Order: 2011-4-1

Served: April 1, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 1st day of April, 2011

Essential Air Service at

CHISHOLM/HIBBING, MINNESOTA

THIEF RIVER FALLS, MINNESOTA

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

DOCKET DOT-OST-2003-15796

DOCKET DOT-OST-2001-10642

 

ORDER REQUESTING PROPOSALS

Summary

By this order, the Department is requesting proposals from airlines interested in providing 

essential air service (EAS) at Chisholm/Hibbing and Thief River Falls, Minnesota, for the twoyear period beginning November 1, 2011, with or without subsidy. Proposals are due by

May 3, 2011. (See Appendix A for a map.)

Background

Mesaba Aviation Inc., operating as Delta Connection (Mesaba) serves Chisholm/Hibbing and 

Thief River Falls under two different contracts. By Order 2009-8-8, August 11, 2009, the 

Department re-selected Mesaba to provide Chisholm/Hibbing with three nonstop round trips 

each weekday and two nonstop round trips on Saturday and Sunday (19 a week) to 

Minneapolis/St. Paul International Airport (Minneapolis) using 34-seat Saab 340 aircraft for the 

two-year period beginning November 1, 2009, through October 31, 2011, for an annual subsidy 

of $2,938,878. By Order 2009-4-20, April 27, 2009, the Department re-selected Mesaba to 

provide Thief River Falls 12 one-stop round trips per week over a Thief River FallsChisholm/Hibbing-Minneapolis routing using 34-seat Saab 340 aircraft for the two-year period 

beginning June 1, 2009, through May 31, 2011, for an annual subsidy of $1,230,322.

Thief River Falls has traditionally been packaged with Fort Dodge and Mason City, Iowa. 

However, because Chisholm/Hibbing and Thief River Falls are now served over the same 

linear routing, the Department decided that these two communities should be packaged together

and on the same contract cycle. Therefore, the Department issued Order 2010-12-29, 
- 2 -

December 23, 2010, extending Thief River Falls' contract and subsidy rate to end on 

October 31, 2011, synchronizing both communities’ contract expiration dates.

Request for Proposals

As the end of the current rate terms approach, we are here requesting proposals from carriers 

interested in providing service at Chisholm/Hibbing and Thief River Falls, with or without 

subsidy support, for the two-year period beginning November 1, 2011, through 

October 31, 2013. Carriers should file their proposals no later than May 3. After that date, our 

staff will docket proposals, thereby making them public, and shortly afterwards will provide a 

summary of the proposals to the community and ask them for their final comments. We will 

give full consideration to all proposals filed in a timely manner.1

Interested carriers should prepare their proposals with every expectation that their initial 

proposals will also be their final and only proposals. We retain the discretion to negotiate 

proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and solicit a new round of proposals.

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. 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 community and the Department.2 Proposals should provide sufficient capacity to 

accommodate historical levels of traffic. 

In order to assist carriers in developing traffic and revenue projections for their proposals, we 

have provided a summary of historical passengers in Appendix B. For calendar year 2010, 

Chisholm/Hibbing’s total passengers were 22,085, and Thief River Falls’ total passengers were 

4,996, averages of 35 and 8 enplanements a day, respectively. We expect service levels that are 

consistent with what the communities currently receive, with service to Minneapolis, or any 

hub that offers access to the national air transportation system utilizing 15-seat or larger 

aircraft. 

Currently, the communities are served over a Thief River Falls-Chisholm/Hibbing-Minneapolis 

routing. With that service pattern using 30 to 34-seat aircraft, the Department expects 

 

1 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide 

essential air service without subsidy and we determine that service can be reliably provided without such 

compensation, we do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s subsidyfree service as proposed.

2 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c)(1) directs us to consider 

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

(3) interline arrangements with a larger carrier at the hub; and (4) community views. In addition, the 

Consolidated Appropriations Act, 2008, Public Law 110-161, 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 EAS 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 -

proposals for three round trips each weekday and four each weekend (19 a week) at 

Chisholm/Hibbing, and two round trips each weekday and weekend (12 a week) to Thief River 

Falls. For proposals with 19-seat aircraft over a Thief River Falls-Chisholm/HibbingMinneapolis routing, we would expect four round trips each day at Chisholm/Hibbing and three 

round trips each day at Thief River Falls. For carriers that wish to serve the communities 

independently, we expect proposals for Chisholm/Hibbing to consist of two round trips each 

day (14 a week) using 30 to 34-seat aircraft or three round trips each weekday and weekend (18 

a week) using 19-seat aircraft. For Thief River Falls, we expect proposals to consist of two 

round trips a day and two round trips each weekend, with 19-seat or larger aircraft. We would 

also entertain proposals with 8/9-seat aircraft and additional frequencies. Should the 

communities agree to aircraft with fewer than 15 passenger seats, in effect waiving their right 

to 15-seat or larger aircraft, we would consider the waiver to apply only to the two-year carrierselection at hand, i.e. we would not assume that the communities would waive their rights for 

all time. As always, we will formally solicit the communities’ views on any service options we 

receive before making a long-term carrier selection decision. 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 

hubs, frequency or equipment, for example -- with subsidy requirements that remain 

competitive. The communities 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 communities and 

meets the operational needs of the airlines.

New Filing Procedures

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 Regulations.gov, 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.3 Consequently, all carriers receiving 

Federal subsidy to support essential air service 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 rate term must also certify that 

they are in compliance with the regulations governing lobbying activities. All carriers that plan 

to submit proposals involving subsidy should submit the required certifications along with their 

proposals. Interested carriers requiring more detailed information regarding these 

requirements, as well as copies of the certifications, should contact the Office of Aviation 

Analysis at (202) 366-5903. The Department is prohibited from paying subsidy to carriers that 

do not submit these documents.4

 

3 The regulations 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; 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants).

4 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html.
- 4 -

Community and State Comments

Civic officials are welcome to submit comments on the proposals at any time. 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 May 3, the due date for carrier proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing essential air service at Chisholm/Hibbing 

and Thief River Falls, Minnesota, submit their proposals, with or without subsidy requests, no 

later than May 3, 2011. The proposals should be emailed to: EAS@dot.gov with the title 

“Proposal to Provide Essential Air Service at Chisholm/Hibbing and/or Thief River Falls, 

Minnesota.”;5

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

3. The Department will serve a copy of this order on the mayors and airport managers of 

Chisholm, Hibbing, and Thief River Falls; Mesaba Aviation Inc., and the parties listed in 

Appendix D.

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

Aviation Economic Regulations, 14 CFR 385.50, must file such petitions within ten (10) 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 online at

www.regulations.gov

 

5 Questions regarding filings in response to this order should be directed to Michael Martin at 202-366-6494, or 

via email at michael.f.martin@dot.gov.
Appendix A

Area Map
Appendix B

Page 1 of 2

Historical Origin-Destination Plane Traffic1

Chisholm/Hibbing, Minnesota

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

1 2008 1,945 2,029 3,974 26

2 2008 2,251 2,006 4,257 27

3 2008 2,389 2,501 4,890 31

4 2008 2,061 2,042 4,103 26

Annual 

Totals 8,646 8,578 17,224 28

1 2009 1,930 1,953 3,883 25

2 2009 2,390 2,133 4,523 29

3 2009 2,507 2,544 5,051 32

4 2009 2,143 2,133 4,276 27

Annual 

Totals 8,970 8,763 17,733 28

1 2010 2,587 2,752 5,339 35

2 2010 2,748 2,521 5,269 34

3 2010 3,053 3,194 6,247 40

4 2010 2,608 2,622 5,230 33

Annual 

Totals 10,996 11,089 22,085 35

 

1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
APPENDIX B

Page 2 of 2

Historical Origin-Destination Plane Traffic1

Thief River Falls, Minnesota

Quarter Year Deplanements Enplanements

Total 

Traffic

Enplanements 

per Day

1 2008 917 980 1,897 12

2 2008 880 833 1,713 11

3 2008 688 669 1,357 9

4 2008 619 606 1,225 8

Annual 

Totals 3,104 3,088 6,192 10

1 2009 654 625 1,279 8

2 2009 669 675 1,344 9

3 2009 737 742 1,479 9

4 2009 654 677 1,331 8

Annual 

Totals 2,714 2,719 5,433 9

1 2010 713 661 1,374 9

2 2010 555 566 1,121 7

3 2010 611 589 1,200 8

4 2010 639 662 1,301 8

Annual 

Totals 2,518 2,478 4,996 8

 

1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T-100.
Appendix C

Example of General Terms and Conditions for Essential Air Service

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 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 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.

