Order 2014-9-13

Served: September 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 September, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is soliciting proposals from air carriers interested in providing 

Essential Air Service (“EAS”) at Elfin Cove, Pelican, Angoon, and/or Tenakee, Alaska, for a 

new contract, beginning February 1, 2015, with or without subsidy. Air carriers should file their 

proposals no later than October 22, 2014. (See Appendix A for a service area map.) 

Background

By Order 2011-3-11, issued on March 9, 2011, the Department selected Alaska Seaplane

Service, LLC (Alaska Seaplanes) at Elfin Cove and Pelican, to provide EAS for an annual 

subsidy of $75,391 at Elfin Cove, and $185,721 at Pelican, from June 1, 2011, through January 

31, 2015.

Also, by Order 2010-12-7, issued on December 3, 2010, we selected Alaska Seaplanes to provide 

EAS at Angoon and Tenakee, for an annual subsidy of $145,734 at Angoon and $135,576 at 

Tenakee, from February 1, 2011, through January 31, 2015.

The complete public file for EAS at Elfin Cove, Pelican, Angoon, and Tenakee, may be accessed 

online through the Federal Dockets Management System at: http://www.regulations.gov by 

entering the respective docket number in the “SEARCH for: Rules, Comments, Adjudications or 

Supporting Documents:” field.

Request for Proposals

As the end of the current contract approaches, we are here requesting proposals from air carriers 

interested in providing service at Elfin Cove, Pelican, Angoon, and Tenakee, with or without 

Essential Air Service at

ELFIN COVE, ALASKA

PELICAN, ALASKA

ANGOON, ALASKA

TENAKEE, ALASKA

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

DOT-OST-2002-11586

DOT-OST-2002-11586

DOT-OST-2006-25542

DOT-OST-2006-25542
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subsidy, for a new contract beginning February 1, 2015.1 Air carriers should file their proposals 

no later than October 22, 2014. After that date, our staff will then docket the proposals, thereby 

making them public, and direct each air carrier to serve a copy of its proposal on the civic parties 

and other applicants. Shortly thereafter, we will provide a summary of the proposals to 

community officials and ask them for their final comments. We will give full consideration to 

all proposals filed in a timely manner.2

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 air 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 or rejection are only an occasional exception to the rule.

We are here providing interested air 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. 

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, they might want to include proposed schedules as well as 

supporting data for their subsidy requests, such as projected block hours, revenues and expenses. 

We strongly encourage clear, well-documented proposals that will facilitate their evaluation by 

the affected communities and the Department.3

Air carriers are also welcome to propose more than one option, if they choose; they need not 

limit themselves to those requirements if they envision other, potentially more attractive service 

possibilities -- different hub, frequency or equipment, for example -- with subsidy requirements 

that remain competitive. The community and air carriers are encouraged to work together in 

advance of the due date for proposals to craft a service pattern that is desirable to the community 

and meets the operational needs of the airlines.

 1 Harris Aircraft Services (Harris Air) currently provides non-EAS air service from Angoon, Pelican, and Tenakee 

to Sitka (SIT) than meets frequency minimums for EAS. Harris Air also has an application with the Department for 

a certificate of public convenience and necessity. If Harris Air’s application is approved, we may revisit the need 

for requesting proposals at those three locations. The purpose of the EAS program is to ensure that communities 

have air service access where there would not otherwise be access. If Harris Air, as a certificated carrier, is 

providing subsidy-free EAS, the need for subsidized EAS is moot. If Elfin Cove continues to have no other air 

service access other than its subsidized EAS, we would continue with processing a carrier selection for Elfin Cove.

2 Air carriers should not expect the Department to accept late filings. In cases where an air carrier proposes to 

provide Essential Air Service without subsidy and we determine that basic EAS as required by 49 U.S.C. § 41732 

can be reliably provided without such compensation, we typically do not proceed with the carrier-selection case.

Instead, we simply rely on that carrier’s subsidy-free service as proposed.

3 In selecting a carrier to provide subsidized EAS in Alaska, 49 U.S.C. § 41733(c)(1) directs us to consider six

factors: (1) service reliability; (2) contractual and marketing arrangements with a larger air carrier at the hub; (3) 

interline arrangements with a larger air carrier at the hub (4) community views; (5) the experience of the applicant in 

providing, in Alaska, scheduled air service or significant patterns of non-scheduled air service; and (6) whether the 

air carrier has included a plan in its proposal to market the service. 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 should 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.
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Service and Traffic History

Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to 

assist air carriers in developing traffic and revenue projections for their proposals, we have provided 

a summary of historical passengers in Appendix B. We expect service levels that are consistent with 

what the community currently receives that offers access to the national air transportation system. 

