Order: 2014-4-23

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

CRESCENT CITY, CALIFORNIA DOCKET DOT-OST-1997-2649

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

ORDER RE-SELECTING AIR CARRIER

Summary

By this Order, the Department is re-selecting SkyWest Airlines, operating as United 

Express (SkyWest), to provide Essential Air Service (EAS) at Crescent City, California,

using 30-passenger Embraer Brasilia EMB 120 (EMB 120) aircraft to San Francisco 

International Airport (San Francisco) for the one-year term from August 1, 2014, through 

July 31, 2015 for an annual subsidy of $2,454,084.

Background

By Order 2012-5-21 (May 23, 2012), the Department selected SkyWest to provide 14

nonstop round trips per week from Crescent City to San Francisco using EMB 120 aircraft

at an annual subsidy of $1,996,959, for a two-year contract which is scheduled to expire on 

July 31, 2014.

As the end of the contract was approaching, we issued Order 2014-2-4 (February 5, 2014) 

requesting proposals from air carriers interested in providing EAS at the community for a 

new term. In response to that Order, SkyWest, the airline currently providing the service,

was the only airline to submit a proposal.

SkyWest’s complete proposal and the community’s comments may be accessed online at 

www.regulations.gov by entering DOT-OST-1997-2649 in the search block.
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Proposal of SkyWest Airlines

SkyWest submitted a proposal for a one-year term for 14 weekly nonstop round trips to 

San Francisco using EMB 120 aircraft for an annual subsidy of $2,454,084. It plans to 

operate the service as United Express. In its proposal, SkyWest stated, “The most recent 

changes to FAR 117 increases total operating costs for all airlines and particularly for 

smaller aircraft like our Embraer Brasilia 120, thus increasing revenue and demand 

requirements to continue operating. Small and medium-sized communities will likely see 

the greatest impact as we work to maintain the same level of service at higher costs. As we 

work to determine the full impact of the FAR 117 changes we are submitting a one-year 

proposal.”

Community Comments

On March 24, 2014, the Department solicited comments from the community regarding 

this air carrier selection case. Mr. James Bernard, Airport Director at Del Norte County 

Regional Airport, stated in an e-mail that the airport would have preferred a two-year 

proposal as opposed to the one-year proposal that SkyWest submitted. No elected city or 

county officials submitted comments.

Decision

Since SkyWest was the only air carrier to submit a proposal for Crescent City’s EAS case,

and we find the service and subsidy levels to be reasonable, given the concerns the carrier 

raised in its proposal, we shall make this re-selection of SkyWest at Crescent City. This 

decision is contingent upon the Department’s receiving properly executed certifications 

from the air carrier that they are in compliance with the Department’s regulations 

regarding drug-free workplaces and nondiscrimination, as well as the regulations 

concerning lobbying activities.1

Carrier Fitness

49 U.S.C. §§ 41737(b) and 41738 require that we find an air carrier fit, willing, and able to 

provide reliable service before we may subsidize it to provide EAS. SkyWest is subject to 

the Department’s continuing fitness requirements, and no information has come to our 

attention that would cause us to question the air carrier’s fitness at this time. We have 

contacted the Federal Aviation Administration, and it has raised no concerns that would 

negatively affect our fitness findings. We therefore conclude that SkyWest is reliable and 

fit to conduct the operations proposed here.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b).

 1 The certifications are available online under “Reports and Publications” at 

http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service
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ACCORDINGLY,

1. We select SkyWest Airlines to provide Essential Air Service at Crescent City, 

California, and establish the annual subsidy rate as described in Appendix C;

2. We direct SkyWest Airlines to retain all books, records, and other source and summary 

documentation to support claims for payment, and to preserve and maintain such 

documentation in a manner that readily permits its audit and examination by 

representatives of the Department. Such documentation shall be retained for seven years 

from the service date of this Order or until the Department indicates that the records may 

be destroyed, whichever comes first. Copies of flight logs for aircraft sold or disposed of 

must be retained. The carrier may forfeit its compensation for any claim that is not 

supported under the terms of this Order;

3. We find that SkyWest Airlines is fit, willing and able to operate as a certificated air 

carrier, and capable of providing reliable Essential Air Service at Crescent City;

4. This docket will remain open pending further Department action; and

5. The Department will serve a copy of this Order on the Mayor of Crescent City, 

California, the Airport Director at Del Norte County Regional Airport, and SkyWest 

Airlines.

By:

SUSAN L. KURLAND

Assistant Secretary for

Aviation and International Affairs

(SEAL)

An electronic version of this document is available at

www.regulations.gov
Appendix A

AREA MAP

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

 
 Appendix B

SkyWest Proposal for EAS at Crescent City

 
Appendix C

SkyWest Airlines

Essential Air Service to be Provided at Crescent City, California

DOT-OST-1997-2649

Effective Period: August 1, 2014, through July 31, 2015

Scheduled Service: 14 weekly nonstop round trips to San Francisco

Aircraft: 30-passenger EMB 120

Rate per Eligible Flight: $1,7201

Weekly Ceiling: $48,1602

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 $2,454,084 divided by the 1,427 annual departures (28 weekly departures x 52 weeks x 

98 percent completion). 2 28 arrivals and departures per week multiplied by $1,720 per flight.