Orde r 2010-12- 6 Served : Decembe r

3 , 201 0 UNITE D STATE S O FAMERIC A DEPARTMEN T O FTRANSPORTATIO N OFFIC E O FTH E SECRETAR Y WASHINGTON , D.C
.

Issue db y th e Departmen t o f Transportatio n o n th e y' ^ o f

December , 201 0 Essentia l Ai r

Servic e a t E L CENTRO , CALIFORNI A Under49U.S.C
. 4173 1 e t seq . DOCKE T OST-2008-029 9

ORDE RSELECTIN G CARRIE R Summar y B y thi s order , th e Departmen t i s selectin g SkyWes t

Airhnes , Inc. , d/b/ aUnite dExpres s (SkyWest) , t o provid e essentia l ai r servic e a t

E l Centro , California , a t a n annua l subsid y rat e o f $1,852,091 1 throug h Decembe r 31 , 2012
. Backgroun d Orde r 2008-12-2 6 selecte dSkyWes t t o provid e 1 3 nonsto p roun dtrip s pe r wee k t o Lo s Angele s wit

h 30

- seatEmbrae r

Brasili aaircraft , fo r

th e two-year

perio dendin g Decembe r 31 , 2010 , a

t th e annua l subsid y rat e o f $662,551
. Orde r

2009-5-2 1 approve da n alternat e servic e plan , unde r whic h SkyWes t woul dbas e th e aircraf

t i n E l Centr o bu t

provid e si x nonsto p an dseve n one-sto p roun dtrip s pe r wee k t o Lo s Angeles , wit h th e one-sto p servic e backhaulin g t o Yuma. ^ I n anticipatio n of

th e en d of th e curren t

contrac t on Decembe r

31 , b y Orde r

2010-8-1 3 w e requeste dproposal s for replacemen t service , wit

h proposal s du e Septembe r 21
. W e receive dtimely-file dproposa l fro mtw o carriers , Alask a Junea u Aeronautics , Inc. , d/b/ aSeaport Airline s (SeaPort) , an dSkyWest , an drequeste dcommunit y comments . After

severa l request s for

extension , w e receive dfina l comment s on Novembe r 17 , an dth e issu e i s rip e for

decision
. SeaPor t propose s t o provid e thre e dail y nonsto p roun dtrip s pe r week : on e t o Phoeni x an dtw o t o Sa n Dieg o - fo r

afirst-yea r

subsid y o f

$1,202,24 8 an dasecond-yea r subsid y o f

$1,226,710
. Al l

' Suc h subsid y is calculatedan

ddistributedo

n afisca l yeq r basis , subjec

t t o th e availabilit

y o f appropriatedfunds
. 2 Th e alternat e schedule providedthe communit y the earl y mornin g departur e fro mE l Centr o th e communit

y desiredbu t a t th e cos t o f receiving one-stop service
.

### - 2 -

servic e woul db e with 9-seat , single-engine , pressurized , turbopro p Pilatu s PC-1 2 aircraft , an d th e aircraf t woul db e basedi n El Centro
. SkyWes t propose s t o revert

t o th e servic e i t

originall y provided : thirtee n nonsto p roun dtrip s pe r wee k t o Lo s Angele s —for

atota l annua l subsid y o f $1,852,091
. Al l servic e woul doperat e wit h 30-seat Brasilias , atwin-engine , turboprop , an dpressurize daircraft
. SkyWes t woul doperat e a s Unite dExpress
. Communit y Comment s O n Septembe r

23 , w e requeste dcommunit y comment s regardin g th e carrie r selectio n a

t El Centr o an dreceive dcomment s fromImperia l County , an dfro mth e Mayor s o f E l Centr o an d nearb y Imperial
. Th e Mayo r

o f E l Centr o indicate dtha

t "th e E l Centr o Cit y Counci l unanimousl y expresse dit s support o f th e proposa l submitte db y SkyWest
. Comment s b y counci l member s indicate da preferenc e fo r

ai r trave l to/fro mLo s Angele s rathe r tha n Sa n Diego
. Ther e wa s als o som e concern regardin g th e siz e o f th e aircraf

