Order 2002-2-3 - EAS at Massena, Ogdensburg and Watertown, NY - Authorizing Subsidy for Increased Program-Wide

Order 2002-2-3 - EAS at Massena, Ogdensburg and Watertown, NY - Authorizing Subsidy for Increased Program-Wide

Mesa Airlines, Inc.

Order 2002-2-3 OST-1997-2842	Issued February 5, 2002 Served February 8, 2002	Order Authorizing Subsidy for Increased Program-Wide	Essential Air Service at Massena, Ogdensburg and Watertown, NY
		Appendix A & B: EAS Service

By Order 2000-4-2, issued April 3, 2000, Mesa was selected to continue providing essential air service at Massena, Ogdensburg and Watertown, for a two-year period from October 1, 1999, through September 30, 2001. Subsidy was set at an annual rate of $1,115,507 for Mesa's provision of three round trips each weekday, and three each weekend, between Massena, Ogdensburg and Watertown, and Pittsburgh, with 19-seat Beech 1900 aircraft. By Order 2001-10-17, issued October 31, 2001, the Department extended Mesa's expired subsidy rate for Upstate New York until further notice, subject to adjustment retroactive to October 1, 2001, pending the resolution of the Department's final fiscal year 2002 budget.

The Department is now conducting a carrier selection case for Upstate New York and proposals to provide essential air service have been submitted by Mesa and CommutAir. Although negotiations have been completed with both carriers, the State of New York has requested that the Department delay final action on the selection decision pending further study by the communities and the State of the air service needs for the region.

In the meantime, Mesa and the Department have agreed to an annual subsidy rate of $1,905,432 for a new two-year rate term for a level of service identical to that now being provided by the carrier. Thus, we will set this new rate as a final rate for Mesa, retroactive to October 1, 2001, until further Department action, pending the completion of the carrier selection case.

By: Read Van de Water