Order 2014-12-2

Served: December 3, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 3rd day of December, 2014

 Essential Air Service at

EL CENTRO, CALIFORNIA 

Under 49 U.S. C. § 47131 et seq.

 DOCKET DOT-OST-2008-0299

 

 

ORDER REQUESTING PROPOSALS

Summary

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

Essential Air Service (EAS) at El Centro, California, with or without subsidy support, beginning 

May 1, 2015. Proposals are due January 7, 2015. (See Appendix A for a map.) 

Background

By Order 2013-1-2, issued on January 2, 2013, the Department selected SeaPort Airlines, Inc. 

(SeaPort) to provide subsidized EAS at El Centro, using 9-seat Cessna Caravan aircraft, with 29

nonstop round trips per week to San Diego, from May 1, 2013, through April 30, 2015, at an 

annual subsidy rate of $1,943,751. 

That Order, as well as the complete public file for EAS at El Centro, may be accessed online 

through the Federal Docket Management System at www.regulations.gov, by entering “DOTOST-2008-0299” in the “SEARCH for: Rules, Comments, Adjudications or Supporting 

Documents:” field.

Legislative Changes that Affected El Centro

The Federal Aviation Administration (FAA) Modernization and Reform Act of 2012 (Public 

Law No: 112-95) amended 49 U.S.C. § 41731(a)(1)(B) to change the definition of “eligible 

place” for the purpose of receiving EAS. The amendment states that to be eligible, a community 

must maintain an average of 10 enplanements or more per service day, as determined by the 

Secretary, during the most recent fiscal year beginning after September 30, 2012. The legislation 

exempts locations in Alaska and Hawaii and communities that are more than 175 driving miles 

from the nearest large- or medium-hub airport. As El Centro is located within 175 miles of San 

Diego International Airport (SAN), a large-hub airport, it is required to meet the 10-

enplanement-a-day threshold for EAS to continue or otherwise face termination of its eligibility 

to receive EAS, barring a waiver from the Secretary. 
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By Order 2014-4-26, issued on April 24, 2014, the Department issued a show-cause Order 

directing interested parties to submit objections to the Department’s tentative findings that El 

Centro enplaned fewer than 10 passengers per day. In response to that Order, the Department 

received objections from the community, but none of those objections disputed our findings that 

El Centro enplaned fewer than 10 passengers per day during FY 2013.

By Order 2014-6-6, issued on June 24, 2014, the Department made final its tentative decision in 

Order 2014-4-26, thereby terminating the EAS eligibility of El Centro. On July 22, 2014, Mr. 

Ralph Cordova, Jr., Imperial County Executive Officer, submitted an application for a waiver on 

behalf of the community of El Centro. 

By Order 2014-9-21, issued on September 26, 2014, the Department granted the waiver petition 

submitted on behalf of El Centro. That Order states that El Centro’s compliance with 49 U.S.C. 

§ 41731(a)(1)(B) will be re-assessed based on Fiscal Year 2015 data (October 1, 2014, through 

September 30, 2015). 

Request for Proposals

We are here requesting proposals from air carriers interested in providing EAS at El Centro, with 

or without subsidy support, for a new period beginning May 1, 2015. Air carriers should file 

their proposals no later than January 7, 2015. After that date, our staff will docket the proposals, 

thereby making them public. Additionally, we request each air carrier serve a copy of its 

proposal on the civic parties at El Centro and on the other applicants. Shortly afterwards, we 

will provide a summary of the proposals to the community and ask them to submit any formal 

comments on this carrier-selection case. We will give full consideration to all proposals that are 

timely filed.1 

The Department is here providing interested air carriers with some basic information to serve 

as guidance when they prepare their proposals, but the Department will not prescribe a precise 

format for their proposals. Air 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 www.regulations.gov, each page should be formatted to be viewed online. 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, we recommend they include information concerning 

proposed schedules and projected block hours. In addition, applicants are encouraged to 

provide financial data supporting their subsidy requests, including information on their 

projected expenses and revenues. The Department strongly encourage clear, well-documented 

proposals that will facilitate their evaluation by the affected communities and the 

Department.2

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

EAS without subsidy and the Department determines that service can be reliably provided without such 

compensation, the Department usually does not proceed with the carrier-selection case. Instead, the Department

simply relies on that carrier’s subsidy- free service as proposed.

