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Order 2004-2-14 - EAS at Manhattan and Salina, KS - Selecting Carrier
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Essential Air Service at Manhattan and Salina, