Order 2010-8-8

Served: August 13, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13th day of August, 2010

ORDER SOLITICITING PROPOSALS

Summary

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

essential air service (EAS) at Pendleton, Oregon, for a new two-year period, beginning 

January 1, 2011, with or without subsidy. (See Appendix A for a service area map). Carriers 

should file their proposals no later than September 14, 2010.

 

Background 

By Order 2008-10-25, October 21, 2008, the Department selected Alaska Juneau Aeronautics, 

Inc., d/b/a SeaPort Airlines (SeaPort), to provide three nonstop round trips a day (21 a week) 

between Pendleton and Portland with 9-seat Pilatus-PC-12 aircraft, for the two-year period 

beginning when the carrier inaugurated full service, for a first year subsidy rate of $1,566,729 

and $1,608,394 for the second.

Request for Proposals

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

interested in providing service at Pendleton, with or without subsidy, for the two-year period 

beginning January 1, 2011. Carriers should file their proposals no later than September 14, 2010. 

Staff will then docket the proposals, thereby making them public, and direct each carrier to serve 

a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will 

provide a summary of the proposals to the community and ask them to submit their final 

comments. We will give full consideration to all proposals that are timely filed.1

 1 Carriers should not expect the Department to accept late fillings. 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.

Essential Air Service at

PENDLETON, OREGON

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

Docket DOT-OST-2004-19934
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Interested 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. 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 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.2

With specific respect to Pendleton, the Department expects proposals consisting of either three 

nonstop round trips a day (21 a week) with 9-passenger aircraft or two daily round trips (12 a 

week) with 15-seat or larger aircraft to Portland, the hub that the community has historically 

preferred. We would also entertain proposals to a different hub such as Seattle or San Francisco, 

or additional frequencies if Pendleton would be served in conjunction with another community. 

Such service is generally consistent with what the community currently receives, and fully 

satisfies its essential air service requirements. We encourage proposals that meet those 

requirements in an efficient manner. Carriers are also welcome to propose more than one service 

option, if they choose; they need not limit themselves to those requirements if they envision 

other, potentially more attractive service possibilities with subsidy requirements that remain 

competitive.

We encourage the community and air carriers 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 airline interested in submitting a proposal.

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.

 

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

factors: (a) scheduled service reliability; (b) contractual and marketing arrangements with a larger carrier to ensure 

service beyond the hub; (c) interline arrangements that the applicant has made with a larger carrier at the hub; and (d)

community views, giving substantial weight to the views of the elected officials representing the users. 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. 
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Service and Traffic History 

In order to assist carriers in making their passenger and revenue forecasts, we have included 

historical traffic for Pendleton in Appendix B. During the year ended December 31, 2009, 

Pendleton averaged 12 enplanements a day. However, we note that Pendleton averaged 20 or 

more enplanements per day in the three previous years, and exceeded 40 per day in the early 

2000s.

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 for 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. Because the Department is 

prohibited from paying subsidy to carriers that do not submit these documents, all carriers that 

plan to submit proposals involving 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 Office of Aviation Analysis at 

(202) 366-5903.4

Community and State Comments 

The community and State are welcome to submit comments at any time. We encourage 

prospective applicants to contact the communities before they submit their proposals so that they 

can tailor them to the communities’ 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 September 14, the end of the 30-day period for 

carrier proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We request that carriers interested in providing essential air service at Pendleton, Oregon, 

submit their proposals, with or without subsidy requests, no later than September 14, 2010. The 

proposals should be e-mailed to: EAS@dot.gov with the title “Proposal to Provide Essential Air 

Service at Pendleton, Oregon,” with the docket number corresponding to the communities as 

shown on the first page of this order;5

 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 (non-procurement) 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.

5 Questions regarding filings in response to this order may be directed to Brian Swanson at (202) 366-5392 or 

brian.swanson@dot.gov.
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2. This docket will remain open until further order of the Department; and

3. We will serve copies of this order on the community and the parties listed in Appendix D.

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

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

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

PENDLETON, OREGON

AND SURROUNDING COMMUNITIES
Appendix B

Historical Enplanements1

Pendleton, Oregon

Notes:

1. Source: USDOT Bureau of Transportation Statistics, Form T-100.

2. Origin-destination passengers divided by two.

3. Average annual enplanements divided by 313 effective annual service 

days, except for annual periods ended 12/31/2000, 2004 and 2008 (314 

effective annual service days).

