Order: 2015

- 3

- 11

Served: March 26 , 2015



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 26 th of March , 201 5

ORDER SELECTING AIR CARRIER

Summary By this O rder

, the Department is re

- s electing SkyWest A irlines ( SkyWest ) to continue to provide

E ssential A ir S ervice (EAS) at West Yellowstone

, Montana , at a n an nual subsidy rate of $ 491,205 for the next two summer season s from June 1

, 2015

, through September 30, 2015

, and
June 1, 2016

, through September 30, 2016

. 1

Background By Order 20 13

- 5

- 4 (May 2

, 2013) the Department selected SkyWest Airlines, Inc. d/b/a Delta Connection (SkyWest) to provide subsidized EAS at West Yellowstone for the 4

- month summer

season of 2015 (June 1 through September 30) at a subsidy rate of $ 535,141

. Under that O rder, SkyWest prov ided 14 nonstop round trips per week to Salt Lake City International Airport (Salt Lake City) as Delta Connection, with 30

- seat Embraer Brasilia aircraft.

T he Department issued Order 2014

- 11

- 2 (November 5, 2014) requesting proposals to provide

EAS , with subsidy support if necessary, at West Yellowstone

, for the next two summer season s

.

Proposal s I n response to that order, SkyWest, the incumbent, was the only applicant to submit a proposal. SkyWest proposed to continue its subsidized service with 12 weekly nonstop round trips to Salt Lake City

, as Delta Connection for the summer seasons , from June 1 through September 30,

1 Su bsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds. Essential Air Service at

WEST YELLOWSTONE, MONTANA

Under 49 U.S.C. 41731 et seq

. Docket DOT

- OST

- 2003

- 14626201 5 and 2016, utilizing 50

- passenger Canadair Regional Jets (CRJ

- 200 LR ) aircraft for a subsidy of $ 491,205 per season

.

S ky West ’s proposal , as well as the entire d ocket, may be accessed online at www.regulations.gov by entering “DOT

- OST

- 2003

- 14626 .”

Community Comments

On November 5, 2014, the Department requested co mmunity co mment s regarding the carrier

selection at West Yellowstone

.

Mayor Brad Schmier state d , “The Town of West Yellowstone, Montana, supports the proposal submitted by SkyWest Airlines to operate as the Essential Air Service (EAS) air carrier at the

Yellowstone Ai rport for the 2015 and 2016 summer seasons.” Mike Tooley

, Director of the Montana Department of Transporation (MDT), stated “ MDT is excited to transition the Yellowstone Airport market from the Embraer Brasilia to the Canadair Regional Jet 200. Having t hese additional seats available is a welcomed addition to the great service provided to the community by SkyWest Airlines. MDT appreciates the excellent service, qualified staff, and supportive local interaction provided by SkyWest Air lines

. ”

Decision

This case is straightforward. S kyWest is the only applicant and has served West Yellowstone for

many years and continues to provide them with reliable EAS

. The c ommunity fully supports SkyWest

, and we find that its subsidy request is reasonable , and, in fact, has decreased compared to the prior selection of SkyWest

. Therefore, we will reselect SkyWest operating with 50

- passenger CRJ

- 200 aircraft, to provide service from West Yellowstone to Salt Lake City, for the

201 5 and 2016 summer season s , at an annual subsidy rate of $ 491,205

.

We shall make SkyWest’s selection at West Yellowstone contingent upon the Department’s receiving properly executed certifications from SkyWest that it is in compliance with the Department’s regulations regarding drug

- free workplaces and nondiscrimination, as well as the regulations governing lobbying activities.

Carrier Fitness

49 U.S.C. § 41737(b) and 417 3 8 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 sub j ect to the Department’s continuing fitness requirements, and no information has come to our attention that would cause us to question the 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 finding. We therefore conclude that the carrier remains fit to conduct the operations proposed

here.

This O rder is issued under authority delegated in 49 CFR Part 1.25a(b)

.

ACCORDIN GLY, 1. The Departemet select s SkyWest A irlines to provide E ssential A ir S ervice at West

Yellowstone

, Montana ;2 . The Department will set the final rate of compensation for SkyWest Airlines for the pr ovision

of Essential Air Service at West Yellowstone

, Montana , as described in Appendix C ;

3 . The Department direct s 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 d ocumentation 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 ca rrier may forfeit its compensation for any claim that is not supported under the terms of this O rder;

4 . The Deparment find s that SkyWest A irlines continue s to be fit, willing and able to operate as

a certificated carrier and capable of providing reliabl e essential air service at West Yellowstone

, Montana ;

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

6 . The Department will serve copies of this O rder on the Mayor of West Yellowstone

, the Montana Department of Tran sportation, and SkyWest A irlines.

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.govAppendix A

AREA MAP

Maps generated by the Great Circle Mapper

- copyright © Karl L. SwartzAppendix BAppendix C

SkyWest A irlines

Essential Air Service to be Provided at West Yellowstone
, Montana

Docket DOT

- OST

- 2003

- 14626

Effective Period : June 1 , 2015

, through September 30 , 20 1 5 and June 1, 2016 , through September 30, 2016

Scheduled Service : 1 2 weekly nonstop round trips t o Salt Lake City International Airport

Aircraft : 50

- passenger, Canadair Regional Jet (CRJ

- 200 LR)
Rate per Eligible Flight: $ 1,1 98 1
Weekly Ceilin g : $ 28,752 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 stipulations of the rate Order, including the service plans outlined in the Order and any other significan t 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 can cellations, 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 per iod, it may jeopardize its entire subsidy claim for the pe riod 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 nati onal 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 st atutes 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 , 2015. The Government’s obligation for performance under this order beyond September 30 , 2015, 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 , 2015, until funds are made available to the Department for performance. If sufficient funds are

not made available for performance beyond September 30 , 2015, 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 31; August claims must be submitted by November 30, and so on.

1 Annual compensation of $ 491,205 divided by 410 annual departures (24 weekly departures x 17 3/7 weeks x 98 percent completion).

2 24 flights per week multiplied by $ 1

, 198 per flight.