Order 2010-12-6 

Served: December 3, 2010 

UNITED STATES O F AMERICA 

DEPARTMENT O F TRANSPORTATION 

OFFICE O F TH E SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the y'^ of December, 2010 

Essential Air Service at 

EL CENTRO, CALIFORNIA 

Under49U.S.C. 41731 et seq. 

DOCKET OST-2008-0299 

ORDER SELECTING CARRIER 

Summary 

By this order, the Department is selecting SkyWest Airhnes, Inc., d/b/a United Express 

(SkyWest), to provide essential air service at El Centro, California, at an annual subsidy rate of 

$1,852,0911 through December 31, 2012. 

Background 

Order 2008-12-26 selected SkyWest to provide 13 nonstop round trips per week to Los Angeles with 30-

seatEmbraer Brasilia aircraft, for the two-year period ending December 31, 2010, at the annual subsidy 

rate of $662,551. Order 2009-5-21 approved an alternate service plan, under which SkyWest 

would base the aircraft in El Centro but provide six nonstop and seven one-stop round trips per 

week to Los Angeles, with the one-stop service backhauling to Yuma.^ In anticipation of the end 

of the current contract on December 31, by Order 2010-8-13 we requested proposals for replacement 

service, with proposals due September 21. We received timely-filed proposal from two carriers, Alaska 

Juneau Aeronautics, Inc., d/b/a Seaport Airlines (SeaPort), and SkyWest, and requested community 

comments. After several requests for extension, we received final comments on November 17, and the 

issue is ripe for decision. 

SeaPort proposes to provide three daily nonstop round trips per week: one to Phoenix and two to 

San Diego - for a first-year subsidy of $1,202,248 and a second-year subsidy of $1,226,710. All 

' Such subsidy is calculated and distributed on a fiscal yeqr basis, subject to the availability of appropriated funds. 

2 The alternate schedule provided the community the early morning departure from El Centro the community 

desired but at the cost of receiving one-stop service. 
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service would be with 9-seat, single-engine, pressurized, turboprop Pilatus PC-12 aircraft, and 

the aircraft would be based in El Centro. 

SkyWest proposes to revert to the service it originally provided: thirteen nonstop round trips per 

week to Los Angeles — for a total annual subsidy of $1,852,091. All service would operate with 

30-seat Brasilias, a twin-engine, turboprop, and pressurized aircraft. SkyWest would operate as 

United Express. 

Community Comments 

On September 23, we requested community comments regarding the carrier selection at El 

Centro and received comments from Imperial County, and from the Mayors of El Centro and 

nearby Imperial. 

The Mayor of El Centro indicated that "the El Centro City Council unanimously expressed its 

support of the proposal submitted by SkyWest. Comments by council members indicated a 

preference for air travel to/from Los Angeles rather than San Diego. There was also some 

concern regarding the size of the aircraft proposed by SeaPort." The Mayor of Imperial 

indicated that the "City Council voted 3-1 to [support] Seaport. Comments by Council expressed 

a preference for this airline due to greater responsiveness in flight scheduling requests, less 

expensive airfares, the opportunity for local community involvement and support, willingness to 

station aircraft locally and better opportunity to meet the needs of our region." The County of 

Imperial indicated the "Board of Supervisors for the County of Imperial voted not to support a 

waiver of El Centro's EAS call for service with a 15-seat, twin-engine aircraft." 

Decision 

We have reviewed each carrier's proposal and the community's comments, and have decided to 

re-select SkyWest. As we noted in our letter to the community, El Centro's EAS calls for 

service with 15-seat, twin-engine aircraft, "Thus it is likely we would only select SeaPort if the 

community waives those assurances." WTiile the City of Imperial has waived those assurances, 

El Centro and the county of Imperial have not. Moreover, SkyWest's proposal meets all of the 

statutorily mandated carrier-selection criteria. SkyWest is a well-established carrier and its codeshare arrangement with United Airlines allows for reservations, ticket and baggage check-in for 

passengers traveling beyond the hub. 

The amount of subsidy requested by SkyWest has increased by more than a million dollars a 

year, from $662,551 to $1,852,091, but appears reasonable, because it reflects the decrease in 

traffic from 22,557 passengers in calendar year 2007, to 10,259 for the year ended June 30, 2010. 

While it is not required, we encourage SkyWest to examine closely the possibility of basing its 

aircraft in El Centro in order to facilitate a better schedule for the community, i.e., nonstop 

service but also with an early morning arrival in Los Angeles. We will monitor El Centro's 

traffic and the carrier's service to determine what action might be taken if the current downward 

trend in traffic continues. 

