### Order: 2010

- 2

- 2 8

Served: February 26, 2010



## UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 26 th 

### day of February , 20 10

Essential Air Service at

ALTOONA, PENNSYLVANIA

JOHNSTOWN, PENNSYLVANIA Docket DOT

- OST

- 200 2

- 11446

Docket DOT

- OST

- 2002

- 11451

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



## ORDER REQUESTING PROPOSALS

Summary

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

essential air service (EAS) at Altoona and Johnstown, Pennsylvania

, for the two

- year

p eriod beginning July 1, 2010

, with or without subsidy

. Proposals are due by

March 24, 2010

. (See A ppendix A for a map.)

Background

By Order 2008

- 6

- 10

, the Department selected Colgan Air Inc., operating as United

Express (Colgan)

, to provide each commun ity 18 weekly nonstop or one

- stop round trips

to, at an annual subsidy of $ 2,788,785

, for the two

- yea r period from June 1 5

, 2008

, through June 30

, 2010

.

Request for Proposals

As the end of the curre nt contract approaches on June 30 , we are here requesting proposals

for a new two

- year period beginning June 1. Interested carriers should prepare their

prop osals 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 applicant s the same

### - 2

-

opportunity. We also retain the discretion to reject outright all unreasonable or unrealistic

proposals and resolicit a new round of proposals. However, we anticipate that negotiation

or rejection will remain only occasional exceptions to the rule.

We are here providing interested carriers with some basic information to assist them as

they prepare their proposals, but we will not prescribe a precise format for their

preparation. We expect proposals to adequately describe the service being pr oposed and

the annual amount of subsidy being requested. 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 community and the Department. 1



### With specific respect to Altoona and Johnstown

, if carriers propos e to serve both

communities on shared flights, we expect proposals consisting of three round trips on

weekdays and weekends with 34

- seat aircraft, or four round trips with 19

- seat aircraft , or

five round trips with 9

- seat aircraft, to Washington Dulles, Ph iladelphia, Pittsburgh,

Cleveland, Detroit, or another suitable hub where connections to the national air

transportation system can be made. If the communities are served independently, we

would expect proposals for two round trips a day with 34

- seat airc raft, three round trips a

day with 19

- seat aircraft or four round trips with 9

- seat aircraft.

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

-- different hubs, for example

-- with subsidy requirements that remain

competitive.

New Filing Procedures

Carrier proposals s hould 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

.



### Historical Traffic

In order to assist prospec tive applicants in making traffic and revenue forecasts, we have

included historical passe nger data from 2005 through October 31, 2009

, in Appendix B.

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

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

to ensure service beyond the hub; (3) interline arrangements that the applicant has made with a larger carrier

at the hub; and (4) community views, giving su bstantial 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 subs idy

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 o ur 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 govern ing

lobbying activities, drug

- free workplaces, and nondiscrimination. 1 

### 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

n ondiscrimination, 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 expected to complete the required

certifications. Interested carriers requiring more detailed in formation regarding these

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

Analysis at (202) 366

- 5903. 2



### Community and State Comments

The communit ies and the state are welcome to submit comments at any time. We

en courage prospective applicants to contact the communit y before they submit their

proposals in order to tailor them to the communit y ’ s needs. As noted earlier, we will

provide a copy of the proposals to the civic parties and ask them to submit their final

comments shortly after March 4 , the deadline for filing carrier proposals.

This order is issued under authority delegated in 49 CFR 1.56a(f) a n d re

- delegated to the

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers intereste d in providing essential air service at Altoona and

Johnstown, Pennsylvania , submit their proposals, with or without subsidy requests, no later

than March 24, 2010

. The proposals should be e

- mailed to EAS@dot.gov , with the title:

“Proposal to Provide Esse ntial Air Service at Altoona and /or Johnstown, Pennsylvania

, Docket OST

- 2002

- 11446 and DOT

- OST

- 2002

- 11451 ”; 3



### 2. Th ese docket s will remain open until further order of the Department; and

1 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).

