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OST-1997-2827

Canyonlands Field

Moab, Utah / Ely, Nevada (Essential Air Service)

Order 97-12-29 | OST-1997-2827 | OST-95-36

Issued December 22, 1997 | Served December 29, 1997

Order Tentatively Reselecting Carrier, Establishing Subsidy Rates, and Requesting Carrier Proposals

By this order, the Department is tentatively reselecting Alpine Aviation, Inc., d/b/a Alpine Air, to provide increased subsidized essential air service at Moab, Utah, and Ely, Nevada, for a new two-year period; providing for objections and competing proposals from other interested carriers; and setting a new final subsidy rate for its provision of essential air service at Moab and Ely from January 1, 1998, until the new higher service level is implemented.

• Appendix A:  Map
• Appendix B:  Subsidy Calculation
• Appendix C:  EAS at Ely until Higher Service Level is Implemented
• Appendix D:  Historical Traffic
• Appendix E:  Service List

By:  Charles Hunnicutt

February 2, 1998

Re: Carrier Proposal to Provide Essential Air Service at Moab, Utah

Attached please find a schedule and financial proposals from Redtail Aviation to provide Essential Air Service to Moab, Utah. The enclosed proposals include one for a Cessna 402 and one for a Beech KingAir 200. Our intent is to use the Cessna for the initial period from May through September, and then to acquire and use the Beech for the winter months; the third proposal offers costs to that end. Regardless of which aircraft option is used, the indirect expenses remain the same for all proposals.

Our office has had some discussion regarding the year-round use of pressurized aircraft, and our analysis is that a pressurized aircraft is certainly required during the winter months but is not necessarily required for the summer season. Our company has been using a non-pressurized Cessna 402 throughout the past year and we received neither negative comments from customers nor problems with weather or safety. Therefore, we feel confident this initial startup with a combination of aircraft is a safe and reliable offering.

• Proposed Schedule - Moab EAS
• Proposal for Essential Air Service - Moab, Utah: Beechcraft KingAir 200 Turbo-Prop
• Proposal for Essential Air Service - Moab, Utah: Cessna 402C Twin Piston
• Proposal for Essential Air Service - Moab, Utah: Split Run Between C-402C and BE-200
• Indirect Expenses - Redtail at Moab, Utah

By: Bonnie Lindgren, Operations Manager, 435.564.3412

February 11, 1998

Alpine Air

Re: Proposal for EAS Service | First Amendment to Application | Second Amendment to Application

By: Eugene Mallette

Community Comments in Support of Redtail Aviation

Canyon Voyages, Hatch River Expeditions, Holiday Expeditions, Moab City Corporation, OARS, Tim Graham, Times Independent, Western River Expeditions, Western Split Cycling

OST-97-2827
OST-95-361

February 24, 1998

Notification of Amended Proposal Service List

Order 98-7-1 | OST-97-2827 | OST-95-361

Issued July 1, 1998 | Served July 8, 1998

Order Selecting Scenic Airlines, Inc., Tentatively Selecting Redtail Aviation, Inc., and Setting Subsidy Rates

By this order, the Department is (a) tentatively selecting Redtail Aviation, Inc., to provide subsidized essential air service at Moab, Utah, and selecting Scenic Airlines, Inc., to provide subsidized essential air service at Ely, Nevada, beginning with their inauguration of service through September 30, 2000, and (b) tentatively setting the annual subsidy rate of $595,373 for Redtail's service at Moab, and setting the annual subsidy rate of $1,087,340 for Scenic's service at Ely.

• Exhibit A: Map (with Mileages)
• Exhibit B: Redtail Aviation, Inc. Calculation of Annual Subsidy Requirement at Moab, Utah
• Exhibit C: Scenic Airlines, Inc. Essential Air Service to be Provided at Ely, Nevada
• Exhibit D: Redtail Aviation, Inc. Calculation of Annual Subsidy Requirement at Moab, Utah
• Exhibit E: Scenic Airlines, Inc. Essential Air Service to be Provided  at Ely, Nevada

By: Charles Hunnicutt

July 8, 1998 | Filed with Docket Section August 17, 1998

Protest of Alpine Air

By:  Eugene Mallette

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

Counsel:  Max Hanson, 408.683.4301

Order 99-10-5 is denying the petition of Alpine Aviation, Inc., for reconsideration of Order 99-6-13, issued June 14, 1999. 

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:  Arrow West, Mark Francis

By:  Great Lakes, Chris Wilken

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

For many years this commission has supported essential air service (EAS) to Moab and Vernal. We continue that support and trust your impending decision will be beneficial not only to Moab and Vernal, but also to Salt Lake City. In fact, the major problem with the present service by Great Lakes is that the service is to Denver, and not to Salt Lake City. The ties of both Moab and Vernal are to Salt Lake City and the communities west of the Rocky Mountains, and not to Denver and the communities east of the Rockies.

We are not finding fault with the U.S. DOT for selecting Great Lakes in its replacement of Sunrise Aviation, on the contrary, we are fully aware of the difficult circumstance you suddenly found yourself in. However, once again, the time has come to select a carrier that will serve Salt Lake City from both Moab and Vernal. Salmon Air has indicated its willingness to do that.

