Order 02-6-5

Order 02-6-5

Essential Air Service at Altoona and Johnstown, Pennsylvania and Chautauqua Airlines, Inc.

Order 02-6-05 OST-02-11446 OST-02-11451	Issued June 14, 2002 Served June 19, 2002	Order Setting Final Rates Microsoft Word File	Chautauqua Airlines; Notice of Intent to Terminate Service at Altoona and Johnstown, PA
		Appendix A-C: Map, EAS to be Provided

On January 31, 2002, Chautauqua Airlines filed 90-day notices to suspend its subsidy-free EAS at Altoona and Johnstown, Pennsylvania. Order 2002-4-6, April 5, 2002, required Chautauqua to continue providing EAS to these communities, consisting of at least three nonstop round trips per day to Pittsburgh. Because Chautauqua is in the process of converting to an all-jet fleet, it is not interested in submitting a long-term proposal to continue to serve these communities. Nevertheless, Chautauqua is entitled to be compensated until replacement service is secured.

The rates we have agreed to are based on Chautauqua's system average unit costs for direct operating expenses for its Saab 340 fleet and its system indirect expenses for calendar year 2001, with an adjustment for higher insurance costs, and they appear reasonable. We will continue to process the long-term proposals submitted by Colgan Air and Shuttle America.

By: Read Van de Water