Order 2014-10-22

Served: October 28, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 28th day of October, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is soliciting proposals from air carriers interested in providing 

Essential Air Service (EAS) at Cordova, Gustavus, Petersburg, Wrangell, and/or Yakutat, 

Alaska, for a new contract term, beginning May 1, 2015, with or without subsidy. Air carriers 

should file their proposals no later than December 1, 2014. (See Appendix A for a service area 

map.) 

Background

By Order 2013-2-10, issued on February 11, 2013, the Department selected Alaska Airlines, Inc., 

to provide EAS at Cordova, Gustavus, and Yakutat, at an annual subsidy of $4,827,052 and at 

Petersburg and Wrangell for an annual subsidy rate of $3,476,579, from May 1, 2013, through 

April 30, 2015. 

The complete public file for EAS at all five communities may be accessed online through the 

Federal Dockets Management System at: www.regulations.gov by entering docket number, 

DOT-OST-1998-4899, in the “SEARCH for: Rules, Comments, Adjudications or Supporting 

Documents:” field.

Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from air 

carriers interested in providing service at the above mentioned communities, for a new contract

term beginning May 1, 2015, with or without subsidy. Air carriers should file their proposals no 

later than December 1, 2014. After that date, our staff will then docket the proposals, thereby 

making them public, and direct each air carrier to serve a copy of its proposal on the civic parties 

Essential Air Service at

CORDOVA, ALASKA

GUSTAVUS, ALASKA

PETERSBURG, ALASKA

WRANGELL, ALASKA

YAKUTAT, ALASKA

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

DOT-OST-1998-4899
- 2 -

and other applicants. Shortly thereafter, we will provide a summary of the proposals to 

community officials and ask them for their final comments. We will give full consideration to 

all proposals filed in a timely manner.1

Interested air 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 air carriers when we deem it desirable; in such cases, of course, we will 

give all applicants the same opportunity. 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.

The Department is providing interested air 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. The Department expects 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. The Department strongly encourages clear, well-documented 

proposals that will facilitate their evaluation by the affected communities and the Department.2

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

receive, with service to a suitable hub airport(s) that provides numerous connecting opportunities 

to the national air transportation system. The Department encourages proposals that meet these 

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

option, if they choose. They also need not limit themselves to these requirements if they 

envision other, potentially more attractive service possibilities -- different hubs or length of 

contract, for example -- with subsidy requirements that remain competitive

Air carriers are also welcome to propose more than one option, if they choose; they need not 

limit themselves to those requirements if they envision other, potentially more attractive service 

possibilities -- different hub, frequency or equipment, 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 a service pattern that is desirable to the community 

and meets the operational needs of the airlines.

 1 Air carriers should not expect the Department to accept late filings. In cases where an air carrier proposes to 

provide Essential Air Service without subsidy and we determine that basic EAS as required by 49 U.S.C. § 41732 

can be reliably provided without such compensation, we typically do not proceed with the carrier-selection case. 

Instead, we simply rely on that carrier’s subsidy-free service as proposed.

2 In selecting a carrier to provide subsidized EAS in Alaska, 49 U.S.C. § 41733(c)(1) directs us to consider six

factors: (1) service reliability; (2) contractual and marketing arrangements with a larger air carrier at the hub; (3) 

interline arrangements with a larger air carrier at the hub (4) community views; (5) the experience of the applicant in 

providing, in Alaska, scheduled air service or significant patterns of non-scheduled air service; and (6) whether the 

air carrier has included a plan in its proposal to market the service. In addition, the Consolidated Appropriations Act, 

2014, Public Law No. 113-76, 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. Interested carriers should also be aware that our general provisions governing Essential Air Service will be 

included in the selection Order as part of our authorization of subsidy for the selected service. Appendix C of this 

Order contains those general provisions.
- 3 -

Service and Traffic History

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to 

assist air carriers in developing traffic and revenue projections for their proposals, we have provided 

a summary of historical passengers in Appendix B. The Department expects service levels that are 

consistent with what the community currently receives that offers access to the national air 

transportation system. 

