Order: 2011-12-17

 Served: December 22, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22nd of December, 2011

Essential Air Service at

BURLINGTON, IOWA

DECATUR, ILLINOIS

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

DOT-OST-2001-8731

DOT-OST-2006-23929

ORDER RE-SELECTING CARRIER

Summary

By this order, the Department is re-selecting Multi-Aero, Inc. d/b/a Air Choice One (Air Choice 

One) to provide essential air service (EAS) at Burlington, Iowa, and Decatur, Illinois, at a

combined annual subsidy rate of $4,727,307 ($1,976,872 for Burlington and $2,750,435 for 

Decatur), for a one-year period from February 1, 2012, through January 31, 2013. This may be 

extended for an additional three years through January 31, 2016, if Air Choice One fully 

implements an electronic ticketing and baggage agreement with a major airline that operates a 

hub at Chicago O’Hare International Airport (“Chicago O’Hare”) and/or Lambert-St. Louis

International Airport (“St. Louis”).1

Background

By Order 2009-10-13, October 22, 2009, Multi-Aero, Inc. d/b/a Air Choice One (Air Choice 

One) was selected to serve Burlington and Decatur, for a two-year period. At Burlington, service 

was to consist of 24 weekly nonstop round trips (12 nonstops per week to Chicago O’Hare and 

12 to St. Louis). At Decatur, service was to consist of 36 weekly nonstop round trips (18 

nonstops per week to Chicago O’Hare and 18 to St. Louis). All service was to be operated with 

9-seat Cessna Grand Caravan aircraft. The Department directed Air Choice One to inaugurate 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
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service from Decatur to St. Louis on or before December 15, 2009, and to Chicago O’Hare by 

January 15, 2010. If Air Choice One did not inaugurate service at Decatur by those dates, we 

had selected Hyannis Air Service, Inc. d/b/a Cape Air as a backup carrier to provide service at 

Decatur. Air Choice One inaugurated service at Decatur on December 15, 2009, to St. Louis and

on January 15, 2010, to Chicago O’Hare. The carrier inaugurated service to Burlington on 

January 15, 2010. This made the expiration date of the contract for both communities 

January 31, 2012.

In anticipation of the end of the current contract with Air Choice One on January 31, 2012, the 

Department issued Order 2011-9-9, September 14, 2011, to solicit proposals from all interested 

air carriers to provide EAS at Burlington and Decatur, for a new term. In response to that order, 

we received proposals from Air Choice One, the incumbent, and Hyannis Air Service, Inc. d/b/a 

Cape Air (Cape Air). 

Proposals

Below is a chart summarizing the proposals of both carriers at Burlington and Decatur. Options 

2, 3, 4, 5, and 6 for Burlington propose more service for Burlington than the Department 

solicited in its request for proposals, and in Air Choice One’s combined Burlington-Decatur 

proposal, the 36 weekly round trips proposed for Burlington is more service than the Department 

solicited in its request for proposals. Air Choice One proposes its service with 9-passenger 

Cessna Grand Caravan aircraft. Cape Air proposes to use 9-passenger Cessna 402 aircraft. 

Both carriers’ complete proposals may be accessed online at http://www.regulations.gov/ by 

entering DOT-OST-2001-8731 or DOT-OST-2006-23929 in the “Enter Keyword or ID” field.

BURLINGTON

2-year 4-year

Weekly r/ts & Hub annual subsidy annual subsidy

Air Choice One

Option 1 12 STL & 12 ORD $1,976,872 $1,917,566

Option 2 12 STL & 18 ORD $2,492,613 $2,417,835

Option 3 18 STL & 18 ORD $2,779,519 $2,696,133

Option 4 30 STL $2,207,850 $2,141,615

Option 5 30 ORD $2,624,354 $2,545,623

Option 6 36 ORD $2,853,990 $2,768,370

Cape Air

One proposed option 24 STL $1,395,035 $1,360,891
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DECATUR

2-year 4-year

Weekly r/ts & Hub annual subsidy annual subsidy

Air Choice One

Option 1 18 STL & 18 ORD $2,750,435 $2,667,922

Option 2 12 STL & 24 ORD $2,778,904 $2,695,537

Option 3 36 STL $2,228,174 $2,219,529

Option 4 36 ORD $2,854,864 $2,769,218

Cape Air

One proposed option 36 STL $1,529,333 $1,491,902

BURLINGTON & DECATUR COMBINED

2-year 4-year

Air Choice One Weekly r/ts & Hub annual subsidy annual subsidy

18 STL & 18 ORD (for each community) $5,220,901 $5,168,692

Community Comments

On October 17, 2011, we requested community comments regarding the carrier selection at 

Burlington and Decatur. 

