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OST-1997-2694

Page, Arizona

Order 97-7-9 | OST-1997-2694 - Page, Arizona

Issued July 9, 1997 | Served July 15, 1997

Order Requesting Carrier Proposals

On May 16, 1997, Great Lakes voluntarily shut down its operations system-wide and is currently undergoing reevaluation and inspection. The carrier has restarted service at many points, as aircraft have become available, concentrating on operations to and from the Chicago O'Hare hub first. As a result, Page, which is served to the Phoenix hub, has been without air service for almost two months. Great Lakes' target date for resumption of service for Page has been rescheduled several times and is now tentatively set for July 24.

By: John Coleman

Order 97-7-18 | OST-97-2694 (45031) | Issued July 18, 1997 | Served July 24, 1997

Order Approving Short-Term Replacement Service

By this order we are approving the application of Scenic Airlines, Inc., to provide subsidized, emergency, short-term replacement air service at Page, Arizona.

Appendix A

By: Charles Hunnicutt

Order 97-7-26 | OST-97-2694 | Issued July 25, 1997 | Served July 31, 1997

Order Setting Final Subsidy Rate

By this order we are setting a final subsidy rate for Scenic Airlines' emergency interim service at Page, Arizona.

By: John Coleman

Order 97-9-8 | OST-97-2694 | Issued and Served September 9, 1997

Order Extending Short-Term Replacement Service and Amending Final Subsidy Rate

By this order we are extending Scenic Airlines authority to provide subsidized, emergency, short-term replacement essential air service at Page, Arizona. We are also extending the carrier's current subsidy rate through September 30, 1997, and setting a new, lower rate effective October 1, 1997, until further Department action.

Appendix

By: Charles Hunnicutt

Order 97-10-21 | OST-97-2694 | Issued October 28, 1997 | Served November 3, 1997

Order Selecting Carrier and Setting Final Subsidy Rate

By this order, the Department is selecting Scenic Airlines, Inc., to provide subsidized essential air service at Page, Arizona, for the two-year period beginning January 1, 1998, through December 31, 1999.

Appendix A: Map | Appendix B: Scenic Airlines EAS at Page | Appendix C: Calculation of Subsidy Requirement

By: Charles Hunnicutt

Order 99-6-13, confirms that Sunrise Airlines, Inc., has the essential air service obligations to serve Ely, Nevada, as the successor-in-interest to Scenic Airlines and to serve Moab, Utah, as the succesor-in- interest to Redtail Aviation. This order also amends the two-year rate terms for Sunrise to provide essential air service at Moab and Ely established for Redtail and Scenic in Order 98-7-1, issued July 1, 1998 and also authorizing an adjustment to Alpine Aviation's subsidy rate for its essential air service to Ely.

By:  Bradley Mims

Imagine my concern when / received a copy yesterday of an Order served June 16, 1999, affecting the EAS Routes at Moab, Ely and Page. That Order extends the term of the service contract and payment of the subsidy rate through June 1, 2001. The thinking of the Department apparently is that since Sunrise Airlines and its predecessors, because of their own ineptitude, were unable to commence operations on the contract start date, they should be allowed to complete a full two (21 years of service commencing June 15, 1999, and ending June 30, 2001. Meanwhile, during the period from July 1, 1998, through the present, Alpine Air has continued to provide the quality service that Sunrise Airlines was either unwilling or unable to provide. We had been warning you and the Department of these problems since last year, but you apparently have chosen to ignore them.

Counsel:  Max Hansen, 406-683-4301

Order 2000-2-9 tentatively reselects Sunrise Airlines, Inc., to provide essential air service at Page, Arizona, for a two-year period, at an annual subsidy of $686,014, for the period beginning April 1, 2000, through March 31, 2000. Interested persons having objections to the selection of Sunrise Airlines are directed to file such objections or competing service proposals no later than 20 days from the date of service of this Order 

By:  Bradley Mims

By:  Randall Bennett

Casino Airlines, Inc. is an air carrier, which was originally formed to operate scheduled services from Dallas, Texas to Shreveport, Louisiana. In late 1999, Casino Airlines, Inc. was contracted by, and subsequently purchased by, Pacific Skyway, Inc., a Public Tour Operator, of Santa Maria, California.  Consistent with the request in the Emergency Order, Casino Airlines, Inc. is proposing a 2 airplane "system" approach to all 4 communities. It is not interested in an alternative selecting it for I or 2 or 3 of the 4 points involved, simply dictated by the issue of economics of placing- new or recently refurbished B-1900D aircraft into service.

