Order 2011
- 3
- 18 Served: March 15, 2011 

### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION 

### OFFICE OF THE SECRETARY WASHINGTON, D.C.

Is sued by the Department of Transportation on the 15 th of March, 2011 Essential Air Service at ANGOON , ALASKA, AND TE NAKEE , ALASKA Under 49 U.S.C. 41731 et seq . DOCKET OST - 200 6 - 25542 DOCKET OST - 200 6 - 25542
Order Amending Payout Formula By Order 201 0
- 12
- 7 the Department selected Alaska Seaplane Service, LLC, to provide essential air service (EAS) at Angoon and Tenak ee , Alaska. Alaska Seaplane’s annual subsidy rates remain unchanged . T he carrier has now requested that its payout be changed so that it receives constant subsidy rates per flight year round, rather than constant payouts per week , year round
. This simpl ifies matters for the carrier, making its subsidy payout formula at Angoon and Tenakee consistent with Pelican and Elfin Cove in Order 2011
- 3
- 11. Since this does not affect the total annual subsidy , we will honor the request, as reflected in Appendices C
- 1A and C
- 1B of this order. This order is issued under authority delegated in 49 CFR 385.12 (k)(4). ACCORDINGLY, 1. The Department amends the payout formula for Angoon and Tenakee as shown in Appendix C
- 1 A and C1B ; 2 . Th is docket will remain open until further order of the Department; and 3 . We will serve copies of this order on Alaska Seaplane Service, LLC, and on the state of Alaska
.- 2 -

Persons entitled to petition the Department for review of this order under the Department’s Regulations, 14 CF 38 5.5, must file such petitions within ten (10) days after the date 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 Analy sis (SEAL) An electronic version of this document is available on the World Wide Web at http://www.regulations.govAppendix C
- 1 A Alaska Seaplane Service, LLC ., Essential Air Service to be Provided to

Angoon , Alaska , Docket OST
- 200 2
- 11586 Effective Period : February 1, 2011 , through January 31, 2015
. Scheduled Service : Ten nonstop round trip s per week in the 18
- week peak and five nonstop round trips per week in the 34
- week off
- peak to Junea

u . Aircraft : DeHavilland Beaver, six seats Rate per Eligible Flight: $208 1

. Weekly Ceiling : Peak, $ 4,160 2 ; Off
- Peak $2,080 3 Note: The carrier understands that it may forfeit its compensation for any flights that it does not operate in conformance with th e 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 schedule d 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 this rate, it must first notify the Office of Aviation Analysis in wr iting 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 d eviating 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 complete ly , 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 w hich 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 w riting by the Department and carrier do not constitute a total or partial reduction or cessation of payment. Subsidy contract are subject to, and incorporate by reference, relevant statutes and Department regulations, as they may be amended fr om

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 order beyond December 3, 2010 . The Government’s obligat ion for performance under this order beyond December 3, 2010 , is subject to 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 unde r this order beyond December 3, 2010 , until funds are made available to the Department for performance. If funds are not made available for performance beyond December 3, 2010 , the Department will provide notice in writing to the carrier. All claims for payment must be submitted within 60 days of the last day of se rvice provided under this order.
1 $145,734 annual subsidy ÷ by 700 flights, calculated as follows: Peak: 10 trips per w eek * 2 directions * 18 weeks = 360. Off
- Peak: 5 trips per w eek * 2 directions * 34 weeks = 340. 2 $208 per flight x 20 flights per w eek = $4,160. 3 $208 per fl ight x 10 flights per week = $2,080.Appendix C
- 2 A Alaska Seaplane Service, Inc., Essential Air Service to be Provided to

Tenakee, Alaska, Dockets OST
- 2006
- 25542 Effective Period : Febr

uary 1, 2011, through January 31, 2015. Scheduled Service : Seven nonstop round trips per week in the peak and three nonstop round trips per week in the off

- peak to Juneau. Aircraft : DeHavi lland Beaver, six seats Rate per Eligible Flight: $ 297 1 Weekly Ceil ing : Peak, $ 4,158 2 ; Off
- Peak $1,782 3 Note: 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 orde r 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 this rate, it must first notify the Office of Avi ation Analysis in wr iting 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 c om plete 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 exte nt to w

hich 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 change s service requirements at a specific location provided for under this order, then, at the end of the period for w hich 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 r eduction or cessation of payment. Subsidy contract 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 order beyond December 3, 2010. The Government’s obligation for performance under this order beyond December 3, 2010, is subject to the availab ility 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 December 3, 2010, until funds are made available to the Department for performance. If funds are not made available for performance beyond December 3, 2010, the Department will provide notice in writing to the carrier. All claims for payment must be submitted within 60 days of the last day of service provided under this order. 1 $135,576 annual subsidy ÷ 456 flights, calculated as follows: Peak: 7 trips/week* 2 directions *18 weeks = 252. Off
- Peak: 3 trips/week * 2 directions * 34 weeks = 204. 2 Peak: 14 flights/week * $297
. 3 Off
- Peak: 6 flights/week * $297.