2 In selecting a carrier to provide subsidized EAS for an eligible place not in Alaska, 49 U.S.C. § 41733(c)(1) 

directs the Department to consider five factors: (a) service reliability; (b) contractual and marketing arrangements 

with a larger carrier at the hub; (c) interline arrangements with a larger carrier at the hub; (d) community views, 

giving substantial weight to the views of the elected officials representing the users; and (e) whether the carrier has 
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Proposals should provide sufficient capacity to accommodate historical passenger levels. 

Specifically, the Department expects proposals consisting of two round trips per day (12 a 

week) if 9-seat or larger aircraft is proposed. If smaller aircraft are proposed, the Department 

may consider additional frequencies than what is described above. The Department

encourages proposals that meet these guidelines in an efficient manner. Air carriers are also 

welcome to propose more than one service option, if they choose. They also need not limit 

themselves to these requirements if they envision other, potentially more attractive service 

possibilities -- different hubs or length of contract, for example -- with subsidy requirements 

that remain competitive.

In order to assist air carriers in developing traffic and revenue projections for their proposals, the 

Department has summarized historical passenger levels at El Centro in Appendix B. In the most 

recent 12-month period for which data are available (October 1, 2013, through 

September 30, 2014) El Centro generated 4,591 total origin and destination passengers, or an 

average of 7.3 enplanements per day.3

Interested air carriers should prepare their proposal with every expectation that their initial 

proposal will also be their final and only proposal. The Department retains the discretion to 

negotiate proposals with air carriers when deemed desirable; in such cases the Department

will give all applicants the same opportunity. The Department also retains the discretion to 

reject outright all unreasonable or unrealistic proposals and solicit a new round of proposals. 

However, negotiation or rejection will remain only occasional exceptions to the rule.

Special Discussion on Eligibility

The Department wishes to remind El Centro and any perspective EAS air carrier about the $200 

per passenger statutory limit4 because the community is located fewer than 210 miles from the 

nearest large- or medium-hub airport (SAN). Based on the most recent data available, 

(October 1, 2013, through September 30, 2014), El Centro’s subsidy per passenger is $393, 

above the $200 cap. The Department fully expects the community to work cooperatively with 

prospective air carriers to ensure subsidy rates are in compliance with the $200 per passenger cap 

to remain eligible for EAS.5

 included a plan in its proposal to market its service to the community. In addition, the Consolidated and Further 

Continuing Appropriations Act, 2012, Public Law No. 113-76, and continued in the Continuing Appropriations 

Resolution, 2015, Public Law No. 113-164, provides that when selecting a carrier to provide EAS, the Department 

may consider the relative subsidy requirements, thus codifying a factor that has been considered since the inception 

of the program. Interested carriers should also be arare that the Department’s general provisions governing EAS will 

be included in the selection Order as part of the Department’s authorization of subsidy for the selected service. 

Appendix C of this Order contains those general provisions.

3 In calculating enplanements per day, the Department takes total annual origin and destination passenger numbers 

and divide by two to get passengers in one direction (enplanements at the EAS community), and then by 313 days to 

get average daily enplanements at the EAS community. 

4 Congress first established the $200 ceiling under P.L. 101-164 for fiscal year 1990, and reestablished it in fiscal 

years 1994-1999. The ceiling was made permanent by P.L. 106-69, the Department of Transportation and Related 

Agencies Appropriations Act of 2000.

