### Order 2011
- 3 - 24 Served: March 18, 2011 

## UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Is sued by the Department of Transportation on the 18 th 

### , 2011

ORDER APPROVING CARRIER SUBSTITUTION By Order 20 09 - 4 - 20 the Department selected Mesaba Airlines, at the time a wholly owned subsidiary

of Delta Air Lines, to provide essential air service at Mason City, Iowa , from June 1, 20 09 , through May 31, 201 1 . Since that time, Mesaba has become a wholly owned subsidiary

of Pinnacle Airlines Corporation, along with Pinnacle Airlines, another wholly

owned subsidiary. By letter dated March 15 , Pinnacle Airlines Corporation requested that its subsidiary, Pinnacle Airlines, be allowed the flexibility to substitute its 50
- seat regional jets for the 34 - seat Saab 340 turboprops of its other subsidiary, Mesaba, at Mason City . The rate s of compens ation would not change from those specified in Order 2009 - 4 - 20 . We have decided to approve Pinnacle’s request. Mason City endorse s the request. Both carriers operate as Delta Connection, and Delta coordinates schedules for both carriers. The weekly

c ompensation ceiling and subsidy rate per flight remain the same as issued in Order 20 09 - 4 - 20 and detailed in Appendix C of that order. Essential Air Service at MASON CI TY, IOWA Under 49 U.S.C. 41731 et seq . Docket DOT - OST - 200 1 - 10684

### - 2 -

ACCORDINGLY, 1. We approve the change in operating carrier requested by Pinnacle Airlines Corporation on behalf of Mesaba and Pinnacle Airlines to meet obligations under Order 20 09 - 4 - 20 at Mason City, Iowa ; 2. This docket will remain open until further order of the Department; and 3. We will serve a copy

of this order on the mayor and airport manager of Mason City, and on Pinnacle Airlines Corporation. 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 on the World Wide Web at http://www.regulations.gov

### Appendix A Page 1 of 2 Subsidy Rate Agreement for the Provision of Essential Air Service by Pinnacle/Mesaba at

Mason City, Iowa , Docket 2001 - 10684

__________________________________ ____________________________________ EFFECTIVE PERIOD: June 1, 20 09 , thru May 31, 201 1 .

________________________________________________________________________ SERVICE: 1 8 round nonstop round trips per week between Mason City and Minneapolis .

_______ _________________________________________________________________ AIRCRAFT TYPE: Saab 340 or CRJ - 200

________________________________________________________________________ TIMI NG OF FLIGHTS: Flights must be well
- timed and well
- spaced to ensure full compensation.

_______________________________________________________________________ RATE PER FLIGHT: $ 612.67 1 WEEKLY CEILING: $ 22,056.12 2

1 Annual compensation of $ 2,225,213 (for Mason City and Ft. Dodge, combined) ÷ 3,632 annual flights, calculated as follows: 36 flights per week x 2 communities x 52 weeks x .97 completion = 3,632 . 2 $ 612.67 times 3 6 flights per week.

### Appendix A Page 2 of 2 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 we ather 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 p eriod 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 f

or lack of traffic will not be com pensated. 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 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. Funds are not currently available for perfo rmance under this solicitation beyond September 30, 2010. The Government’s obligation for performance under this solicitation beyond September 30, 2010, is contingent upon the availability of appropriated funds from w hich 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 September 30, 2010, until funds are made available to the Department for performance. If funds are not made available for performance beyo nd 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 submitted within 60 days of the last day of service provided under this order. This rate assumes an annual completion f actor of 97 percent. A compensation ceiling is to be applied each we ek, such that service above that ceiling in one week cannot make up for service shortfalls in another we ek.