2 The certifications are also available on the World Wide Web at http://ostpxweb.dot.gov/aviation/index.html

. 3 Questions regarding filings in response to this orde r may be directed to Michael M artin at ( 202) 366

- 6494,

and proposals should be emailed to EAS@dot.gov

, no later than March 24, 2010

.

### - 4

-

3. We will serve copies of this order on the Mayor s of Altoona and J ohnstown , the airport

manager s of the Altoona and Johnstown Airport, the governor of Pennsylvania, Colgan Air

Inc. , and the carriers listed in Appendix D.

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

Regulati ons, 14 CFR Part 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 ava ilable on the World Wide Web at

http://www.regulations.gov

### Appendix A



# AREA MAP

### Appendix B

Page 1 of 2



## Historical Passenger Tr affic at Altoona, Pennsylvania 1

Enplanements at Altoona

2005 2006 2007 2008 2009

1Q 1,443 1,415 1,186 1,713 1,944

2Q 1,621 1,550 1,179 3,161 1,709

3Q 1,891 1,668 838 2,431 1,426

4Q 1,766 1,685 948 2,401 1,351

Totals 6,721 6,318 4,151 9,706 6,430

Deplanements at Altoona

2005 2006 2007 2008 2009

1Q 1,407 1,379 1,180 1,115 1,871

2Q 1,620 1,586 1,192 2,476 1,680

3Q 2,013 1,513 904 1,624 1,449

4Q 1,796 1,511 947 2,293 1,388

Totals 6,836 5,989 4,223 7,508 6,388

Total Or igin and Destination

Passengers

2005 2006 2007 2008 2009

1Q 2,850 2,794 2,366 2,828 3,815

2Q 3,241 3,136 2,371 5,637 3,389

3Q 3,904 3,181 1,742 4,055 2,875

4Q 3,562 3,196 1,895 4,694 2,739

Totals 13,557 12,307 8,374 17,214 12,818

1 Source: Department of Transportation, Bureau of Transportation Statistics, T

- 100 Market data

.

### Appendix B

Page 2 of 2



## Historical P assenger Traffic at Johnstown, Pennsylvania 1

Enplanements at Johnstown

2005 2006 2007 2008 2009

1Q 2,722 2,376 2,094 1,957 1,500

2Q 3,171 2,656 2,938 1,535 2,237

3Q 3,832 3,009 2,673 2,577 2,252

4Q 2,934 2,587 2,012 1,517 1,967

Totals 12,659 10, 628 9,717 7,586 7,956

Deplanements at Johnstown

2005 2006 2007 2008 2009

1Q 2,434 2,344 1,912 1,387 1,322

2Q 3,070 2,915 2,714 999 2,235

3Q 3,352 2,961 2,513 1,789 2,273

4Q 2,780 2,473 1,878 1,608 2,000

Totals 11,636 10,693 9,017 5, 783 7,830

Total Origin and Destination

Passengers

2005 2006 2007 2008 2009

1Q 5,156 4,720 4,006 3,344 2,822

2Q 6,241 5,571 5,652 2,534 4,472

3Q 7,184 5,970 5,186 4,366 4,525

4Q 5,714 5,060 3,890 3,125 3,967

Totals 24,295 21,321 18,734 13,3 69 15,786

1 Source: Department of Transportation, Bureau of Transpor tation Statistics, T

- 100 Market data

.

### 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, inclu ding 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; abs ent 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 fli ghts 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 serv ice 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 disallowe d, 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 o r 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, t he 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

carrie r do not constitute a total or partial reduction or cessation of payment.

Funds are not currently available for performance under this solicitation beyond September 30,

2010 . The Department’s obligation for perform ance under this solicitation beyond Sept ember

30, 2010 , 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 September 30, 2010 , u ntil funds are made available to

the Department for performance. If funds are not made available for performance beyond

September 30, 2010 , the carrier will receive notice in writing by the Department.

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 must be sub mitted 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, d/b/a Wings Air, Aaron Goerlich Kenmore Air, Tim Brooks

Air Greco, d/b/a Wings Air, Charles Mintz Mesa Air Gro up, 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

Ameri can 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 Air lines, 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 Am y 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 Ame rica, 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 St arnes

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