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 are not currently available for performance under this solicitation beyond [DATE]. The 

Department’s obligation for performance under this solicitation beyond [DATE], is contingent 

upon the availability of appropriated 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 

funds are not made available for performance beyond [DATE], the carrier will receive notice in 

writing by the Department.

All claims for payment must be submitted within 60 days of the last day of service provided 

under this order.
Appendix D

Scheduled Air Carriers, Contiguous US and Puerto Rico

Air Greco/Wings Air

Air Sunshine, Inc.

Air Sunshine, Mirmohammad Adili

Air Wisconsin, Annette Daly 

Air Wisconsin, Jim Rankin

Airline Associates, Bill Mishk

Alaska Airlines, Jeff Cole

Alaska Airlines, Sandy Sinick

Allegiant Air, Brian Davis

American Airlines, Carl Nelson

American Eagle, Jeffrey Hartz

Bemidji Aviation, Cori Rude 

Bemidji Aviation, Arlen Rinkenberger

Cape Air, Andrew Bonney 

Cape Air, Dan Wolf 

Cape Air, J.Flaherty

Colgan Air, Kevin Scott

Colgan Air, Mike Colgan 

CommutAir, Andy Price

CommutAir, Joel Raymond

Consultant, Robert Silverberg

Continental, Bruce Keiner

Continental, Dan Weiss

Continental, Lorry Halloway

Delta, Anthony Canitano

Delta, Dan Shuman

Delta, Jeff Morgan 

Delta, Joe Esposito 

Delta, Karen Zachary 

Delta, Kristal Murphy

Delta, Sascha Vanderbellen

DHS, Bill Ragan

DHS, David Bernier

Era Aviation, Mike Lenorman

Executive Airlines, Kate Soled

Frontier Flying, Bob Hajducovich

GemAir/Salmon Air, Dan Schroeder

GemAir/Salmon Air, JoAnn Wolters

Great Lakes, Chuck Howell

Great Lakes, Doug Voss 

Great Lakes, Greg Stephens

Gulfstream, Dave Hackett

Gulfstream, Mickey Bowman

Gulfstream, T. Cooper 

Horizon Air, Dan Russo

Horizon Air, Jennifer Thompson

Horizon Air, Mike McQueen

Horizon, Jeff Cole

ICEPR, Luis Irizarry

Intrepid Interntl Air, Rick Eyk

Island Air Charters, Linda House

Jet Air, Daniel Wolford

Kenmore Air, Tim Brooks 

Mesa Air, Michael Lotz 

Mesaba, John Spanjers

Mesaba, Max Shemesh 

Midwest Airlines, Greg Aretakis

MN Aviation, Jose Maldonado 

Multi Aero, Darnea

Multi Aero, Shane Storz

Northwest Airlines, Aaron Murray

Northwest, Tim McDonald 

NYDC, Henok Araya

OST, Brian Swanson

OST, Dennis DeVany

OST, Kevin Adams

OST, Kevin Schlemmer

OST, Michael Martin

OST, Renee Williams

Pacific Wings, Greg Kahlstorf

PenAir, Danny Seybert

PenAir, Scott Bloomquist

Pinnacle Airlines, Joe Williams 

Pinnacle Airlines, Phil Reed

Planemasters, Inc., John Kessler

Planemasters, Inc., Paul Berliner

Planemasters, Inc., Todd DeSimone

Public Charters, Jim Gallagher

Scenic, Mary Schneider

Scenic, Mitzi Daines

SeaPort/Wings of Alaska, Jim Day 

SeaPort/Wings of Alaska, Nate Vallier

Seaport/Wings of Alaska, Rob McKinney

Shuttle America, Jerry Balsano

SkyWest, Eric Christensen

SkyWest, Michael Thompson

SkyWest, Steve Hart

Sovereign Air, Bob Karns

Sovereign Air, Lois R. Barton

Tradewind, Eric Zipkin 

Trans States, Fred Oxley

Trans States, Gerry Wigmore

United, Alicia Gabriel

United, James Starnes

US Airways, Benjamin Slocum

US Airways, Howard Kass

US Airways, Jason Reisinger

Warbelows Air Ventures, Art Warbelow