Filing Requirements

Air carrier proposals should be submitted to the Department with all materials merged into a 

single document. The document will be published on www.regulations.gov and each page 

should be formatted to be viewed online. 

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all air carriers receiving 

Federal subsidy for EAS must certify that they are in compliance with Department regulations 

regarding drug-free workplaces and nondiscrimination, and those air carriers whose subsidies 

exceed $100,000 over the life of the rate-term must also certify that they are in compliance with 

the regulations governing lobbying activities. Because the Department is prohibited from paying 

subsidy to air carriers that do not submit these documents, all air carriers that plan to submit 

proposals involving subsidy should be aware that the selected air carrier will be required to 

complete the required certifications. Interested air carriers requiring more detailed information 

regarding these requirements should contact the Office of Aviation Analysis at (202) 366-5903.5

Community and State 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 and ask 

them to submit their final comments shortly after October 22, 2014, the due date for proposals.

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

Director, Office of Aviation Analysis.

 3 The regulations applicable to these areas are: (1) 49 CFR Part 20 -- 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; 49 CFR Part 27 -- Nondiscrimination on the basis of 

disability in programs and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382 -

- Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29 -- Government-wide debarment 

and suspension (non-procurement) and government-wide requirements for drug-free workplace (grants).

4 The certifications are available online under “Reports and Publications” at http://www.dot.gov/policy/aviationpolicy/small-community-rural-air-service/essential-air-service.
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ACCORDINGLY,

1. We request that air carriers interested in providing Essential Air Service at Elfin Cove, 

Pelican, Angoon, and Tenakee, Alaska, submit their proposals, with or without subsidy requests, 

no later than October 22, 2014. The proposals should be e-mailed to: EAS@dot.gov with the 

title “Proposal to Provide Essential Air Service at Elfin Cove, Pelican, Angoon, and/or Tenakee, 

Alaska6”

2. These dockets will remain open until further order of the Department; and

3. We will serve copies of this Order on the Alaska Department of Transportation, the civic 

officials of Elfin Cove, Pelican, Angoon, and Tenakee, and the service list for this Docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Aviation Economic 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 immediately, 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 at

http://www.regulations.gov

 5 Questions regarding filings in response to this Order may be directed to Michael Gormas at (202) 366-1853 or 

michael.gormas@dot.gov.
Appendix A

AREA MAP

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

Page 1 of 4

Passenger/Freight/Mail Traffic at Elfin Cove1

 1 Source: Bureau of Transportation Statistics: Schedule T-100

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Airport_1 Year Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