Casino Airlines, David Baskett, 805.925.1160

By:  Great Lakes, Chris Wilken

By:  Classic Aviation, Mark Henderson

By:  White Pine County, Cheryl Noriega

By:  City of Page, Richard Jentzsch

By:  Dennis DeVany

By:  Dennis DeVany

By:  Dennis DeVany

By:  Susan McDermott

The Department extends the interim subsidy rates of Great Lakes Aviation, Ltd., for the provision of essential air service at Page, Arizona, Alamosa, and Pueblo, Colorado, Ironwood, Michigan/Ashland, Wisconsin, McCook, Nebraska, Laramie, Rock Springs, and Worland, Wyoming, and at Moab and Vernal, Utah, as set forth in Order 2002-2-13, until further action.

By:  Randall Bennett

Essential air service at Page is defined as at least two nonstop or one-stop round trips each weekday and each weekend period to either Phoenix or Las Vegas. Sufficient capacity must be provided to accommodate 11 passengers in each direction each weekday and each weekend period, and must be operated with pressurized aircraft having at least two engines, two pilots and an effective capacity of at least 15 passengers.

Essential air service at Vernal is defined as at least two nonstop round trips each weekday and each weekend period to Salt Lake City. Sufficient capacity must be provided to accommodate 17 passengers in each direction each weekday and each weekend period, and must be operated with pressurized aircraft having at least two engines, two pilots and an effective capacity of at least 15 passengers.

Essential air service at Moab is defined as at least two nonstop or one-stop round trips each weekday and each weekend period to Salt Lake City. Service may be provided with any size twin-engine, pressurized aircraft.

Great Lakes was selected to provide essential air service at Page, Vernal and Moab for two-years with a one-year subsidy rate, conditioned upon both parties agreeing to a second-year rate. Absent interest from other carriers, at this point we would normally negotiate new rates for the carrier's second year of service. However, we recently have become aware of another carrier that is interested in providing essential air service at Page, Vernal and Moab. In order to give the communities the widest range of options, we have decided to forego negotiating new second-year rates, and to immediately initiate a formal carrier selection case.

By: Read Van de Water

By:  Arizona Express

By:  Scenic Airlines

By: Mountain Bird d/b/a Salmon Air

By:  Scenic Airlines

By: Great Lakes Aviation

By: Great Lakes Aviation

Response of Mesa Air Group on behalf of its wholly-owned subsidiary Air Midwest, Inc. to request for proposals, Order 2002-10-32 for competitive proposals between Page, AZ, and Phoenix, AZ and Vernal/Moab, UT and Salt Lake City, UT/Denver, CO.

By: Scott Lyon

OST-1996-1899 - EAS at Kingman and Prescott, AZ
OST-1997-2694 - EAS at Page, AZ
OST-1998-4409 - EAS at Show Low, AZ

Request of Arizona Department of Transportation for a delay in setting new subsidy rates

The Arizona Department of Transportation Aeronautics Division, working in coordination witlthe communities of Kingman, Page, Prescott, and Show Low, is currently preparing a proposal undo} the Small Community Air Service Development Pilot Program. This consortium of the four (4) communities and ADOT will be proposing some novel ideas which include the State serving as the sponsor and contractor for a single carrier to serve these four communities. In this capacity, the State would solicit, select, monitor, and pay the single carrier for its services with funds from the EAS and SCASDPP programs. It is my understanding that three of our four Essential Air Service communities currently have expired contracts.

ADOT, on behalf of these communities, is requesting that DOT delay issuance of any new contracts for these four communities until a final decision is made regarding the consortium's SCASDPP proposal. If the consortium is successful in the award of a SCASDPP grant for its proposal, a solicitation will be made in coordination with DOT officials for a carrier to serve the four communities.

