Order 2012-11-19

Served: November 16, 2012

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

Issued by the Department of Transportation

on the 16th day of November, 2012

ORDER APPROVING ALTERNATE SERVICE PATTERN

Summary

By this Order, the Department of Transportation is approving the request of Great Lakes 

Aviation, Ltd. (“Great Lakes”) to change the hub destination of Silver 

City/Hurley/Deming, New Mexico (“Silver City”) from Albuquerque International 

Sunport Airport (“Albuquerque”) to include Phoenix Sky Harbor International Airport 

(“Phoenix”) effective October 1, 2012.

Background

By Order 2011-4-19, issued on April 22, 2011, the Department re-selected Great Lakes to 

provide subsidized Essential Air Service (“EAS”) at Silver City through May 31, 2013. 

That Order directed Great Lakes to provide the community with 12 nonstop round trips 

per week to Albuquerque, using 19-seat Beech 1900 aircraft, at an annual subsidy of 

$1,594,092.1

Great Lakes has requested to alter the current hub from Albuquerque to Phoenix. Silver 

City would continue to receive the same frequency of service with 19-seat Beechcraft 

aircraft with no change in annual subsidy. 

 1 On June 4, 2012, Great Lakes filed a 90-day notice of its intent to suspend service, and we are 

processing a carrier-selection case.

Essential Air Service at:

SILVER CITY/HURLEY/DEMING, NEW MEXICO

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

Docket DOT-OST-1996-1903
- 2 -

Community Comments

In the context of the ongoing carrier-selection case, by e-mails dated August 17, 2012, 

the Department solicited the views of the civic officials at Silver City and the New 

Mexico Department of Transportation (NM DOT), as to which air carrier’s proposals 

they would prefer for the new two-year EAS contract. Silver City supports the reselection of Great Lakes. The Grant County Manager stated “the County Commission 

would like to have the Essential Air Service continue with Great Lakes Airlines with two 

round trip service a day to Phoenix.”2 The Mayor of Silver City also sent a letter 

supporting the retention of Great Lakes and its proposed service to Phoenix. 

Decision

We will approve Great Lakes’ request during the pendency of the carrier-selection case. 

It meets the three conditions necessary for approval under authority assigned under 14 

CFR Part 385.12(k)(3) of the Department’s Regulations: (1) the alternate service pattern 

is equal or greater than that determined to be essential; (2) the community does not object 

to the alternate service pattern; and (3) the alternate service pattern will not increase 

Great Lakes’ subsidy. 

Because we are allowing the alternate service pattern and not requiring it, Great Lakes 

may revert to the original service pattern at any time, subject to reasonable notification of 

the community. 

This Order is issued under authority assigned in 14 CFR Part 385.12(k)(3).

ACCORDINGLY,

1. We hereby approve the alternate service pattern requested by Great Lakes Aviation, 

Ltd., to serve Silver City/Hurley/Deming, New Mexico, from Phoenix, Arizona;

2. These Dockets will remain open until further Order of the Department; and

3. The Department will serve a copy of this Order on the civic officials of Silver City, 

New Mexico, and Great Lakes Aviation, Ltd.

 2 Silver City is located in Grant County. Grant County owns the airport where EAS is provided.
- 3 -

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

Department’s Aviation Economic Regulations, 14 CFR Part 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

Great Lakes Aviation, Ltd.

Provision of Essential Air Service at Silver City/Hurley/Deming, New Mexico

Summary of Service To Be Provided

Effective Period: Beginning October 1, 2012, until further notice by the Department

Scheduled Service: 12 round trips a week to Albuquerque or Phoenix

Aircraft type: Beechcraft B-1900D (19 passenger seats)

Intermediate stops and 

upline service:

No service to any other intermediate point is contemplated under the 

terms of the carrier’s proposal; accordingly, no such service may be 

provided on subsidized flights without prior Department approval.

Timing of flights: Flights must be well-timed and well-spaced in order to ensure full 

compensation.

Annual compensation: $1,594,092

This rate assumes an annual completion factor of 98 percent. A 

compensation ceiling is to be applies per calendar week such that 

service above that ceiling in one week cannot make up for service 

shortfalls in another week.

Subsidy Rate per 

Flight:

$1,2991

Weekley Compensation 

Ceiling:

$31,1762

 1 Annual subsidy of $1,594,092 divided by 1,227 annual departures: 2 arrivals and 2 departures each week day and 

each weekend (24 flights/week) x 52 weeks x .98 (completion factor) = 1,227 + 4 additional flights.

2 24 flights per week multiplied by $1,229 per flight.
Appendix B

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 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 order beyond March 31, 2013. The 

Department’s obligation for performance under this order beyond March 31, 2013, 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 March 31, 2013, until funds are made available to the Department for 

performance. If funds are not made available for performance beyond March 31, 2013, 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.