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OST-1998-4409
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http://www.ci.show-low.az.us/departments/airport/ - Show Low Municipal Airport
OST-1998-4409 - Show Low, Arizona
August 19, 1998 | Received by Docket Section September 2, 1998
It has taken awhile but I am pleased to report that we do now have air service on a scheduled basis between Show Low, Arizona and Phoenix Sky Harbor. Sunrise Airlines, a company owned by Cliff Langness, the former president of Scenic Airways, began service in May between the City of Show Low and Phoenix Sky Harbor. The service originated with an eight passenger Piper Chieftain. In October, this service will be upgraded to a recently acquired Cat Pass 250 Conversion from a King Air 200 providing pressurized turbo prop service to the White Mountains.
Appendix 1: EAS at Show-Low
By: Patrick Sherman, City Manager, 520-537-5724, info@ci.show-low.az.us
| Order 99-5-16 OST-98-4409 |
May 28, 1999 | Order Selecting Carrier and Setting Final Rate | EAS - Show Low, Arizona |
By: Bradley Mims
| Order 00-4-18 OST-98-4409 OST-00-6773 |
Issued April 18, 2000 Served April 18, 2000 |
Order Eliminating Requirement To Pay a Portion of Compensation for Small Community Air Service | Essential Air Service at Kalaupapa, Molokai, Hawaii and Show Low, Arizona- Phoenix Sky Harbor |
| Appendix A: Summary of Service to be Provided |
Order 2000-4-18 eliminates the requirement for the communities of Show Low, Arizona, and Kalaupapa, Hawaii, to pay 50 percent of the compensation for small community air service.
By: Bradley Mims
| Order 01-3-14 OST-98-4409 |
Issued March 13, 2001 Served March 14, 2001 |
Order Requesting Proposals | EAS at Show Low, Arizona |
| Attachment: Historical Traffic |
By: Susan McDermott
| OST-98-4409 | August 31, 2001 | Proposal of AEX, Inc | Essential Air Service at Show Low, Arizona |
By: AEX, Shawn Talbot Rice Ovs
| OST-98-4409 | August 31, 2001 | Proposal of Arizona Express | Essential Air Service at Show Low, Arizona |
By: Arizona Express, Dan Hall
| OST-98-4409 | August 31, 2001 | Proposal of Great Lakes Aviation | Essential Air Service at Show Low, Arizona |
By: Great Lakes
| OST-98-4409 | August 31, 2001 | Proposal of Air West | Essential Air Service at Show Low, Arizona |
By: Air West
| OST-98-4409 | August 31, 2001 | Proposal of Mesa Air Group | Essential Air Service at Show Low, Arizona |
By: Mesa Air Group
| OST-98-4409 | September 24, 2001 | Subsidy Rate Agreement for the Provision of Essential Air Service at Show Low, Arizona | Essential Air Service at Show Low, Arizona |
By: Air West
| OST-98-4409 | February 26, 2002 | Re: Summary of Negotiations with Applicants | Essential Air Service at Show Low, Arizona |
As
you know, the Department is conducting a proceeding to select an air carrier to
provide essential air service at your community for the next two
years. The purpose of this letter is to summarize the results of our
negotiations with four applicant
carriers and to give you the opportunity to submit any comments on the different
proposals if you desire. We will carefully consider your comments before we submit our
recommendation to the Assistant Secretary for a final decision.
By: Dennis DeVany
| OST-98-4409 | March 5, 2002 Docketed March 11, 2002 |
Comments of The City of Show Low | EAS at Show Low, AZ |
After much discussion of the aforementioned criteria, each Council member ranked the five applicant carriers and the results were tallied. The carriers were ranked as follows:
The two applicants ranked first and second were very close. Both Mesa Air Group and Arizona Express provided proposals that addressed the City's issues, but Mesa's ability to provide connectivity skewed the Council in its favor. I reiterate that it was a very difficult choice since every proposal promised substantial benefits to everyone involved. One of the City's concerns are the security requirements needed at the Show Low Municipal Airport to handle Part 121 operations, plus the anticipated changes to Part 139 operations. We realize that since the events of last September, air travel and security for the public are of paramount importance; however, we are also concerned about the potential fiscal impact to the City.
By: City of Show Low, Gerry Whipple, 928.532.4000
| Order 02-4-21 OST-98-4409 |
Issued April 25, 2002 Served April 25, 2002 |
Order Selecting Carrier and Setting Final Subsidy Rate | Essential Air Service at Show Low, Arizona |
By this order we are (1) selecting Arizona Express to provide subsidized scheduled, air service at Show Low, Arizona, under the Essential Air Service program, for a one-year period, and (2) setting a subsidy rate of $538,432 for the carrier's service. In response to Order 2001-3-14, five carriers submitted proposals for replacement air service at Show Low-Mesa Airlines, Air West, Arizona Express, AEX Airlines, and Great Lakes Aviation. The proposals of four of these carriers are summarized below. Great Lakes Aviation did not reach an agreement with the Department on a final proposal.
