Order 2012-7-15

Served: July 13, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13th day of July, 2012

Essential Air Service at

ATHENS, GEORGIA

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

DOCKET DOT-OST-2002-11348

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals, by August 1, 2012, from carriers 

interested in providing Essential Air Service (EAS) at Athens, Georgia, for a new contract period

beginning October 1, 2012, with or without subsidy. (See Appendix A for map.)

Background

By Order 2010-10-5, October 7, 2010, the Department selected Pacific Wings, L.L.C. d/b/a 

Georgia Skies (Pacific Wings), to continue providing EAS at Athens for the two-year period 

through September 30, 2012. That order established an annual subsidy rate of $1,051,386 at 

Athens for service consisting of 12 nonstop round trips per week. All service is operated

nonstop to Atlanta with 9-seat Cessna C-208B Grand Caravan aircraft.

Legislative Changes Which May Affect Future EAS Eligibility at Athens

The Federal Aviation Administration (FAA) Modernization and Reform Act of 2012 (Public 

Law No: 112-95) amended 49 U.S.C. §41731(a)(1)(B) to change the definition of “eligible 

place” for the purpose of receiving EAS. The amendment states that to be eligible, a community 

must maintain an average of 10 enplanements or more per service day, as determined by the 

Secretary, during the most recent fiscal year beginning after September 30, 2012.1 The 

legislation exempts locations in Alaska and Hawaii and communities that are more than 175 

 1 The Secretary also has authority to waive the 10 passenger requirement, on an annual basis, if the community can 

demonstrate that the reason the location averages fewer than 10 passengers per day is due to a temporary decline in 

enplanements. See 49 U.S.C. §41731(e).
2

driving miles from the nearest large or medium hub airport. As Athens is only about 72 miles 

from the Atlanta airport, the community must meet the 10-enplanement-a-day threshold for EAS 

to continue after FY2013, barring a waiver from the Secretary.

In the most recent fiscal year for which data are available, FY2011 (October 2010-September 

2011), Pacific Wings generated a total of 2,839 passengers (inbound and outbound), or an 

average of 4.5 enplanements per day.2 Carriers submitting proposals should provide a discussion 

on how they would attract enough passengers to meet the 10 enplanements per day statutory 

requirement in order for Athens to remain eligible to continue receiving EAS after FY2013.

Proposing carriers should also be aware that the Department will continue to monitor Athens’ 

eligibility to receive EAS in light of these new requirements throughout the life of any executed 

contract. The Department may cancel a contract for any community receiving EAS if 

enplanements remain below 10 per day during FY2013. Communities that believe their 

enplanements are below 10 per day due to a temporary decline should provide a detailed 

explanation of the temporary decline to the Department with relevant supporting documents.

Request for Proposals

As the end of the current rate term approaches, in order to provide sufficient time to complete the 

carrier-selection process before the current contract expires, we are here requesting proposals 

from carriers interested in providing service at Athens, with or without subsidy support, for a 

new contract period beginning October 1, 2012. Carriers should file their proposals no later than 

August 1. After that date, our staff will docket proposals, thereby making them public, and 

direct each carrier to serve a copy of its proposal on the civic parties and other applicants. 

Shortly afterwards, we will provide a summary of the proposals to community officials and ask 

them to submit their final comments. We will give full consideration to all proposals filed in a 

timely manner.3

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 solicit a new round of proposals.

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, they might want to include proposed schedules as well as 

supporting data for their subsidy requests, such as projected block hours, revenues and expenses. 

We strongly encourage clear, well-documented proposals that will facilitate their evaluation by 

the affected community and the Department.4

 2 Source: Bureau of Transportation Statistics; Form 41, Schedule T-100. Daily averages are based on one-half of the 

O&D passengers, divided by 313 service days (314 during leap years).

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

essential air service without subsidy and we determine that service 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.

4 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c)(1) directs us to consider four 

factors: (1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; 
3

In order to assist carriers in developing traffic and revenue projections for their proposals, we 

have summarized historical passengers in Appendix B. In 2011 at Athens, Pacific Wings

generated 1,614 O&D passengers, averaging 2.6 enplanements a day; a significant decrease from

the 6,715 passengers and 10.7 average daily enplanements generated in 2010.

Given the current low passenger levels, we request proposals for service consisting of two 

nonstop round trips per day (12 a week) with two-pilot, twin-engine aircraft. Of course, as 

always, we will formally solicit the community’s views on any service options we receive before 

making a long-term carrier selection decision. The community and air carriers are encouraged to 

work together in advance of the due date for proposals to craft a service pattern that is desirable 

to the community and meets the operational needs of the airline interested in submitting a 

proposal. 

We encourage proposals that meet these requirements in an efficient manner. Carriers are also 

welcome to propose more than one option, if they choose; they need not limit themselves to 

those requirements if they envision other, potentially more attractive service possibilities --

different hubs, for example -- with subsidy requirements that remain competitive.

New Filing Procedures

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.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces and nondiscrimination.5 Consequently, all carriers receiving 

Federal subsidy to support essential air service 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. All carriers that plan to 

submit proposals involving subsidy should submit the required certifications along with their 

proposals. 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. The Department is prohibited from paying subsidy to carriers that do not 

submit these documents.6

 

(3) interline arrangements with a larger carrier at the hub; and (4) community views. In addition, the Consolidated 

Appropriations Act, 2008, Public Law 110-161, 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.

5 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).

6 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.
4

Community and State Comments

Civic officials 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 August 1, the due date for carrier proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Athens, Georgia,

submit their proposals, with or without subsidy requests, no later than August 1, 2012. The 

proposals should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential Air 

Service at Athens, Georgia, Docket DOT-OST-2002-11348”.

