Order 2012-4-19

Served: April 13, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 13th of April, 2012

Essential Air Service at

MERIDIAN, MISSISSIPPI

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

DOCKET DOT-OST-2008-0112

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals by May 3, 2012, from carriers 

interested in providing Essential Air Service (EAS) at Meridian, Mississippi, for the twoyear period beginning July 1, 2012, with or without subsidy. 

Background

By Order 2010-5-28, the Department selected SkyWest Airlines, Inc., d/b/a Delta 

Connection,1 to provide EAS at Meridian, Mississippi, through June 30, 2012. Annual 

subsidy and service levels were set as 13 nonstop round trips per week to Atlanta and

$686,489 annual subsidy, with 50-seat CRJ-200 aircraft. 

Request for Proposals

As the end of the current rate term approaches, we are requesting proposals from carriers

interested in providing service at Meridian, with or without subsidy, for the two-year 

period beginning July 1, 2012. Carriers should file their proposals by May 3, 2012. Staff 

will then docket the proposals, thereby making them public. Shortly afterwards, we will 

provide a summary of the proposals to the community and State and ask them to submit 

their final comments. We will give full consideration to all proposals filed in a timely 

manner.2 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 carriers when we deem it desirable. We also retain the 

discretion to reject outright all unreasonable or unrealistic proposals and, if necessary,

solicit a new round of proposals. However, we anticipate that negotiation or rejection 

will remain only occasional exceptions to the rule.

 1 ExpressJet Airlines, Inc., a wholly-owned subsidiary of SkyWest, actually performs the service.

2 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 typically do not proceed with the carrier-selection case. Instead, we simply 

rely on that carrier’s subsidy-free service as proposed.
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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, welldocumented proposals that will facilitate their evaluation by the affected community and 

the Department. We anticipate applying our usual carrier-selection criteria and the 

general provisions governing subsidy payments for Essential Air Service.3 

With specific respect to Meridian, we expect proposals consisting of two nonstop round 

trips per day (13 a week) if 30-seat or larger equipment are proposed; three (18 a week) 

or four (24 a week) round trips per day with 19-seat aircraft; and more frequencies with 

smaller aircraft. We may subsidize additional frequencies if the affected community is 

served in conjunction with another community. 

We encourage proposals that meet the community’s 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 the current service pattern if they envision other, potentially

more attractive service possibilities – different hubs, or longer terms for the contracted

service – with subsidy requirements that remain competitive.

We encourage carriers to work with the community in advance of the due date for 

proposals when proposals can still be adjusted so that they can craft them to best meet the 

community’s needs. As always, we will fully consider the community’s views before 

making a long-term carrier-selection decision. 

Filing Format

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 individually formatted to be viewed online.

Historical Traffic

In order to assist carriers in making their traffic and revenue projections, we have 

included historical traffic for the community in Appendix B. For the year ended 

January 31, 2012, Meridian generated 33,087 passengers, or 53 enplanements per day.

 3 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, 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 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.
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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 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. Because the 

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

the selected carrier will be required to submit them in order to receive subsidy. Interested 

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 carriers that do not submit these documents.

Community Comments

Civic officials and the State 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 May 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 Analysis.

ACCORDINGLY,

1. The Department requests proposals from carriers interested in providing Essential Air 

Service at Meridian, Mississippi. Carriers should submit their proposals, with subsidy if 

necessary, by May 3, 2012. Proposals should be emailed to EAS@dot.gov, with the title 

“Proposal to Provide Essential Air Service at Meridian, Docket DOT-OST-2008-0112.” 

Questions regarding filings may be directed to Kevin Adams at 202-366-1047 or 

Kevin.Adams@dot.gov;

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

 4 The certifications are available on the web at http://ostpxweb.dot.gov/aviation/index.html.
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3. We will serve this Order on the service list for this Docket.

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

Nonstop Great Circle Miles from Meridian

MEM, Memphis 200

MSY, New Orleans 185

ATL, Atlanta 267

JAN, Jackson 78
Appendix B

Historical Traffic at Meridian, Mississippi (MEI)

Source: T-100 Market Report

Year Month Origin Dest O&D

2009 2 1,470 1,277 2,747

2009 3 1,837 1,574 3,411

2009 4 1,519 1,554 3,073

2009 5 1,766 1,484 3,250

2009 6 1,677 1,614 3,291

2009 7 1,784 1,611 3,395

2009 8 1,489 1,559 3,048

2009 9 1,381 1,346 2,727

2009 10 1,484 1,497 2,981

2009 11 1,378 1,414 2,792

2009 12 1,325 1,131 2,456

2010 1 1,053 1,188 2,241

18,163 17,249 35,412

2010 2 1,117 1,190 2,307

2010 3 1,501 1,447 2,948

2010 4 1,412 1,285 2,697

2010 5 1,571 1,473 3,044

2010 6 1,381 1,284 2,665

2010 7 1,450 1,499 2,949

2010 8 1,367 1,296 2,663

2010 9 1,440 1,427 2,867

2010 10 1,534 1,415 2,949

2010 11 1,472 1,440 2,912

2010 12 1,474 1,477 2,951

2011 1 1,111 1,171 2,282

16,830 16,404 33,234

2011 2 1,201 1,125 2,326

2011 3 1,557 1,562 3,119

2011 4 1,371 1,233 2,604

2011 5 1,770 1,620 3,390

2011 6 1,579 1,328 2,907

2011 7 1,471 1,359 2,830

2011 8 1,351 1,342 2,693

2011 9 1,329 1,271 2,600

2011 10 1,454 1,305 2,759

2011 11 1,385 1,394 2,779

2011 12 1,500 1,325 2,825

2012 1 1,082 1,173 2,255

17,050 16,037 33,087
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.

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 solicitation beyond 

[DATE]. The Department’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.

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

provided under this Order