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 21, 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 established an annual subsidy rate of $3,356,349 for service consisting of 12 weekly 

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 Administration (FAA) 

regulations, this is the only aircraft that can serve the Watertown-Chicago O’Hare route without 

weight penalties. Therefore, American has requested to alter Watertown’s current service 

pattern from Chicago O’Hare to Philadelphia International Airport (Philadelphia). American 

will operate this route with increased frequency (14 weekly nonstop round trips) at no increase 

in annual subsidy. American will provide the service with 50-passenger Canadair CRJ200 

 1 While this Order tentatively selected American to continue providing EAS at Watertown, Order 2013-11-1 

finalized the carrier selection.
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aircraft from mid-September to mid-May, and 37-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 Airport, submitted 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 assigned under 14 CFR Part 385.12(k)(3) of the Department’s Regulations: (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 service 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 service to the DH8-100, operated by Piedmont, in September, and then switch back to the CRJ200, 

operated by Air Wisconsin, in May.
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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 Order on the civic officials of Watertown, New 

York, and on American Airlines Group, Inc.

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

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)
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 nonstop 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: $2,3451

Weekly Ceiling: $65,6602

Note: The 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 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 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 applicable 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 replacement 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. 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 service levels, the carrier 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 do 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, regulations, 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 30, 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 available 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 Annual 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.