2. Docket DOT-OST-2002-11348 will remain open until further order of the Department; and

3. The Department will serve a copy of this Order on the mayor and airport manager of Athens, 

Georgia, Pacific Wings, L.L.C. d/b/a Georgia Skies, and the parties listed in Appendix D.

Persons entitled to petition the Department for review of this Order under the Department’s 

Aviation Economic Regulations, 14 CFR 385.50, must file such petitions within ten (10) 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 online at

www.regulations.gov
Appendix A

Area Map
Appendix B

Historical O&D Traffic and Average Daily Enplanements1

Pacific Wings at Athens, GA

Origin Destination Total 

O&D

Average Daily 

Enplanements

1Q2010 1,044 800 1,844 11.8

2Q2010 950 672 1,622 10.4

3Q2010 1,001 741 1,742 11.1

4Q2010 823 684 1,507 9.6

2010 Total: 3,818 2,897 6,715 10.7

1Q2011 284 252 536 3.4

2Q2011 247 194 441 2.8

3Q2011 208 147 355 2.3

4Q2011 141 141 282 1.8

2011 Total: 880 734 1,614 2.6

________________________________

1Source: Bureau of Transportation Statistics; TranStats Form 41, Schedule T-100.

2 Daily averages are based on one-half of the O&D passengers, divided by 313 service days (314 during leap years).
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 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 [DATE]. The 

Government's obligation for performance under this order beyond [DATE] is contingent upon 

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 [DATE], until funds are made available to the Department for performance. If 

funds are not made available for performance beyond [DATE], the carrier will receive notice in 

writing by the Department.

All claims for payment must be submitted within 60 days of the last day of service provided 

under this order.
Appendix D

Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Sunshine, Inc. Jet Air, Daniel Wolford

Air Sunshine, Mirmohammad Adili Kenmore Air, Tim Brooks 

Air West, Inc., John Raatz McCall Aviation and Salmon Air, Dan Scott

Air Wisconsin, Annette Daly McCall Aviation, Michelle

Airline Associates, Bill Mishk Mesa Air, Jonathan Ornstein

Alaska Airlines, Jeff Cole Mesa Air, Michael Lotz 

Alaska Airlines, Sandy Sinick Mesa Air, Mike Holcomb

Allegiant Air, Robert Ashscroft Mesaba, John Spanjers 

American Airlines, Carl Nelson Mesaba, Max Shemesh

American Eagle, Jeffrey Hartz Midstar Airlines, Jeffrey Fonner

Atlantic Southeast, Jon Lindlief Midwest Airlines, Anthony Intravia 

Atlantic Southeast, Roger Weston Midwest Airlines, Greg Aretakis

Bemidji Aviation, Cori Rude Midwest Airlines, J.C. Augustson

Bemidji Aviation, Arlen Rinkenberger MN Aviation, Jose Maldonado 

Cape Air, Andrew Bonney Multi Aero, Darnea

Cape Air, Dan Wolf Multi Aero, Shane Storz

Cape Air, J.Flaherty Northwest, Tim McDonald 

Classic Aviation, Tony Henderson NYDC, Henok Araya

Colgan Air, Mike Colgan OST, Brian Swanson

CommutAir, Andy Price OST, Dennis DeVany

CommutAir, Joel Raymond OST, Kevin Adams

Consultant, Robert Silverberg OST, Kevin Schlemmer

Continental, Bruce Keiner OST, Michael Martin 

Continental, Dan Weiss OST, A.J. Muldoon

Continental, Lorry Halloway Pacific Wings, Frank Ford

Delta, Amy Martin Pacific Wings, Greg Kahlstorf

Delta, Dan Shuman PenAir, Danny Seybert

Delta, Jeff Morgan PenAir, Scott Bloomquist

Delta, Joe Esposito Pinnacle Airlines, Joe Williams 

Delta, Karen Zachary Pinnacle Airlines, Phil Reed

Delta, Sascha Vanderbellen Public Charters, Jim Gallagher

Dorato Jets Scenic, Mary Schneider

Dorato Jets, Mark McKenna Scenic, Mitzi Daines

Era Aviation, Mike Lenorman Seaborne Airlines, Wayne D'Amico

Executive Airlines, Kate Soled SeaPort Airlines, Jim Day 

Frontier Flying, Bob Hajducovich SeaPort Airlines, Rob McKinney

Gem Air, Dan Schroeder Shuttle America, Jerry Balsano 

Gem Air, JoAnn Wolters SkyWest, Eric Christensen

Great Lakes, Chuck Howell SkyWest, Michael Thompson

Great Lakes, Doug Voss Sovereign Air, Bob Karns

Great Lakes, Greg Stephens Sovereign Air, Lois R. Barton

Gulfstream, Dave Hackett Tradewind, Eric Zipkin 

Gulfstream, Mickey Bowman TransStates, Fred Oxley

Gulfstream, T. Cooper Transtates, Gerry Wigmore 

Homeland Security, Bill Ragan United, Alicia Gabriel

Homeland Security, David Bernier United, James Starnes

Homeland Security, Randy Webb US Airways, Benjamin Slocum

Horizon Airlines, Dan Russo US Airways, Howard Kass

Horizon Airlines, Jennifer Thompson US Airways, Jason Reisinger 

Horizon, Jeff Cole Warbelows Air Ventures, Art Warbelow

ICEPR, Luis Irizarry Wings Air (Air Greco), Aaron Goerlich

Island Air Charters, Linda House