Order 2014

- 4

- 25 Served: April 22, 2014



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 22nd day of April , 2014

Essential Air Service at

WATERTOWN, NEW YORK

Under 49 U.S.C. 41731 et seq

. DOCKET DOT

- OST

- 2013

- 0188



### ORDER APPROVING ALTERNATE SERVICE PATTERN

Summary By this Order, the Department is approving the request of American Airlines Group , Inc. (American) to change its service pattern at Watertown, New York

, from Chicago O’Hare International Airport (Chicago O’Hare) to Philadelphia International Airport (Philadelphia) effective May 8, 2014

.

Background By Order 2013

- 10

- 8, (October 2 1

, 2013) , the Department re

- selected American to provide subsidized Essential Air Service (EAS) at Watertown using 44

- passenger Embraer ERJ

- 140 (ERJ

- 140) aircraft for the period from November, 1, 2013, through January 31

, 2016

. 1 That

Order establis hed an annual subsidy rate of $3,356,349 for service consisting of 12 week ly nonstop round trips to Chicago O’Hare

.

Airline Proposal

American informed the Department that the ERJ

- 140 will be retired from its fleet in the very

near future. Due to Watertown’s runway length and Federal Aviation A dministration (FAA) regulations, this is the o nly aircraft that can serve the Watertown

- Chicago O’Hare route without weight penalties. Therefore, Amer ican has requested to alter Watertown’s current service

pattern from Chicago O’Hare to Philadelphia Inter national Airport (Philadelphia). American will operate this route with increased frequency ( 1 4 weekly nonstop round trips ) at no increase in annual subsidy. American will provide the service with 50

- passenger Canadair CR J200

1 While this Order tentatively selected American to continue providing EAS at Watertown, Order 2013

- 11

- 1

finalized the carrier selection.- 2

-

aircraft from mid

- September to mid

- May, and 3 7

- passenger DH8

- 100 aircraft the remaining

time. 2

Community Comments Mr. Robert F. Hagemann, III, County Administrator for the County of Jefferson, which owns and manages Watertown International Airpo rt, submit ted comments on March 17, 2014, supporting American’s request to change Watertown’s service pattern from Chicago O’Hare to Philadelphia.

Decision We will approve American ’ s request, which meets the three conditions necessary for approval under authority a ssigned under 14 CFR Part 385.12 (k)(3) of the Department’s Regu l at ions: (1) the alternate service pattern is equal or greater than that determined to be essential; (2) the community does not object to the alternate service pattern; and (3) the alternate se rvice pattern

will not increase American’s subsidy.

Because we are simply allowing the alternate service pattern and not requiring it, American may revert to the original service pattern at any time.

This Order is issued under authority delegated in 14 CFR Part 385.12k(3).

2 Due to operational limitations of the CRJ200 in the summer on Watertown’ s existing runway

, American will

switch servi ce to the DH8

- 100, operated by Piedmont, in September, and then switch back to the CRJ200, operated by Air Wisconsin, in May.- 3

-

ACCORDINGLY,

1. We hereby approve the alternate service pattern requested by American Airlines Group,

Inc ., to serve Watertown, New York

, from Philadelphia International Airport effective May 8, 2014 ;

2

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

3. The Department will serve a copy of this O rder on the civic officials of Watertown, New York, and on American Airlines Group, Inc.

Persons entitled to petition the Department for review of this O rder u nder the Department’s Regulations, 14 CFR Part 385.31 (a) , mus t file such petitions within seven (7 ) days aft er 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)Appendix A

American Airlines Group, Inc.

Essential Air Service to be Provided at Watertown, New York

Effective Period : May 8

, 2014, through January 31, 2016

Scheduled Service : 14 weekly nonst op round trips to Philadelphia

Aircraft : 50

- passenger CRJ200 (May

- September); 37

- passenger DH8

- 100 (October

- April) Annual Subsidy: $3,356,349

Rate per Eligible Flight: $2, 345 1

Weekly Ceiling : $ 65,660 2

Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with the terms and stipulatio ns 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 carrier understands that an aircraft take

- off and landing at its

scheduled destination constitu tes 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 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 carrier contemplates any such changes beyond the scope of the Order during the appli cable period of this rate, 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 replacemen t carrier to provide service on these routes. The carrier must complete all flights that can be safely operated; flights that overfly points for lack of traffic will not be compensated. I n 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 service levels, the c arrier may cease to provide service to that specific location without regards 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 carrier d o not constitute a total or partial reduction or cessation of payment.

Subsidy contract 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, regu lations, or amendments thereto shall not operate to controvert the foregoing paragraph.

Funds may not be available for performance under this Order beyond September 30, 2014. The Government’s obligation for performance under this Order beyond September 3 0, 2014, 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 September 30, 2014, until funds are made avail able to the Department for performance. If sufficient funds are not made available for performance beyond September 30, 2014, 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 31; August claims must be submitted by November 30, and so on.

1 A nnual compensation of $3,356,349 divided by the 1,431 annual departures (28 weekly departures x 52 weeks

x 313/312 days x 98 percent completion).

2 28 arrivals and departures per week multiplied by $ 2,345 per flight.