ELV 2012 1 2 0.001 0.1365 3 0.4775 0.414 5 0.4785 0.5505

2012 2 3 0.0825 0.149 5 0.345 0.595 8 0.4275 0.744

2012 3 7 0.1335 0.12 5 0.339 0.4075 12 0.4725 0.5275

2012 4 8 2.485 0.111 10 0.501 1.349 18 2.986 1.46

2012 5 35 0.173 0.1125 41 0.9825 1.9045 76 1.1555 2.017

2012 6 72 0.5785 0.063 68 1.9815 2.074 140 2.56 2.137

2012 7 101 0.3835 0.133 91 1.425 2.5355 192 1.8085 2.6685

2012 8 122 0.294 0.1545 74 0.975 1.371 196 1.269 1.5255

2012 9 32 0.1115 0.289 21 0.3425 1.0675 53 0.454 1.3565

2012 10 14 0.0015 0.29 4 0.3605 0.9285 18 0.362 1.2185

2012 11 13 0.0795 0.156 7 0.416 0.4155 20 0.4955 0.5715

2012 12 0 0.0005 0.138 3 0.3295 0.439 3 0.33 0.577

2012 Total 409 4.324 1.8525 332 8.475 13.501 741 12.799 15.3535

2013 1 1 0.005 0.0785 2 0.4105 0.404 3 0.4155 0.4825

2013 2 8 0.011 0.14 2 0.381 0.467 10 0.392 0.607

2013 3 2 0.095 0.1525 10 0.5605 1.1765 12 0.6555 1.329

2013 4 11 1.375 0.1545 11 0.8135 0.8515 22 2.1885 1.006

2013 5 41 0.61 0.139 63 1.572 1.336 104 2.182 1.475

2013 6 100 1.258 0.2275 105 1.76 1.6605 205 3.018 1.888

2013 7 113 0.666 0.209 110 2.017 2.1395 223 2.683 2.3485

2013 8 98 2.1565 0.554 120 2.895 1.424 218 5.0515 1.978

2013 9 34 0.203 0.3485 19 0.638 0.5995 53 0.841 0.948

2013 10 15 0.431 0.2055 6 0.211 0.3085 21 0.642 0.514

2013 11 6 0.2075 0.1705 6 0.7215 0.4195 12 0.929 0.59

2013 12 6 0.076 0.098 4 0.343 0.315 10 0.419 0.413

2013 Total 435 7.094 2.4775 458 12.323 11.1015 893 19.417 13.579
Appendix B

Page 2 of 4

Passenger/Freight/Mail Traffic at Pelican

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Airport_1 Year Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

PEC 2012 1 11 0.029 0.2425 14 1.172 1.3015 25 1.201 1.544

2012 2 19 0.2415 0.198 31 1.539 1.401 50 1.7805 1.599

2012 3 18 0.0825 0.2585 18 1.9825 1.955 36 2.065 2.2135

2012 4 40 1.668 0.207 48 2.5 2.0805 88 4.168 2.2875

2012 5 63 1.0795 0.625 87 2.674 3.1265 150 3.7535 3.7515

2012 6 130 3.2265 0.143 154 3.6165 1.9075 284 6.843 2.0505

2012 7 210 5.0635 0.238 175 4.071 1.973 385 9.1345 2.211

2012 8 152 3.741 0.4335 139 3.7665 2.0645 291 7.5075 2.498

2012 9 75 1.374 0.503 54 3.8505 2.0265 129 5.2245 2.5295

2012 10 42 0.178 0.3185 42 2.708 2.105 84 2.886 2.4235

2012 11 27 0.1745 0.2235 27 2.04 1.8795 54 2.2145 2.103

2012 12 15 0.185 0.257 22 1.7855 0.9765 37 1.9705 1.2335

2012 Total 802 17.043 3.6475 811 31.7055 22.797 1613 48.7485 26.4445

2013 1 13 0.073 0.24 10 1.2755 0.976 23 1.3485 1.216

2013 2 28 0.061 0.2365 33 1.5275 1.516 61 1.5885 1.7525

2013 3 20 0.0295 0.4035 20 1.9065 1.518 40 1.936 1.9215

2013 4 28 0.623 0.5275 19 1.801 1.5245 47 2.424 2.052

2013 5 70 0.8045 0.4075 71 2.6795 1.6395 141 3.484 2.047

2013 6 167 4.7435 0.329 155 3.6735 2.0995 322 8.417 2.4285

2013 7 188 3.862 0.267 208 4.264 1.9355 396 8.126 2.2025

2013 8 175 5.3575 0.464 168 3.031 1.282 343 8.3885 1.746

2013 9 59 0.7555 0.321 44 2.134 1.291 103 2.8895 1.612

2013 10 32 0.5305 0.2805 24 1.7205 1.6095 56 2.251 1.89

2013 11 26 0.116 0.1815 24 1.9655 1.2095 50 2.0815 1.391

2013 12 25 0.2455 0.354 23 1.333 1.405 48 1.5785 1.759

2013 Total 831 17.2015 4.012 799 27.3115 18.006 1630 44.513 22.018
Appendix B

Page 3 of 4

Passenger/Freight/Mail Traffic at Angoon

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Airport_1 Year Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

