Order 2010-12-10

Served: December 6, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 6th day of December, 2010

ORDER REQUESTING PROPOSALS

Summary

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

essential air service (EAS) at Carlsbad, New Mexico, for the next two-year period, 

beginning June 1, 2011, with or without subsidy. (See Appendix A for a service area 

map). Carriers should file their proposals no later than January 6, 2011.

Background 

By Order 2009-4-18, April 27, 2009, the Department re-selected Pacific Wings L.L.C., 

d/b/a New Mexico Airlines to provide subsidized EAS at Carlsbad for the two-year 

period beginning June 1, 2009, for an annual subsidy rate of $1,046,284. Under that 

order, New Mexico Airlines provides two round trips between Carlsbad and Albuquerque 

each weekday and each weekend, utilizing single-engine, 9-passenger Cessna Grand 

Caravan (C-208B) turboprop aircraft.

Request for Proposals 

As the end of the current contract approaches, we are here requesting proposals from 

carriers interested in providing service at Carlsbad, with or without subsidy, for the twoyear period beginning June 1, 2011. Carriers should file their proposals no later than 

January 6, 2011. Staff will then docket proposals, thereby making them public, and 

shortly afterwards will provide a summary of the proposals to the community and ask 

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

timely manner.1

 1 Carriers should not expect the Department to accept late fillings. 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 do not proceed with the carrier-selection case. Instead, we simply rely on that 

carrier’s subsidy-free service as proposed.

Essential Air Service at

CARLSBAD, NEW MEXICO

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

Docket DOT-OST-2002-12802
- 2 -

Interested carriers should prepare their proposals with every expectation that their initial 

proposals will represent their final and only proposals. However, 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 re-solicit a new 

round of proposals. However, negotiation or rejection are only an occasional exception to 

the rule.

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, welldocumented proposals that will facilitate their evaluation by the affected community and 

the Department.2

The Department expects proposals that are consistent with what the community currently 

receives (12 weekly round trips with nine-seat aircraft). We note that EAS at Carlsbad

calls for service with 15-seat aircraft. However, during the last two-year contract, the 

community approved the service with nine-seat aircraft. Given the traffic levels 

described below, two round trips a day with nine-seat aircraft will provide ample capacity 

to accommodate traffic. We encourage proposals that meet those requirements in an 

efficient manner. Carriers are also welcome to propose more than one service 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.

The community and air carriers are encouraged to work together in advance of the due 

date for proposals to craft service patterns that are desirable to the community and meet 

the operational requirements of the airline.

Service and Traffic History

Historical traffic is detailed in Appendix B. During the year ended December 31, 2009, 

Carlsbad averaged 9.8 enplanements a day (which includes service to Alamogordo, 

Hobbs and El Paso), an increase over the previous calendar year.

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

consider four factors: (a) scheduled service reliability; (b) contractual and marketing arrangements with a 

larger carrier to ensure service beyond the hub; (c) interline arrangements that the applicant has made with a 

larger carrier at the hub; and (d) community views, giving substantial weight to the views of the elected 

officials representing the users. 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.
- 3 -

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.3 Consequently, all 

carriers receiving Federal subsidy for 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. Because the Department is prohibited from paying subsidy to carriers 

that do not submit these documents, all carriers that plan to submit proposals involving 

subsidy should be aware that the selected carrier will be required to complete the required 

certifications. Interested carriers requiring more detailed information regarding these 

requirements should contact the Office of Aviation Analysis at (202) 366-5903.4

Community and State Comments

The community and State are welcome to submit comments at any time. We encourage 

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, we will provide a summary of the proposals to 

the civic parties and ask them to submit their final comments shortly after January 6, the 

deadline for carrier proposals.

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

ACCORDINGLY,

1. We request that carriers interested in providing essential air service at Carlsbad, New 

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

January 6, 2011. The proposals should be e-mailed to: EAS@dot.gov with the title 

“Proposal to Provide Essential Air Service at Carlsbad, New Mexico, Docket DOT-OST2002-12802”;5

2. This docket 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 (non-procurement) and governmentwide requirements for drug-free workplace (grants).

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

5 Questions regarding filings in response to this order may be directed to Brian Swanson at (202) 366-5392 

or brian.swanson@dot.gov.
- 4 -

3. We will serve copies of this order on 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

on the World Wide Web at http://www.regulations.gov
Appendix A

AREA MAP
Appendix B

Notes:

1. Source: Order 2009-2-1, Docket OST-2002-12802 and US DOT Bureau of 

Transportation Statistics, Form T-100.

