Order: 2010-1-1 

 Served: January 4, 2010 

 UNITED STATES OF AMERICA 

 DEPARTMENT OF TRANSPORTATION 

 OFFICE OF THE SECRETARY 

 WASHINGTON, D.C. 

Issued by the Department of Transportation 

on the 1st day of January, 2010 

Essential Air Service at 

WEST YELLOWSTONE, MONTANA 

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

 Docket DOT-OST-2003-14626 

 

 

ORDER REQUESTING PROPOSALS 

Summary 

By this order, the Department is requesting proposals from carriers interested in providing 

essential air service (EAS) at West Yellowstone, Montana, for the next two summer seasons 

from June 1 through September 30, with or without subsidy. Proposals are due February 5, 

2010. (See Appendix A for an area map.) 

Background 

By Order 2008-1-4, January 10, 2008, the Department selected SkyWest Airlines, Inc. d/b/a 

Delta Connection (SkyWest) to provide subsidized EAS at West Yellowstone for the 2008 and 

2009 summer seasons at a subsidy rate of $431,996 for each four-month season. Under that 

order, SkyWest provides 14 nonstop round trips per week to Salt Lake City as Delta Connection, 

with 30-seat Embraer Brasilia aircraft. 

Request for Proposals 

In order to give the selected carrier sufficient time to market its services, we request that any carriers 

interested in providing essential air service at West Yellowstone, with or without subsidy, file their 

proposals no later than February 5, 2010. After that date, our staff will docket proposals, thereby 

making them public, and direct each carrier to serve a copy of its proposal on the civic parties and 
- 2 - 

other applicants. Shortly afterwards, we will provide a summary of the proposals to the community 

and ask them to submit their final comments. We will give full consideration to all proposals that 

are timely filed.1 

Interested carriers should prepare their proposals with every expectation that their initial proposals 

will represent their final and only proposals. However, we retain the discretion to negotiate 

proposals with carriers when we deem it desirable; in such cases, of course, we will give all 

applicants the same opportunity. We also retain the discretion to reject outright all unreasonable or 

unrealistic proposals and solicit a new round of proposals. However, negotiation or rejections are 

only occasional exceptions to the rule. 

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 for their proposals. We 

expect proposals to adequately describe the service being proposed and the annual amount of 

subsidy being requested. The applicants can make their own judgments as to the level 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 strongly encourage clear, well-documented proposals that will facilitate their evaluation by 

the affected communities and the Department.2

With respect to West Yellowstone, we ask that carriers submit proposals for two round trips per 

day (14 total round trips per week) with 30-seat or larger aircraft or three round trips per day (21 

total round trips per week) with 19-seat aircraft to Salt Lake City or Denver. We will also 

entertain proposals to serve other hubs that provide access to the national air transportation 

system in order to give the Department and the community as broad an array of proposals as 

possible from which to choose. Of course, as always, we will formally solicit the community’s 

views on any service options we receive before making a long-term carrier selection decision. 

The community 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 interested in submitting a proposal. 

We encourage proposals that meet these requirements in an efficient manner. Carriers are also 

welcome to propose more than one service option, if they choose; they need not limit themselves 

to those requirements if they envision other, potentially more attractive service possibilities -- 

different hubs, for example -- with subsidy requirements that remain competitive. 

 

1 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide 

essential air service without subsidy and we determine that service can be reliably provided without such 

compensation, we do not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s subsidyfree service as proposed. 

2 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 views. In addition, 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 

essential air service will be included in the selection order as part of our authorization of subsidy for the selected 

service. Appendix C of this order contains those general provisions. 
- 3 - 

Carrier proposals should be submitted to the Department with all materials merged into a single 

document. The document will be published on Regulations.gov and each page should be 

formatted to be viewed online. 

Service and Traffic History 

During the 2009 summer season for roughly June 1 through September 30, the most recent period 

for which traffic data are available, West Yellowstone averaged 34.6 enplanements a day.3 In order 

to assist carriers in making their traffic and revenue forecasts, we have included historical traffic 

data in Appendix B. 

