Order 02-4-18

Order 02-4-18

Alamogordo/Holloman Air Force Base, New Mexico

Order 02-04-18 OST-96-1901	Issued April 22, 2002 Served April 25, 2002	Order Selecting Carrier and Setting Final Rate	Essential Air Service - Alamogordo/Holloman Air Force Base, New Mexico
		Appendices: EAS Service and Subsidy Calculation

Order 2002-4-18 is selecting Rio Grande Air to provide subsidized basic essential air service for a two-year period at Alamogordo/Holloman Air Force Base, New Mexico, for an annual subsidy rate of $849,235.

This selection decision poses an unusual issue in that the aircraft type that Rio Grande Air proposes to operate does not meet either the twin-engine standard or the 15-or-morepassenger-seat standard required by our governing statutes (49 U.S.C. 41732(b)(3) and (b)(5)) and by the Department's current essential air service determination for Alamogordo/Holloman Air Force Base set by Order 94-9-10, September 9, 1994. We apprised the civic parties of this in our letters of January 14, 2002, and indicated further that the Department would not select Rio Grande's proposal, absent support for it from each of the communities. The City and the Air Force Base each addressed the aircraft type issues in their responses and support Rio Grande Air, notwithstanding that its aircraft do not meet the minimum size or two-engine requirements. (The City and the Air Force Base essentially waive the requirement for a twin engine, 15-passenger aircraft for the duration of this contract period.) The requirement for service by an aircraft with two engines appears in 49 USC 41731(b)(5); under 49 USC 40109(c), the Department may grant an exemption from any requirement in §41731 (and elsewhere) if doing so is in the public interest. Given the community's support and Rio Grande's operating record, we find it in the public interest to grant an exemption in this case from the requirement for two engines.

By: Read C. Van de Water