2. Origin-destination passengers divided by two.

3. Average annual enplanements divided by 313 effective annual service days, except for 

annual periods ended 12/31/2000, 12/31/2004, and 12/31/2008 (314 effective annual 

service days).

Year Ended

Origin & 

Destination 

Passengers

Annual 

Enplanements2

Average 

Enplanements 

Per Service Day3 

31-Dec-99 15,734 7,867 25.1

31-Dec-00 14,182 7,091 22.6

31-Dec-01 12,598 6,299 20.1

31-Dec-02 5,792 2,896 9.3

31-Dec-03 5,571 2,786 8.9

31-Dec-04 7,110 3,555 11.3

31-Dec-05 8,497 4,249 13.6

31-Dec-06 7,102 3,551 11.3

31-Dec-07 5,050 2,525 8.1

31-Dec-08 3,655 1,828 5.8

31-Dec-09 6,141 3,071 9.8

1/1/2010 - 5/31/2010 2,063 1,032

Historical Enplanements1

Carlsbad, New Mexico
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 solicitation beyond [DATE]. 

The Department’s obligation for performance under this solicitation 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 Department 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

SERVICE LIST

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, Barbara Jones McCall Aviation, Michelle

Airline Associates, Bill Mishk Mesaba, Max Shemesh

Alaska Airlines, Jeff Cole Mesaba, John Spanjers

Alaska Airlines, Sandy Sinick Midstar Airlines, Jeffrey Fonner

Allegiant Air, Robert Ashscroft Midwest Airlines, Greg Aretakis

American Airlines, Carl Nelson MN Aviation, Jose Maldonado

American Eagle, Jeff Hartz Multi Aero, Darnea

Atlantic Southeast, Jon Lindlief Multi Aero, Shane Storz

Atlantic Southeast, Roger Weston Northwest, Tim McDonald

Bemidji Aviation, Arlen Rinkenberger NYDC, Henok Araya

Bemidji Aviation, Cori Rude OST, Brian Swanson

Cape Air, Andrew Bonney OST, Dennis DeVany

Cape Air, Dan Wolf OST, Kevin Adams

Cape Air, J. Flaherty OST, Kevin Schlemmer

Classic Aviation, Tony Henderson OST, Michael Martin

Colgan Air, Mike Colgan OST, Renee Williams

CommutAir, Andy Price Pacific Wings, Frank Ford

CommutAir, Joel Raymond Pacific Wings, Greg Kahlstorf

Consultant, Robert Silverberg Penn Air, Danny Seybert

Continental, Bruce Keiner Penn Air, Scott Bloomquist

Continental, Dan Weiss Pinnacle Airlines, Joe Williams

Continental, Lorry Halloway Pinnacle Airlines, Phil Reed

Delta Air Lines Amy Martin Public Charters, Jim Gallagher

Delta Air Lines, Jeff Morgan Scenic, Mary Schneider

Delta Air Lines, Dan Shuman Scenic, Mitzi Daines

Delta Air Lines, Joe Esposito Seaborne Airlines, Wayne D’Amico

Delta Air Lines, Sascha Vanderbellen SeaPort Airlines. Jim Day

Delta Air Lines, Karen Zachary SeaPort Airlines. Rob McKinney

Dorado Jets Shuttle America, Jerry Balsano

Dorado Jets, Mark McKenna SkyWest, Eric Christensen

Era Aviation, Mike Lenorman SkyWest, Michael Thompson

Executive Airlines, Kate Soled Sovereign Air, Bob Karns

Frontier Flying, Bob Hajducovich Sovereign Air, Lois R. Barton

Gem Air, Dan Schroeder Tradewind, Eric Zipkin

Gem Air, JoAnn Wolters Trans States, Fred Oxley

Great Lakes Airlines, Chuck Howell Trans States, Gerry Wigmore

Great Lakes Airlines, Doug Voss United, Alicia Gabriel

Gulfstream, Dave Hackett United, James Starnes

Gulfstream, Mickey Bowman US Airways, Benjamin Slocum

Gulfstream, T. Cooper US Airways, Howard Kass

Homeland Security, Bill Ragan US Airways, Jason Reisinger

Homeland Security, David Bernier Warbelows Air Ventures, Art Warbelow

Homeland Security, Randy Webb Wings Air (Air Greco), Aaron Goerlich

Horizon Air, Dan Russo State of New Mexico, David C.Ploeger

Horizon Air, Jennifer Thompson City of Carlsbad, Dale Janway

Horizon Air, Jeff Cole

ICEPR, Luis Irizarry

Intrepid Internatl Air, Rick Eyk

Island Air Charters, Linda House