Decatur

In a letter dated November 19, the airport director at Decatur Airport stated that it recommends 

Air Choice One’s Option 1 (18 nonstop round trips to Chicago O’Hare and 18 nonstop round 

trips to St. Louis, its current level of service, for a four-year term.) He states Air Choice One’s 

option 1 is preferred for several reasons, including the extensive use of the current service to 

Chicago O’Hare and community support of Air Choice One’s current service. He states that 

Cape Air’s code-share agreement with American Airlines is attractive, but Cape Air would not

offer service to Chicago O’Hare.

Burlington

We received letters from Southeast Iowa Regional Airport, the Mayors of Burlington and 

West Burlington, and the Greater Burlington Parternship. The Board Chairman at 

Southeast Iowa Regional Airport states that Air Choice One’s Option #2 (18 nonstop 

round trips to Chicago O’Hare and 12 nonstop round trips to St. Louis) is the best way 

for the community to attain its goal of 10,000 enplanements [in a year]. Air Choice 

One’s option #1 (the current level of service), will serve is its preferred alternate option. 

The Board also favors a four-year contract, and it expects Air Choice One will be in a 

better position to secure interline ticketing and baggage agreements. They also state 

that they have received a grant from the Iowa Department of Transportation to promote 

the air service in order to assist with lowering its subsidy below the $200 per passenger 

cap. The Mayors of Burlington and West Burlington both support Air Choice One and 

state that the major factor is Air Choice One’s service to Chicago O’Hare. This is also a 
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major reason for the support for Air Choice One from the Greater Burlington 

Parternship.

Decision

Since inaugurating service at Burlington and Decatur in 2009 and 2010, respectively, Air Choice 

One has gradually increased traffic at each community and the most recent data (year-ended

September 30, 2011), shows 12,461 passengers to/from Burlington and 12,427 at Decatur, a 

significant increase above the traffic that the previous carrier generated, albeit at a higher subsidy 

rate. While we acknowledge that Cape Air requires less subsidy, both communities strongly 

support Air Choice One, particularly its service to Chicago O’Hare. We also note that Air 

Choice One proposed a slightly lower subsidy amount than the current rate, which is to be 

commended in this continued challenging cost environment. Nonetheless, we remain concerned 

that the carrier has not yet implemented an electronic ticketing and baggage agreement with a 

major carrier, although it tells us it has made significant progress, though some roadblocks 

remain. Therefore, with increased passenger traffic and strong support from both communities, 

and lower subsidy rates than the current contract, we will select Air Choice One to serve both 

communities for a one-year period at Option #1 for both communities, the current level of 

service. For Burlington, 12 weekly nonstop round trips to St. Louis and 18 weekly nonstop 

round trips to Chicago O’Hare, at an annual subsidy of $1,976,872. For Decatur, 18 nonstop 

round trips to St. Louis and 18 nonstop round trips to Chicago O’Hare at an annual subsidy of 

$2,750,435. 

This selection may be extended an additional three years at both communities, if Air Choice One 

fully implements an electronic ticketing and baggage agreement with a major airline with a hub 

operation at Chicago O’Hare and/or St. Louis, by January 31, 2013. We are selecting Air Choice 

One to provide the current level of service. Burlington prefers an additional 6 weekly nonstop 

round trips to Chicago O’Hare stating that it would help the airport reach its goal of 10,000 

passengers. However, the purpose of the EAS program is to provide a link for eligible 

communities to the national air transportation system, which the current level of service 

provides, not to assist airports in securing higher funds levels for infrastructure improvements 

from the FAA, which the 10,000 enplanements would provide. We find that both the service and 

subsidy levels are reasonable for the service provided.

We also recognize that both communities supported Air Choice One’s proposals for a four-year 

term. When a carrier proposes a four-year rate term, the community supports it, the carrier 

provides reliable service, we find the rate to be reasonable for the service provided, and it offers 

some longer-term savings to the Department, we have generally been inclined to select it. We 

are also inclined to do so in this case. However, because we are initially selecting Air Choice 

One to serve a one-year term, with a possible extension of three additional years, subject to its 

implementation of an electronic ticketing and baggage agreement as described above, we will 

compensate Air Choice One at its two-year rate for the first year, then, if extended, compensate 

them for the remaining three years at its four-year rate, recognizing Air Choice One’s increased 

costs for not being selected outright for its four-year rate. 