t propose db y SeaPort. " Th e Mayo r o f Imperia l indicate dthat

th e "Cit y Counci l vote d3- 1 t o [support ] Seaport
. Comment s b y Counci l expresse d apreferenc e for

thi s airlin e du e t o greate r responsivenes s i

n flight schedulin g requests , les s expensiv e airfares , th e opportunit y fo r loca l communit y involvemen t an dsupport , willingnes s t o statio n aircraf

t locall y an dbette r

opportunit y t o mee t

th e need s of

ou r region. " Th e County o f Imperia l indicate dth e "Boar do f Supervisor s for

th e Count y o f

Imperia l vote dno t

t o support

a waive r o f El Centro' s EA S cal l for servic e with a15-seat , twin-engin e aircraft. " Decisio n W e hav e reviewe deac h carrier' s proposa l an dth e community' s comments , an dhav e decide dt o re-selec t SkyWest
. A s w e note di n ou r lette r t o th e community , E

l Centro' s EA S call s for servic e with 15-seat , twin-engin e aircraft , "Thu s i t i s likel y w e woul donl y selec t SeaPort if th e communit y waive s thos e assurances. " WTiil e th e City o f

Imperia l ha s waive dthos e assurances , El Centr o an dth e count y o f Imperia l hav e not . Moreover , SkyWest' s proposa l meet s al l o f th e statutoril y mandate dcarrier-selectio n criteria
. SkyWes t i s awell-establishe dcarrie r an dit s code

shar e arrangemen t

wit h Unite dAirline s allow s for reservations , ticke t

an dbaggag e check-i n for passenger s travelin g beyon dth e hub
. Th e amoun t

o f subsid y requeste db y SkyWes t ha s increase db y mor e than amillio n dollar s a year , fro m$662,55 1 t o $1,852,091 , bu t appear s reasonable , becaus e i t reflect s th e decreas e i n traffi c fro m22,55 7 passenger s i n calendar

yea r 2007 , t o 10,25 9 fo r

th e year ende dJun e 30 , 2010
. Whil e i t i s no t required , w e encourag e SkyWes t t o examin e closel y th e possibilit y o f basin g it s aircraf t i n E l Centr o i

n orde r t o facilitat e abette r

schedul e fo r

th e community , i.e. , nonsto p servic e bu t

als o wit h a n earl y mornin g arriva l i

n Lo s Angeles
. W e wil l monito r El Centro' s traffi c an dth e carrier' s servic e t o determin e what actio n migh t

b e take n if

th e curren t

downwar d tren di n traffi c continues
. Th e Departmen t

shal l mak e thi s selectio n contingen t upo n ou r receivin g properl y execute d certification s fromth e carrie r tha t i t i s i n complianc e with th e regulation s regardin g drug-fre e workplace s an dnondiscrimination , a s wel l a s th e regulation s governin g lobbyin g activities
.

### - 3 -

Carrie r Fitnes s 4 9 U.S.C
. 41737(b ) require s tha t DO T fin da

n ai r carrie r fit , willing , an dabl e t o provid e reliabl e servic e befor e DO T may subsidiz e i t t o provid e essentia l ai r

service
. SkyWes t

Airlines , Inc. , i s subjec t t o th e Department' s continuin g fitnes s requirements , an dn o informatio n ha s com e t o ou r attentio n tha t

woul dcaus e u s t o questio n th e carrier' s fitnes s a t thi s time
. DO T ha s contacte dth e Federa l Aviatio n Administration , an di t ha s raise dn o concern s that woul dnegativel y affec t

ou r fitnes s findings
. DO T therefor e conclude s tha t th e carrie r

remain s fit

t o conduc t

th e operation s propose dhere
. Thi s orde r

i s issue dunde r

authorit y delegate di n 4 9 CFR1.56a(f)
. ACCORDINGLY , 1
. W e selec t

SkyWes t Airlines
. Inc. , d/b/ aUnite dExpress , t o provid e essentia l ai r servic e a t E l Centro
. California ; 2
. W e se t th e fina l rat e o f compensatio n fo r

SkyWes t Airlines , Inc. , for

th e provisio n o f

essentia l ai r servic e a t E I Centro , California, a s describe di n Appendi x C ; 3
. W e direc t