Filing Requirements

Air carrier proposals should be submitted to the Department with all materials merged into a 

single document. The document will be published on www.regulations.gov and 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 air carriers receiving 

Federal subsidy for EAS must certify that they are in compliance with Department regulations 

regarding drug-free workplaces and nondiscrimination, and those air 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 air carriers that do not submit these documents, all air carriers that plan to submit 

proposals involving subsidy should be aware that the selected air carrier will be required to 

complete the required certifications. Interested air 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 December 1, 2014, the due date for proposals.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

 3 The regulations applicable to these areas are: (1) 49 CFR Part 20 -- 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 government-wide requirements for drug-free workplace (grants).

4 The certifications are available online under “Reports and Publications” at http://www.dot.gov/policy/aviationpolicy/small-community-rural-air-service/essential-air-service.
- 4 -

ACCORDINGLY,

1. The Department requests that air carriers interested in providing Essential Air Service at 

Cordova, Gustavus, Petersburg, Wrangell, and/or Yakutat, Alaska, submit their proposals, with 

or without subsidy requests, no later than December 1, 2014. The proposals should be e-mailed 

to: EAS@dot.gov with the title “Proposal to Provide Essential Air Service at Cordova, 

Gustavus, Petersburg, Wrangell, and/or Yakutat5”

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

3. The Department will serve copies of this Order on the Alaska Department of Transportation, 

the civic officials of Cordova, Gustavus, Petersburg, Wrangell, and Yakutat, and the service list 

for this Docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Aviation Economic Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) 

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 at

http://www.regulations.gov

 5 Questions regarding filings in response to this Order may be directed to Michael Gormas at (202) 366-1853 or 

michael.gormas@dot.gov.
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz
Appendix B

Page 1 of 5

Passenger/Freight/Mail Traffic at Cordova1

 1 Source: Bureau of Transportation Statistics: Schedule T-100; 2014 totals through August reflects most current 

data available at this time.

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Year Airport_1 Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

