. The community also agrees to waive hold

in authority a s requested by American Eagle in their bid.

Decision

The decision at Joplin is straightforward

. American Eagle was the only bid received and it meets all of the statutory criteria for selection. The subsidy re quested is extremely reasonable and reflects the growth in traffic that the community has experienced. We applaud American Eagle for the results of its first nearly two years of service at Joplin. Passenger levels have increased from the 9,000

- 10,000 rang e to more than 50,000, resulting in the dramatic decrease in subsidy from $2,778,756 to $342,560. The proposed service offers a large number of connecting opportunities to the national air transportation system through American Airlines’ Dallas/Fort

Worth h ub and it has received the full support of the community.

We shall make American Eagle’s selection contingent upon the Department’s receiving properly

executed certifications from American Eagle that the carrier is in compliance with the Department’s regulations regarding drug

- free workplaces and nondiscrimination, as well as the regulations concerning lobbying activities.

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to provide reliable service before we may subsidize it to provide essential air service

. American Eagle is sub j ect 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. 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 carrier s remain fit to conduct the operations proposed here.

This O rder is issued under authority delegated in 49 CFR Part 1.56a(f).

ACCORDINGLY,

1. We select American Ea gle to provide E ssential A ir S ervice at Joplin

, Missouri ;

2 . We set the final rate of compensation for American Eagle for the provision of E ssential A ir

S ervice at Joplin

, Missouri

, as described in Appendix C ;

3 . We direct American Eagle 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 s hall be retained for seven years from the date of service of this Order 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 f orfeit its compensation for any claim that is not sup ported under the terms of this O rder;

4 . We find that American Eagle continue s to be fit, willing and able to operate as a certificated

carrier and capable of providing reliable E ssential A ir S ervice at Joplin

, M issouri ;

5. Under our authority in 49 U

. S

. C

. § 40109, w e will allow American Eagle to ce ase operations at Joplin on 120 days ’ notice;

6

. Th is docke t will remain open until further O rder of the Department; and

7

. We will serve copies of this O rd er on the mayor of Joplin, Missouri, the airport manager of Joplin Regional Airport and American Eagle.

By:

SUSAN L. KURLAND Assistant Secretary

for Aviation and International Affairs

(SEAL)

An electronic version of this document is available on the Internet at http://www.regulations.govAppendix A



## AREA MAP

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

American Eagle Airlines Proposal to S erve Jopli nAppendix C Page 2 of 2

Executive Airlines d/b/a American Eagle Airlines

Essential Air Service to be Provided at Joplin

, Missouri

Effective Period : March 1, 2013 through February 28, 2015.

Scheduled Service : 1 4 weekly nonstop round trips t o Dallas/Fort Worth International Airport

. Aircraft : CRJ

- 200 or EMB

- 145 50

- seat regional jets. Annual Subsidy: $342,560 1

Rate per Eligible Flight: $ 235 2
Weekly Ceilin g : $ 6,580 3

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 destinati on 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 carrie r 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 durin g 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 i n 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 March 31, 2013

. The Government’s obligation for pe rformance under this order beyond March 31, 2013 , 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 March 31, 2013 , 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 se rvice provided under this order

1 See Appendix B.

2 Annual compensation of $342,560 , divided by 1,4 60 annual departures

. 3 28 flights per week multiplied by $ 235 per flight.