Order: 20 10
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- 19 Served : July 26 , 20 1 0


### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued b y the Department of Transportation on the 26 th 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 it s subsidized essential air service (EAS) at Parkersburg, West Virginia/Marietta, Ohio , for the period from August 1, 2010, until the rep lacement carrier, Gulfstream International Airlines (Gul fstream) inaugurates service
. Background In Order 20 08
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- 22, July 17, 2008 , the Department selected Colgan to serve Par kersburg/Marietta for the period from August 1, 2008, through July 31, 2010
. By Order 2010
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- 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 b y August 1, after Colgan’s current rate expires. Gulfstream currentl y 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 ty ping in the “DOT
- OST
- 2005
- 20734 ” of this order in th e field marked “Enter Key word or ID” and selecting the “Search” icon
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Decision Consistent with established program policy , we t ypi cally 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 f or 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 se t the hold
- in rate of compen sation for Colgan Air, Inc. for essenti al air service at Parkersburg, West Virginia/Marietta, Ohio , as described in Appendix B ; 2
. We direct Colgan Air, Inc. to retain all books, reco rds, and other source and summary documentation to support claims for pay ment, and to preserve and maintain such documentation in a manner that readil y permits its audit and examination by representatives of the Department. Such documentation shall be ret ained 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
. Th is 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 Co lgan A ir, Inc. By :

SUSAN L. KURLAND Assistant Secretary for Aviation and International Affairs (SEAL) An electronic version of th is document is available online at www.regulations.govAppendix A Colgan Air, Inc. (Proposal for Parkersburg)Appendix B Colgan A ir, Inc. Essential Air Service to be p rovided at Parkersburg, West Virginia/Marietta, Ohio Effective Period : August 1, 2010, until Gulfstream International Airlines inaugurates service
. Scheduled Service : 1 2 nonstop round trips each week t o Washington Dulles
. Aircraft : Saab 340 , 34 seats Rate per Eligible Flight 1 : $ 2,146 Weekly Ceilin g 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 h as 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 ly , terminates or reduces payments for service or changes service requirements at a s pecific 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 w riting by the Department and carrier do not constitute a total or partial reduction or cessation of paym ent. 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 th e foregoing paragraph. Funds are not currently available for performance under this order beyond September 30 , 20 10. The Government’s obligation for performance under this order beyond September 30 , 20 10 , 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 , 20 10 , until funds are made available to the Department for performance. If funds are not made available for performance beyond September 30 , 20 10 , the Department will provide notice in w riting 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 w eek multiplied by $ 2,146 per flight.