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 26th of March, 2015

ORDER SELECTING AIR CARRIER

Summary

By this Order, the Department is re-selecting SkyWest Airlines (SkyWest) to continue to provide 

Essential Air Service (EAS) at West Yellowstone, Montana, at an annual subsidy rate of

$491,205 for the next two summer seasons from June 1, 2015, through September 30, 2015, and 

June 1, 2016, through September 30, 2016.1

Background

By Order 2013-5-4 (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 Order, 

SkyWest provided 14 nonstop round trips per week to Salt Lake City International Airport (Salt 

Lake City) as Delta Connection, with 30-seat Embraer Brasilia aircraft. 

The 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 seasons. 

Proposals

In 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 Subsidy 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-2003-14626
2015 and 2016, utilizing 50-passenger Canadair Regional Jets (CRJ-200 LR) aircraft for a 

subsidy of $491,205 per season.

SkyWest’s proposal, as well as the entire docket, may be accessed online at

www.regulations.gov by entering “DOT-OST-2003-14626.”

Community Comments

On November 5, 2014, the Department requested community comments regarding the carrier 

selection at West Yellowstone. 

Mayor Brad Schmier stated, “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 Airport 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 these 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 Airlines.”

Decision

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

many years and continues to provide them with reliable EAS. The community 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 

2015 and 2016 summer seasons, 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 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 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 Order is issued under authority delegated in 49 CFR Part 1.25a(b) .

ACCORDINGLY,

1. The Departemet selects SkyWest Airlines to provide Essential Air Service at West 

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

of Essential Air Service at West Yellowstone, Montana, as described in Appendix C;

3. The Department directs 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;

4. The Deparment finds that SkyWest Airlines continues to be fit, willing and able to operate as 

a certificated carrier and capable of providing reliable essential air service at West Yellowstone, 

Montana; 

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

6. The Department will serve copies of this Order on the Mayor of West Yellowstone, the 

Montana Department of Transportation, and SkyWest Airlines.

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
Appendix A

AREA MAP

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

SkyWest Airlines

Essential Air Service to be Provided at West Yellowstone, Montana

Docket DOT-OST-2003-14626

Effective Period: June 1, 2015, through September 30, 2015 and June 1, 2016, through 

September 30, 2016

Scheduled Service: 12 weekly nonstop round trips to Salt Lake City International Airport

Aircraft: 50-passenger, Canadair Regional Jet (CRJ-200 LR)

Rate per Eligible Flight: $1,1981

Weekly Ceiling: $28,7522

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, 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 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 $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.