SkyWes t Airlines , Inc. , t o retai n al l books , records , an dothe r sourc e an dsummar y documentatio n t o support claim s for

payment , an dt o preserv e an dmaintai n suc h documentatio n i n amanne r

that readil y permit s it s audi t

an dexaminatio n b y representative s o f th e Department
. Suc h documentatio n shal l b e retaine dfo r seve n year s o r

unti l th e Departmen t

indicate s that

th e record s may b e destroyed , whicheve r comes first
. Copie s o f

flight log s fo r aircraf t sol do r dispose do f

mus t b e retained
. Th e carrie r

ma y forfei t it s compensatio n for

any clai mthat

i s no t supporte dunde r

th e term s o f

this order ; 4
. W e fin dtha

t SkyWes t Airlines , Inc. , continue s t o b e fit , willin g an dabl e t o operat e a s a certificate dcarrie r

an dcapabl e o f

providin g reliabl e essentia l ai r servic e a t El Centro , California ; 5
. Thi s docke t

wil l remai n ope n unti l furthe r orde r o f th e Department ; an d 6
. W e wil l serv e copie s o f this orde r

o n th e Mayor s an dAirport Manage r o f E l Centr o an d Imperial , California , th e Count y o f Imperial , Alask aJuneau Aeronautics , Inc. , d/b/ aSeaport Airlines , an dSkyWes t

Airlines , Inc
. By , Susa n L
. Kurlan d Assistan t Secretar y fo r Aviatio n an dInternationa l Affair s (SEAL ) A

n electroni c versio n o f

this documen t

i s availabl e o n th e Worl dWid e We b a t http://www
. n'ijulations
. ao v

### Appendi x A .[J6k} \ \

' \ ^ oPS P X oPH X \

\ oHM O 

### Nonstop , Great

Circl e Mile s fromEl Centr o (IPL ) Mexican , MX (MXL ) 1 4 Yuma , A Z (YUM ) 5 8 Pal mSprings , C A (PSP ) 8 7 San Diego , C A (SAN ) 9 4 Lo s Angeles , C A (LAX ) 18 1 Phoenix , A Z (PHX ) 21 1 La s Vegas , N

V (LAS ) 22 5 Hermosillo , MX (HMO ) 37 2

Thi s ma p i s provide dby Siihre'^' ) AirVi.'.ioii''' * Pmji i Esu^niid h an di s bein g use dwit h expres s permissio n o f

th e copyrigh l holder
. Sabr e Airlin e Solulions®
.

### Proposa l o f SkyWes t fo r Essentia l Ai r Servic e a t E l Centro , California
. Docket 2008-029 9 Appendi x B

Hu b Intermediat e Stop s Roun dtrip s pe r

Wee k Completio n Facto r Aircraf t Typ e Averag e Far e Passenger s Bloc k Time Bloc k Hour s Departure s Revenu e Direct s Operatin g Expens e Fligh t Attendan t RP M Relate d Departur e Relate d AS M Relate d Indirec t Operatin g Expens e Operatin g Expens e Return @ 5 % Economi c Cos t Annua l Subsid

y Lo s Angele s Non e 1 3 98 % Brasili a $76. 5 10,500 6 4 1,41 3 1,32 5 $803,25 0 $1,629,78 9 $48,74 3 $24,14 3 $541,19 8 $285,02 3 $899,10 7 $2,528,89 6 $126,44 5 $2,655,34 1 $1,852,09 1Appendi x C SkyWes t Aviation , Inc. , Inc. , Essentia l Ai r Servic e t o b e Provide dt o E l Centro , California , Docke t OST-2008-029 9 Effectiv e Period : Januar y I , 2011 , thr u Decembe r 31
. 2012
. Schedule dService : 1 3 nonsto p roun dtrip s pe r wee k t o Lo s Angele s (LAX)
. Aircraft : EmbraerBrasilia , 3 0 seats . Rat e pe r Eligibl e Flight : $1.39 8 ' Weekl y Ceiling : $36,34 8 2 Note : Th e carrie r

understand s tha

t i t ma y forfei t it s compensatio n fo

r an y flight s tha

t i t doe s no t operat e i n conformanc e wit h th e term s an dstipulation s o f th e rat e order , includin g th e servic e plan s outline di n th e orde r

