Order 2011

- 5

- 10 Served: May

9, 2011 

### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued b y the Department of Transportation

on the 9 th of May , 2011 Essential Air Service at
GREENVILLE , MISSISSIPPI
Under 49 U.S.C. 41731 et seq

. Docket OST
- 2008
- 0209

ORDER REQUESTING PROPOSALS Summary By this order, the Department is requesting proposals by June 8 , 201 1 , from carriers interested in providing essential air service (EAS) at Greenville , Mississippi , for a new two

- ye ar period, beginning October 1, 2011 , with or without subsidy

. Background By Order 20 10

- 7

- 12 , July

15 , 20 10 , the Department re selected Mesaba Aviation, Inc., d/b/a Delta Connection, (Mesaba) to provide subsidized EAS to Greenville , Missi ssippi , through September 30 , 201 1

. Under that order, the Department authorized annual subsidy for Mesaba of $1,606,662 for 14 nonstop round trips per week to Memphis with 34

- seat Saab 340 equipment

. All of the service was to be provided under a code share agreement with Delta Airlines

. Request for Proposals As the end of the current rate term approach es , we are hereby requesting proposals from carriers interested in providing service to Greenville , with or without subsidy , for the two

- ye ar period beginning October 1, 2011 . Carriers should file their proposals by June 8

. S taff will then docket the proposals, thereb y making them public. Shortly afterwards, we will provide a summary of the proposals to the community and S tate and as k them to submit the ir 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 , if necessary , solicit a new round of proposals. However, we anticipate that n egotiation or rejection will remain only occasional exceptions to the rule.

1 Carriers should not expect the Department to accept late filings. In cases where a c arrier 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 subsidy

- free se rvice as proposed.- 2

-

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 inc lude proposed schedules as well as supporting data for their subsidy requests, such as projected block hours, revenues , and expenses. We strongl y encourage clear, well

documented proposals that will facilitate their evaluation by the affected community an d the Department. We do not anticipate any change in our selection criteria, or in the general provisions governing subsidy pay ments for essential air service. 2 With specific respect to Greenville , we expect proposals consisting of the historical level of service or with two round trips per day ( fourteen per week) if 30

- seat or larger equipment is provided . We would consider proposals offering additional frequencies if the affected community were served in conjunction with another community

. If 19

- seat or smaller equipment is proposed, we expect proposals having three round trips per day

. We encourage proposals that meet the community’s requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they cho ose; they need not limit themselves to the current service pattern if they envision other, potentially more attractive service possibilities

– different hubs, or longer terms for the contracted service

– with subsidy requirements that remain competitive. We encourage carriers to work with the community in advance of the due date for proposals when proposals can still be adjusted so that they can craft them to best meet the community’ s needs. As alway s, we will fully consider the community ’ s views before m aking a long

- term carrier

- selection decision. 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 p age should be formatted to be viewed online.
Historical Traffic In order to assist carriers in making their traffic and revenue projections, we have included historical traffic for the community in Appendix B

. For the period through February 28 , 201 1 , th e most recent annual period, Greenville generated 20.3 daily enplaned passengers based on 313 service day s of service.

2 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c) (1) directs us to consider f our 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 su bsidy 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.- 3

-

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

- f

ree 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 th ose 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, the selected carrier will be required to submit them in order to receive subsidy

. Interested carriers requiring more detailed information regarding these requirements, as well as copies of the certifications, should contact the Off ice of Aviation Analy sis at (202) 366

- 5903 . The Department is prohibited from paying subsidy to carriers that do not submit these documents. Community Comments Civic officials and the State 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 June 8 , the due date for carrier proposals. This order is issued under authority delegated in 49 CFR 1.56a(f) and re

- delegated to the Directo r, Office of Aviation Analy sis. ACCORDINGLY, 1. The Department requests proposals from carriers interested in providing essential air service at Greenville , Mississippi

. Carriers should submit their proposals, with subsidy if nec essary , by June 8 , 201 1

. Proposals should be emailed to EAS@dot.gov, with the title “Proposal to Provide Essential Air Service at Greenville , Mississippi , Docket DOT

- OST

- 2008

- 0209

. ” Questions regarding filings may be directed to Kevin Adams at 202

- 366

- 1 047 or Kevin.Adams@dot.gov ; 2

. This D ocket will remain open until further order of the Department; and

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

-

3 . We will serve this order on the s ervice l ist for this Docket. 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) day s 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 :

T ODD M. HOMA N Director Office of Aviation Analysis (SEAL)
An electronic version of this document is available on the World Wide Web at http://www.regulations.govAppendix A

Nonstop, Great Circle Miles fro m Greenville (GLH) Atlanta, ATL 378 Memphis, MEM 122 New Orleans, MSY 245 Jackson, JAN 97 Birmingham, BHM 244 Columbus, GTR 138 Hattiesburg, PIB 169 This map is provided by Sabre ® AirVision TM Profit Essentials and is being used with express permission of the copyright holder, Sabre Airline Solutions®.Appendix B Historical Traffic at Greenville, Missisippi, (GLH) T-100 Market Report Origin Destination Year Month Passengers Passengers O&D 2007 3 635 572 1,207 2007 4 563 544 1,107 2007 5 712 677 1,389 2007 6 630 572 1,202 2007 7 651 626 1,277 2007 8 679 667 1,346 2007 9 731 666 1,397 2007 10 680 661 1,341 2007 11 799 730 1,529 2007 12 751 726 1,477 2008 1 563 494 1,057 2008 2 459 438 897 YE February 29, 2008 7,853 7,373 15,226 2008 3 541 456 997 2008 4 517 481 998 2008 5 583 553 1,136 2008 6 522 501 1,023 2008 7 607 542 1,149 2008 8 450 452 902 2008 9 372 366 738 2008 10 422 429 851 2008 11 452 506 958 2008 12 535 468 1,003 2009 1 345 303 648 2009 2 283 284 567 YE February 28, 2009 5,629 5,341 10,970 2009 3 378 378 756 2009 4 395 412 807 2009 5 556 529 1,085 2009 6 605 623 1,228 2009 7 854 759 1,613 2009 8 535 567 1,102 2009 9 606 582 1,188 2009 10 474 460 934 2009 11 538 549 1,087 2009 12 514 478 992 2010 1 328 317 645 2010 2 303 281 584 YE February 28, 2010 6,086 5,935 12,021 2010 3 457 457 914 2010 4 390 394 784 2010 5 492 459 951 2010 6 568 523 1,091 2010 7 657 566 1,223 2010 8 502 495 997 2010 9 593 591 1,184 2010 10 615 569 1,184 2010 11 593 622 1,215 2010 12 632 601 1,233 2011 1 447 438 885 2011 2 405 347 752 YE February 28, 2011 6,351 6,062 12,413Appendix 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 th e 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 safel y operated; flights that overfly point s 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 th e national air transportation system provided to the community

. If the Department unilaterally , either partially or completely , terminates or reduces pay ments 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 pay ments 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 s uch cessation. Those adjustments in the levels of subsidy and/or service that are mutuall y agreed to in writing b y the Department and carrier do not constitute a total or partial reduction or cessation of pay ment. Subsidy contracts are subject to, and in corporate 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 currentl y 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 pay ment for services can be made. N o legal liability on the part of the Government for any pay ment 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 b y the Department. All claims for pay

ment must be submitted within 60 days of the last day of service provided under this order

.