Salmon Air proposes to base one aircraft at Moab, and a second aircraft at Vernal. In this way, the first flight of the day will be from the EAS community to Salt Lake City, and thereby provide travelers a full business day in Salt Lake, as well as the opportunity to catch early connecting flights. Also, Salmon Air proposes to fly three, round-trips each day, and one, round-trip each week-end, with a two-pilot operation. Oxygen masks would be installed for emergency use.

By: Scott Slaymaker

By:  Scenic Airlines

By:  Arizona Express

By: Mountain Bird d/b/a Salmon Air

By: Great Lakes Airlines

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

In regards to your upcoming decision for essential air service at Moab and Vernal, Utah, Salt Lake City strongly urges you to select a provider that will route air service to these communities through Salt Lake City International Airport. The current service to Moab and Vernal is routed through Denver, which has proven to be unsatisfactory to those communities. As the capital city for the state of Utah there is naturally an ongoing community of interest and need for access to the many governmental functions located in Salt Lake City. Salt Lake City is also the administrative headquarters of the Church of Jesus Christ of Latter-day Saints as well as numerous businesses and corporations, which generate significant travel demand within the state. 

By: Timothy Campbell

OST-97-2827 - EAS at Moab, UT
OST-97-2706 - EAS at Vernal and Cedar City, UT

July 30, 2003

Proposal of Great Lakes Aviation

By: Great Lakes Aviation

OST-97-2827 - EAS at Moab, UT
OST-97-2706 - EAS at Vernal and Cedar City, UT

July 30, 2003

Proposal of Mountain Bird, In. d/b/a Salmon Air

By: Mountain Bird, In. d/b/a Salmon Air

July 30, 2003

Proposal of Mesa Air Group

By: Mesa

OST-97-2706 - EAS at Vernal, UT
OST-97-2827 - EAS at Cedar City, UT

August 19, 2003

Correspondence of Vernal/Uintah County Airport

By: Thom Wardell

OST-97-2706 - EAS at Vernal, UT
OST-97-2827 - EAS at Cedar City, UT

August 19, 2003

Correspondence from the City of Vernal, Utah

By: William Kremin

August 21, 2003

Correspondence from the Grand County Council

OST-97-2706 - EAS at Vernal, UT
OST-97-2827 - EAS at Cedar City, UT

August 26, 2003

Correspondence of Uintah County Commissioners

By: Michael McKee

August 27, 2003

Correspondence of Uintah County

By: Bill Johnson

OST-97-2706 - EAS at Vernal, UT
OST-97-2827 - EAS at Cedar City, UT

September 11, 2003

Community Comments of the Grand County Council Members of the Vernal/Moab County Airport

Our community has a distinct preference for service to Salt Lake City, rather than Denver, and we believe that the traffic demand in this market requires the use of a 19-seat twin-engine aircraft. Salt Lake City is an important Delta hub, and will provide excellent access for the Moab region to the entire national transportation system Salt Lake City offers a vast array of service connections, with lower cost carriers such as America West, Southwest, and JetBlue to help spur competition, keep prices down and generate more traffic. In addition to the increased passenger loads expected from connecting traffic through Salt Lake City, many of our visitors come from other Utah cities that currently have Salt Lake City service.

By: Jim Lewis

OST-97-2706 - EAS at Vernal, Cedar City, and Moab, UT
OST-97-2827 - EAS at Moab, UT

October 3, 2003

Correspondence to The Honorable Jim Matheson from Michael W. Reynolds

The Airport Board has been told that many of the proposals to provide Essential Air Service to the airport cannot be considered because of the cost per passenger would be higher than the amount allotable under federal law, based upon the airport's current enplanement numbers. However, the per person subsidy for these proposed routes has the potential to decrease dramatically with a rise in passenger volume, as the airport expects to occur with service to Salt Lake City. For these reasons, I support the Vernal/Uintah County Airport Board's request that historical data be considered in the analysis of the proposals for Essential Air Service to the airport.

By: Michael Reynolds

Order 03-10-22
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

November 4, 2003

Ex-Parte Letter to Orrin Hatch

By: Norman Mineta

Order 03-12-1
OST-97-2827 - EAS at Moab, UT
OST-97-2706 - EAS at Vernal, UT

Issued December 1, 2003 | Served December 3, 2003

Order Selecting Carrier and Setting Final Rates | Word

By this order, the Department is selecting Mountain Bird, Inc., d/b/a Salmon Air, to provide essential air service at Moab and Vernal, Utah, for a two‑year period at annual subsidy rates of $674,804 and $595,436, respectively.

After careful consideration of this matter, including the comments of the communities, we have decided to select Salmon Air to provide essential air service at both Vernal and Moab in accordance with the carrier's Option 2 for Moab and Option 6 for Vernal. Both of these options provide twelve weekly nonstop round trips to Salt Lake City with twin-engine, 8-seat, Piper PA-31 Chieftain aircraft. As noted above, the community of Vernal has agreed to waive its guarantee of service with 15-seat aircraft in order to remain in the program. We find that the respective service and annual subsidy levels of $595,436 for Vernal and $674,804 for Moab appear reasonable.

