Essential Air Service at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, Montana

Order 04-2-10
OST-97-2605

Issued February 9, 2004 | Served February 12, 2004

Order Selecting Carrier and Establishing Subsidy Rates

By this order, the Department is selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, to continue providing essential air service at seven Montana communities for a new two‑year period beginning March 1, 2004, at subsidies of $5,765,139 for the first year and $5,790,938 for the second year.

Reaching a decision is therefore principally a matter of weighing Big Sky's community support against Air Midwest's lower subsidy requirement. The communities' support for Big Sky is overwhelming -- in fact, unanimous. Air Midwest's subsidy requirement is roughly $800,000 a year less than Big Sky's, spread over seven communities, but we must also note that Big Sky's subsidy requirements for the next two years represent de minimis increases over its current subsidy. We are willing to accede to the communities' unanimous preference when the result requires almost no additional program spending.

By: Karan Bhatia