Order 2011
- 6
- 27 Served: June 27, 2011


### UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued b y the Department of Transportation on the 27 th day

of June , 20 11 Essential Air Service at CEDAR CITY, UTAH Under 49 U.S.C. 41731 et seq . DOCKET DOT - OST - 2003 - 16395



### ORDER REQUESTING PROPOSALS Summary By this order, the Departme nt is requesting proposals from airlines interested in providing essential air service (EAS) at Cedar City , Utah , for a new term beginning January 1 , 2012, with or without subsidy . Proposals are due b y August 3, 2011 . (See Appendix A for a map.) Background By Order 2009
- 11
- 17 , November 5 , 2009, the Department selected Sky West Airlines (Sky West) , to provide EAS at Cedar City for the period from J anuary 1, 2010 , through December 31 , 2011, for an annual subsidy of $ 1,477,125 to provide 12 nonstop round trips per week to Salt Lake City International Airport (Salt L ake City)
. Request for Proposals As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at Cedar City , with or without s ubsidy support, for a new term beginning January 1, 20 1 2 . Carriers should file their proposals n o later than August 3, 2011
. After that date, our staff will docket proposals, thereb y making them public, and shortl y afterwards will provide a summary of the proposals to the community and ask them for their final comments. We will give full considerat ion to all proposals filed in a timely manner. Interested carriers should prepare their proposals with every expectation that their initial proposals will also be their final and only proposals. We retain the discretion to negotiate proposals with carri ers when we deem it desirable. We also retain the discretion to reject outright all unreasonable or unrealistic proposals and solicit a new round of proposals.- 2
-

We are here providing interested carriers with some basic information to serve as guidance when they

prepare their proposals, but we will not prescribe a precise format. We expect proposals to adequatel y describe the service being proposed and the annual amount of subsidy being requested. The applicants can make their own judgments as to the l evel of detail they wish to present; however, they might want to include proposed schedules as well as supporting data for their subsidy requests, such as projected block hours, revenues and expenses. We strongl y encourage clear, well
- documented proposals that will facilitate their evaluation b y the affected community and the Department. 1 Proposals should provide sufficient capacity to accommodate historical levels of traffic. In order to assist carriers in developing traffic and revenue projections for their proposals, we have provided a summary of historical passengers in Appendix B. W e expect service levels that are c ons istent with what the community currently receive s , with service to Salt L ake City , or an y hub that offers access to the national air transportation sy stem utilizing 15
- seat or larger aircraft
. Specifically , for proposals with 30 to 34
- seat aircraft, the Department expects proposals for two round trips each weekday and three each weekend (13 a week)
. For proposals with 19
- seat aircraft, we would expect proposals for three round trips a day (18 a week). We would also entertain proposal s with 8/9
- seat aircraft and additional frequencies. Should the community agree to aircraft with few er than 15 passe nger seats, in effect waiving their right t o 15
- seat or larger aircraft, we would consider the waiver to apply onl y to the two
ye ar carrier
- selection at hand, i.e. we would not assume that the community would waive their rights for all time. As alway s, we will formally solicit the community ’ s views on an y service options we receive before making a long
- term carrier selection decision. Carriers are also welcome to propose more than one option, if they choose; they

need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities
-- different hubs, frequency or equipment, for example
-- with subsidy requirements that remain competitive. The communities and air carriers are encouraged to work together in advance of the due date for proposals to craft a service pattern that is desirable to the community and meets the operational needs of the airline s . New Filing Procedures Carrier proposals should be submitted to the Department with all materials merged into a single document. In addition, because the document will be published on Regulations.gov, each page should be formatted to be viewed online. Other Carrier Requirements The Department is responsible for implementing various Federal statutes governing lobb yi ng activities, drug
- free workplaces and nondiscrimination. 2 Consequently , all carriers recei ving
1 In selecting a carrier to provide subsidized essential air service, 49 U.S.C. 41733(c)(1) directs us to consider four factors: (1) service reliability; (2) contractual and marketing arrangements with a larger carrier at the hub; (3) interline arrangements with a larger carrier at the hub; and (4) community vie ws. In addition, the Consolidated Appropriations Act, 2008, Public Law 110
- 161 , provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy requirements, thus codifying a factor that we have considered since the inception of the program. Interested carriers should also be aware that our general provisions governing EAS will be included in the selection order as part of our authorization of subsidy for the se lected service. Appendix C of this order contains those general provisions. 2 The regulations applicable to these areas are: (1) 49 CFR Part 20

