O rder: 2014

- 9

- 14 Served: September 23, 2014



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 23rd of September , 20 1 4

ORDER REQUESTING PROPOSALS

Summary By this O rder, the Department is requesting proposals from air ca rriers interested in providing

E ssential A ir S ervice (EAS) at Massena, New York, for a new contract period beginning April 1, 201 5 , with or without subsidy

. (See Appendix A for a map). Air c arriers should file their proposals no later than October 27

, 2014

.

Background
By Order 2013

- 12

- 21 (February 22, 2013 ), the Department re

- selected Hyannis Air Service, Inc. d/b/a Cape Air (Cape Air)

, to provide EAS at Massena for a two

- year period beginning April 1, 2013, through March 30, 2015

. Cape Air provides Massena with 3 daily round trips (21 per week) to Albany International Airport (ALB) using 9

- passenger Cessna 402 aircraft

for an annual su bsidy of $2,090,949

. Flights are conveniently timed to allow easy access to Boston Logan International Airport (BOS) via ALB.

The complet e public file for EAS at Massena may be accessed online through the Federal Dockets Management System at www.regulations.gov by entering “DOT

- OST

- 2012

- 0163 ” in the “Search for Rules, Comments, Adjudications, or Supporting Documents” field.

Request for Proposals

As the end of the current contract approaches, the Department is re questing proposals from air carriers interested in providing EAS at Massena

, with subsidy support if necessary , for a new contract period beginning April 1

, 201 5

. Carriers should file their proposals no later than

October 27

, 20 14

. Staff will the n docket the proposals, thereby making them public

. Shortly afterwards, we will provide a summary of the proposals to the communit y and ask them to

Essential Air Service at

MASSENA, NEW YORK

Under 49 U.S.C. § 41731 et seq

. DO T

- OST

- 20 12

- 0163- 2

-

submit their final comments. We will give full consideration to all proposals that are timely

filed. 1

Interested air carriers should prepare their proposals with every expectation that their initial proposals will represent their final and only proposals. However, we retain the discretion to negotiate proposals with carriers when we deem it desirable; in such cases, of course, we will give all applicants the same opportunity. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and re

- solicit a new round of proposals. However, negotiation and rejection are only occasional excep tions to the rule.

We are here providing interested carriers with some basic information to serve as guidance when they prepare their proposals, but we will not prescribe a precise format for their proposals. Air carrier proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on www.regulations.gov

, each page should be formatted to be viewed online. We expect proposals to adequately describe the service being proposed and the annual amount of subsidy being requested. The applicants can make their own judgments as to the level of detail they wish to present; however, we recommend they include information concerning prop osed

schedules and projected block hours . In addition, applicants are urged to provide financial data supporting their subsidy requests, including information on their projected expenses and

revenues. We strongly encourage clear, well

- documented proposal s that will facilitate their evaluation by the affected communit ies and the Department. 2

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to assist air carriers in developing traffic and revenue projectio ns for their proposals, we have provided a summary of historical passengers in Appendi x B. During the year ended

June 30

, 2014

, Massena averaged 15 enplanements per day. The Department expects proposals that are co nsistent with what the community current ly receives (3 daily round trips

with 9

- passenger aircraft) to a hub airport that provides numerous connecting opportunities to the national air transportation system. For car riers proposing 19

- passenger or larger aircraft, we expect proposals for 2 round trips a day (1 2 to 1 4 per week). Air c arriers are also welcome to propose more than one service option, if they choose. T hey also need not limit themselves

1 Carriers should not expect th e Department to accept late fil ings. In cases where a carrier proposes to provide

EAS without subsidy and we determine that basic EAS, as required by 49 U.S.C. § 41732, c an be reliably provided without such compensation, we typically will not proceed with the carrier

- selection case. Instead, we simply rely on that carrier’s subsidy

- free service as proposed.

2 In selecting a carrier to provide subsidized EAS for an eligibl e place not in Alaska, 49 U.S.C. § 41733(c)(1) directs us to consider five factors: (a) service reliability; (b) contractual and marketing arrangements with a larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) comm unity views, giving substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has included a plan in its proposal to market its service to the community. In addition, the Consolidated Appropriations Act, 2014, Public Law No. 113

- 76, provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that we have considered since the inception of the program. Interested carriers shou ld also be aware that our general provisions governing Essential Air Service will be included in the selection Order as part of our authorization of subsidy for the selected service. Appendix C of this Order contains those general provisions.- 3

-

to the se requirements if they envision other, potentially more attractive service possibilities

- - different hubs or length of contract, for example

-- with subsidy requirements that remain competitive.