The Department shall make this selection contingent upon our receiving properly executed 

certifications from the carrier that it is in compliance with the regulations regarding drug-free 

workplaces and nondiscrimination, as well as the regulations governing lobbying activities. 
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Carrier Fitness 

49 U.S.C. 41737(b) requires that DOT find an air carrier fit, willing, and able to provide reliable 

service before DOT may subsidize it to provide essential air service. SkyWest Airlines, Inc., 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. DOT has contacted the 

Federal Aviation Administration, and it has raised no concerns that would negatively affect our 

fitness findings. DOT therefore concludes 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 SkyWest Airlines. Inc., d/b/a United Express, to provide essential air service at El 

Centro. California; 

2. We set the final rate of compensation for SkyWest Airlines, Inc., for the provision of essential 

air service at EI Centro, California, as described in Appendix C; 

3. We direct SkyWest Airlines, Inc., 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 SkyWest Airlines, Inc., continues to be fit, willing and able to operate as a 

certificated carrier and capable of providing reliable essential air service at El Centro, California; 

5. This docket will remain open until further order of the Department; and 

6. We will serve copies of this order on the Mayors and Airport Manager of El Centro and 

Imperial, California, the County of Imperial, Alaska Juneau Aeronautics, Inc., d/b/a Seaport 

Airlines, and SkyWest Airlines, Inc. 

By, 

Susan L. Kurland 

Assistant Secretary for 

Aviation and International Affairs 

(SEAL) 

An electronic version of this document is available on the World Wide Web at 

http://www. n'ijulations. aov 
Appendix A 

.[J6k}\ \ 

' \ ^ oPSP 

X oPHX 

\ 

\ oHMO 

Nonstop, Great Circle Miles from El Centro (IPL) 

Mexican, MX (MXL) 14 

Yuma, AZ (YUM) 58 

Palm Springs, CA (PSP) 87 

San Diego, CA (SAN) 94 

Los Angeles, CA (LAX) 181 

Phoenix, AZ (PHX) 211 

Las Vegas, NV (LAS) 225 

Hermosillo, MX (HMO) 372 

This map is provided by Siihre'^') AirVi.'.ioii'''* Pmjii Esu^niidh and is being used with express permission of the copyrighl holder. 

Sabre Airline Solulions®. 
Proposal of SkyWest for Essential Air Service at 

El Centro, California. Docket 2008-0299 

Appendix B 

Hub 

Intermediate Stops 

Round trips per Week 

Completion Factor 

Aircraft Type 

Average Fare 

Passengers 

Block Time 

Block Hours 

Departures 

Revenue 

Directs Operating Expense 

Flight Attendant 

RPM Related 

Departure Related 

ASM Related 

Indirect Operating Expense 

Operating Expense 

Return @ 5% 

Economic Cost 

Annual Subsidy 

Los Angeles 

None 

13 

98% 

Brasilia 

$76.5 

10,500 

64 

1,413 

1,325 

$803,250 

$1,629,789 

$48,743 

$24,143 

$541,198 

$285,023 

$899,107 

$2,528,896 

$126,445 

$2,655,341 

$1,852,091 
Appendix C 

SkyWest Aviation, Inc., Inc., Essential Air Service to be Provided to 

El Centro, California, Docket OST-2008-0299 

Effective Period: January I, 2011, thru December 31. 2012. 

Scheduled Service: 13 nonstop round trips per week to Los Angeles (LAX). 

Aircraft: EmbraerBrasilia, 30 seats. 

Rate per Eligible Flight: $1.398 ' 

Weekly Ceiling: $36,348 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 tlight; 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, ii may jeopardize its entire subsidy claim for the period in question. If the canier contemplates any 

such changes beyond the scope of the order during Ihe applicable period of this rate, it must first notify the Office of 

Aviation Analysis in writing and receive written approval from the Depanment 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 thai 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 panial reduction or cessation of payment. 

Subsidy contract 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 December 31. 2010. The Government's 

obligation for performance under this order beyond December 31, 2010. 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 December 31, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond December 31. 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. 

' Annual compensation of $1,852,091 divided by 1.325 estimated annual completed departures and arrivals: 

26 one-way flights/week x 52 weeks x 98 percent completion = 1,325 departures per year. 

2 26fliehts/weekx$i,398.