Year Ended Recorded 

Passengers

Average Annual 

Enplanements2

Average 

Enplanements 

Per Service Day3 

31-Dec-00 27,395 13,698 43.6

31-Dec-01 26,555 13,278 42.4

31-Dec-02 20,742 10,371 33.1

31-Dec-03 17,518 8,759 28.0

31-Dec-04 8,836 4,418 14.1

31-Dec-05 11,428 5,714 18.3

31-Dec-06 12,429 6,215 19.9

31-Dec-07 12,459 6,230 19.9

31-Dec-08 14,451 7,226 23.0

31-Dec-09 7,531 3,766 12.0
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 Department 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

SERVICE LIST

Air Greco, d/b/a Wings Air, Aaron Goerlich Kenmore Air, Tim Brooks

Air Greco, d/b/a Wings Air, Charles Mintz Mesa Air Group, Jonathan Ornstein

Air Greco, d/b/a Wings Air, Robert Rupard Mesa Air Group, Michael Lotz

Air Sunshine, Mirmohammad Adili Mesa Air Group, Mike Holcomb

Air Wisconsin, Barbara Jones Mesaba, Max Shemesh

Alaska Airlines, Jeff Cole Mesaba, John Spanjers

Alaska Airlines, Sandy Sinick Midwest Airlines, Anthony Intravia

Allegiant Air, Robert Ashscroft Midwest Airlines, David Reeve

Alliance Air, Paul Berliner Midwest Airlines, Greg Aretakis

American Airlines, Carl Nelson MN Aviation, Jose Maldonado

American Eagle, Jeff Hartz Multi Aero, Darnea

Bemidji Aviation, Arlen Rinkenberger Multi Aero, Shane Storz

Bemidji Aviation, Cori Rude NYDC, Henok Araya

Cape Air, Andrew Bonney Northwest, Aaron Murray

Cape Air, Dan Wolf Northwest, Tim McDonald

Cape Air, J. Flaherty OST, Dennis DeVany, Renee Williams,

Caribbean Sun Airlines, John Rupert OST, Kevin Adams, Brian Swanson

Colgan Air, Mike Colgan Pacific Wings, Frank Ford

Colgan Air, Kevin Scott Pacific Wings, Greg Kahlstorf

CommutAir, Andy Price Pinnacle Airlines, Joe Williams

CommutAir, Joel Raymond Pinnacle Airlines, Phil Reed

Continental, Bruce Keiner Public Charters, Jim Gallagher

Continental, Dan Weiss Salmon Air, Dan Schroeder

Continental, Lorry Halloway Salmon Air, JoAnn Wolters

Delta Air Lines Amy Martin Scenic, Mary Schneider

Delta Air Lines, Jeff Morgan Scenic, Mitzi Daines

Delta Air Lines, Dan Shuman Seaborne Airlines, Wayne D’Amico

Delta Air Lines, Joe Esposito SeaPort Airlines. Rob McKinney

Delta Air Lines, Sascha Vanderbellen Shuttle America, Jerry Balsano

Delta, Karen Zachary SkyWest, Eric Christensen

Executive Airlines, Kate Soled SkyWest, Michael Thompson

Great Lakes Airlines, Chuck Howell Sovereign Air, Bob Karns

Great Lakes Airlines, Doug Voss Sovereign Air, Lois R. Barton

Great Lakes Airlines, Greg Stephens Tradewind, Eric Zipkin

Gulfstream, Dave Hackett Trans States, Bill Mishk

Gulfstream, Mickey Bowman Trans States, Gerry Wigmore

Gulfstream, T. Cooper United, Alicia Gabriel

Homeland Security, Michael Duffy United, James Starnes

Homeland Security, Randy Webb US Airways, Howard Kass

Horizon Air, Dan Russo US Airways, Jason Reisinger

Horizon Air, Jennifer Thompson US Airways, Benjamin Slocum

Horizon Air, Jeff Cole Vintage Props and Jets, Nate Vallier

ICEPR, Luis Irizarry Wings of Alaska, Bob Jacobsen

Island Air Charters, Linda House Wings of Alaska, Michelle Donohue

Jet Air, Daniel Wolford Eastern Oregon Regional Airport, Larry Dalrymple

City of Pendleton, The Honorable Phillip Houk