We base our selection decision on several factors. We are prohibited by statute from subsidizing air service at communities that are within 210 miles of a large or medium hub and where the subsidy exceeds $200 per passenger. We do not have the discretion to waive this standard set by Congress for continued subsidy eligibility. We are thus required to consider only those proposals where the per‑passenger amount is below that statutory cap. Furthermore, it is the Department's longstanding program policy to base subsidy‑per‑passenger calculations on actual traffic generated by the community, and we believe that the most recent traffic data available is the best indicator of current passenger demand. We thus do not agree with the communities' arguments that more distant historical traffic should be used as the standard on which to base our per‑passenger calculations. The communities' arguments that we rely on older data as the basis for current per‑passenger calculations are further belied by the significant events that have occurred in the period since Denver service was inaugurated by Great Lakes, resulting in a downturn in demand nationally. The argument that the decrease in traffic is solely the result of a switch in hubs from Salt Lake City to Denver is a conclusion that cannot be supported by the available evidence.

Choosing among the available options, we have selected the two options that we find will best meet the needs of both Vernal and Moab and will provide Vernal with the best opportunity to remain in the EAS program.

By: Michael Reynolds

December 2, 2003

Ex-Parte Letter to the Honorable Orrin Hatch

I am pleased to advise you that the Department has recently issued Order 2003-12-1 selecting Mountain Bird, Inc. dib/a Salmon Air to provide both Vernal and Moab with dedicated nonstop service to Salt Lake City. The order accomplishes two important goals: first, it restores service in the Vernal-Salt Lake City and Moab-Salt Lake City markets; and second, it provides each community with nonstop service to the hub with no sharing of capacity with the other community. The service will be provided with Salmon Air's 8-seat Piper Chieftain aircraft. While this aircraft is smaller than the aircraft currently being used by Great Lakes in its service to Denver, it represents the best opportunity for Vernal to remain in the EAS program. As you know, by statute, the Department is prohibited from subsidizing air service at any community where the per-passenger subsidy would exceed $200. Of the four viable proposals that met this criterion, the Department found that Salmon Air's two stand-alone proposals with Piper aircraft offered the best value for Vernal and Moab passengers arid taxpayer dollars.

By: Michael Reynolds

Filed November 26, 2003 | Issued January 6, 2004

Notice of Action Taken

By: Paul Gretch

Order 2005-12-11
OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT

Issued December 21, 2005 | Served December 27, 2005

Order Requesting Proposals

We request that any carriers interested in providing EAS at Vernal and/or Moab, with or without subsidy, should file their proposals within 30 days of the date of service of this order. With respect to each community, we expect proposals consisting of service with two-pilot, twin engine aircraft with at least 8 passenger seats, and offering two or three nonstop or one-stop round trips each weekday and over each weekend period to Salt Lake City or any other suitable huh offering convenient access to the nation's air transportation system. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those basic requirements if they envision other, more attractive service possibilities, with subsidy requirements that remain competitive.

During the year ended November 30, 2005, the most recent 12-month period for which traffic data are available, Vernal averaged 4.5 enplanements a day, and Moab averaged 3.8 enplanernents per day.

By: Michael Reynolds

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

January 26, 2006

Proposals of Mesa Air Group d/b/a Air Midwest

All operations proposed would utilize our modem fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. Mesa has a long history of offering Essential Air Service throughout the country, from New Mexico to New York. At this time, we plan on starting this service as Mesa Airlines, with the intention of putting it under our America West Express codeshare if awarded the contract.

In the DOT's request for proposals for Vernal and Moab, the DOT states clearly that "Proposals submitted for service to Vernal must not exceed the $200 per passenger statutory limit. Based on that level of traffic and the current subsidy of $595,436, Vernal's subsidy per passenger is $208.12, and exceeds the $200 per passenger ceiling." Mesa feels that the maximum subsidy cap should actually be higher than $572,200, when you factor in the Quality of Service Index stimulant between a Piper Chieftain and a Beech 1900D.

With the increase in service level from a Chieftain to a 1900D, the QSI formula calculates a 23.35% increase in passengers in Vernal, which would mean that the number of passengers should be much closer to 3,529. Mesa conservatively gave a 15% increase in passengers to Vernal, which would net an overall per passenger subsidy of only $171, significantly below the $200 cap, and at a level that should keep the community far enough away from the cap while Mesa continues to work on building the passenger base over the next two years. Even utilizing the current 2,861 passengers that the DOT states as the latest yearly numbers for Vernal, Mesa's per-passenger subsidy level for Vernal is only $197 with our subsidy request of $562,720.

By: Air Midwest, Mickey Bowman

http://www.mesa-air.com/amw_info.asp

January 26, 2006

Proposals of Great Lakes Aviation

The Great Lakes proposal contemplates non-stop, conveniently timed connecting services with our Code Share partners United and Frontier at our Denver Hub. Our code share agreements will give Moab and Vernal the greatest competitive opportunity available in the Rocky Mountain Region. In addition, Great Lakes maintains interline ticketing and baggage agreements with the majority of carriers serving their hubs from Denver, which will allow for maximum utilization of our air service for passengers flying in and out of both Vernal and Moab, Utah.

The proposal contemplates the use of pressurized 19 seat Beech 1900D's, which the Company has had a long history of operating. To minimize subsidy requirements the proposal assumes the overhead of one fully deployed Beech 1900 and should therefore be considered to be a package bid for both markets. Costing has been broken out in order to provide a subsidy per passenger calculation.

