Order: 2010-7-19

 Served: July 26, 2010

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 26th of July, 2010

Essential Air Service at

PARKERSBURG, WV/MARIETTA, OH

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

 Docket DOT-OST-2005-20734

 

ORDER ESTABLISHING HOLD-IN RATE

Summary

By this order, the Department is establishing a hold-in rate for Colgan Air, Inc. (Colgan) for its

subsidized essential air service (EAS) at Parkersburg, West Virginia/Marietta, Ohio, for the 

period from August 1, 2010, until the replacement carrier, Gulfstream International Airlines 

(Gulfstream) inaugurates service.

Background

In Order 2008-7-22, July 17, 2008, the Department selected Colgan to serve 

Parkersburg/Marietta for the period from August 1, 2008, through July 31, 2010.

By Order 2010-6-25, June 29, 2010, a carrier selection was made at several communities, 

including a change in carrier at Parkersburg/Marietta from Colgan to Gulfstream. In our 

communication with Gulfstream, the replacement carrier, service will not be inaugurated by 

August 1, after Colgan’s current rate expires. Gulfstream currently plans to inaugurate service 

sometime on or about October 1, 2010.

Proposal

Colgan’s proposed hold-in rate compensation for essential air service is shown in Appendix A. 

It also may be accessed online at http://www.regulations.gov by typing in the “DOT-OST-2005-

20734” of this order in the field marked “Enter Keyword or ID” and selecting the “Search” icon. 
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Decision

Consistent with established program policy, we typically use a carrier’s prospective proposal that 

was submitted during the competitive bid process to establish a bridge rate until the new carrier 

inaugurates service. 

After reviewing Colgan’s proposed rate, we have concluded that it appears reasonable for the 

service at issue. We will therefore establish it as the final rate for the carrier’s hold-in service at 

Parkersburg/Marietta, for the period from August 1, 2010, until Gulfstream inaugurates service.

This order is issued under authority delegated in 49 CFR 1.56a(f).

ACCORDINGLY,

1. We set the hold-in rate of compensation for Colgan Air, Inc. for essential air service at

Parkersburg, West Virginia/Marietta, Ohio, as described in Appendix B;

2. We direct Colgan Air, Inc. to retain all books, records, and other source and summary

documentation to support claims for payment, and to preserve and maintain such documentation 

in a manner that readily permits its audit and examination by representatives of the Department. 

Such documentation shall be retained for seven years or until the Department indicates that the 

records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or 

disposed of must be retained. The carrier may forfeit its compensation for any claim that is not 

supported under the terms of this order;

3. This docket will remain open until further order of the Department; and

4. We will serve copies of this order on the mayors of Parkersburg, West Virginia, and Marietta 

Ohio, the manager of Mid Ohio Valley Regional Airport, and Colgan Air, Inc. 

By:

SUSAN L. KURLAND

Assistant Secretary for 

Aviation and International Affairs

(SEAL)

An electronic version of this document is available online at www.regulations.gov
Appendix A

Colgan Air, Inc. (Proposal for Parkersburg)
Appendix B

Colgan Air, Inc.

Essential Air Service to be provided at Parkersburg, West Virginia/Marietta, Ohio

Effective Period: August 1, 2010, until Gulfstream International Airlines inaugurates service.

Scheduled Service: 12 nonstop round trips each week to Washington Dulles.

Aircraft: Saab 340, 34 seats

Rate per Eligible Flight1: $2,146

Weekly Ceiling

2: $51,504

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 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 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 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.

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.

Funds are not currently available for performance under this order beyond September 30, 2010. The Government’s 

obligation for performance under this order beyond September 30, 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 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 beyond September 30, 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 Annual compensation of $2,598,975, divided by 1,211 annual departures (24 weekly departures x 52 weeks x 97 

percent completion).

2 24 arrivals and departures per week multiplied by $2,146 per flight.