Order 2010-7-10

Served: July 15, 2010

DELTA STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 15th of July, 2010

Essential Air Service at

RAMPART, ALASKA

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

DOCKET OST-2008-0201

ORDER RESELECTING CARRIER

Summary

By this order, the Department is reselecting Warbelow’s Air Ventures, Inc., to provide essential 

air service (EAS) at Rampart, Alaska, at an annual subsidy rate of $97,679 from October 1, 2010, 

through September 30, 2012.

1

Background

Order 2008-9-20 selected Warbelow’s to provide Rampart with two nonstop round trips per 

week to Fairbanks with 9-seat Piper Navajo aircraft for $86,701 annual subsidy. In anticipation 

of the end of the current contract, by Order 2010-5-23 we requested proposals for replacement 

service. We received a proposal from only one carrier, Warbelow’s, and requested comments 

from the community and state. On June 25 we received comments from the state, and the issue is 

ripe for decision.

Carrier Proposal

Warbelow’s was the only carrier to submit a proposal, and its proposal included only one option: 

two nonstop round trips per week to Fairbanks with 9-seat Piper Navajo aircraft for $97,679 

annual subsidy. This is the same level of service as is currently contracted for, and requires 

slightly more subsidy.

 

1 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of appropriated funds.
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Community Comment

As Rampart has no elected or appointed local officials, we solicited comments from the State of 

Alaska’s Office of Statewide Aviation. We have received their comments, and the state supports 

the continuation of EAS at Rampart.

“Due to the isolated location of this community and the complete lack of any roadsystem connection, this subsidized air service is the only form of scheduled 

transportation. The community of Rampart depends on scheduled air freight, passenger, 

and mail service for basic necessities, routine medical and health services, and 

economic welfare.” 

Decision

Warbelow’s is the only carrier to submit a proposal, it submitted only one option, and we have 

decided to select it for a new, two-year term beginning October 1, 2010. We find that the 

carrier’s proposed service and subsidy level are reasonable for the service proposed, and we are 

not aware of any reason why we should not re-select the carrier to provide the proposed level of 

service. We shall make the selection of Warbelow’s contingent upon the Department’s receiving 

properly executed certifications from the carrier that it continues to comply with the 

Department’s regulations regarding drug-free workplaces, non-discrimination, and lobbying 

activities.

Carrier Fitness

49 U.S.C. 41737(b) and 41738 requires that DOT find an air carrier fit, willing, and able to 

provide reliable service before DOT may subsidize it to provide essential air service. Warbelow’s

Air Ventures, Inc., is subject to the Department’s continuing fitness requirements, and no 

information has come to our attention that would cause us to question the carrier’s fitness at this 

time. DOT has contacted the Federal Aviation Administration, and it has raised no concerns that 

would negatively affect our fitness findings. DOT therefore concludes that the carrier remains fit 

to conduct the operations proposed here.

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 reselect Warbelow’s Air Ventures, Inc., to provide essential air service at Rampart, 

Alaska, as described in Appendix C;

2. We direct Warbelow’s Air Ventures, Inc., to retain all books, records, and other source and 

summary documentation to support claims for payment, and to preserve and maintain such 

documentation in a manner that readily permits its audit and examination by representatives of 

the Department. Such documentation shall be retained 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;
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3. We find that Warbelow’s Air Ventures, Inc., continues to be fit, willing and able to operate as 

a certificated carrier and capable of providing reliable essential air service at Rampart, Alaska; 

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

5. We will serve copies of this order on the Office of Statewide Aviation of the Alaska 

Department of Transportation and Public Facilities, and Warbelow’s Air Ventures, Inc.

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 World Wide Web at

http://www.regulations.gov
Appendix A

Distance to Fairbanks 

LMA, Lake Minchumina 148 

MNT, Minto 50 

MLY, Manley Hot Springs 83 

RMP, Rampart 82 

CEM, Central 104 

IRC, Circle 131 

SVS, Stevens Village 90

ANC, Anchorage 261
Appendix B

Essential Air Service at Rampart, Alaska

Docket 2008-0201

Block Hours 260

Volume Yield

Passengers 234 $93.96 $21,985

Freight 12,860 $0.46 $5,931

Mail 29,420 $0.93 $27,361

 Total Revenue $55,277

Pilot $18,080

Fuel $13,460

Other $4,225

Maintenance $34,167

Depreciation/Rental $20,800

Total Directs $90,732

Indirects $49,627

Total Operating $140,359

Return $12,597

Total Economic Cost $152,956

Annual Subsidy $97,679
Appendix C

Warbelow’s Airlines, Inc., Essential Air Service to be Provided to 

Rampart, Alaska, Dockets OST-2008-0201

Effective Period: October 1, 2010, through September 30, 2012.

Scheduled Service: Two nonstop round trips per week to Fairbanks..

Aircraft: 9-seat Piper Navajo

Rate per Eligible Flight: $470 1

Weekly Ceiling: $1,880 2

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 this rate, 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 contract 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 September 30, 2010. The Government’s 

obligation for performance under this order beyond September 30, 2010, 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, 2010, until funds are made available to 

the Department for performance. If funds are not made available for performance beyond September 30, 2010, 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 $97,679 divided by the estimated annual completed departures and arrivals: 

4 flights/week x 52 weeks = 208 total.

2 4 flights/week x $470.