By: Great Lakes, Nick Wangler, 307-432-7050, nwangler@greatlakesav.com

http://www.greatlakesav.com/

January 27, 2006

Proposals of Mountain Bird d/b/a Salmon Air

Salmon Air Option 1: Continuing the current service of 12 non-stop round trips each week between Vernal and Salt Lake City, and 12 non-stop round trips each week between Moab (Canyon Lands) and Salt Lake City with an 8 seat twin-engine, reciprocating-powered, Piper PA31-350 Chieftain aircraft. Total annual subsidy for this option would be $1,339,379.87.

Salmon Air Option 2: Providing 12 non-stop round trips each week between Vernal and Salt Lake City, and 12 non-stop round trips each week between Moab (Canyon Lands) and Salt Lake City with a 9 seat, single engine, pressurized/climate controlled cabin, turbine powered Pilatus PC-12. Total annual subsidy for this option would be $1,292,323.97.

The attached proposals show a projected subsidy per passenger for Vernal that is under $200.00. We have kept the projection very conservative based on historic data from Salmon Air's 23 months on the route. We expect both routes to continue showing growth as we fine-tune our service and advertising.

Salmon Air feels that the Vernal route is viable, and worthy of the EAS subsidy. We will be able to demonstrate this over the next 24 months if given the chance. Salmon Air feels that it takes about 24 months to work the quirks out of any new operation. We are just now seeing the effects of a more streamlined operation as a result of catching up to the learning curve.

By: Salmon Air, Thomas Wilkins

http://www.salmonair.com/

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

February 2, 2006

DOT Letters to:

Mark Francis
Bill Johnson
William Kremin
Joette Langianese
David Sakrison
Tom Wardell

In anticipation of the end of Salmon Air’s current contract on February 28th, the Department issued Order 2005-12-11 on December 21, 2005, to solicit proposals from all interested air carriers to provide EAS at Vernal and Moab, for a new two-year term. In response to that order, we received a total of six service options from three carriers. Great Lakes Aviation, Ltd. submitted a proposal with a single option. Mountain Bird Inc. d/b/a Salmon Air’s proposal contained two service options. Mesa Air Group, Inc. d/b/a Air Midwest proposed three options.

We request that you review each proposal and service option and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than February 24, 2006. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a decision.

By: Dennis DeVany

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

February 10, 2006

Salmon Air Withdrawal of Proposal Option 2

I'm writing this letter as official notification that Salmon Air's EAS proposal option 2 is being withdrawn.

Unfortunately, some aspects of the proposed lease of aircraft have been altered and it is no longer a financially viable option for Salmon Air in the near term. We plan to re-visit using the Pilatus at a later date. At that time, we will meet with the communities of Moab and Vernal to explore the possibility of using a PC-12 aircraft.

By: Salmon Air, Thomas Wilkins

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

February 10, 2006

DOT Letters to:

Mark Francis
Bill Johnson
William Kremin
Joette Langianese
David Sakrison
Tom Wardell

This letter is sent to update you on the status of proposals for Essential Air Service at Vernal and Moab.

The Department of Transportation issued Order 2005-12-11, soliciting proposals from all interested air carriers to provide EAS, for a new two-year term on December 21, 2005. In response, the Department received proposals from the following carriers: Great Lakes Aviation, Ltd., Salmon Air and Air Midwest. A summary of each carrier’s proposal was described in our letter to you dated February 2, 2006.

On February 9, 2006, Salmon Air informed the Department that it was withdrawing its proposed service option utilizing 9-passenger, single-engine, pressurize cabin aircraft (Option 2) from consideration. As discussed in our previous letter, the Great Lakes proposal exceeded the statutory limitations imposed on the EAS Program and can not be considered. The remaining four service options currently under review by the Department include: Salmon Air’s Option One and Air Midwest’s three options.

We request that you continue to review each service option currently under consideration and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but have extended the comment period to no later than March 5, 2006.

By: Dennis DeVany

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

February 14, 2006

City of Moab in Support of Mesa Air Group Option #1

Moab City, Utah, in conjunction with Grand County, Utah would prefer Mesa Air Group Option #1 as our Essential Air Service.

We feel that having pressurized aircraft would better serve the needs of our community. Mesa Airline's proposal fits the economic needs as well as other concerns of our community. They would offer interline agreements with other carriers and their marketing approach would better serve our community.

We feel Mesa Airline would be the best option for all concerned.

By: Mayor, Dave Sakrison

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

January 23, 2006

Re: Grand County Council Members Support for Continuation of EAS

The Grand County Council strongly supports the continuation of the U.S. Department of Transportation's Essential Air Service Program. The Essential Air Service contract provides a vital link between Grand County and national and international air service. The Essential Air Service contract plays an important role in the economic development of an isolated rural community and allows local businesses in Grand County to grow and prosper.

By: Judy Carmichael

http://www.grandcountyutah.net/council/index.htm - Grand County Council

OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT

February 21, 2006

Uintah County-Vernal City Economic Development in Support of Mesa

We have diligently canvassed the citizens of our community and carefully reviewed the proposals from all three carriers. Vernal is unique as it is the hub for the energy extractive industry in the state of Utah. The majority of these companies have headquarters or regional operations based in Denver and have expressed the need for direct air service to Denver. This does represent a large amount of potential usage. Of the three bids, Great Lakes was the only one to offer a Denver service. Because their subsidy would exceed the allowable $200 per passenger cap, we have eliminated this option.