We shall make these selections at Burlington and Decatur contingent upon the Department’s 

receiving properly executed certifications from Air Choice One that it is in compliance with the 
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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) 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. Air Choice One 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 carrier remains fit to conduct the operations proposed 

here.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We select Multi-Aero, Inc. d/b/a Air Choice One, to provide essential air service at 

Burlington, Iowa, and Decatur, Illinois;

2. We set the final rate of compensation for Multi-Aero, Inc. d/b/a Air Choice One, for the 

provision of essential air service at Burlington, Iowa, and Decatur, Illinois, as described in 

Appendix B;

3. We direct Multi-Aero, Inc. d/b/a Air Choice One 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 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 Multi-Aero, Inc. d/b/a Air Choice One, continues to be fit, willing and able to 

operate as a commuter carrier and capable of providing reliable essential air service at 

Burlington, Iowa, and Decatur, Illinois; 

5. These dockets will remain open until further order of the Department; and
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6. We will serve copies of this order on the mayors of Burlington, Iowa, and Decatur, Illinois, 

and the airport managers of Southeast Iowa Regional Airport (Burlington) and Decatur Airport, 

Hyannis Air Service, Inc. d/b/a/ Cape Air, and Multi-Aero, Inc. d/b/a Air Choice One.

By:

SUSAN L. KURLAND

Assistant Secretary for

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®.

ompletion Rate 
Appendix B

Page 1 of 2

Multi-Aero, Inc. d/b/a Air Choice One

Essential Air Service to be Provided at Burlington, Iowa

Effective Period: February 1, 2012, through January 31, 2013. It may be extended, at the 

Department’s discretion, an additional three years, through January 31, 2016, if the carrier 

implements an electronic ticketing and baggage agreement with a major carrier with a hub operation 

at Chicago O’Hare and/or St. Louis, by January 31, 2013.

Scheduled Service: 12 weekly nonstop round trips to Chicago O’Hare and 12 weekly nonstop round 

trips to Lambert-St. Louis International Airport

Intermediate stops and upline service: Nonstop service only.

Aircraft: Cessna Grand Caravan, 9 seats

Rate per Eligible Flight: $808 (year 1); $784 (years 2-4, if extended)1

Weekly Ceiling: $38,784 (year 1); $37,632 (years 2-4, if extended)2

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 complete, 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.

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

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.

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

 1 Year 1 annual compensation of $1,976,872, divided by 2,446 annual departures (48 weekly departures x 52 weeks x 98 

percent completion). Years 2-4 annual compensation (if extended) of $1,917,566, divided by 2,446 annual departures (48 

weekly departures x 52 weeks x 98 percent completion).

2 48 arrivals and departures per week multiplied by $808 per flight (year 1) and $784 (years 2-4, if extended).
Appendix B

Page 2 of 2

Multi-Aero, Inc. d/b/a Air Choice One

Essential Air Service to be Provided at Decatur, Illinois

Effective Period: February 1, 2012, through January 31, 2013. It may be extended, at the 

Department’s discretion, an additional three years, through January 31, 2016, if the carrier 

implements an electronic ticketing and baggage agreement with a major carrier with a hub operation 

at Chicago O’Hare and/or St. Louis, by January 31, 2013.

Scheduled Service: 18 weekly nonstop round trips to Chicago O’Hare and 18 weekly nonstop round 

trips to Lambert-St. Louis International Airport.

Intermediate stops and upline service: Nonstop service only.

Aircraft: Cessna Grand Caravan, 9 seats

Rate per Eligible Flight: $750 (year 1); $727 (years 2-4, if extended1

Weekly Ceiling: $54,000 (year 1); $52,344 (years 2-4, if extended)2

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 complete, 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.

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

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.

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

 1 Year 1 annual compensation of $2,750,435, divided by 3,669 annual departures (72 weekly departures x 52 weeks x 98 

percent completion). Years 2 through 4 (if extended) annual compensation of $2,667,922, divided by 3,669 (72 weekly 

departures x 52 weeks x 98 percent completion).

2 72 arrivals and departures per week multiplied by $750 per flight (year 1) and $727 (years 2-4, if extended).