Or der: 20 11

- 11

- 5

Served : November 3 , 20 11



### UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3 rd of November , 20 11

Essential Air S ervice at

OWENSBORO

, KENTUCKY

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

- OST

- 2000

- 7855

FINAL ORDER

By Order 2 011

- 10

- 14 , issued October 20

, 20 11 , 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 ( s ee the a ppendix for service levels and subsidy calculations). We did not receive any communication objecting to that Order.

Th erefore, we wi ll make final our tentative findings in Order 20 11

- 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 . Th is 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.govAppendix

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 48 th month thereafter

Scheduled Service : 3 round trips each weekday (Monday through Frida y) and 3 nonstop round trips each weekend (18 total round trips per week) t o Lambert

- St. Louis International Airport

Aircraft : Cessna 402

, 9 seats Rate per Eligible Flight 1
Weekly Ceilin g : $ 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 cancellatio ns, 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 ensure d 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 o f 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 a ir 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 specific location provided for under this order, then, at t he 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 cessatio n. 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 Governmen t’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 l iability 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 1 8, 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 1,8 16 annual departures (36 weekly departures x 52 weeks x 9 7 percent completion)

. 2 3 6 arrivals and departures per week multiplied by $ 843 per flight

.