Order 2010

- 7
- 10 Served: July

15, 2010 

### DELTA STATES OF AMERICA DEPARTMENT OF TRANSPORTATION 

### OFFICE OF THE SECRETARY WASHINGTON, D.C.

Is sued by the Department of Transportation on the 15 th 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 f

rom October 1, 2010, through September 30, 2012
. 1 Background Order 2008
- 9
- 20 selected Warbelow’s to provide Rampart with two nonstop round trip s per week to Fairbanks with 9
- seat Piper Navajo aircraft for $ 86,701 annual subsidy
. Inanticipation 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 prop osal included only one option: two nonstop round trips per week to Fairbanks with 9

- seat Piper Navajo aircraft for $97,679 annual subsi dy . 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 fund s.- 2
-

Community Comment As Rampart has no elected or appointed local officials, we solicited comments from the State of Alaska’s O ffice of Statewide Aviation. W e have received their comment s , and the state supports the continuation of EAS at Rampart
. “Due to the isolated location of th is community and the complete lack of any road

system connection, this subsidized air service is the o nly form of schedul ed transportation. The community of Rampart depend s 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, i t submitted only one option, and w e have decided to select it for a new, two - ye ar term beginning October 1, 20 10
. 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 subsidiz e 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 finding s . DOT therefore concludes that the carrier remain s fit to conduct the operations proposed here. This order is issued under auth ority delegated in 49 CFR 1.56a(f) and re

- delegated to the Directo r, Office of Aviation Analysis. ACCORDINGLY, 1. We re select Warbelow’s Air Ventures , In c., to provide essential air service at Rampart , Alaska , as described in Appendix C ; 2 . We direct Warbelow’s Air Ventures , In c., to retain all books, records, and other source and summary documentation to support claims for pay ment, 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;- 3
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3 . We find that Warbelow’s Air Ventures , In c., continue s to be fit, willing and able to operate as a certificated carrier and capable of providing reliable e ssential air service at Rampart , Alaska ; 4 . Th is 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 Faciliti es, 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.govAppendix 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 Vi llage 90 ANC, Anchorage 261Appendix 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 In directs $49,627 Total Operating $140,359 Return $12,597 Total Economic Cost $152,956 Annual Subsidy $97,679Appendix C Warbelow’s Airlines , Inc., Essential Air Service to be Provided to

Rampart , Alaska , Dockets OST - 2008 - 0201 Effective Period : October 1 , 20 1 0 , through September 30, 2 012
. Scheduled Service : Two nonstop round trip s 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 doe s not operate in conformance with the terms and stipulations of the rate order, including the service plans outlined in the order and any other significan t 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 el igible for subsidy. In addition, if the carrier does not schedule or operate its flights in full conformance with the order for a significant per iod, it may jeopardize its entire subsidy claim for the period in question. If the carrier contemplates any s uch 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 commu nity. If the Department unilaterally, either partially or complete ly , 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 w hich 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 re gulations, 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 Septemb er 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 an y 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/we ek x 52 weeks = 208 total. 2 4 flights/we ek x $ 470
.