Order 02-4-24

Order 02-4-24

Lancaster, Pennsylvania / Chautauqua Airlines, Inc.

Order 02-4-24 OST-02-11450	Issued April 30, 2002 Served May 2, 2002	Final Order	Termination of Service at Lancaster, PA
		Attachment: Map of Driving Distances

We disagree with the Authority's assertions that the 70-mile standard does not apply to FY 2002, and to its assertion that it applies only in years when there is insufficient funding to maintain subsidy supported EAS. First, section 332 of Public Law 106-69 clearly extends the 70-mile standard to FY 2002 and to all subsequent fiscal years. The section states that "Hereafter, (emphasis supplied) notwithstanding 49 U.S.C. 41742, no essential air service subsidies shall be provided to communities in the 48 contiguous States that are located fewer than 70 highway miles from the nearest large or medium hub airport, or that require a rate of subsidy per passenger in excess of $200 unless such point is greater than 210 miles from the nearest large or medium hub airport." Second, the "insufficient funding" provision, cited by the Authority, is contained in 14 CFR 398.11. By implication, the Authority claims that in fiscal years where there is sufficient funding, section 398.11 does not prohibit funding to communities within the 70-mile limit.

Even if we were to accept that the most commonly traveled route exceeds 70 miles, that fact would not automatically result in our authorizing subsidy for air service at Lancaster. In determining whether to exercise our discretion, we examine what alternative air service is available to a community. In that regard, Lancaster is not isolated, and is well served through three, relatively close-by airports. Not only is the Philadelphia airport nearby, but one of the largest in the nation, Baltimore-Washington International Airport (BWI), is only 75 miles away. BWI is also one of the largest airports in the country, and the nation's largest low-fare carrier, Southwest Airlines, has a major base of operations there. Finally, the Harrisburg airport is only about 30 miles away from Lancaster. Harrisburg is a small hub that has service to a significant number of destinations, including nonstop service to Atlanta, Charlotte, Chicago, Boston, Philadelphia, Pittsburgh, Toronto, Detroit, New York and Washington.

We finalize our tentative findings and conclusions as set forth in Order 2002-3-7, March 8, 2002, and allow Chautauqua Airlines, Inc., d/b/a US Airways Express to suspend all service at Lancaster, Pennsylvania, on or after May 1, 2002.

By: Read Van de Water