an dany othe r

significan t element s o f

th e require dservice , withou t prio r approval
. Th e carrie r

understand s that

a n aircraf t take-of f an dlandin g a

t it s schedule ddestinatio n constitute s acomplete dtlight ; absen t a n explanatio n supportin g subsid y eligibilit y for aflight tha t ha s no t bee n completed , suc h a s certai n weathe r cancellations , onl y complete dflight s ar e considere deligibl e fo r subsidy
. I

n addition , i

f th e carrie r

doe s no t schedul e o r

operat e it s flights i

n ful l conformanc e wit

h th e orde r

fo r a significan t

period , i i ma

y jeopardiz e it s entir e subsid y clai mfo r th e perio di

n question
. I

f th e canie r

contemplate s an y suc h change s beyon dth e scop e o f th e orde r durin g Ihe applicabl e perio do f thi s rate , i

t mus t firs t notif y th e Offic e o f Aviatio n Analysi s i

n writin g an dreceiv e writte n approva l fro mth e Depanmen t

t o b e ensure do f

ful l compensation
. Shoul dcircumstance s warrant , th e Departmen t ma y locat e an dselec t

areplacemen t

carrie r t o provid e servic e o n thes e routes . Th e carrie r

mus t complet e al l flight s tha i ca n b e safel y operated : flight s tha t overfl y point s fo

r lac k o f traffi c wil l not b e compensated
. I

n determinin g whethe r

subsid y paymen t

fo r adeviatin g flight

shoul db e adjuste do r

disallowed , th e Departmen t

wil l conside r

th e exten t

t o whic h th e goal s o f

th e progra mar e met

an dth e exten t

o f acces s t o th e national ai r transportatio n syste mprovide dt o th e community
. I f th e Departmen t

unilaterally , eithe r

partiall y o r

completely , terminate s o r reduce s payment s fo

r servic e o r

change s servic e requirement s a

t aspecifi c locatio n provide dfo r unde r thi s order , then , a

t th e en do f

th e perio dfor

whic h th e Departmen t

doe s make payment s i

n th e stipulate damount s o r a t th e stipulate dservic e levels , th e carrie r ma y ceas e t o provid e servic e t o tha

t specifi c locatio n withou t regar dt o an y requiremen t

fo r notic e o f suc h cessation
. Thos e adjustment s i

n th e level s o f

subsid y and/o r

servic e tha t

ar e mutuall y agree dt o i

n writin g b

y th e Departmen t

an dcarrie r

d o no t constitut e atotal o r

pania l reductio n o r

cessatio n o f

payment . Subsid y contrac t

are subjec t

to , an dincorporat e b y reference , relevan t statute s an dDepartmen t regulations , a s the y ma y b e amende dfro mtim e t o time
. However , any suc h statutes , regulations , o r amendment s theret o shal l no t operat e t o controvert

th e foregoin g paragraph
. Fund s ar e no t

currentl y availabl e fo

r performanc e unde r

thi s orde r

beyon dDecembe r

31
. 2010
. Th e Government' s obligatio n fo

r performanc e unde r

thi s orde r

beyon dDecembe r

31 , 2010
. i s subjec t

t o th e availability o f

appropriate d fund s fromwhic h paymen t fo r service s ca n b e made
. N o legal liability o n th e par t o f th e Governmen t

fo r an y paymen t ma y aris e fo r performanc e unde r

thi s orde r

beyon dDecembe r

31 , 2010 , unti l fund s ar e mad e availabl e t o th e Departmen t

for performance
. I

f fund s ar e no t

mad e availabl e fo

r performanc e beyon dDecembe r 31
. 2010
. th e Departmen t

wil l provid e notic e i

n writin g t o th e carrier
. Al l claim s fo

r paymen t mus t b e submitte dwithi n 6 0 day s o f th e las t da y o f servic e provide dunder

thi s order
.

' Annual compensatio n o f $1,852,09 1 divide db y 1.32 5 estimate dannual complete ddeparture s an darrivals : 2 6 one-way flights/week x 5 2 week s x 9 8 percen t completio n = 1,32

5 departure s per

year . 2 26fliehts/weekx$i,398
.