Order 2015-1-22

Served: January 27, 2015

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 27th day of January, 2015

Essential Air Service at

GRAND ISLAND, NEBRASKA

Under 49 U.S.C. § 41731 et seq. 

DOCKET DOT-OST-2002-13983

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals, by February 25, 2015, from carriers 

interested in providing Essential Air Service (EAS) at Grand Island, Nebraska, for a new contract

period beginning July 1, 2015, with or without subsidy. (See Appendix A for map.)

Background

By Order 2013-5-10, issued May 10, 2015, the Department selected American Airlines 

(American), to provide EAS at Grand Island for the two-year period from July 1, 2013, through 

June 30, 2015. That Order established an annual subsidy rate of $1,837,012 for service 

consisting of 13 round trips per week to Dallas/Fort Worth International Airport (DFW). Service 

is provided on CRJ-200 or EMB-145 50-seat regional jets, or EMB-140 44-seat regional jets, 

operated by American’s regional subsidiary, American Eagle.

Request for Proposals

As the end of the current rate term approaches, and in order to provide sufficient time to 

complete the carrier-selection process before the current contract expires, the Department is here 

requesting proposals from carriers interested in providing EAS at Grand Island, with or without 

subsidy support, for a new contract period beginning July 1, 2015. Carriers should file their 

proposals no later than February 25, 2015. After that date, staff will docket the proposals, 

thereby making them public. Shortly afterwards, the Department will provide a summary of the 
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proposals to community officials and ask them to submit their final comments. The Department

will give full consideration to all proposals filed in a timely manner.1

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

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

negotiate proposals with carriers when deemed desirable. The Department also retains the 

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

proposals.

The Department is 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. The Department expects 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, the Department recommends

they include information concerning proposed schedules and projected block hours. In addition, 

applicants are urged to provide financial data supporting their subsidy requests, including 

information on their projected expenses and revenues. The Department strongly encourages

clear, well-documented proposals that will facilitate their evaluation by the affected communities 

and the Department.2

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

Department has summarized historical passengers in Appendix B. In the most recent 12-month 

period for which data are available (November 1, 2013-October 31, 2014), Grand Island 

generated 46,832 origin and destination passengers, or approximately 75 enplanements per 

service day.

The Department requests proposals for service consistent with what the community currently 

receives, namely, two daily round trips with regional jet aircraft to DFW, Chicago-O’Hare, 

Denver, or another suitable hub airport with convenient connections to the national air 

transportation system. Carriers using smaller aircraft may propose more frequencies than the 

two daily roundtrips described above. The Department encourages 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 or length of contract, 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 EAS 

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.

2 In selecting a carrier to provide subsidized EAS, 49 U.S.C. § 41733(c)(1) directs us 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 included a plan in its proposal to market its 

service to the community. In addition, the Consolidated Appropriations Act, 2012, Public Law 112-55, and 

continued by the Consolidated and Further Continuing Appropriations Act, 2015, Public Law No. 113-235, 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..
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The Department 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 submitting the

proposal.

Filing Procedures

Proposals should be submitted via email to EAS@dot.gov. 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 formatted so as 

to be easily viewed online.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces and nondiscrimination.3 Consequently, all 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 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 carriers that plan to submit 

proposals involving subsidy should submit the required certifications along with their proposals. 

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.4

Community and State Comments

Civic officials are welcome to submit comments on the proposals at any time. As noted earlier, 

the Department will provide a summary of the proposals to the civic parties and ask them to 

submit their final comments shortly after February 25, 2015, the due date for carrier proposals.

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

Director, Office of Aviation Analysis.

 3 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).

4 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service.
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ACCORDINGLY,

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

Island, Nebraska, submit their proposals, with or without subsidy requests, no later than 

February 25, 2014. The proposals should be emailed to EAS@dot.gov with the title “Proposal to 

Provide EAS at Grand Island, Nebraska, Docket DOT-OST-2002-13983”.

2. Docket DOT-OST-2002-13983 will remain open until further order of the Department; and

3. The Department will serve a copy of this Order on the mayor of Grand Island, the Executive 

Director of Central Nebraska Regional Airport, American Airlines, and the service list for this 

docket.

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

Aviation Economic Regulations, 14 CFR 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

(SEAL)

An electronic version of this document is available online at

www.regulations.gov
Appendix A

Area Map

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the copyright 

holder, Sabre Airline Solutions®.
Appendix B

Historical O&D Traffic1

EAS Traffic at Grand Island, NE

 1 Source: Bureau of Transportation Statistics Form 41: T-100 Domestic Market.

Year Month O&D Passengers

2012 1 4,018

2012 2 3,985

2012 3 3,886

2012 4 3,515

2012 5 3,989

2012 6 4,030

2012 7 3,906

2012 8 3,754

2012 9 3,686

2012 10 3,794

2012 11 3,740

2012 12 3,616

2012-Total 45,919

2013 1 3,819

2013 2 3,701

2013 3 3,762

2013 4 3,319

2013 5 3,940

2013 6 3,607

2013 7 3,711

2013 8 3,886

2013 9 3,883

2013 10 4,089

2013 11 3,642

2013 12 3,653

2013-Total 45,012

2014 1 3,880

2014 2 3,775

2014 3 4,011

2014 4 3,694

2014 5 4,077

2014 6 4,149

2014 7 4,177

2014 8 3,781

2014 9 3,777

2014 10 4,216

2014-YTD Total 39,537
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 complete, 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 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.