The second highest group of potential travelers favors the Salt Lake City service, as this is where their business, family, and church ties are. Arguably the comments were unanimous that the carrier use the minimum required aircraft, provide interline and codesharing agreements with a major connecting service and fly into a secure gate at Salt Lake. Of the two remaining bidders, Mesa (Air Midwest) is the only carrier that can meet these needs.

This office has made a recommendation to the Airport Board, City of Vernal, and Uintah County to recommend that Mesa is the preferred bidder for the Vernal EAS contract. Also recommended, based on the results of our survey to not waive the minimum aircraft requirement now or in the future, which was done on the past contract.

By: Bill Johnson

February 17, 2006

Vernal City and Uintah County in Support of Mesa

We have determined for the success of our Essential Air Service we will not waive the requirement that the carrier utilize a twin engine, two pilot, 15passenger, pressurized aircraft. If we are going to provide the citizens with Essential Air Service they must have confidence in the carrier and it must meet their needs.

Great Lakes proposal is for service to Denver, Colorado. It is not selectable and will not be considered due to the statutory requirements indicated in your letter.

Salmon Air Lines is our current service to Salt Lake City, Utah. They propose using a non-pressurized, twin-engine, 8-passenger aircraft. A second proposal is to use a 9-passenger service with a single engine Pilatus PC-12. The second proposal has been removed at the request of Salmon Air. The per-passenger subsidy requirements for Vernal in Salmon Air's options are below the statutory cap and selectable according to your letter.

Midwest's submission is for a 19-passenger Beech 1900D aircraft with twin engines, pressurized cabin, and two pilots. The service is a Salt Lake City, Utah connection and meets the statutory requirements indicated in your letter.

We have examined the above options and feel Midwest's submission meets Uintah County/Vernal City's requirements by providing a two‑pilot, twin‑engine, 15passenger aircraft. The submission is below the $200.00 per‑passenger subsidy cap of $572,200 per year. We feel Midwest's proposal will meet the needs of the citizens of our community.

In a joint Vernal City/Uintah County meeting held on February 17th, there was unanimous consensus by both Vernal City and Uintah County that Mesa Air be the Essential Air Service carrier of choice for the next two years for the Vernal area.

By: Allen Mashburn and Michael Mckee

OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT

February 28, 2006

Grand County Council Support of Air Midwest

Since their meeting with you, the County Council has received new information they wish to have on record for consideration before the bid is awarded. We have also recently met with local staff from Congressman Matheson's office to discuss this new information. They encouraged us to get this letter on the record because it might still be possible to get Air Midwest, rather than Salmon Air.

In the same week you met with Council members, wc had a meeting locally with the DOE on the Moab Tailings Project. DOE has offices in Grand Junction, Colorado. The tailings project will take place over the next twenty years in Grand County and DOE will need transportation. We proposed a charter flight to which they have agreed, if it can be demonstrated that flying is more cost effective then driving. This will. increase our enplanements over the qualifying threshold for increased federal funding. This is a way for Grand County to mitigate the impact of the tailings project on our community over the next twenty years which we believe can be used to support our local effort to meet the federal requirements required to upgrade the airport.

Air Midwest will help us grow and is a lynch pin in om economic development. We are a tourist area with some of the world’s most beautiful national parks and scenic byways. We are an international resource for bicyclists from around the world, yet we cannot offer a plane that can be pressurized or take a $5,000 bicycle that breaks down but is not less than 35 pounds. Also, Utah families with children and others with sensitive breathing issues cannot fly with us.

It should also be on record that our airport was recently approved for a federal grant of 4.1 million dollars to improve the safety grading, so again we are showing local growth and an investment in our airport.

By: Grand County Council, Jane Woodside

Order 2006-3-21
OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT

Issued March 22, 2006 | Served March 27, 2006

Order Selecting Carrier - Bookmarked | Word

By Order 2003-12-1, issued December 1, 2003, the Department selected Salmon Air to provide subsidized EAS at Vernal and Moab for a two-year period.  That order established an annual subsidy for Vernal of $595,436, and for Moab of $674,804 for twelve nonstop round trips each week between each community and Salt Lake City with 8-seat Piper PA-31 Chieftain aircraft.  The carrier's rate term expired February 28, 2006.

In anticipation of the end of the rate term, the Department issued Order 2005-12-11 on December 21, 2005, soliciting proposals to provide efficient EAS, with subsidy support if necessary, at Vernal and Moab.  That order summarized several important statutory limitations imposed on the EAS Program and how they would affect the carrier selection process at Vernal and Moab.

The Department received a total of six service options from three carriers in response to its solicitation.  Great Lakes Aviation, Ltd. submitted a proposal with a single option.  Salmon Air’s original proposal contained two service options; however, it subsequently withdrew its second option from consideration.  Air Midwest intending to operate under its code-share agreement with America West, proposed three options.

After careful consideration of this matter, including the comments of the communities, we have decided to select Air Midwest to provide essential air service at Vernal and Moab in accordance with the carrier’s Option One.  Air Midwest’s Option One is the only proposal that meets all of the statutory requirements placed on the provision of EAS.  This option provides twelve weekly nonstop round trips between Vernal and Salt Lake City and between Moab and Salt Lake City with twin-engine, two-pilot, 19-passenger, Beechcraft B-1900D aircraft.

