Order 02-3-20

Order 02-3-20

Taquan Air Service, Inc.; Essential Air Service at Hydaburg, Alaska

Order 02-03-20 OST-99-6245	Issued March 21, 2002 Served March 26, 2002	Order Requesting Proposals	90-Day Notice to Terminate Essential Air Service at Hydaburg, Alaska
		Appendices: Map and Historical Traffic
		Service List

Taquan Air's two-year contract will expire on March 31, 2002, and our normal procedure at this point would be to negotiate a new rate with Taquan Air and issue a "show-cause" order tentatively selecting the carrier for a new two-year rate term. Other carriers would have the opportunity to object to our tentative selection and to file competing proposals. If competing proposals were filed, the Department would then process a formal carrier selection case. However, the Department recently has become aware of other carriers that are interested in providing essential air service at Hydaburg. In view of this, it is more efficient to forego the show-cause process and immediately initiate a formal carrier selection case by issuing an order seeking replacement service proposals to serve Hydaburg. While we conduct this carrier selection proceeding, Taquan will continue to provide the service required by Order 2000-3-23 until we conclude the proceeding.

By: Read Van de Water