Order: 2012-12-6

 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 14th of December, 2012

Essential Air Service at

JOPLIN, MISSOURI

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

 Docket DOT-OST-2006-23932

 

ORDER RESELECTING CARRIER

Summary

By this Order, the Department is reselecting American Eagle Airlines (American Eagle) to 

provide Essential Air Service (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) with 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 

providing 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 existing 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 Eagle 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 community comments regarding the 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 Eagle 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 holdin authority as 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 requested 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 range 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 hub 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 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. 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 Part 1.56a(f).

ACCORDINGLY,

1. We select American Eagle to provide Essential Air Service at Joplin, Missouri;

2. We set the final rate of compensation for American Eagle for the provision of Essential Air 

Service 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 shall 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 forfeit its 

compensation for any claim that is not supported under the terms of this Order;

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

carrier and capable of providing reliable Essential Air Service at Joplin, Missouri;

5. Under our authority in 49 U.S.C. § 40109, we will allow American Eagle to cease operations 

at Joplin on 120 days’ notice; 

6. This docket will remain open until further Order of the Department; and

7. We will serve copies of this Order 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.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

American Eagle Airlines

Proposal to Serve Joplin
Appendix 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: 14 weekly nonstop round trips to Dallas/Fort Worth International Airport.

Aircraft: CRJ-200 or EMB-145 50-seat regional jets.

Annual Subsidy: $342,5601

Rate per Eligible Flight: $2352

Weekly Ceiling: $6,5803

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 March 31, 2013. The Government’s 

obligation for performance 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 service provided under this order

 1 See Appendix B.

2 Annual compensation of $342,560, divided by 1,460 annual departures.

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