2012 CDV 1 137 1.362 0.0015 758 5.813 0.904 895 7.175 0.9055

2012 2 74 0.4105 0.0065 756 3.7755 1.1255 830 4.186 1.132

2012 3 232 22.1015 0 822 8.048 1.2135 1054 30.1495 1.2135

2012 4 258 13.0345 0.0075 877 10.597 1.2265 1135 23.6315 1.234

2012 5 122 37.2925 0.012 1123 50.721 2.698 1245 88.0135 2.71

2012 6 129 51.137 0.034 1209 103.8985 3.4135 1338 155.0355 3.4475

2012 7 350 15.0735 0 1246 30.376 4.1595 1596 45.4495 4.1595

2012 8 1731 40.3925 3.653 637 26.082 0.003 2368 66.4745 3.656

2012 9 1824 27.5025 4.39 706 14.698 0.0085 2530 42.2005 4.3985

2012 10 956 6.3305 3.242 204 3.5715 0 1160 9.902 3.242

2012 11 815 3.99 1.892 174 1.482 0.0065 989 5.472 1.8985

2012 12 711 3.676 3.2325 192 0.5635 0.002 903 4.2395 3.2345

2012 Total 7339 222.303 16.471 8704 259.626 14.7605 16043 481.929 31.2315

2013 CDV 1 572 3.615 1.3475 122 1.0805 0 694 4.6955 1.3475

2013 2 640 5.31 1.404 120 1.269 0 760 6.579 1.404

2013 3 254 1.575 0.002 685 3.2565 0.31 939 4.8315 0.312

2013 4 199 44.8385 0.006 818 35.097 1.033 1017 79.9355 1.039

2013 5 151 60.9455 0 1075 55.045 2.5445 1226 115.9905 2.5445

2013 6 148 42.5635 0 1027 67.6165 3.0365 1175 110.18 3.0365

2013 7 236 33.2045 0.0015 1289 55.906 3.703 1525 89.1105 3.7045

2013 8 610 31.141 0 1742 59.2055 3.6455 2352 90.3465 3.6455

2013 9 586 22.402 0 1997 48.0815 1.9585 2583 70.4835 1.9585

2013 10 161 4.1105 0.002 1069 4.4785 2.249 1230 8.589 2.251

2013 11 196 1.207 0 1039 4.2455 1.3375 1235 5.4525 1.3375

2013 12 175 1.5695 0 802 3.3425 2.468 977 4.912 2.468

2013 Total 3928 252.482 2.763 11785 338.624 22.2855 15713 591.106 25.0485

2014 CDV 1 703 2.689 2.0885 69 1.333 0 772 4.022 2.0885

2014 2 131 0.484 0 606 3.0575 0.7455 737 3.5415 0.7455

2014 3 979 10.881 0.2965 174 18.8325 0.0055 1153 29.7135 0.302

2014 4 940 14.0405 0.5715 131 22.737 0 1071 36.7775 0.5715

2014 5 1046 66.2855 1.404 138 91.501 0 1184 157.7865 1.404

2014 6 178 91.3735 0.0055 887 105.927 2.461 1065 197.3005 2.4665

2014 7 1097 54.4145 2.6135 417 34.7075 0.2315 1514 89.122 2.845

2014 8 1514 28.4155 1.3825 620 21.6925 0 2134 50.108 1.3825

2014 Total 6588 268.5835 8.362 3042 299.788 3.4435 9630 568.3715 11.8055
Appendix B

Page 2 of 5

Passenger/Freight/Mail Traffic at Gustavus

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Year Airport_1 Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