By: Gary Adams

Order 2003-6-30
OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

Issued June 20, 2003 | Served June 25, 2003

Order | Word

The Department defers setting new, two-year subsidy rates for Page, Show Low, Prescott and Kingman, Arizona, at the request of the State of Arizona Department of Transportation. There is currently an ongoing carrier selection case for Page, and two communities in Utah -- Moab and Vernal. Five applicant carriers have submitted service/subsidy proposals, and some include service patterns that integrate service at Page with one or both of the Utah communities. We direct the staff to contact all applicants in that case and advise them of our decision here to delay action on Page, as well as the other three Arizona communities. We will work with them and allow them to amend their existing proposals to exclude service to Page so that we can continue to process the carrier selection cases for Vernal and Moab.

By: Micheal Reynolds

Order 2003-10-22
OST-97-2694 - EAS at Page, AZ
OST-97-2827 - EAS at Moab, UT
OST-97-2706 - EAS at Vernal, UT

Issued and Served October 17, 2003

Order Setting Final Rates

The rates set by Order 2001-3-20 expired on June 30, 2002, and so we extended them on an interim basis by Order 2002-7-20, effective July 1, 2002, until further Department action, subject to retroactive adjustment. The carrier and staff have agreed to final annual subsidy rates of $2,095,460 for Page, $1,344,489 for Moab, and $1,756,167 for Vernal, effective July 1, 2002, until further Department action. The rates are based on the same level of service selected by Order 2001-3-20.

For the year ended June 30, 2003, Great Lakes transported 6,380 Page to Phoenix passengers and 1,559 Page to Denver passengers. The reduced frequency of two round trips per day in the off-peak with 19-seat aircraft will readily accommodate this level of traffic.

We will conclude the carrier selection at Page as quickly as possible, but in the meantime this reduced level of service appears to be appropriate. As is our normal practice, we will afford Great Lakes up to 60 days from the service date of this order to inaugurate the reduced service pattern.

By: Michael Reynolds

OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

October 25, 2004

Proposal of Air Midwest

By: Air Midwest

October 25, 2004

Proposal of Arizona Express Airlines

By: Arizona Express

October 25, 2004

Proposal of Great Lakes Aviation

OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

November 4, 2004

Proposal of Air Midwest to Provide EAS

By: Air Midwest

October 22, 2004

Re: Letter confirming Vote of the Selection Committee

The selection committee voted, eight to three, to recommend on behalf of the Arizona Department of Transportation, Aeronautics Division, award of the subject solicitation for EAS Service for Kingman, Page, Prescott and Show Low Airports to Great Lakes Aviation Ltd. The recommended option is 3a of Great Lakes Aviation's Best and Final offer.

By: Mary Rogers

Re: Letter from EAS Division to Mayor of Page, AZ

By: Essential Air Service Division, Dennis DeVany

OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

November 19, 2004

Re: Letter in Support of Mesa Airlines by Karen Rizk

By: Karen Rizk

November 20, 2004

Re: Letter in Support of Mesa Airlines by James Griset

By: James Griset

December 3, 2004

Save the Prescott Airport - No to Great Lakes Aviation - Multiple Submitters

By: Multiple Submitters

OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

December 1, 2004

Re: MI Windows and Doors Letter in Opposition to Change from Mesa Airlines to Great Lakes Aviation

By: David Maurer

December 6, 2004

Re: Comments of the City of Sierra Vista

By: Thomas Hessler, Mayor

OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

December 14, 2004

Re: Extension of Deadline for Filing Community Comments

At the request of the City of Kingman, we are extending the deadline for filing community comments for the carrier selection case in the above-listed dockets from December 15, 2004, to December 23, 2004.

By: Dennis DeVany

OST-96-1899 - EAS at Kingman and Prescott, AZ
OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ

December 2, 2004

Re: City of Page Council Communication

By: Bo Thomas

December 2, 2004

Re: Exsil Letter in Support of Mesa Airlines

By: Jerry Winters

December 6, 2004

Re: Prescott Resort Letter in Support of Mesa Airlines

By: Mic Fenech

December 15, 2004

Re: Change in The City of Show Low's Recommendation

By: Rick Femau, Mayor

December 16, 2004

Re: Letter Against the Proposal of Great Lakes Aviation

By: Louise Hummel

December 16, 2004

Re: Letter Against the Proposal of Great Lakes Aviation

By: Estelle Hummel

OST-96-1899 - EAS at Kingman and Prescott, AZ
OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ

December 20, 2004

Re: Comments of Monica Gates, Mayor of Kingman, in Support of Great Lakes Aviation

By: Monica Gates

OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

January 4, 2005

Comments of Prescott Transit Authority and Executive Transportation Services

If we make a switch to a non-affiliated airline we will be going backward not forward. Back to the days of Golden Pacific Airlines, the poor service, poor connections and the ensuing mess of its bankruptcy. They still owe me money which I could ill afford to lose at the time. I know by first hand that the administration does support competition but it does not support changing horses in midstream or substituting a known entity with a proven track record for an unknown. In this economic climate we can not afford such a gamble.

I herewith rescind my previous letter suggesting that Great Lake Aviation LTD be given an opportunity as I was misinformed of the intent.

By: Steve Silvernale

Order 2005-3-16
OST-97-2694 - EAS at Page, AZ
OST-98-4409 - EAS at Show Low, AZ
OST-96-1899 - EAS at Kingman and Prescott, AZ

Issued March 9, 2005 | Served March 14, 2005

Order Selecting Carriers and Establishing Subsidy Rates

By this order, the Department is selecting Great Lakes Aviation, Ltd. to provide essential air service at all four Communities captioned above for a new two-year period, at a combined first-year subsidy of $3,840,959, and a combined second-year subsidy of $3,854,958. Great Lakes’ service consists of three round trips routed Kingman-Prescott-Phoenix-Prescott-Kingman each weekday and each weekend period, three nonstop round trips between Page and Phoenix each weekday and four over the weekend period, and two nonstop round trips between Show Low and Phoenix each day, all provided with 19-seat Beech 19OOD aircraft.

By: Karan Bhatia

OST-1996-1899 - EAS at Kingman and Prescott, AZ
OST-1997-2694 - EAS at Page, AZ
OST-1998-4409 - EAS at Show Low, AZ

June 8, 2005

Correspondence to Congressman Renzi

As we state in the order, our decision in this case was difficult based on the very large number of service options presented, and the differing views in some cases, between the State and the communities regarding which carrier should be selected for each community. In addition, there was no combination of service options that would have satisfied all four communities, and the Department, therefore, was faced with making an informed decision that would not be favored by all interested parties.

For instance, selecting Air Midwest to continue providing service at Prescott (which was Prescott's recommendation) would have gone against the recommendation of the City of Kingman by requiring the selection of Air Midwest at Kingman, and neither of the other two applicants presented a service option for Kingman only. In view of this situation, the Department determined that it was appropriate to make its decision based upon which option or combination of options had the most State and local support, was cost effective and provided all of the communities with quality access to their hub destinations.

By: Norman Mineta

OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

July 25, 2005

Letter from Karan Bhatia to Senator Jon Kyl

Thank you for your letter regarding the carrier selection case for air service at Prescott, Arizona, under the U. S. Department of Transportation's Essential Air Service program. You forwarded to the Department a letter from your constituent Mr. David Brandman, objecting to the Department's decision in this case and urging you to see if this decision could be reversed, at least as it applies to Prescott. As you know, by Order 2005-3-16, issued March 9, 2005 (copy enclosed), the Department selected Great Lakes Airlines to provide EAS at Prescott, Show Low, Kingman and Page for a two-year period. That selection has resulted in a change in the air carrier serving the Prescott airport.

Order 2007-3-17
OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

Issued March 20, 2007 | Served March 23, 2007

Order Requesting Proposals and Order to Show Cause Tentatively Terminating Subsidy Eligibility and Allowing Suspension of Service

By this order, the Department is requesting all interested parties to show cause why we should not terminate the essential air service subsidy eligibility of Kingman, Arizona, and allow Great Lakes Aviation, Ltd., to suspend its subsidized service. The Department is also requesting proposals from carriers interested in providing essential air service at Prescott, Page, and Show Low, Arizona, for the two-year period beginning July 1, 2007, with or without subsidy. We will also entertain proposals to serve Kingman if they meet the criteria described later in this order. Proposals and/or objections are due within 30 days of the service date of this order.