5 On May 1, 2014, a Notice of Proposed Enforcement Policy on the $200 per passenger subsidy cap was published 

in the Federal Register (Volume 79, Issue 84). After a 60-day public comment period and review, the Department 

issued a final notice of enforcement policy on the $200 cap in October 2014. All communities in the 48 contiguous 

States within 210 miles of the nearest large- or medium-hub airport receiving subsidized air service under EAS 
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Other Air Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying

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

receiving Federal subsidy to support EAS must certify that they are in compliance with 

Department regulations regarding drug-free workplaces and nondiscrimination, and those air 

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 air carriers that 

plan to submit proposals involving subsidy should submit the required certifications along 

with their proposals. Interested air carriers requiring more detailed information regarding 

these requirements, as well as copies of the certifications, should contact the Office of 

Aviation Analysis at (202) 366-5903. The Department is prohibited from paying subsidy to 

air carriers that do not submit these documents. 6

Community Comments

Civic officials and the State are welcome to submit comments at any time. The Department

encourages prospective applicants to contact the community before they submit their 

proposals so that they can tailor them to the community’s needs, as they will not be able to 

amend them after the due date. As noted earlier, the Department’s staff will provide a copy of 

the proposals to the civic parties and ask them to submit their final comments shortly after 

January 7, 2015, the due date for air carrier proposals.

This Order is issued under authority delegated in 49 CFR Part 1.25a(b) and re-delegated to the

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. The Department requests that air carriers interested in providing Essential Air Service at El 

Centro, California, submit their proposals, with or without subsidy requests, no later than 

January 7, 2015. The proposals should be emailed to: EAS@dot.gov with the title “Proposal 

to Provide Essential Air Service at El Centro, California;”7

2. Docket DOT-OST-2008-0299 will remain open until further Order of the Department; and 

3. The Department will serve copies of this Order on the civic officials of El Centro, 

California, Imperial County, California, and the service list for this docket.

 program have until September 30, 2015, based on data from October 1, 2014, through September 30, 2015, to ensure 

compliance with the $200 subsidy cap or face termination of subsidy eligibility.

6 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). The certifications are available 

on the web at http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service. 

7 Questions regarding filings in response to this Order should be directed to Mr. Scott Faulk at scott.faulk@dot.gov 

or (202) 366-9967.
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Persons entitled to petition the Department for review of this Order under the Department’s

Regulations, 14 CFR Part 385.31(a), must file such petitions within seven (7) 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

An electronic version of this document is available

online at www.regulations.gov.
Appendix A

AREA MAP

Maps generated by the Great Circle Mapper - copyright © Karl L. Swartz.
Appendix B

El Centro, California1

Year Quarter Enplanements Deplanements Total

2011 4 1,821 1,945 3,766

2012 1 1,620 1,646 3,266

2012 2 1,634 1,618 3,252

2012 3 1,290 1,361 2,651

Total 6,365 6,570 12,935

Year Quarter Enplanements Deplanements Total

2012 4 947 1,028 1,975

2013 1 789 821 1,610

2013 2 682 622 1,304

2013 3 543 518 1,061

Total 2,961 2,989 5,950

Year Quarter Enplanements Deplanements Total

2013 4 616 605 1,221

2014 1 669 554 1,223

2014 2 703 618 1,321

2014 3 426 400 826

Total 2,414 2,177 4,591

 1 Source: Bureau of Transportation Statistics; Schedule T-100. 
Appendix C

Example of General Terms and Conditions for Eassential Air Service

The air 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 air 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 air 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 air 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 air carrier to provide service on these routes. The air 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 air 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 air 

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 may not be available for performance under this Order beyond [DATE]. The 

Government’s obligation for performance under this Order beyond [DATE], is subject to the 

availability of 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 sufficient funds 

are not made available for performance beyond [DATE], the Department will provide notice in 

writing to the carrier. 

All claims for payment, including any amended claims, must be submitted within 90 days of the 

last day of the month for which compensation is being claimed. For example, claims for service 

provided in July must be filed by October 31st; August claims must be submitted by November 

30th, and so on.