Order 2002-2-6 - EAS at Alaska Communities - Tentatively Reselecting Carrier

Order 2002-2-6 - EAS at Alaska Communities - Tentatively Reselecting Carrier

Alaska Airlines, Inc.

Order 2002-2-6 OST-1998-4899	Issued February 8, 2002 Served February 8, 2002	Order Tentatively Reselecting Carrier	Essential Air Service at Cordova, Gustavus, Petersburg, Wrangell and Yakutat, Alaska
		Appendix A: Map
		Appendix B: Annual Subsidy
		Appendix C: EAS to be Provided
		Appendix D: Annual Traffic
		Service List

Alaska Airlines has provided subsidized jet service to these five southeast Alaska cities for many years. Most recently it was reselected under Order 98-12-13 to continue serving them with Boeing 737 jets at an annual subsidy rate of $1,365,485, for the three-year period through September 30, 2001. The proposed rate we are tentatively authorizing in this order reflects virtually the same level of service that Alaska Airlines has provided for a number of years.

Under our normal procedures when nearing the end of a rate term, we contact the incumbent carrier to determine whether it is interested in continuing service and whether it will continue to require subsidy. If the carrier wishes to continue service with subsidy, we usually negotiate a new subsidy rate with the carrier, issue an order tentatively reselecting the carrier for a new rate term at the agreed rate, and direct other parties to show cause why we should not finalize our tentative decision. Other carriers wishing to submit competing proposals are invited to do so in response to the show-cause order; if any such proposals are filed, we process them as a competitive case. Consistent with this practice, we invited Alaska Airlines to submit a proposal for continuation of essential air service at the five southeast Alaska communities.

By: Read Van de Water