Other Carrier Requirements 

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy for 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. Because the Department is 

prohibited from paying subsidy to carriers that do not submit these documents, all carriers that 

plan to submit proposals involving subsidy should be aware that the selected carrier will be 

required to complete the required certifications. Interested carriers requiring more detailed 

information regarding these requirements should contact the Office of Aviation Analysis at 

(202) 366-5903.5

Community and State Comments 

The community and state are welcome to submit comments on the proposals at any time. As 

noted earlier, however, we will provide a summary of the proposals to the civic parties and ask 

them to submit their final comments shortly after February 5, the due date for proposals. 

This order is issued under authority delegated in 49 CFR 1.56a(f) and re-delegated to the 

Director, Office of Aviation Analysis. 

ACCORDINGLY, 

1. We request that carriers interested in providing essential air service at West Yellowstone, 

Montana, during June 1 through September 30, 2010, and 2011, submit their proposals, with or 

without requests for subsidy, no later than February 5, 2010. The proposals should be e-mailed 

 

3 See Appendix B for historical traffic data. Enplanements represent one-half of total origin-and-destination traffic, 

and average enplanements per day are based on 77 weekdays and weekends each quarter, except as noted. 

4 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 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 (nonprocurement) and government-wide requirements for drug-free workplace (grants). 

5 The certifications are also available on the web at http://ostpxweb.dot.gov/aviation/index.html. 
- 4 - 

to EAS@dot.gov, with the title: “Proposal to Provide Essential Air Service at West Yellowstone, 

Montana, Docket DOT-OST-2003-14626; 6

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

3. We will serve copies of this order on the Mayor and operations manager of the Town of West 

Yellowstone, the Montana Department of Transportation, Aeronautics Division, and the parties 

listed in Appendix D. 

Persons entitled to petition the Department for review of this order under the Department’s 

Regulations, 14 CFR 385.50, must file such petitions within ten (10) days after the date of 

service of this order. 

This 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 Analysis 

 (SEAL)

An electronic version of this document is available on the Internet at http://www.regulations.gov

 

 

6 Questions regarding filings in response to this order may be directed via e-mail to Kevin Schlemmer at 

kevin.schlemmer@dot.gov or via phone at (202) 366-3176. 
 Appendix A 

 AREA MAP 

This map is provided by Planet Profitability Forecasting System and is being used with express permission 

of the copyright holder, Sabre Airline Solutions®.
 Appendix B 

Traffic History* 

 

Year Quarter Airport Outbound Inbound Total traffic 

2005 2 WYS 676 838 1,514 

2005 3 WYS 3,690 3,456 7,146 

2006 2 WYS 574 673 1,247 

2006 3 WYS 3,446 2,945 6,391 

2007 2 WYS 610 797 1,407 

2007 3 WYS 3,219 2,833 6,052 

2008 2 WYS 719 833 1,552 

2008 3 WYS 3,461 3,017 6,478 

2009 2 WYS 639 771 1,410 

2009 3 WYS 3,356 3,679 7,035 

Average daily enplanements at West Yellowstone – 34.6** 

*Source – T-100 Market Report, Passengers in Scheduled Passenger Service, includes traffic for SkyWest 

Airlines only. 

**Average daily enplanements is total traffic for the most recent 2 quarters (8,445 for 2Q2009 and 

3Q2009) divided by 122 service days (June 1 – September 30) divided by 2. 
Appendix C 

Example of General Terms and Conditions for Essential Air 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 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. 

Funds are not currently available for performance under this solicitation beyond [DATE]. 

The Government’s obligation for performance under this solicitation beyond [DATE], is 

contingent upon 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 [DATE], until funds are made available to the 

Department for performance. If funds are not made available for performance beyond 

[DATE], the carrier will receive notice in writing by the Department. 

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. 

