Order 2014-2-17

Served: February 25, 2014

 UNITED STATES OF AMERICA

 DEPARTMENT OF TRANSPORTATION

 OFFICE OF THE SECRETARY

 WASHINGTON, D.C.

Issued by the Department of Transportation

on the 25th day of February, 2014

ORDER RESELECTING CARRIER

Summary

By this Order, we are reselecting Multi-Aero Inc., d/b/a Air Choice One (Air Choice One), to 

provide subsidized Essential Air Service (EAS) at Jonesboro, Arkansas, with single-engine, 

nine-passenger Cessna Grand Caravan aircraft, for the four-year period from March 1, 2014, 

through February 28, 2018, at annual subsidy rates of $1,942,890 for years one and two, and 

$1,923,462 for years three and four.1 See Appendix A for a map.

Background

By Order 2011-12-14, issued on December 22, 2011, the Department selected Air Choice 

One to provide three round trips each weekday and weekend (18 weekly) from Jonesboro to 

Lambert-St. Louis International Airport (STL) using 9-passenger Cessna Grand Caravan 

aircraft, for a one year period beginning when the carrier inaugurated service through the end 

of the 12th month thereafter, at an annual subsidy rate of $1,717,781. Air Choice One 

inaugurated service at Jonesboro on February 13, 2012, thus making the expiration date 

February 28, 2013.

Subsequently, by Order 2013-2-24, issued on February 25, 2013, the Department extended 

the service period of Air Choice One by a one-year period, from March 1, 2013, through 

February 28, 2014.2 Under that Order, Air Choice One continues to provide the same level 

of service at the same annual subsidy level, as it was selected to provide in Order 2011-12-

14. 

 1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds. 

2 See Order 2013-2-24 for a complete discussion.

Essential Air Service at:

JONESBORO, ARKANSAS

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

DOT-OST-1997-2935
- 2 -

In anticipation of the end of the current rate term, on October 22, 2013, the Department 

issued Order 2013-10-12 soliciting proposals to provide EAS, with subsidy support if 

necessary, at Jonesboro. In response to our solicitation we received one proposal from Air 

Choice One, the incumbent.

Proposals

The proposal is briefly summarized below. A full copy of the proposal and all public 

comments received can be accessed at www.regulations.gov by searching for docket 

DOT-OST-1997-2935.

Air Choice One

Air Choice One’s proposal consists of one service option, offered as either a two- or 

four-year contract. Under the proposal, Air Choice One would continue its existing level of 

service at Jonesboro, namely, three nonstop round trips each weekday and weekend (18 

weekly) to STL. Service would be provided on single-engine, nine-passenger Cessna Grand 

Caravan aircraft. For a two-year contract, Air Choice One would require an annual subsidy 

of $1,942,890. For a four-year contract, it would require an annual subsidy of $1,942,890 for 

years one and two, and an annual subsidy of $1,923,462 for years three and four.

Community Comments

On December 6, 2013, we requested community comments on the carrier-selection case at 

Jonesboro. We received comments from the Jonesboro Municipal Airport Commission as 

well as several local individuals. The Airport Commission fully supports the reselection of 

Air Choice One stating that at its December meeting, the commission unanimously voted to 

support the four-year contract option from Air Choice One. All individual comments also 

praised Air Choice One’s service and were supportive of its reselection.

Decision

As Air Choice One was the only carrier to submit a proposal in this carrier-selection case, the

decision to reselect them is straightforward. 

Air Choice One has provided reliable EAS at the community for the past two years, the 

carrier has succeeded in dramatically increasing passenger usage, and the community fully 

supports their reselection. However, we are concerned that while Air Choice One has 

demonstrated a clear success in increasing passengers, we have not seen a commensurate 

drop in subsidy requirement. As such, we will continue to monitor Air Choice One’s service 

to ensure that it remains below the $200 per passenger statutory limit.