By: Michael Reynolds

OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT

January 27, 2006

Comments of Congressman Jim Matheson

Vernal is located in the Uintah Mountain range in eastern Utah and it is approximately 180 highway miles from the nearest hub. While it is slightly less than the proscribed 210 miles it is very important to keep in mind that traveling through rural, mountainous regions is far more challenging, particularly during the winter months, than can be estimated by looking at distances on a map.

Vernal does not have access to passenger rail or bus service. Energy production in the region is booming and there is a great need for transportation options Therefore, the community is heavily reliant on the EAS subsidy and interested in continuing to provide its residents and business customers with reliable transportation.

Finally, the Department should keep in mind that proposals which include non-pressurized aircraft will inevitably result in lower annual enplanement levels, It is my understanding that the non-pressurized aircraft seat fewer people and passengers have said that they prefer to fly on pressurized aircraft in that region.

By: Jim Matheson

OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT

Issued May 4, 2006 | Served May 9, 2006

Notice of Continuing Essential Air Service Payments

By Order 2006-3-21, issued March 22, 2006, the Department selected Mesa Air Group, Inc., d/b/a Air Midwest to provide essential air service with 19-passenger Raytheon/Beechcraft B-1900D aircraft at Vernal and Moab, Utah, for two years, through May 31, 2008, replacing the incumbent, Mountain Bird Inc. d/b/a Salmon Air. The annual subsidy rates were set at $562,720 for Vernal and $1,298,784 for Moab. The Department also set Salmon Air’s short-term, annual subsidy rates at $555,771 for Vernal and $783,608 for Moab for its provision of EAS from March 1, 2006, until Air Midwest inaugurated service at both communities.

Immediately following the issuance of Order 2006-3-21, the Department discovered that neither Vernal-Uintah County Airport (Vernal) nor Canyonlands Field (Moab) met the operational and safety requirements established under Title 14, Code of Federal Regulations, Part 139, and therefore can not accommodate Air Midwest’s 19-passenger aircraft. As a result, Air Midwest is not able to commence EAS at either Vernal or Moab until the airports become compliant.

Department staff has spoken with both communities, both air carriers, and the Federal Aviation Administration, and all parties have agreed to work toward a July 2nd transition. Therefore, the Department will continue to compensate Salmon Air at the previously established short-term rates through July 1st.

By: Todd Harmon

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

May 21, 2007

Notice of Air Midwest to Terminate Essential Air Service

Air Midwest, Inc. respectfully serves notice upon the Department of Transportation, in accordance with 14 C.F.R. 323.3 and 14 C.F.R. 323.4, of its intent to discontinue scheduled subsidized Essential Air Service between Moab and Vernal, Utah and Salt Lake City, Utah effective August 19, 2007.

At present, Air Midwest is the sole provider of certificated scheduled air service at Moab and Vernal, Utah. Air Midwest is hereby providing public notice of its intent to terminate scheduled air service with the expiration of the 90-day notice as required. Any objections to this Notice to Terminate Service must be filed within twenty days from the date of this filing, in accordance with 14 C.F.R. 323.10.

By: Mesa, Tom Bacon, 602-685-4352

Order 2007-6-13
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2007-28305 - Roswell, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

Issued and Served June 18, 2007

Order Prohibiting Suspensions of Service and Requesting Proposals

By this order, the Department is prohibiting Air Midwest, Inc., from suspending service and requesting proposals from carriers interested in providing replacement essential air service at all of the above-captioned communities. All of these communities are guaranteed EAS, and all but Roswell are currently receiving subsidized EAS pursuant to Department orders.

Air Midwest's proposed termination of service at these communities would leave them without any scheduled air service, and, thus, the Department must prohibit the carrier from terminating such service at the end of its 90-day notice period, and require it to maintain service at the communities for an initial 30-day period, through September 19, 2007, consisting of the service patterns outlined above. Furthermore, we will require Air Midwest to continue to maintain service at all of these communities for successive 30-day periods until we have completed processing the carrier-replacement case and the new carrier(s) has actually started service.

We note that Air Midwest currently receives EAS subsidy at seven of these communities. In this situation, the current subsidy rates will remain in effect for 180 days after the notice was filed if replacement service has not started by then. See 49 U.S.C. 41734 (d) and (e), At Roswell, Air Midwest will be eligible for subsidy on the 91st day after the filing, i.e., August 21, 2007.

Carriers interested in filing proposals at any or all of the communities, with or without subsidy, should file them no later than July 19, 2007. We expect proposals that provide comparable service levels to those that are currently provided, as described earlier. We encourage proposals that meet those 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 the current service pattern if they envision other, potentially more attractive service possibilities - different hubs, or seasonal service - with subsidy requirements that remain competitive. Carriers are free to submit more than one option, and options may be submitted for individual cities on a stand-alone basis, or alternatively as packages of two or more cities. However, carriers must make clear whether an option is proposed on a stand-alone or package basis.

By: Michael Reynolds

OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
OST-1995-361 - Ely, NV
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

July 19, 2007

Proposals of Great Lakes Aviation

Great Lakes will utilize its codeshare relationships with United Air Lines and Frontier Airlines as is practical.