– New restrictions on lobbying; (2) 49 CFR Part 21

– Nondiscrimination in federally
- assisted programs of the Department of Transportation

– Effectuation of- 3
-

Federal subsidy to support essential air service must certify that they are in compliance with Department regulations regarding drug
- free workplaces and nondiscrimination, and those carriers whose subsidies exceed $100,000 over the life of the rate term must also certify that they are in compliance with the regulations governing lobbying activities. All carriers that plan to submit proposals involving subsidy should submit the required certifications along with their proposals. Interested carriers re quiring more detailed information regarding these requirements, as well as copies of the certifications, should contact the Office of Aviation Analy sis at (202) 366
- 5903. The Department is prohibited from paying subsidy to carriers that do not submit thes e documents. 3 Community and State Comments Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, we will provide a summary of the proposals to the civic parties and ask them to submit their final comments shortly after August 3 , the due date for carrier proposals. This order is issued under authority delegated in 49 CFR 1.56a(f) and re
- delegated to the Director, Office of Aviation Analy sis. AC CORDINGLY, 1. We request that carriers interested in providing essenti al air service at Cedar City , Utah , submit their proposals, with or without subsidy requests, no later than August 3 , 2011 . The proposals should be emailed to: EAS@dot.gov with the title “Proposal to Provide Essential Air Service at Cedar City , Utah ”; 4 2. This docket will remain open until further order of the Department; and

title VI of the Civil Rights Act of 1964; 49 CFR Part 27

– Nondiscrimination on the basis of disability in programs and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382

– Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29

– Government
- wide debarment and suspension (non
procurement) and government
- wide requirements for drug
- free workplace (grants). 3 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html. 4 Questions regarding filings in response to this order should be directed to Michael Martin at 202
- 366
- 6494, or via email at michael.f.martin@dot.gov
.- 4
-

3. The Department will serve a cop y of this order on the mayor and airport manager of Cedar City , Sky West Airlines, and the service list for this Docket
. Persons entitled to petition the Department for review of this order under the Department’s Aviation Economic Regulations, 14 CFR 385.50, must file such petitions within ten (10) day s after the date of service of this order. Thi s 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 Anal ysis (SEAL) An electronic version of this document is available on line at www.regulations.gov

### Appendix A 

## Area Map

### APPENDIX B Historical Origin - Destination Plane Traffic 1



### Cedar City , Utah Quarter Year Deplanements Enplanements Total Traffic Enplanements

per Day 1 2008 1,857 1,851 3,708 24 2 2008 1,994 2,047 4,041 26 3 2008 2,103 2,131 4,234 27 4 2008 1,825 1,733 3,558 23 An nual Totals 7,779 7,762 15,541 25 1 2009 1,078 1,100 2,178 14 2 2009 1,314 1,356 2,670 17 3 2009 1,209 1,242 2,451 16 4 2009 1,620 1,702 3,322 21 An nual Totals 5,221 5,400 10,621 17 1 2010 974 1,067 2,041 13 2 2010 1,199 1,298 2,497 16 3 2010 1,753 1,729 3,482 22 4 2010 1,618 1,817 3,435 22 An nual Totals 5,544 5,911 11,455 18

1 Source: USDOT Bureau of Transportation Statistics, TransStats Intermodal Database, Schedule T
- 1 00
.

### Appendix C

Example of General Terms and Conditions for Essential A ir 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 require d 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, su ch 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 Analy sis 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 safel y operated; flights that overfl y points for lack of traffic will not be compensated. In determining whether subsidy pay ment 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 e xtent of access to the national air transportation sy stem provided to the community
. If the Department unilaterally , either partially or completely , terminates or reduces pay ments 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 pay ments 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 requir ement 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 pay ment. Subsidy contracts are subject to, and incorporate by reference, relevant statutes and Department regulations, as they

may be amended from time to time. However, an y such statutes, regulations, or amendments thereto shall not operate to controvert the foregoing paragraph. F unds are not currently

available for performance under this solicitation beyond [DATE] . The Department’s obligation for performance under this soli citation beyond [DATE] , is contingent upon the availability

of appropriated funds from which pay ment for services can be made. No legal liability

on the part of the Government for any pay ment may arise for performance under this order beyond [DATE] , until funds are made availa ble to the Department for performance. If funds are not made available for performance beyond [DATE] , the carrier will receive notice in writing b y the Department. All claims for pay

ment must be submitted within 60 day s of the last day of service provide d under this order.