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Order 2021-3-19 Served: March 18, 2021 UNITED

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Order 2021-3-19 Served: March 18, 2021 UNITED Order 2021-3-19 Served: March 18, 2021 UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. Issued by the Department of Transportation on the 18th day of March, 2021 Essential Air Service at JACKSON, TENNESSEE (FAIN 69A3452160500)1 DOT-OST-2000-7857 under 49 U.S.C. § 41731 et seq. ORDER SELECTING AIR CARRIER Summary By this Order, the U.S. Department of Transportation (the Department) is selecting Boutique Air, Inc. (Boutique Air) to provide Essential Air Service (EAS) at Jackson, Tennessee for the two- year period from June 1, 2021, through May 31, 2023. In addition, the Department acknowledges the joint motion of Southern Airways Express LLC (Southern Airways) and Multi-Aero, Inc. d/b/a Air Choice One (Air Choice One) to disqualify Boutique Air’s proposal, but denies the relief sought. Finally, the Department is extending the terms of Order 2017-3-11 until the date when Boutique Air commences EAS at Jackson. Under the terms of this Order, Boutique Air will provide a total of 18 nonstop round trips per week consisting of 12 weekly nonstop round trips to Hartsfield–Jackson Atlanta International Airport (ATL) and six weekly nonstop round trips to St. Louis Lambert International Airport (STL), using 8- or 9-seat Pilatus PC-12 aircraft, at an annual subsidy of $1,985,941 for the first year and $2,025,659 for the second year.2 Background By Order 2017-3-11 (March 21, 2017), the Department selected Air Choice One to provide EAS at Jackson for the four-year period from June 1, 2017, through May 31, 2021. Under the terms of that Order, Air Choice One provided Jackson with 18 nonstop round trips per week to STL, using 9-seat Cessna Grand Caravan aircraft, at an annual subsidy of $1,884,399. By Order 2018-1-10 (January 18, 2018), the Department approved the request of Air Choice One to change its EAS pattern at Jackson, effective March 1, 2018, at no additional subsidy, as indicated in the table below: 1 Federal Award Identification Number (FAIN). 2 Such subsidy is calculated and distributed on a fiscal year basis, subject to the availability of funds. - 2 - Effective Dates Hub(s) Weekly Round Trips June 1, 2017 ‐ February 28, 2018 St. Louis Lambert International Airport (STL) 18 St. Louis Lambert International Airport (STL) 12 March 1, 2018 ‐ May 31, 2021 Hartsfield–Jackson Atlanta International Airport (ATL) 6 Summary of Air Carrier Proposals In anticipation of the end of the contract term established by Order 2017-3-11, the Department issued Order 2020-9-10 (September 16, 2020), soliciting proposals for a new term. In response to the Department’s solicitation, Air Choice One, Boutique Air, Hyannis Air Service, Inc. d/b/a Cape Air (Cape Air), Silver Airways LLC (Silver Airways), and Southern Airways Express LLC submitted proposals for consideration. Those proposals, as well as the complete public file for EAS at Jackson, may be accessed online through the Federal Docket Management System at www.regulations.gov by entering “DOT- OST-2000-7857” in the “SEARCH” field. Air Choice One’s Proposal Air Choice One proposed three options, each consisting of 18 total nonstop round trips per week from Jackson to ATL and STL, using either 9-seat Cessna Grand Caravan 208 or 9-seat Beechcraft 1900 aircraft, and for either a two- or four-year term. Air Choice One’s proposal commits $50,000 annually to market the air service. Air Choice One Option #1 12 Weekly Round Trips to STL and 6 Weekly Round Trips to ATL Using 9-Seat Cessna Grand Caravan 208 For a 2- or 4-Year Term Ye ar Subsidy Year 1$ 2,222,367 Year 2$ 2,289,038 Year 3$ 2,357,709 Year 4$ 2,428,440 - 3 - Air Choice One Option #2 6 Weekly Round Trips to STL and 12 Weekly Round Trips to ATL Using 9-Seat Beechcraft 1900 For a 2- or 4-Year Term Ye ar Subsidy Year 1$ 2,555,977 Year 2$ 2,632,656 Year 3$ 2,711,636 Year 4$ 2,792,985 Air Choice One Option #3 6 Weekly Round Trips to STL Using 9-Seat Cessna Grand Caravan and 12 Weekly Round Trips to ATL Using 9-Seat Beechcraft 1900 For a 2- or 4-Year Term Ye ar Subsidy Year 1$ 2,454,203 Year 2$ 2,527,829 Year 3$ 2,603,664 Year 4$ 2,681,774 Boutique Air’s Proposal Boutique Air proposed four options, each consisting of 18 total nonstop round