2012 GST 1 124 0.365 0.507 18 0.3495 0 142 0.7145 0.507

2012 2 136 0.47 0.6285 15 0.112 0.5535 151 0.582 1.182

2012 3 220 0.4485 0.6735 41 0.198 0.1765 261 0.6465 0.85

2012 4 50 0.2815 0.468 234 0.498 0.714 284 0.7795 1.182

2012 5 77 0.413 2.8535 392 0.8545 0.6215 469 1.2675 3.475

2012 6 1545 2.573 0.9635 50 0.0905 3.2875 1595 2.6635 4.251

2012 7 72 0.135 2.6455 2181 3.3625 0.907 2253 3.4975 3.5525

2012 8 1865 3.3505 1.3935 41 0.2175 1.825 1906 3.568 3.2185

2012 9 407 0.9925 1.6495 100 0.86 1.914 507 1.8525 3.5635

2012 10 197 0.429 1.064 27 0.2515 0.3205 224 0.6805 1.3845

2012 11 17 0.06 0.365 169 1.219 0.822 186 1.279 1.187

2012 12 5 0.1605 0.56 127 0.231 1.148 132 0.3915 1.708

2012 Total 4715 9.6785 13.7715 3395 8.244 12.2895 8110 17.9225 26.061

2013 GST 1 6 0.0585 0.0975 112 0.215 0.908 118 0.2735 1.0055

2013 2 12 0.2365 0.2855 88 0.216 0.755 100 0.4525 1.0405

2013 3 26 0.185 0.867 154 0.2455 0.6355 180 0.4305 1.5025

2013 4 15 0.248 0.2025 253 0.681 0.5535 268 0.929 0.756

2013 5 112 1.916 1.378 405 2.493 0.422 517 4.409 1.8

2013 6 1291 1.6075 0.433 390 0.874 2.168 1681 2.4815 2.601

2013 7 178 0.877 0.9395 2284 2.785 0.921 2462 3.662 1.8605

2013 8 1861 2.9095 0.924 418 1.1915 1.8305 2279 4.101 2.7545

2013 9 66 0.073 1.353 565 1.267 1.2325 631 1.34 2.5855

2013 10 261 0.785 1.204 89 0.5965 1.6025 350 1.3815 2.8065

2013 11 205 0.309 0.7465 12 0.282 0.3635 217 0.591 1.11

2013 12 179 0.301 0.6255 6 0.236 0.708 185 0.537 1.3335

2013 Total 4212 9.506 9.056 4776 11.0825 12.1 8988 20.5885 21.156

2014 GST 1 76 0.329 0.439 8 0.0305 0.569 84 0.3595 1.008

2014 2 109 0.363 0.7455 46 0.5455 0.2525 155 0.9085 0.998

2014 3 216 0.3265 0.595 17 0.198 0.091 233 0.5245 0.686

2014 4 307 0.4235 0.3635 8 0.006 0 315 0.4295 0.3635

2014 5 98 1.304 0.4925 604 0.818 0.6605 702 2.122 1.153

2014 6 1304 1.149 0.618 260 0.891 0.5075 1564 2.04 1.1255

2014 7 413 0.794 0.6695 1793 1.967 0.866 2206 2.761 1.5355

2014 8 1906 3.4225 1.4355 331 1.275 1.2345 2237 4.6975 2.67

2014 Total 4429 8.1115 5.3585 3067 5.731 4.181 7496 13.8425 9.5395

13356 27.296 28.186 11238 25.0575 28.5705 24594 52.3535 56.7565
Appendix B

Page 3 of 5

Passenger/Freight/Mail Traffic at Petersburg

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Year Airport_1 Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

2012 PSG 1 691 1.9945 0.5865 324 3.1045 0.389 1015 5.099 0.9755

2012 2 264 4.026 0.333 514 12.2525 0.633 778 16.2785 0.966

2012 3 805 23.458 0.814 313 7.269 0.472 1118 30.727 1.286

2012 4 306 15.923 0.3465 719 45.57 0.6725 1025 61.493 1.019

2012 5 1274 48.1645 0.7355 497 5.8625 0.331 1771 54.027 1.0665

2012 6 500 12.905 0.3645 1674 34.9 0.714 2174 47.805 1.0785

2012 7 1699 64.9775 0.698 361 16.272 0.4085 2060 81.2495 1.1065

2012 8 514 17.2445 0.3875 2189 107.7845 0.7995 2703 125.029 1.187

2012 9 1298 59.2495 0.6735 378 20.5045 0.4285 1676 79.754 1.102

2012 10 457 9.9755 0.459 873 30.0475 0.6735 1330 40.023 1.1325

2012 11 924 3.486 0.67 319 2.7195 0.2835 1243 6.2055 0.9535

2012 12 852 3.2325 0.765 344 2.5205 0.397 1196 5.753 1.162

2012 Total 9584 264.6365 6.833 8505 288.807 6.202 18089 553.4435 13.035

2013 PSG 1 338 1.493 0.3705 678 2.622 0.6445 1016 4.115 1.015

2013 2 596 2.3575 0.541 322 1.4655 0.45 918 3.823 0.991

2013 3 334 7.4135 0.461 852 31.971 0.711 1186 39.3845 1.172

2013 4 719 61.091 0.5965 444 10.0125 0.4915 1163 71.1035 1.088

2013 5 430 13.662 0.4195 1216 69.549 0.614 1646 83.211 1.0335

2013 6 1676 77.7485 0.2815 575 11.336 0.7095 2251 89.0845 0.991

2013 7 427 17.6935 0.751 1883 112.3935 0.33 2310 130.087 1.081

2013 8 2251 116.164 0.305 612 26.63 0.7045 2863 142.794 1.0095

2013 9 488 22.4605 0.6215 1642 73.16 0.263 2130 95.6205 0.8845

2013 10 1018 49.017 0.303 415 13.2505 0.892 1433 62.2675 1.195

2013 11 389 3.5535 0.7245 792 10.623 0.297 1181 14.1765 1.0215

2013 12 849 4.0065 0.2535 376 1.879 1.028 1225 5.8855 1.2815

2013 Total 9515 376.6605 5.6285 9807 364.892 7.135 19322 741.5525 12.7635

2014 PSG 1 333 2.3685 0.8225 681 2.1655 0.259 1014 4.534 1.0815

2014 2 604 13.2305 0.263 318 1.994 0.56 922 15.2245 0.823

2014 3 373 8.9865 0.6765 805 55.57 0.273 1178 64.5565 0.9495

2014 4 776 73.983 0.3865 434 21.6425 0.7205 1210 95.6255 1.107

2014 5 472 18.4545 0.641 1131 60.0615 0.276 1603 78.516 0.917

2014 6 1486 63.419 0.311 484 15.0795 0.6775 1970 78.4985 0.9885

2014 7 369 20.9365 1.884 1938 74.269 0.328 2307 95.2055 2.212

2014 8 2189 100.888 0.3055 463 18.1505 0.81 2652 119.0385 1.1155

2014 Total 6602 302.2665 5.29 6254 248.9325 3.904 12856 551.199 9.194

25701 943.5635 17.7515 24566 902.6315 17.241 50267 1846.195 34.9925
Appendix B

Page 4 of 5

Passenger/Freight/Mail Traffic at Wrangell

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Year Airport_1 Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