By: Read Van de Water
| OST-98-4409 | May 6, 2002 | Essential Air Service at Show Low, AZ | |
| Exhibits: Subsidy Calculation / Operating Expenses / Financials for Mesa |
The Department's Order selected Arizona Express to provide subsidized air service at Show Low, Arizona, notwithstanding the fact that Mesa's service was superior to Arizona Express in terms of every relevant statutory criterion the Department must consider under 49 U.S.C. 41733. Mesa's service was community's first choice, and, moreover, Arizona Express does not even hold the necessary FAA certificate and DOT operating authority to perform the scheduled passenger services for which it was selected. The sole basis for the Department's selection of the Arizona Express service proposal - which the Department acknowledges to be inferior - was Arizona Express's lower subsidy proposal. However, vastly changed airline industry conditions now enable Mesa to commit to providing Show Low with its preferred service proposal at a cost of $484,000, which is over $50,000 less than the Department authorized for Arizona Express.
Good cause exists for granting Mesa's Petition for Reconsideration and receiving additional evidence on this important issue. The traffic and revenue forecasts upon which the Department's decision was based were prepared at the very beginning of the year, in the post-September 11 timeframe, when the industry was still reeling from the effects of the terrorist attacks. Mesa's traffic estimate at that time produced a higher subsidy level than more recent traffic levels would indicate.
Counsel: Mesa and Shaw Pittman, Robert Cohn, 202-663-8060
| Order 02-5-21 OST-98-4409 |
Issued May , 2002 Served May , 2002 |
Order Dismissing Petition and Dismissing Motions | Essential Air Service at Show Low, Arizona |
We are dismissing Mesa’s petition and motions in this docket, without addressing the merits of its revised proposal. Mesa had ample opportunity to amend or perfect it proposal during the process of our requesting proposals and working with all the applicants to ensure that we had their best and final offer. Indeed, Mesa and EAS staff signed such an agreement. And after we had such signed agreements with all four applicants, we sent a letter to the civic officials of Show Low asking for their final comments, with copies to all four applicants, as is longstanding EAS practice. Mesa had an opportunity even at that late date to submit comments or to correct any errors that we may have made in describing its proposal to the community.[1] Now after all of the carriers’ “best and final offers” have been revealed to the community and the Department has made its decision based on a complete record, Mesa asks that it be given yet another opportunity to amend its proposal. If we were to grant Mesa’s motion, regardless of the merits, it would signify that no case would ever be completed; losing carriers could simply petition to underbid the lowest carrier. That would not only be fundamentally unfair to the applicants that “played by the rules,” it would be administratively impossible to manage the program. It would also virtually guarantee that the Department would never get carriers’ best and final offers and would ultimately result in increased spending of Federal funds. Finally, we note that Mesa has participated in the EAS program for about 20 years and should be fully aware of the carrier selection procedures by now.
By: Read Van de Water
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
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 2003-10-8
OST-98-4409 - EAS at Show Low, AZ
Issued and Served October 7, 2003
By letter dated May 30, 2003, the State of Arizona Department of Transportation (ADOT) requested that the Department delay issuance of any new, long-term contracts for essential air service at Page, Show Low, Prescott and Kingman. According to ADOT, it is working in conjunction with the four communities to prepare a proposal in which the State of Arizona would serve as the sponsor and contractor for a single carrier to provide essential air service at all four of these communities. In that capacity, ADOT states that the State would solicit, select, monitor and pay the carrier for its services with funds from the Essential Air Service program. The Department supports the efforts of ADOT to seek innovative solutions to local air service needs. Indeed, increased state involvement is one of the cornerstones of the Administration's Flight-100 reauthorization proposal. This concept is fully consistent with the aims of the Essential Air Service program. As a result, we have acceded to ADOT's request and deferred action on the setting of any long-term subsidy rates for these four communities until further notice.
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
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
November 24, 2004
Re: Letter from EAS Division to Mayor of Show Low, 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
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:
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
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
$86.99Kingman /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
April 27, 2007
Request for Community Comments of:
By: Dennis DeVany
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:
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
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
May 23, 2007
Congressman Rick Renzi in Support of Great Lakes
I am writing to support the Essential Air Service proposal submitted by Great Lakes Airlines to continue to provide air service between Show Low, AZ and Phoenix, AZ.
For the past two years, Great Lakes Airlines has provided aonvenient and reliable service to the entire White Mountain Region. This air service benefits the regional economy which is highly dependent of tourism.
By: Rick Renzi, 202-225-2315, rick.renzi@mail.house.gov
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.
We are also selecting Great Lakes Aviation, Ltd. to provide subsidized EAS at Page and Show Low, Arizona, for two years, with the new contract term beginning when Air Midwest inaugurates service at Kingman and Prescott. The annual subsidy rates for Page and Show Low will be $1,497,556 and $988,181, respectively. Page will receive 19 weekly nonstop round trips to Phoenix with the option to provide one more frequency during peak times and one fewer during non peaks. One round trip a day may be substituted to either Las Vegas (nonstop) or Denver (one-stop) with no change in subsidy. Show Low will receive 14 nonstop round trips per week to Phoenix with 19-passenger Beechcraft 1900D aircraft.
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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