With specific respect to Kingman and Prescott, we ask that carriers submit proposals for three nonstop or one-stop round trips a day to Phoenix with 15-seat or larger, pressured aircraft, with the requirement that the total annual subsidy for Kingman cannot exceed $941,400. (If Kingman is served in conjunction with one or more other community, we will allocate the subsidy on the same basis described above, i.e., based on the number of weekly frequencies.) For Page, we ask for proposals with three nonstop round trips per day. For Show Low, we ask for proposals with two nonstop round trips per day. In order to give the Department and the communities as broad an array of proposals as possible from which to choose, carriers are also welcome to prepare more than one service option; they need not limit themselves to these requirements if they envision other, potentially more attractive service possibilities, different hubs, for example, with subsidy requirements that remain competitive. In that regard, we note that Kingman from time to time has informally expressed interest in service to Las Vegas. As always, we will formally solicit the communities’ views on any service options we receive before making a long-term carrier selection decision.

By: Andrew Steinberg

OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

April 17, 2007

Objections of:

• City of Kingman, AZ
• Kingman Airport Authority
• Prescott Chamber of Commerce
• Yavapai County Board of Supervisors

OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

April 23, 2007

Comments of Arizona Department of Transportation

The Arizona DOT respectfully requests the US DOT defer its tentative decision to terminate the EAS subsidy eligibility for Kingman, Arizona.

We understand the US DOT's established subsidy limit of $200 per passenger. We also understand the Department's determination that the existing service subsidy exceeds that limit. However, we believe that the next proposals for EAS service to Kingman may cause the per passenger subsidy to be less than $200. Therefore, we request that a decision about the termination of the subsidy be deferred until after a thorough analysis of the EAS proposals for Kingman for the two-year period beginning July 1, 2007.

By: Victor Mendez

April 23, 2007

Proposals of Air Midwest

Option 1 - Kingman & Prescott

Total Subsidy Request - $1,798,489
Pattern of Service -
Kingman - 2 One-Stop RTs to PHX and 1 Nonstop RT to LAS Each Service Day
Prescott - 2 Nonstop RTs to PHX and 1 One-Stop RT to LAS Each Service Day
Per Passenger Subsidy -
Kingman - $191.04
Prescott - $122.90

Option 2 - Show Low

Total Subsidy Request - $869,942
Pattern of Service
Show Low - 2 Nonstop RTs Sunday thru Friday; 1 Nonstop RT Saturday
Per Passenger Subsidy -
Show Low - $93.77

Option 3 - Page

Total Subsidy Request - $1,622,728
Pattern of Service
Page - 3 Nonstop Roundtrips each Service Day
Per Passenger Subsidy -
Page - $142.62

Option 4 - Prescott & Kingman

Total Subsidy Request - $1,874,844
Pattern of Service
Kingman - 3 One-Stop Roundtrips Each Service Day to PHX
Prescott - 3 Nonstop Roundtrips Each Service Day to PHX
Per Passenger Subsidy -
Kingman - $1 99.15
Prescott - $128.11

By: Mesa Air Group, Jeffrey Hartz

April 23, 2007

Proposals of Great Lakes Aviation

Service Point(s)	Proposal #	Hub(s) Served	Round Trips	Equipment	Subsidy Requirement	Passengers Forecast	Average Fare
Show Low	1	Phoenix	2	1900D	$988,181	10,000	$82.02
Show Low	2	Phoenix	3	1900D	$1,117,791	15,000	$75.82
Page	1	Phoenix	3	1900D	$1,620,050	11,500	$106.75
Page	1	Phoenix/Denver or Las Vegas	3	1900D	$1,497,556	12,750	$100.57
Kingman /Prescott	1	Phoenix	3	1900D	$1,882,759	IGM - 5750 PRC - 9500	$95.15 $86.99
Kingman /Prescott	2	Phoenix/Las Vegas	3	1900D	$1,777,711	IGM - 7500 PRC - 11,000	$84.50 $70.70

By: Great Lakes, Michael Matthews, 307-432-7000

OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

April 27, 2007

Requests for Community Comments of:

• Mayor of City of Page
• Page Municipal Airport Aviation Director
• Prescott Municipal Airport Director

May 2, 2007

Support Letter of State Representative

By: Rep. Andy Tobin

May 15, 2007

Town of Chino Valley in Support of Mesa Airlines

In discussing the subject of preferred airlines for the Prescott, Arizona airport, we have received overwhelmingly strong support for Mesa Airlines, who held the contract prior to the current carrier, Great Lakes.