2012 WRG 1 353 3.233 0.3715 342 1.1495 0.2615 695 4.3825 0.633

2012 2 325 16.52 0.2755 302 5.4245 0.506 627 21.9445 0.7815

2012 3 296 8.742 0.5075 361 58.5735 0.3255 657 67.3155 0.833

2012 4 385 42.7925 0.2695 404 5.3485 0.521 789 48.141 0.7905

2012 5 427 3.308 0.5985 570 29.8945 0.092 997 33.2025 0.6905

2012 6 730 45.003 0.0805 375 7.392 0.6025 1105 52.395 0.683

2012 7 601 4.9255 0.503 1050 10.575 0.08 1651 15.5005 0.583

2012 8 1013 6.2995 0.1 538 4.631 0.693 1551 10.9305 0.793

2012 9 391 2.63 0.597 574 10.753 0.0985 965 13.383 0.6955

2012 10 469 5.7015 0.079 432 4.7735 0.5385 901 10.475 0.6175

2012 11 345 2.7235 0.4725 419 2.805 0.079 764 5.5285 0.5515

2012 12 275 2.667 0.5145 407 0.4965 0.0995 682 3.1635 0.614

2012 Total 5610 144.5455 4.369 5774 141.8165 3.897 11384 286.362 8.266

2013 WRG 1 356 0.7815 0.104 281 1.797 0.6155 637 2.5785 0.7195

2013 2 315 1.972 0.505 286 9.744 0.085 601 11.716 0.59

2013 3 362 43.7125 0.0955 421 2.7195 0.9515 783 46.432 1.047

2013 4 387 4.4385 0.479 389 46.672 0.102 776 51.1105 0.581

2013 5 674 43.971 0.073 467 2.721 0.5565 1141 46.692 0.6295

2013 6 452 4.963 0.6515 669 71.3005 0.079 1121 76.2635 0.7305

2013 7 1114 32.9095 0.079 581 5.9465 0.671 1695 38.856 0.75

2013 8 501 3.977 0.4855 1028 38.6 0.0815 1529 42.577 0.567

2013 9 613 36.6155 0.071 463 8.313 0.4415 1076 44.9285 0.5125

2013 10 405 3.7615 0.5755 461 25.111 0.0815 866 28.8725 0.657

2013 11 455 15.198 0.0655 367 3.1795 0.602 822 18.3775 0.6675

2013 12 282 1.8955 0.583 434 2.526 0.0735 716 4.4215 0.6565

2013 Total 5916 194.1955 3.7675 5847 218.63 4.3405 11763 412.8255 8.108

2014 WRG 1 368 1.489 0.1315 268 3.546 0.668 636 5.035 0.7995

2014 2 296 1.724 0.437 301 3.8655 0.062 597 5.5895 0.499

2014 3 426 39.2535 0.0845 363 2.0415 0.5735 789 41.295 0.658

2014 4 362 7.6575 0.629 501 46.458 0.064 863 54.1155 0.693

2014 5 528 41.387 0.0725 420 2.5515 0.5505 948 43.9385 0.623

2014 6 405 15.089 0.5075 624 73.684 0.067 1029 88.773 0.5745

2014 7 1079 47.1295 0.0635 577 5.297 0.5465 1656 52.4265 0.61

2014 8 509 4.624 0.5425 1031 29.6015 0.099 1540 34.2255 0.6415

2014 Total 3973 158.3535 2.468 4085 167.045 2.6305 8058 325.3985 5.0985

15499 497.0945 10.6045 15706 527.4915 10.868 31205 1024.586 21.4725
Appendix B

Page 5 of 5

Passenger/Freight/Mail Traffic at Yakutat

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Year Airport_1 Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

