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 19 th 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, issu ed 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 Transportati on to Noneligible Places (ATNEP) program.

Background In accordance with 49 U.S.C. § 41736(a), a Stat e 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 Depa rtment shall designate the community as eligible and approve a proposal for compensation if a part y is willing and able to pay 50 percent of the compensation for provi ding the transportation, an d if the Department determines the proposal to be reasonable. In de termining 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 provi ding the proposed transportation; and (3) the distance from the point to the closest hub airport.- 2 -

By letter dated July 14, 2014, the County Admi nistrator 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 transporta tion to/from Los Alamos.

Proposal of Los Alamos The community has asked for a grant of a revenu e 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 suppor t 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 passe ngers in the late 1980s. Th e 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 rest art 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 (L AM) to Albuquerque Inte rnational Sunport (ABQ)

with nine-seat Cessna Caravan aircraft at a one -way ticket price of $49. The community states that passenger levels are increasi ng and all trends are pos itive. 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 Departme nt denied the community’s request for

subsidized air service under AT NEP (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 weekda y departures to 24 airports on

7 airlines. 1 Furthermore, Santa Fe Municipal Airpor t (SAF) is less than 50 miles away, and it receives daily jet service from United Expr ess 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 availa bility of that servi ce further inhibits the community’s ability to generate significant pass enger 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 en acted several reforms to the EAS program that tightened the criteria for continued qualification as an “e ligible place” (except for Alaska and Hawaii).

Petition for Reconsideration On October 14, 2014, the Los Alamos County Admi nistrator submitted a letter appealing the Department’s Order denying the community ’s request for subs idized air service. 2

In his letter, Mr. Burgess emphasized the uniqueness of Los Alamos. He states that, because of inclement weather and traffic congestion, dr iving 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 opti on. He further states th at 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.- 3 -

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. U pon review, the Department is de nying 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 th at were not included in its original request to be included in the ATNEP program and that we re fully considered by the Department in its original denial of the commun ity’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 destinati ons (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 Depa rtment is denying the relief requested and affirming its decision not to include Los Alam os in the ATNEP program under 49 U.S.C. § 41736(a)(2).

This Order is issued under authorit y 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.-4-

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