AGN 2012 1 61 0.303 0.3585 42 1.044 1.737 103 1.347 2.0955

2012 2 107 0.1795 0.361 90 1.9295 1.714 197 2.109 2.075

2012 3 112 0.281 0.29 85 1.1005 1.831 197 1.3815 2.121

2012 4 150 0.2315 0.344 124 2.7925 1.4685 274 3.024 1.8125

2012 5 201 0.3395 0.47 167 2.464 2.5375 368 2.8035 3.0075

2012 6 147 1.3635 0.271 157 2.182 2.6545 304 3.5455 2.9255

2012 7 188 1.0325 0.3085 192 2.567 2.3 380 3.5995 2.6085

2012 8 236 1.045 0.656 205 2.9855 2.6025 441 4.0305 3.2585

2012 9 158 0.534 0.686 120 2.293 2.3785 278 2.827 3.0645

2012 10 150 0.2225 0.363 146 2.3075 2.68 296 2.53 3.043

2012 11 107 0.2245 0.3615 78 1.968 2.0125 185 2.1925 2.374

2012 12 63 0.281 0.3175 51 1.5105 1.9535 114 1.7915 2.271

2012 Total 1680 6.0375 4.787 1457 25.144 25.8695 3137 31.1815 30.6565

2013 1 73 0.302 0.36 56 1.1525 2.0065 129 1.4545 2.3665

2013 2 99 0.329 0.384 114 2.089 2.168 213 2.418 2.552

2013 3 93 0.4685 0.315 80 2.0685 1.8055 173 2.537 2.1205

2013 4 141 0.4565 0.5615 125 2.3695 2.1055 266 2.826 2.667

2013 5 132 0.3045 0.317 106 2.1755 2.306 238 2.48 2.623

2013 6 180 0.5945 0.211 198 3.3395 2.612 378 3.934 2.823

2013 7 236 1.2205 0.3 215 4.087 2.683 451 5.3075 2.983

2013 8 196 1.8365 0.5995 164 2.704 2.2515 360 4.5405 2.851

2013 9 140 0.9825 0.631 111 2.7645 1.465 251 3.747 2.096

2013 10 153 0.2825 0.4555 122 2.3545 1.8365 275 2.637 2.292

2013 11 132 0.266 0.2245 112 2.3125 1.718 244 2.5785 1.9425

2013 12 96 0.2155 0.386 66 1.553 1.3235 162 1.7685 1.7095

2013 Total 1671 7.2585 4.745 1469 28.97 24.281 3140 36.2285 29.026
Appendix B

Page 4 of 4

Passenger/Freight/Mail Traffic at Tenakee

Enplaned Deplaned Total Rev Pax Total Rev Freight Tons Total Rev Mail Tons

Airport_1 Year Month Rev Pax Rev Freight Tons Rev Mail Tons Rev Pax Rev Freight Tons Rev Mail Tons

TKE 2012 1 8 0.0285 0.315 1 0.8805 1.3235 9 0.909 1.6385

2012 2 17 0 0.1925 17 0.9485 1.15 34 0.9485 1.3425

2012 3 24 0.0125 0.388 17 1.136 1.2395 41 1.1485 1.6275

2012 4 41 0.012 0.2535 35 1.223 1.141 76 1.235 1.3945

2012 5 86 0.002 0.2495 81 2.319 1.502 167 2.321 1.7515

2012 6 61 0.029 0.3425 90 1.8615 1.4115 151 1.8905 1.754

2012 7 94 0.23 0.6485 108 2.135 1.378 202 2.365 2.0265

2012 8 106 0.3525 0.369 131 3.002 1.5205 237 3.3545 1.8895

2012 9 63 0.0985 0.327 55 1.2055 1.218 118 1.304 1.545

2012 10 60 0.179 0.2705 49 1.5695 1.455 109 1.7485 1.7255

2012 11 37 0.372 0.3705 45 1.6075 1.5125 82 1.9795 1.883

2012 12 14 0.008 0.3765 15 1.389 1.218 29 1.397 1.5945

2012 Total 611 1.324 4.103 644 19.277 16.0695 1255 20.601 20.1725

2013 1 17 0.0045 0.3285 10 1.213 1.093 27 1.2175 1.4215

2013 2 26 0.081 0.229 26 1.3315 1.419 52 1.4125 1.648

2013 3 26 0.0265 0.287 22 1.4175 1.358 48 1.444 1.645

2013 4 41 0.172 0.427 44 1.9975 1.5885 85 2.1695 2.0155

2013 5 64 0.172 0.231 55 2.5245 1.2015 119 2.6965 1.4325

2013 6 123 0.3275 0.272 89 3.526 1.398 212 3.8535 1.67

2013 7 128 0.5945 0.281 116 3.0485 1.361 244 3.643 1.642

2013 8 150 1.265 1.168 127 2.746 1.8755 277 4.011 3.0435

2013 9 79 0.15 0.675 52 1.4555 1.0965 131 1.6055 1.7715

2013 10 37 0.2405 0.314 32 1.814 1.782 69 2.0545 2.096

2013 11 24 0.256 0.1955 29 1.6765 1.3445 53 1.9325 1.54

2013 12 41 0.053 0.227 25 1.304 1.0525 66 1.357 1.2795

2013 Total 756 3.3425 4.635 627 24.0545 16.57 1383 27.397 21.205
Appendix C

Example of General Terms and Conditions for Essential Air Service

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 amounts or at the stipulated service levels, the air 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 air carrier do not constitute a

total or partial reduction or cessation of payment.

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.

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.

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.