2012 YAK 1 31 0.9705 0.123 372 1.7385 0.1835 403 2.709 0.3065

2012 2 420 2.4775 0.1095 28 1.357 0.0905 448 3.8345 0.2

2012 3 43 13.7565 0.295 329 16.361 0.187 372 30.1175 0.482

2012 4 509 62.276 0.1735 109 29.6425 0.1125 618 91.9185 0.286

2012 5 231 41.8825 0.01 829 84.87 0.3405 1060 126.7525 0.3505

2012 6 839 76.4985 0.269 299 41.368 0.078 1138 117.8665 0.347

2012 7 826 50.0285 0.123 422 111.445 0.265 1248 161.4735 0.388

2012 8 416 30.0025 0.1175 896 131.82 0.1805 1312 161.8225 0.298

2012 9 954 128.787 0.1625 959 8.722 0 1913 137.509 0.1625

2012 10 458 15.8865 0.073 271 19.2315 0.0775 729 35.118 0.1505

2012 11 284 5.0755 0.0625 184 5.581 0.073 468 10.6565 0.1355

2012 12 249 2.957 0.346 142 1.7085 0.08 391 4.6655 0.426

2012 Total 5260 430.5985 1.8645 4840 453.845 1.668 10100 884.4435 3.5325

2013 YAK 1 248 1.486 0.072 140 5.821 0.0795 388 7.307 0.1515

2013 2 273 1.837 0.0685 92 0.885 0.0865 365 2.722 0.155

2013 3 253 16.3855 0.072 140 10.859 0.0805 393 27.2445 0.1525

2013 4 488 23.617 0.068 238 75.38 0.096 726 98.997 0.164

2013 5 486 46.7335 0.091 390 105.354 0.089 876 152.0875 0.18

2013 6 594 58.0715 0.082 335 79.113 0.0725 929 137.1845 0.1545

2013 7 816 57.515 0.12 513 125.228 0.07 1329 182.743 0.19

2013 8 922 41.947 0.274 613 125.173 0.0695 1535 167.12 0.3435

2013 9 1251 26.3495 0.0675 720 115.975 0.073 1971 142.3245 0.1405

2013 10 433 28.117 0.077 306 51.6295 0.066 739 79.7465 0.143

2013 11 335 4.593 0.25 195 1.3185 0.09 530 5.9115 0.34

2013 12 191 1.773 0.0765 156 0.595 0.0765 347 2.368 0.153

2013 Total 6290 308.425 1.3185 3838 697.331 0.949 10128 1005.756 2.2675

2014 YAK 1 203 8.843 0.7655 251 2.3265 0.1055 454 11.1695 0.871

2014 2 139 5.027 0.341 207 0.8865 0.0495 346 5.9135 0.3905

2014 3 169 4.3815 0.074 279 15.6275 0.0555 448 20.009 0.1295

2014 4 273 71.236 0.059 434 45.567 0.077 707 116.803 0.136

2014 5 459 52.857 0.0805 610 53.082 0.087 1069 105.939 0.1675

2014 6 393 84.8525 0.056 680 65.9105 0.065 1073 150.763 0.121

2014 7 545 108.9985 0.0645 811 44.7615 0.0635 1356 153.76 0.128

2014 8 535 102.0305 0.056 996 36.5475 0.06 1531 138.578 0.116

2014 Total 2716 438.226 1.4965 4268 264.709 0.563 6984 702.935 2.0595

14266 1177.2495 4.6795 12946 1415.885 3.18 27212 2593.1345 7.8595
Appendix C

Example of General Terms and Conditions for Essential Air Service

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 air 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 air 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 may not be available for performance under this Order beyond [DATE]. The 

Government’s obligation for performance under this Order beyond [DATE] is subject to 

the availability of 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 [DATE], until funds are made available to the Department for 

performance. If sufficient funds are not made available for performance beyond 

[DATE], the Department will provide notice in writing to the carrier.

All claims for payment, including any amended claims, must be submitted within 90 

days of the last day of the month for which compensation is being claimed. For 

example, claims for service provided in July must be filed by October 31st; August 

claims must be submitted by November 30th, and so on.