Order 2013-9-21

Served: September 30, 2013

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 30th day of September, 2013

ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (EAS) at Saranac Lake/Lake Placid, New York, for a new contract

period, beginning March 1, 2014, with subsidy support if necessary. (See Appendix A for a 

map). Carriers should file their proposals no later than October 30, 2013.

Background

By Order 2010-3-27, March 25, 2010, the Department re-selected Hyannis Air Service, Inc., 

d/b/a Cape Air (Cape Air), to provide subsidized EAS at Saranac Lake/Lake Placid for the 

period from March 1, 2010, through February 28, 2014. Under that Order, Cape Air provides 

the community with three daily (21 weekly) nonstop round trips to Boston Logan International 

Airport (BOS) with twin-engine, nine-seat Cessna 402 aircraft for an annual subsidy of 

$1,366,538. 

Request for Proposals

As the end of the current contract approaches, the Department is requesting proposals from 

carriers interested in providing EAS at Saranac Lake/Lake Placid, with subsidy support if 

necessary, for a new contract period beginning March 1, 2014. Carriers should file their 

proposals no later than October 30, 2013. Staff will then docket the proposals, thereby 

making them public. 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 

EAS 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 will not proceed with the carrier-selection case. Instead, we 

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

Essential Air Service at

SARANAC LAKE/LAKE PLACID, NEW YORK

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

Docket DOT-OST-2000-8025
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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; 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 and rejection are only occasional exceptions 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, we recommend they include information 

concerning proposed schedules and projected block hours. In addition, applicants are 

encouraged to provide financial data supporting their subsidy requests, including information 

on their projected expenses and revenues. We strongly encourage clear, well-documented 

proposals that will facilitate their evaluation by the affected communities and the 

Department.2

The Department expects proposals that are consistent with what the community currently 

receives, with service to a suitable hub airport that provides numerous connecting 

opportunities to the national air transportation system. We encourage proposals that meet 

these guidelines in an efficient manner. Carriers are also welcome to propose more than one 

service option, if they choose. They also need not limit themselves to these requirements if 

they envision other, potentially more attractive service possibilities -- different hubs or length 

of contract, for example -- with subsidy requirements that remain competitive.

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 EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c) (1) 

directs us to consider five factors: (a) service reliability; (b) contractual and marketing arrangements with a 

larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, giving 

substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has 

included a plan in its proposal to market its service to the community. In addition, the Consolidated and Further 

Continuing Appropriations Act, 2012, Public Law No. 112-55, and continued by the Full-Year Continuing 

Appropriations Act, 2013, Public Law No. 113-6, 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

We have provided some historic traffic data for the community in Appendix B. Traffic has 

been rising steadily in the market since Cape Air began serving the route in 2008, growing 

from 8,112 annual passengers in 2008 to 11,909 passengers in 2012.

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 EAS 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 contract 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 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 

shortly after the deadline for carrier proposals, and ask them to submit their final comments.

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 -- 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; (3) 49 CFR Part 27 -- Nondiscrimination on the Basis of 

Disability in Programs and Activities Receiving or Benefiting from Federal Financial Assistance; (4) 

14 CFR Part 382 -- Nondiscrimination on the Basis of Disability in Air Travel; and (5) 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://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service. 
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ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at 

Saranac Lake/Lake Placid, New York, submit their proposals, with subsidy support if 

necessary, no later than October 30, 2013. The proposals should be e-mailed to: 

EAS@dot.gov with the title “Proposal to Provide EAS at Saranac Lake/Lake Placid, 

New York”;5

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

3. We will serve copies of this Order on the mayors of Saranac Lake and Lake Placid,

New York, the town supervisor of Harrietstown, New York, the airport manager of 

Adirondack Regional Airport, and the service list for this docket.

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

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

online at http://www.regulations.gov. 

 5 Questions regarding filings in response to this Order may be directed to A.J. Muldoon at (202) 366-1058 or

albert.muldoon@dot.gov. 
Appendix A

SARANAC LAKE/LAKE PLACID, NEW YORK

REGIONAL MAP
Appendix B

EAS Carrier Traffic

Saranac Lake/Lake Placid, NY (SLK)

Period

Origin & 

Destination 

Passengers1

Annual 

Enplanements2

Average 

Enplanements 

per Service Day3

2008 8,112 4,056 13.0

2009 9,463 4,732 15.1

2010 11,336 5,668 18.1

2011 11,543 5,772 18.4

2012 11,909 5,955 19.0

1Q-2013 1,797 899 11.5

Notes:

1. Source: Bureau of Transportation Statistics T-100 Market.

2. Origin-destination passengers divided by two.

3. Annual enplanements divided by 313 annual service days (314 in leap years).
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 complete, 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.

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.

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.

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.