### 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 28 th 

### day of October , 2014



## ORDER REQUESTING PROPOSALS

Summary B y this Order, the Department is soliciting proposals from air carriers interested in providing E ssential A ir S ervice (EAS ) at Cordova, Gustavus, Petersburg, Wrangell, and /or Yakutat, Alaska , for a new contract term , beginning May 1 , 201 5 , with or without subsidy. Air c arriers 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.

R equest for Proposals As the end of the current contract app roaches, 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 c arriers should file their proposals no later than December 1, 2014

. After that date, our s taff 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. S hortly 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 expectatio n 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 a ir 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 expect s proposals to adequately describe the service being proposed and the annu al 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 project ed block hours, revenues and expenses. The Department strongly encourage s clear, well

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



### The Department expects proposals that are co nsistent with what the communities currently receive , with service to a suitable hub airport (s) that provides numerous connecting opportunities to the nati onal 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 require ments if they envision other, potentially more attractive service possibilities

-- different hub, frequency or equipment, for example

-- with subsidy requirements that remain competitive. T he community and air carriers are encouraged to work together in

a dvance 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, w e 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. § 4173 3(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 serv ice; 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 conside r 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 o f 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 e xpect s service levels that are consistent with what the commu nity currently rece ives 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

- fr ee workplaces, and nondiscrimination. 3 

### Consequently, all air carrier s 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 d ocuments, 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 commu nity and State are welcome to submit comments at any time. We encourage prospective appl icants to contact the community before they subm it their proposals so that they

c an 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 the ir final comme nts shortly after December 1 , 2014 , the due date for proposals.

This O rder 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 area s are: (1) 49 CFR Part 20

-- restrictions on lobbying; (2) 49 CFR Part 21

-- N ondiscrimination 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/aviation

po licy/small

- community

- rural

- air

- service/essential

- air

- service

.

### - 4

- ACCORDINGLY, 1. The Department request s that air carriers interested in providing E ssential A ir S ervice 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 Yakutat 5 

### ”

2

. Th is docket will remain open until further order of the Department; and

3

. The Department wil l serve copies of this O rder 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 r eview of this O rder 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 O rder.

This O rder 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 O rder 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

Pass e n ger/Freight/Mail Traffic at Cordova 1

1 Sou rce: 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

Pass enger /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

E xample of G e n e r a l T e r m s a nd C ondi t ions f or Es s e n t i a l A ir Se r v i c e

The air c a rr i e r un d er st a nds t h a t it m a y f o rfe it its c omp e ns a tion f or a n y f li g hts th a t it do e s not op era te in c o n f o r m a n c e with the t er ms a nd stipul a tions of the ra te Order , i n c luding the s er vi c e pl a ns outlin e d in the Order a nd a n y oth e r s i g ni f i c a nt e l e m e nts of the re qui re d

s er vi ce , without p r ior a p p r ov a l. The air c arr i e r und e r st a nds th a t a n a i r cr a f t t a k e

- o f f a nd l a nding a t its s c h e du l e d d e stin a tion c onstitut e s a c ompl e t e d f li g ht; a bs e nt a n e x pl a n a tion suppo r ting subsi d y e li g i b ili t y f o r a f l i g ht th a t h a s n ot b ee n c ompl e t e d, su c h a s cer t a in

w ea th e r ca n ce ll a tions, o n l y c ompl e t e d f li g hts a r e c onsid ere d e l i g ible f or su b si d y

. I n

a ddition, if the air carr i e r d o e s not s c h e dule or o p era t e its f li g hts in f ull c on f o r m a n c e with the Order f o r a s i g ni f i ca nt p e r iod, it m a y j e op ar di z e its e nti r e subsi d y c l a im f or t he p er iod in qu e stion. I f the air c a rr i e r c ont e mpl a t e s a n y su c h c h a ng e s b e y ond the s c ope o f the Order du r ing the a ppli ca ble p e r iod of th e se ra t e s, it must f i r st noti f y the O ff i c e of Avi a tion An a l y sis in w r iti n g a nd r ece ive w r itt e n a pp r o v a l f r om the D e p a r tm e nt to be

e nsu re d o f f ull c omp e ns a tion. S hould c i rc umst a n ce s w ar r a n t , the D e p ar tm e nt m a y l o c a te

a nd s e l e c t a re pl a ce m e nt air c arr i e r to p r ovide s er vi c e on th e se r out e s. The air c a rr i e r must c ompl e te a ll f li g hts th a t ca n b e s a f e l y op era t e d; f l i g hts th a t ov e rf l y points f o r l ac k of t r a f f ic will not be c omp e ns a t e d. I n d e t er m i ning wh e t h e r subsi d y p a y m e nt f o r a d e v i a ting f l i ght should be a djust e d or dis a llow e d, t he D e p a r tm e nt will c onsid e r the e x t e nt to whi c h the g o a ls of the p r og ra m a r e m e t a nd the e x t e nt of acce ss to the n a tion a l a ir t ra nspo r t a tion

s y s t e m p r ovid e d to the c ommuni t y

.

I f the D e p ar tm e nt unil a t e ra l l y , e ith e r p a r ti a l l y or c ompl e t e l y , t er min a t e s or re du ce s p a y m e nts f or s e r vi c e or c h a ng e s s er vi c e r e qui re m e nts a t a sp ec i f ic lo c a tion p r ovid e d f or und e r this Order, th e n, a t the e nd of the p e r iod f or whi c h the D e p ar tm e nt d o e s m a ke p a y m e nts in the stipul a t e d a mounts or a t the stipul a t e d s er vi c e l e v e ls, the air c a rr i e r m a y

cea se to p r ovide s er v i c e t o th a t sp ec i f ic lo c a tion without re g a r d to a n y r e qui re m e nt f or noti c e of su c h c e ss a tion. Those a djustm e nts in the l e v e ls of subsi d y a nd/or s er vi c e th a t

ar e mutu a l l y a g r ee d to in w r iting b y the D e p ar tm e nt a nd air ca r r i e r do not c on s titute a tot a l or p ar ti a l re d u c tion or ce ss a tion of p a y m e nt. 

## 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 payme nt 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 ava ilable 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 claime d. 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

.