trips per week from Jackson to ATL, STL, Pensacola International Airport (PNS), Nashville International Airport (BNA), and/or Chicago O'Hare International Airport (ORD), using 8- or 9-seat Pilatus PC-12 aircraft. Boutique Air has an interline and codeshare agreement with United Airlines, Inc. (United) and an interline agreement with American Airlines, Inc. (American). Boutique Air’s proposal indicates it will commit $20,000 annually to market the air service. Boutique Air Option #1 12 Weekly Round Trips to ATL and 6 Weekly Round Trips to STL Using 8- or 9-Seat Pilatus PC-12 Ye ar Subsidy Year 1$ 1,985,941 Year 2$ 2,025,659 - 4 - Boutique Air Option #2 12 Weekly Round Trips to ATL and 6 Weekly Round Trips to PNS Using 8- or 9-Seat Pilatus PC-12 Ye ar Subsidy Year 1$ 2,000,964 Year 2$ 2,040,983 Boutique Air Option #3 12 Weekly Round Trips to ATL and 6 Weekly Round Trips to BNA Using 8- or 9-Seat Pilatus PC-12 Ye ar Subsidy Year 1$ 1,923,695 Year 2$ 1,962,168 Boutique Air Option #4 12 Weekly Round Trips to ATL and 6 Weekly Round Trips to ORD Using 8- or 9-Seat Pilatus PC-12 Ye ar Subsidy Year 1$ 2,201,229 Year 2$ 2,245,253 Cape Air’s Proposal Cape Air submitted four options, providing either 18 or 21 nonstop round trips per week to STL for either two or four year periods, using 9-seat Tecnam Traveler aircraft, at the annual subsidy rates indicated in the tables below. Cape Air has interline ticket and baggage agreements with United, American, Delta Air Lines, Inc., JetBlue Airways, Inc., and Alaska Airlines, Inc., and intends to spend $95,000 annually to market the air service. - 5 - Cape Air Option #1 18 Weekly Round Trips to STL Using 9-Seat Tecnam Traveller For a 2- or 4-year Term Ye ar Subsidy Ye ar Subsidy Year 1$ 2,860,538 Year 12,782,702$ Year 2$ 2,989,262 Year 22,907,924$ Year 3$ 3,038,781 Year 4$ 3,175,526 Cape Air Option #2 21 Weekly Round Trips to STL Using 9-Seat Tecnam Traveller For a 2- or 4-year Term Ye ar Subsidy Ye ar Subsidy Year 1$ 3,227,732 Year 13,139,905$ Year 2$ 3,372,980 Year 23,281,201$ Year 3$ 3,428,855 Year 4$ 3,583,154 Silver Airways’ Proposal Silver Airways proposed to provide 12 nonstop round trips to ATL, using 30-seat Saab 340 aircraft, for a two-year period at an annual subsidy of $5,065,332 for the first year, and $5,022,364 for the second year, as indicated in the table below. Silver Airways 12 Weekly Round Trips to ATL Using 34-Seat Saab 340 Ye ar Subsidy Year 1$ 5,065,332 Year 2$ 5,022,364 Southern Airways’ Proposal Southern Airways proposed several options consisting of 18 nonstop round trips per week from Jackson to ATL, BNA, STL, and/or ORD, using either 9-seat Pilatus PC-12 or 9-seat Cessna Grand Caravan 208 aircraft, for either a two- or four-year term. Southern Airways has interline and baggage agreements with American, Alaska, and foreign air carriers, and its proposal indicates it will spend $25,000 per community to market the air service. - 6 - Southern Airways Option A 18 Weekly Round Trips to BNA Using 9-Seat Cessna Caravan Subsidy Year 1$ 1,916,560 Year 2$ 1,964,474 Year 3$ 2,013,586 Year 4$ 2,063,925 Southern Airways Option B 11 Weekly Round Trips to BNA and 7 Weekly Round Trips to STL Using 9-Seat Cessna Caravan Subsidy Year 1$ 2,129,497 Year 2$ 2,182,735 Year 3$ 2,237,303 Year 4$ 2,293,236 Southern Airways Option C 7 Weekly Round Trips to ATL and 11 Weekly Round Trips to STL Using 9-Seat Cessna Caravan Subsidy Year 1$ 2,443,942 Year 2$ 2,505,040 Year 3$ 2,567,666 Year 4$ 2,631,858 Southern Airways Option D 11 Weekly Round Trips to ATL and 7 Weekly Round Trips to STL Using 9-Seat Cessna Caravan Subsidy Year 1$ 2,511,208 Year 2$ 2,573,988 Year 3$ 2,638,337 Year 4$ 2,704,296 - 7 - Southern Airways Option E 18 Weekly Round Trips to ATL Using 9-Seat Cessna Caravan Subsidy Year 1$ 2,545,034 Year 2$ 2,608,660 Year 3$ 2,673,876 Year 4$ 2,740,723 Southern Airways Option F 18 Weekly Round Trips to ATL Using 9-Seat Pilatus PC 12 Subsidy Year 1$ 2,671,586 Year 2$ 2,738,375 Year 3$ 2,806,835 Year 4$ 2,877,006 Southern Airways Option G 11 Weekly Round Trips to ATL and 7 Weekly Round Trips to CHI Using 9-Seat Pilatus PC 12 Subsidy Year 1$ 2,899,482 Year 2$ 2,971,969 Year 3$ 3,046,268 Year 4$ 3,122,425 Community Comments On November 5, 2020, the Department requested community comments regarding this air carrier selection case.
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