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Order 02-8-10

 


Essential Air Service at Hana, Kalaupapa, and Kamuela, Hawaii

Order 02-8-10
OST-99-6502

OST-00-6773
OST-97-2833
Issued August 12, 2002
Served August 12, 2002 
Order Selecting Carrier and Setting Final Subsidy Rates

Essential Air Service at Hana, Kalaupapa, and Kamuela, Hawaii

Pacific Wings has made a corporate decision to upgrade its fleet from its current, piston-engine Cessna 402 aircraft to factory-new, prop jet Cessna Caravans. The communities are fully supportive of Pacific Wings' service, especially the introduction of its new Cessna Caravan aircraft. In the short term, the Caravans require significantly more subsidy, $2,323,918 compared to the current rates of $1,728,127, due largely to the higher ownership costs. We are optimistic that the new aircraft will be well received by the communities, in terms of passenger acceptance and increased operational reliability, both of which should result in more passenger usage and thus lower subsidy. In that regard, we note that the carrier was willing to forecast significantly more passengers in the second year of Caravan service. Based on the above, we find the proposed service and subsidy levels to be reasonable. We strongly encourage all three communities to work closely with Pacific Wings to increase ridership and ultimately to reduce the amount of subsidy required to support the service.

By:  Read Van de Water


 

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