Essential Air Service at Merced, California

Order 04-1-9
OST-98-3521

Issued January 13, 2004 | Served January 16, 2004

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Merced, California, for a new two‑year period, with or without subsidy. The order reflects new, streamlined procedures for processing such proposals.

By Order 2001‑10‑9, October 18, 2001, the Department selected Eagle Canyon Airlines, Inc., dlb/a Scenic Airlines, to provide subsidized essential air service at Merced, California, through October 31, 2003. Under that order, Scenic operates 14 nonstop round trips a week with 19‑seat Beech 1900 aircraft. In response to the terrorist attacks, many subsidized carriers were faced with less revenue yet were not allowed to reduce service.' Because of this, the Department issued Order 2002‑5‑20, May 18, 2002, which increased all essential air service subsidy rates across the board, including Scenic's rate, on a retroactive basis. Under the terms of that order, Scenic's rates were adjusted upward to $1,031,224 for the first year and $844,479 for the second year.

Scenic Airlines inaugurated service to Merced on November 1, 2001, in response to our selection. During the year ended October 2003, the most recent 12‑month period for which traffic data are available, Merced averaged 21 passenger enplanements per day.

By: Karan Bhatia