Order: 2015-2-8 

 Served: February 19, 2015 

UNITED STATES OF AMERICA 

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 19th day of February, 2015 

Air Transportation to Noneligible Places 

LOS ALAMOS, NEW MEXICO 

Under 49 U.S.C. § 41736 

 DOT-OST-2014-0127

ORDER ON PETITION FOR RECONSIDERATION

Summary 

By this Order, the Department is accepting the petition for reconsideration submitted by Los 

Alamo, New Mexico, of Order 2014-9-20, issued on September 26, 2014. Upon review, the 

Department is denying the relief requested and affirming its decision to deny the community’s 

request for inclusion in the Air Transportation to Noneligible Places (ATNEP) program. 

Background 

In accordance with 49 U.S.C. § 41736(a), a State or local government may propose that the 

Department assist in providing compensation to an air carrier to provide air transportation to a 

community that is not eligible for Essential Air Service (EAS). The Department shall designate 

the community as eligible and approve a proposal for compensation if a party is willing and able 

to pay 50 percent of the compensation for providing the transportation, and if the Department 

determines the proposal to be reasonable. In determining whether a proposal is reasonable, the 

Department must consider, among other things, (1) the traffic-generating potential of the point; 

(2) the cost to the Federal government of providing the proposed transportation; and (3) the 

distance from the point to the closest hub airport. 
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By letter dated July 14, 2014, the County Administrator of Los Alamos County, Mr. Harry 

Burgess, on behalf of the city of Los Alamos (the community), requested that Los Alamos be 

included in the ATNEP program and that the U.S. Department of Transportation authorize 

compensation to be provided to an air carrier to supply air transportation to/from Los Alamos. 

Proposal of Los Alamos 

The community has asked for a grant of a revenue guarantee of 50 percent of any shortfall, but 

not to exceed $250,000 per year, for a period of five years. The community has agreed to fund 

the balance of any revenue shortfall. In support of its proposal, the community states that it 

received scheduled air service as far back as 1948 from funding provided by the Atomic Energy 

Commission and generated 35,000 passengers in the late 1980s. The community lost service in 

1996. In 2013, Los Alamos received a grant from the Department’s Small Community Air 

Service Program (SCASDP) of $272,000 to restart commercial air service. The County 

contracted with Pacific Wings, LLC (d/b/a New Mexico Airlines) to provide three daily round 

trips to from Los Alamos County Airport (LAM) to Albuquerque International Sunport (ABQ) 

with nine-seat Cessna Caravan aircraft at a one-way ticket price of $49. The community states 

that passenger levels are increasing and all trends are positive. The community cites a number of 

economic and environmental benefits of the commercial air service. 

Initial Decision 

By Order 2014-9-22, September 26, 2014, the Department denied the community’s request for 

subsidized air service under ATNEP (49 U.S.C. § 41736(a)). In support of its decision, among 

other things, the Department noted that Los Alamos is 97 miles from Albuquerque (ABQ), 

classified as a medium hub. At that time, ABQ offered 92 weekday departures to 24 airports on 

7 airlines.1 Furthermore, Santa Fe Municipal Airport (SAF) is less than 50 miles away, and it 

receives daily jet service from United Express to Denver (DEN) and American Eagle to 

Dallas/Fort Worth (DFW) and Los Angeles (LAX), thus, providing the community with multiple 

options for air service. The proximate availability of that service further inhibits the 

community’s ability to generate significant passenger levels. The Department also viewed the 

community’s application in the broader context of the entire EAS program. In two recent laws, 

The Airport and Airway Extension Act of 2011, Pub. L. 112-27, and The FAA Modernization 

and Reform Act of 2012, Pub L. 112-95, Congress enacted several reforms to the EAS program 

that tightened the criteria for continued qualification as an “eligible place” (except for Alaska 

and Hawaii). 

Petition for Reconsideration 

On October 14, 2014, the Los Alamos County Administrator submitted a letter appealing the 

Department’s Order denying the community’s request for subsidized air service.2

In his letter, Mr. Burgess emphasized the uniqueness of Los Alamos. He states that, because of 

inclement weather and traffic congestion, driving between Los Alamos and Albuquerque, 

presents a “major safety concern” during certain times of the year, and that Santa Fe, while much 

closer, is not an affordable or convenient option. He further states that Los Alamos receives 

 

1 Based on published schedules for August 2014.

2 We will interpret the County Administrator’s letter as a Petition for Reconsideration. 
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about 20,000 visitors annually landing at ABQ and air service is necessary to get the visitors to 

Los Alamos safely. Finally, Mr. Burgess states that passenger levels are increasing due to the 

Small Community Air Service Program grant in helping successfully launching the service. 

Decision 

After careful consideration of this matter, the Department has decided to accept the community’s 

petition for reconsideration. Upon review, the Department is denying the relief requested and 

affirming its decision not to include Los Alamos as eligible to receive subsidized air service 

under 49 U.S.C. § 41736(a). 

The community has not raised any material issues that were not included in its original request to 

be included in the ATNEP program and that were fully considered by the Department in its 

original denial of the community’s request for inclusion. 

The fundamental facts have not changed. ABQ is fewer than 100 driving miles away and is 

served by 8 airlines to 22 nonstop destinations (a change from 7 airlines to 24 nonstop 

destinations as noted in the original decision).3 Furthermore, the Santa Fe Municipal Airport is 

fewer than 50 miles away and receives daily jet service from United Express to Denver (DEN) 

and American Eagle to Dallas/Fort Worth (DFW) and Los Angeles (LAX), 

Thus, based on all of the above, the Department is accepting the petition for reconsideration 

submitted by Los Alamos. Upon review, the Department is denying the relief requested and 

affirming its decision not to include Los Alamos in the ATNEP program under 49 U.S.C. § 

41736(a)(2). 

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

ACCORDINGLY, 

1. We deny the petition for reconsideration of Los Alamos, New Mexico, of Order 2014-9-20;

 

3 Based on published schedules for February 2015.
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2. This docket will remain open until further order of the Department; and 

3. We will serve copies of this Order on the civic officials of Los Alamos, New Mexico. 

By: 

BRANDON M. BELFORD

Deputy Assistant Secretary for 

Aviation and International Affairs 

(SEAL) 

An electronic version of this document is available at 

http://www.regulations.gov