All claims for payment must be submitted within 60 days of the last day of service 

provided under this order. 
Appendix D 

Scheduled Air Carriers, Contiguous US and Puerto Rico 

Air Sunshine, Inc. Jet Air, Daniel Wolford 

Air Sunshine, Mirmohammad Adili Kenmore Air, Tim Brooks 

Air West, Inc., John Raatz McCall Aviation and Salmon Air, Dan Scott 

Air Wisconsin, Annette Daly McCall Aviation, Michelle 

Airline Associates, Bill Mishk Mesa, Jonathan Ornstein 

Alaska Airlines, Jeff Cole Mesa, Michael Lotz 

Alaska Airlines, Sandy Sinick Mesa, Mike Holcomb 

Allegiant Air, Robert Ashscroft Mesaba, John Spanjers 

American Airlines, Carl Nelson Mesaba, Max Shemesh 

American Eagle, Jeffrey Hartz Midstar Airlines, Jeffrey Fonner 

Atlantic Southeast, Jon Lindlief Midwest Airlines, Anthony Intravia 

Atlantis Southeast, Roger Weston Midwest Airlines, Greg Aretakis 

Bemidji Aviation, Cori Rude Midwest Airlines, J.C. Augustson 

Bemidji Aviation, Arlen Rinkenberger MN Aviation, Jose Maldonado 

Cape Air, Andrew Bonney Multi Aero, Darnea 

Cape Air, Dan Wolf Multi Aero, Shane Storz 

Cape Air, J. Flaherty Northwest, Tim McDonald 

Classic Aviation, Tony Henderson NYDC, Henok Araya 

Colgan Air, Mike Colgan OST, Brian Swanson 

CommutAir, Andy Price OST, Dennis DeVany 

CommutAir, Joel Raymond OST, Kevin Adams 

Consultant, Robert Silverberg OST, Kevin Schlemmer 

Continental, Bruce Keiner OST, Michael Martin 

Continental, Dan Weiss OST, Renee Williams 

Continental, Lorry Halloway Pacific Wings, Frank Ford 

Delta, Amy Martin Pacific Wings, Greg Kahlstorf 

Delta, Dan Shuman PenAir, Danny Seybert 

Delta, Jeff Morgan PenAir, Scott Bloomquist 

Delta, Joe Esposito Pinnacle Airlines, Joe Williams 

Delta, Karen Zachary Pinnacle Airlines, Phil Reed 

Delta, Sascha Vanderbellen Public Charters, Jim Gallagher 

Dorado Jets Scenic, Mary Schneider 

Dorado Jets, Mark McKenna Scenic, Mitzi Daines 

Era Aviation, Mike Lenorman Seaborne Airlines, Wayne D'Amico 

Executive Airlines, Kate Soled SeaPort Airlines, Jim Day 

Frontier Flying, Bob Hajducovich SeaPort Airlines, Rob McKinney 

Gem Air, Dan Schroeder Shuttle America, Jerry Balsano 

Gem Air, JoAnn Wolters SkyWest, Eric Christensen 

Great Lakes, Chuck Howell SkyWest, Michael Thompson 

Great Lakes, Doug Voss Sovereign Air, Bob Karns 

Great Lakes, Greg Stephens Sovereign Air, Lois R. Barton 

Gulfstream, Dave Hackett Tradewind, Eric Zipkin 

Gulfstream, Mickey Bowman TransStates, Fred Oxley 

Gulfstream, T. Cooper TransStates, Gerry Wigmore 

Homeland Security, David Bernier United, Alicia Gabriel 

Homeland Security, Randy Webb United, James Starnes 

Horizon Air, Dan Russo US Airways, Benjamin Slocum 

Horizon Air, Jennifer Thompson US Airways, Howard Kass 

Horizon Air, Jeff Cole US Airways, Jason Reisinger 

ICEPR, Luis Irizarry Warbelows Air Ventures, Art Warbelow 

Island Air Charters, Linda House Wings Air (Air Greco), Aaron Goerlich