If Mesa Airlines were to receive the new contract we understand that there will be an increase in direct flights to Phoenix and Las Vegas.

By: Mayor, Karen Fann

May 15, 2007

Comments of Prescott City Council

On May 8, 2007 the Prescott City Council passed a resolution in support of Mesa Air Group for the EAS contract serving Prescott. The Council was unanimous in support of Option 2 with service to both Phoenix and Las Vegas as outlined in your letter of April 27th.

Both carriers that submitted proposals were invited to attend the council meeting on May 1, 2007 to make presentations and answer questions. Great Lakes Airlines declined the invitation. A representative from Mesa Air Group and several interested persons did speak during the meeting. There was significant public support for the service level discussed with Mesa Air Group at that meeting.

By: City of Prescott, Rick Severson

OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

May 16, 2007

Arizona State Representative in Support of Great Lakes | Word

Please consider this letter as my support of Great Lakes Airlines during your review of the Essential Air Service proposals.

As one of their customers, I have enjoyed the convenience of air travel to and from Phoenix.  The reliability of their flights, the short flight times, and the ease of traveling on their airline has made my commuting back and forth from the Valley much easier and less stressful.

By: Jack Brown

OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

May 17, 2007

State Senator in Support of Great Lakes

Please consider this letter as my support of Great Lakes Airlines during your review of the Essential Air Service proposals. Many of the residents in the White Mountain area have enjoyed the convenience of air travel to and from Phoenix on Great Lakes Airlines. The reliability of their flights, the short flight times, and the ease of traveling on their airline has made commuting back and forth from the Valley much easier and less stressful.

By: Jake Flake

May 17, 2007

City of Show Low in Support of Great Lakes

As Great Lakes is the incumbent air carrier, the City of Show Low wishes to express our continued support for this airline. Great Lakes has a proven track record in this community and has built a solid customer base, including frequent and returning passengers.

Regardless of which airline your office chooses for our route, the City of Show Low will support the air carrier. Airline service is a much needed means of travel for this community and we appreciate the Department of Transportation's support of the EAS program in Show Low.

By: Mayor, Rick Fernau

OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona

May 25, 2007

Comments of City of Page

The City of Page has received and reviewed your letter of April 27, 2007, regarding the above Docket. After due consideration by our Airport Advisory Board and our City Council at its May 24, 2007 meeting, the City Council unanimously recommends to USDOT to select Option 2 and award an EAS Contract to Great Lakes Airlines to serve Page, Arizona. Their proposal offers the most flexibility to increase passenger enplanements at the lowest EAS subsidy rate.

By: Mayor, William Justice, 928-645-8851

Order 2007-6-10
OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

Issued June 13, 2007 | Served June 18, 2007

Order Selecting Carrier, Setting Subsidy Rate and Terminating Show-Cause Proceeding

By this order, we are selecting Mesa Air Group, Inc. d/b/a Air Midwest to provide subsidized essential air service at Kingman and Prescott, Arizona, for two years, beginning when the carrier full service. Service will consist of three round trips a day (18 per week) with 19-seat Beech 1900D aircraft over a Kingman-Prescott-Phoenix or Prescott -Kingman-Las Vegas routing, at a total annual subsidy of $1,798,489 for both communities. Also by this order, the Department is terminating the show-cause proceeding tentatively terminating subsidy at Kingman because Air Midwest's proposal we are selecting is below the $200-per passenger statutory ceiling.

The total annual subsidy for all four communities in this Order is $4,284,226 compared to the current rates of $3,854,958.

This case is fairly straightforward. Kingman and Prescott support the same Air Midwest proposal and Page and Show Low each support continued service by Great Lakes. Since the proposals are very close in subsidy amounts, we are selecting the proposals that the communities recommended.

We will set the two-year contract period for all four communities beginning when Air Midwest inaugurates full EAS at Kingman and Prescott, and ending on the last day of the 24th month thereafter so that all communities remain on the same cycle, and we can solicit bids for all four communities. In the meantime, Great Lakes will continue to provide service to Kingman and Prescott, as submitted in its bid, until Air Midwest begins service.

By: Michael Reynolds

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