Proposal Number	Service Point(s)	Hub(s) Served	Round Trips	Equipment	Subsidy Requirement	Passengers Forecast	Average Fare
1	Vernal, UT	Denver	2	1900D	$1,147,786	5750	$136.85
2	Moab, UT	Denver	2	1900D	$1,607,903	3500	$100.00
3	Merced, CA	Las Vegas	2	1900D	$724,027	20,000	$117.00
4	Visalia, CA	Las Vegas	2	1900D	$1,111,426	15,000	$115.00
5	Ely, NV	Denver or Vegas	1	1900D	$1,079,102	2600	$107.00

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

July 19, 2007

Proposal of Mesa Air

Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit one proposals to provide Essential Air Service at Merced & Visalia, California; Ely, Nevada; and Cedar City, Moab & Vernal Utah. Mesa has also enclosed a single "Hold-In" subsidy calculation that can be used to calculate subsidy rates for hold-ins only.

It is important to note that the hold-in has service from Moab & Vernal to Salt Lake City. Due to operational constraints by our codeshare partner, we are unable to provide long-term service to Salt Lake City. This necessitates the hub for Option #1 for Moab & Vernal being changed to Phoenix. This actually benefits our passengers by allowing for nearly fifty-times more online connecting options on US Airways.

Also due to operational constraints, Ely & Cedar City are unable to be separated for any "hold-in" periods, as we are unable to serve Ely without stopping in Cedar City for passengers to clear security. Option #1 is an all inclusive bid, and can not be separated or pro-rated in any form. Mesa also reserves the right to serve one up-line destination from Moab to Phoenix in Option #1 as well as serving 1-stop service for Vernal. The stop will be another Mesa market such as Farmington, Moab or any other potential future markets.

All operations proposed would utilize our modem fleet of Raytheon/Beechcraft B1900D airliners.

By: Mesa, Jeffrey Hartz

OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT

July 20, 2007

Proposal of Salmon Air

Option 1: Providing service of 12 non-stop round trips each week between Moab (Canyon Lands) and Salt Lake City with a 7 seat twin-engine, reciprocating engine powered, Piper PA31-350 Chieftain aircraft. Total annual subsidy for this option would be $1,831,989.88.

Option 2: Providing service of 6 non-stop and 6 one-stop round trips each week between Moab (Canyon Lands) and Salt Lake City. Providing 6 non-stop round trips each week between Vernal and Salt Lake City. All trips provided with a 7 seat twin engine, reciprocating engine powered, Piper PA31-350 Chieftain aircraft. Total annual subsidy for this package option would be $2,472,951.75.

Our proposed start date for this route would be October 19, 2007. We feel that three months is adequate time for us to hire and train employees, as well as, create the infrastructure needed for this kind of operation.

By: Salmon, Thomas Wilkins

OST-2003-16395 - Cedar City, UT
OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT
OST-1995-361 - Ely, NV
OST-2004-19916 - Visalia, CA
OST-1998-3521 - Merced, CA

July 30, 2007

DOT Request for Community Comments of:

• California Department of Aeronautics
• County Commissioners Chairman of White Pine County
• Commission Chairman of Uintah County
• Council Vice Chair of Grand County
• Director of Utah Division of Aeronautics
• Manager of Canyonlands Field
• Manager of Cedar City Regional Airport
• Manager of Ely Airport - Yelland Field
• Manager of Uintah County Airport
• Manager of Visalia Municipal Airport
• Mayor of Cedar City
• Mayor of City of Merced
• Mayor of City of Visalia
• Mayor of Ely
• Mayor of Vernal City
• Nevada Department of Transportation
• Superintendent of Merced Municipal Airport

By Order 2007-6-13 the Department requested proposals from air carriers interested in providing essential air service at: Roswell and Alamogordo/Holloman Air Force Base, New Mexico; Cedar City, Moab and Vernal, Utah; Ely, Nevada; and Merced and Visalia, California. The order was issued following 90-day notice as filed with the Department by Air Midwest, which indicated their intent to suspend service at the eight communities listed above. Subsequent to Order 2007-6-13, the Department issued a notice separating the New Mexico communities from this carrier-selection proceeding. In response to our request and subsequent notice regarding the New Mexico communities, we received proposals from the following air carriers: Air Midwest, Great Lakes, Salmon Air, SkyWest, and Vision Airlines.

My purpose in writing you at this time is to request any final comments you might have on the carriers’ service and subsidy proposals before we submit a recommendation on the carrier selection issue to the Assistant Secretary for Aviation and International Affairs for decision. We request that you review this information and submit any comments you may have by August 27.

OST-2003-16395 - Cedar City, UT
OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT
OST-1995-361 - Ely, NV
OST-2004-19916 - Visalia, CA
OST-1998-3521 - Merced, CA

August 15, 2007

DOT Memorandum - Granting Extension of Comments Deadline

By letter dated July 30, 2007, the Department offered the civic officials of each of the above communities the opportunity to comment on the essential air service proposals submitted by Mesa Air Group, Inc., d/b/a Air Midwest, Inc.; Great Lakes Aviation, Ltd.; Sky West Airlines; Mountain Bird, Inc., d/b/a Salmon Air; and Vision Airlines, Inc., to provide subsidized air service at the communities listed above. In that letter we indicated that the deadline for submitting comments was August 27, 2007. By phone call and an email dated August 15, a copy of which is attached, the Airport Manager of the Merced Municipal Airport requested an extension of the August 27 deadline to submit comments as the City Council of Merced will not meet before September 4 to consider their recommendation to the Department.