Community Comments The community and State are welcome to submit comments at any time. We encourage prospective applicants to contact the community before they submit their proposals so that they can tailor them to the community’s needs, as they will not be able to amend them after the due date. As noted earlier, we will provide a summary of the proposals to the civic parties shortly after the deadli ne for carrier proposals, and ask them to submit their final comments.

Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobbying activities, drug

- free workplaces, and nondiscrimination. 3 Consequ ently, all carriers receiving Federal subsidy for EAS must certify that they are in compliance with Department regulations regarding drug

- free workplaces and nondiscrimination, and those carriers whose subsidies exceed $100,000 over the life of the contrac t must also certify that they are in compliance with the regulations governing lobbying activities. Because the Department is prohibited from paying subsidy to carriers that do not submit these documents, all carriers that plan to submit proposals involvi ng subsidy should be aware that the selected carrier will be required to complete the required certifications. Interested carriers requiring more detailed information regarding these requirements should contact the Offic e of Aviation Analysis at (202) 366

- 5903. 4

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

- delegated to the Director, Office of Aviation Analysis.

ACCORDINGLY, 1. We request that carriers interested in providing Essential Air Service at Massena, New

York

, su bmit their proposals, with subsidy support if necessary , no later than

October 27

, 20 14 . The proposals should be e

- mailed to: michael.f.martin@dot.gov with the

title “Proposal to Provide E AS at Massena ”; 5

2

. Th is docket will remai n open until further O rder of the Department; and

3 The regulat ions applicable to these areas are: (1) 49 CFR Part 20

-- New Restrictions on Lobbying; (2) 49 CFR Part 21

-- Nondiscrimination in Federally

- Assisted Programs of the Department of Transportation

-- Effectuation of Title VI of the Civil Rights Act of 1964 ; (3) 49 CFR Part 27

-- Nondiscrimination on the Basis of Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4)

14 CFR Part 382

-- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 49 CFR Par t 29

-- Government

- Wide Debarment and Suspension (Non

- Procurement) and Government

- Wide Requirements for Drug

- Free Workplace (Grants).

4 The certifications are also available on the web at http://www.dot.gov/policy/aviation

- policy/small

- community

rural

- air

- service/essential

- air

- service

. 5 Questions regarding filings in response to this O rder may be directed to Michael Martin at (202) 366

- 6494 o r michael.f.martin@dot.gov

.- 4

-

3 . We will serve copies of this O rder on the M ayor and Town Supervisor of Massena, New

York ; the Airport Manager of Massena International Airport ; and the service list for this

do cket.

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 imm ediately, and the filing of a petition for review shall not preclude its effectiveness.

By:

TODD M. HOMAN

Director Office of Aviation Analysis (SEAL) An electronic version of this document is available

o nline at www.regulations.gov

.Appendix A

AREA MAP

Maps generated by the Great Circle Mapper

- copyright © Karl L. Swartz

.Appendix B

Massena, NY

Quarter Year Deplanements Enplanements Total Traffic Enplanements per Day

3 2010 841 857 1,698 11

4 2010 904 921 1,825 12

1 2011 706 734 1,440 9

2 2011 1,060 1,107 2,167 14

Annual

Totals 3,511 3,619 7,130 11

3 2011 1,220 1,255 2,475 16

4 2011 1,300 1,300 2,600 16

1 2012 1,044 1,085 2 ,129 14

2 2012 1,244 1,225 2,469 16

Annual

Totals 4,808 4,865 9,673 15

3 2012 1,304 1,312 2,616 17

4 2012 1,200 1,339 2,539 16

1 2013 1,102 1,140 2,242 15

2 2013 1,243 1,187 2,430 16

Annual

Totals 4,849 4,978 9,827 16

3 2013 1,229 1 ,268 2,497 16

4 2013 1,133 1,189 2,322 15

1 2014 926 974 1,900 12

2 2014 1,235 1,179 2,414 15

Annual

Totals 4,523 4,610 9,133 15Appendix C

Example of General Terms and Conditions for Essential Air Service

The carrier understands that it may forfeit its co mpensation 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, on ly 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 questi on. 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 f ull 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

traf fic 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 tra nsportation 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 o f 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. Thos e 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 [DATE]. The Government’s obligation for performance under this Order beyond [DATE], 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 [DATE], until funds are made available to the Department for performance. If sufficient funds are not made available for performance beyond [DATE] , 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 p aragraph.

All claims for payment, including any amended cl aims, must be submitted within 9 0 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 st ; August claims must be submitted by November 30 th , and so on.