We shall make this selection of Air Choice One at Jonesboro contingent upon the 

Department’s receiving properly executed certifications from the air carrier that it is in 

compliance with the Department’s regulations regarding drug-free workplaces and 

nondiscrimination, as well as the regulations concerning lobbying activities.3

 3 The certifications are available on the Web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 
- 3 -

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 Essential Air Service. Air

Choice One 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. We reselect Multi-Aero Inc., d/b/a/ Air Choice One to provide Essential Air Service at 

Jonesboro, AR, at the service levels and subsidy rates as described in Appendix C, for the 

period from March 1, 2014, through February 28, 2018;

2. We direct Multi-Aero Inc., d/b/a/ Air Choice One 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 Multi-Aero Inc., d/b/a/ Air Choice One continues to be fit, willing and able 

to operate as a certificated air carrier and capable of providing reliable Essential Air Service

at Jonesboro, AR;

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

5. We will serve copies of this Order on the mayor of Jonesboro, Arkansas, the airport 

manager of the Jonesboro Municipal Airport, and Multi-Aero Inc., d/b/a/ Air Choice One.

By:

SUSAN L. KURLAND

Assistant Secretary for Aviation

and International Affairs

(SEAL)

An electronic version of this document is available at:

http://www.regulations.gov/
Appendix A

REGIONAL MAP

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the copyright holder, 

Sabre Airline Solutions®.
APPENDIX B
APPENDIX C

Page 1 of 2

Multi-Aero Inc., d/b/a Air Choice One

Essential Air Service to be Provided at Jonesboro, Arkansas

DOT-OST-1997-2935

Effective Period: March 1, 2014, through February 29, 2016

Scheduled Service: 18 weekly nonstop round trips to Lambert-St. Louis International Airport

(STL).

Aircraft type: Cessna Grand Caravan (9 passenger seats).

Annual compensation: $1,942,8901

Subsidy Rate per Flight: $1,0592

Weekly Ceiling: $38,1243

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 these rates, 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 complete, 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 amounts or at the stipulated service levels, the carrier may cease to provide service to

that specific location without regard 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.

Funds may not be available for performance under this Order beyond March 18, 2014. The Government’s 

obligation for performance under this Order beyond March 18, 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 March 18, 2014, until funds are made available to the Department 

for performance. If sufficient funds are not made available for performance beyond March 18, 2014, the 

Department will provide notice in writing to the carrier.

Subsidy contracts 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.

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 31st; August claims must be submitted by November 30th, and so on.

 1 See Appendix B.

2 $1,942,890 annual compensation divided by 1,835 annual flights (36 weekly flights x 52 weeks x 98% 

completion factor).

3 $1,059 per flight x 36 weekly flights.
APPENDIX C

Page 2 of 2

Multi-Aero Inc., d/b/a Air Choice One

Essential Air Service to be Provided at Jonesboro, Arkansas

DOT-OST-1997-2935

Effective Period: March 1, 2016, through February 28, 2018

Scheduled Service: 18 weekly nonstop round trips to Lambert-St. Louis International Airport 

(STL).

Aircraft type: Cessna Grand Caravan (9 passenger seats).

Annual compensation: $1,923,4621

Subsidy Rate per Flight: $1,0482

Weekly Ceiling: $37,7283

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 these rates, 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 complete, 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 amounts or at the stipulated service levels, the carrier may cease to provide service to

that specific location without regard 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.

Funds may not be available for performance under this Order beyond March 18, 2014. The Government’s 

obligation for performance under this Order beyond March 18, 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 March 18, 2014, until funds are made available to the Department 

for performance. If sufficient funds are not made available for performance beyond March 18, 2014, the 

Department will provide notice in writing to the carrier.

Subsidy contracts 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.

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 31st; August claims must be submitted by November 30th, and so on.

 1 See Appendix B.

2 $1,923,462 annual compensation divided by 1,835 annual flights (36 weekly flights x 52 weeks x 98% 

completion factor).

3 $1,048 per flight x 36 weekly flights.