Therefore, in consideration of the City of Merced's request, we are hereby granting an extension of the deadline for submitting comments from all of the above communities from August 27 to September 6.

By: Dennis DeVany

OST-2003-16395 - Cedar City, UT
OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT

August 27, 2007

DOT Letter to Senator Orin Hatch

Regarding the March 2006 carrier-selection case for Moab and Vernal, the Department followed statutory selection criteria in selecting Air Midwest, including a full consideration of the communities’ preferences. Both Moab and Vernal supported Air Midwest, the carrier we, in fact, selected. At Cedar City, we also considered the community’s comments. Unfortunately, the competing proposal required an annual subsidy of more than $1.6 million compared to less than $0.9 million for Air Midwest’s. In balancing the community’s views with our responsibility to the taxpayers, we found that, given the wide disparity in the amount of subsidy required to support these proposed services, the overall objectives of the Essential Air Service Program were best served by the selection of Air Midwest.

Regarding your constituents' customer-service complaints, I have sent a copy of your letter to our Assistant General Counsel for Aviation Enforcement Proceedings, so that he is aware of these concerns. According to that office, the Department has received 39 complaints against Mesa during the first six months of this year, none of which involved communities in Utah. However, if any of your constituents have particular matters they would like to bring to our attention, they should contact that office's Aviation Consumer Protection Division.

By: Andrew Steinberg

Order 2007-9-1
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

Issued September 4, 2007 | Served September 7, 2007

Order Extending Service Obligation

We require Air Midwest, Inc., to maintain its current level of essential air service at Roswell and Alamogordo/Holloman AFB, New Mexico; Cedar City, Moab and Vernal, Utah; Ely, Nevada; and Merced and Visalia, California, for an additional 30 days, through October 19, 2007, or until suitable replacement service actually begins, whichever occurs first.

We will extend Air Midwest’s service obligation for successive 30-day periods, as necessary, until suitable replacement service actually begins.

By: Todd Homan

September 4, 2007

Grand County Council in Support of Salmon Air

After careful consideration the Grand County Council recommends Salmon Air as the preferred provider to Canyonlands Field.

All of the service providers that have submitted bids have provided Essential Air Service to the County in previous years. The County believes that of those carriers, Salmon Air has provided the best service in year pasts. Additionally, the County believes that providing service to the SLC hub is the correct destination of those that have submitted bids. The Council acknowledges that the County’s recommended air service provider does not require that Canyonlands Field comply with Part 139 certification. This letter will also serve as formal notice that Grand County hereby waives its right to have Essential Air Service provided by 15 passenger aircraft.

By: Chair, Jim Lewis

Order 2007-10-7
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

Issued October 4, 2007 | Served October 10, 2007

Order Selecting Carriers and Establishing Subsidy Rates | Word

By this order, the Department is selecting SkyWest Airlines, and Great Lakes Aviation, Ltd. to provide subsidized essential air service at the above communities for the two-year period beginning when the carriers inaugurate full EAS.  Specifically, we select SkyWest at Cedar City for the annual subsidy of $1,242,256 and Great Lakes at Merced, Visalia, Ely, Moab and Vernal for a combined annual subsidy of $5,670,244.

Air Midwest is eligible to be compensated for its service until Great Lakes and SkyWest take over the routes.  Pursuant to 49 U.S.C 41734(d), we will continue to compensate Air Midwest at its current rates for 180 days after it filed its notices to suspend service -- November 18 in this case.  If the carrier transitions occur after November 18, we will issue another order addressing the Air Midwest’s hold-in rate after that date.

This is a particularly complicated transition period, as Air Midwest is being replaced not by one carrier, as is the typical case, but by two.  Before suspending service at these six communities, we expect Air Midwest to work with both SkyWest and Great Lakes to ensure a smooth transition in service.  We expect all three carriers to work together on an orderly transition.  Among other things, they will have to decide whether both SkyWest and Great Lakes will inaugurate service on the same day, or whether there will be a staggered transition.  We expect Air Midwest to contact all passengers holding reservations for flights after the suspension date, to inform them of the change in service, and to assist them in arranging alternate transportation or to provide a refund of the ticket price, without penalty, if requested.

By: Michael Reynolds

Order 2007-10-17
OST-1996-1901 - Alamogordo/Holloman AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

Issued October 15, 2007 | Served October 18, 2007

Order Extending Service Obligation

The Department has issued Orders 2007-9-29 and 2007-10-7 selecting replacement service, but the new carriers have not yet inaugurated service. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at the communities for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Todd Homan

Order 2007-11-16
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

Issued November 21, 2007 | Served November 27, 2007

Order Extending Service Obligation

By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above‑captioned communities, for an additional 30 days, through December 19, 2007.

On May 22, 2007, Air Midwest filed a 90-day notice of its intent to suspend its subsidized service at the communities as of August 20. By Order 2007-6-13, June 18, 2007, the Department prohibited the carrier from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods.

The Department has issued Orders 2007-9-29 and 2007-10-7 selecting replacement service, but the new carriers have not yet inaugurated service. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at the communities for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Todd Homan

Order 2007-12-15
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

Issued December 19, 2007 | Served December 26, 2007

Order Extending Service Obligation

By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through January 18, 2008.

By Order 2007-6-13, June 18, 2007, the Department prohibited the carrier from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods, the latest through December 19, 2007, by Order 2007-11-16.

By: Todd Homan

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