Order: 2011-11-5

 Served: November 3, 2011

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3rd of November, 2011

Essential Air Service at

OWENSBORO, KENTUCKY

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

 Docket DOT-OST-2000-7855

FINAL ORDER

By Order 2011-10-14, issued October 20, 2011, we tentatively selected Hyannis Air Service, Inc. 

d/b/a Cape Air (Cape Air) to provide subsidized essential air service (EAS) at Owensboro, 

Kentucky, but at service and subsidy levels less than it had proposed. As a result, we gave

Cape Air and the community 10 days to show cause why we should not select Cape Air at the 

service and subsidy levels described in Order 2011-10-14 (see the appendix for service levels 

and subsidy calculations). We did not receive any communication objecting to that Order. 

Therefore, we will make final our tentative findings in Order 2011-10-14.

This order is issued under authority delegated in Order 2011-10-14 to the Director, Office of 

Aviation Analysis. 

ACCORDINGLY,

1. The Department makes final its tentative selection of Hyannis Air Service, Inc. d/b/a Cape 

Air, to provide essential air service at Owensboro, Kentucky, as described in Order 2011-10-14, 

October 20, 2011;

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

3. We will serve copies of this order on the Mayor of Owensboro, Kentucky, the Airport 

Director at Owensboro-Daviess County Regional Airport, Hyannis Air Service, Inc. d/b/a Cape 

Air, Multi-Aero, Inc. d/b/a Air Choice One, SeaPort Airlines, Inc., and TransportAzumah.

By:

TODD HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available at

http://www.regulations.gov
Appendix

Hyannis Air Service, Inc. d/b/a Cape Air

Essential Air Service to be Provided at Owensboro, Kentucky

Effective Period: Four years beginning when Cape Air inaugurates full EAS through the end of 

the 48th month thereafter

Scheduled Service: 3 round trips each weekday (Monday through Friday) and 3 nonstop round 

trips each weekend (18 total round trips per week) to Lambert-St. Louis International Airport

Aircraft: Cessna 402, 9 seats

Rate per Eligible Flight1

Weekly Ceiling

: $843

2: $30,348

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 November 18, 2011. The Government’s 

obligation for performance under this order beyond November 18, 2011, 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 November 18, 2011, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond November 18, 2011, 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 $1,529,913, divided by 1,816 annual departures (36 weekly departures x 52 weeks x 97

percent completion).

2 36 arrivals and departures per week multiplied by $843 per flight.