OST-02-14146

OST-02-14146

Essential Air Service at Lancaster, Pennsylvania

OST-02-14146

December 23, 2002

90-Day Notice of Colgan Air d/b/a US Air Express of Intent to Terminate Essential Air Service

90-Day Notice of Intent to Terminate Service at Lancaster, Pennsylvania

Colgan Air has determined that it cannot continue to operate this service economically, without subsidy. While Colgan has received community support for this service, and both Colgan and the community have launched marketing efforts to support the service, the carrier has experienced declining revenues and is unable to continue to offer the service. In view of the fact that the Lancaster Airport is in relatively close proximity to the hub airport at Philadelphia which could offer service for this community, Colgan requested that the Department waive the provisions of Part 323.5 to the extent necessary to permit Colgan to terminate its service at January 20, 2003.

By: Michael Colgan

Essential Air Service at Lancaster, Pennsylvania / Colgan Air, Inc. d/b/a US Air Express

OST-02-14146

January 10, 2003
Available to Public on 1/13/03

Objections of Lancaster Airport Authority to Notice of Intent to Terminate Service of Colgan Air

Microsoft Word File

Essential Air Service at Lancaster, Pennsylvania - Notice to Terminate Service

The carrier or carriers serving Lancaster Airport is entitled to EAS subsidy. Lancaster incorporates herein the arguments raised in its objections filed at Docket OST-2002-11450-2 and OST-2002-11450-4 as well as the arguments set forth in its Petition for Review and Brief before the United States Court of Appeals for the Third Circuit in Lancaster Airport Authority v. Department of Transportation, No. 02-2805.

Colgan is the only carrier providing scheduled air service to Lancaster. Maintaining commercial air service in Lancaster is of critical importance to the entire Lancaster community. The commitment of the community is demonstrated by the fact that since the previous carrier, Chautauqua Airlines, terminated service, the present commercial air carrier, Colgan Airlines, was subsidized by local sources. This was done as a stopgap measure but understandably could not continue indefinitely. In addition, Lancaster ranks seventh of the sixty-seven counties in Pennsylvania in air service demand, generating more than 876,000 originating air trips per year. The airline ticket tax from Lancaster County passengers alone generates more than $15 million per year for the federal Aviation Trust Fund and more than $2 million annually in security fees.

Counsel: Russell Kraft & Gruber, Christina Hausner, 717-293-9293, clh@rkglaw.com

OST-02-14146

January 10, 2003
Docketed January 17, 2003

Objections of Lancaster Airport Authority to Colgan's Air - Corrected Copy

90-Day Notice of Intent to Terminate Service at Lancaster, Pennsylvania

Counsel: Russell, Krafft, Christina L. Hausner, 717 293-9293

Essential Air Service at Lancaster, Pennsylvania

Order 03-02-7
OST-02-14146

Issued February 6, 2003
Served February 11, 2003

Order Allowing Suspension of Service

Essential Air Service at Lancaster, Pennsylvania / Colgan Air, Inc. d/b/a US Airways Express

We will allow Colgan to suspend its service to Lancaster at the end of the 90-day notice period. Based on our earlier findings, Lancaster is not eligible for subsidy; thus, we cannot require Colgan to maintain service at the community. The only question, therefore, is whether to allow Colgan to suspend service early. As a general matter, we normally require carriers to maintain service at eligible communities until the end of the notice period, unless the community does not object to such termination. In this case, the community of Lancaster has submitted such an objection. Therefore, we will not allow Colgan to suspend its service before the end of the 90-day period. Colgan filed its notice on December 23, 2002. Day-one of the notice period is the next day, December 24, 2002, and the ninetieth day is March 23, 2003. We will require Colgan to provide service through March 23, 2003.

By: Read C. Van de Water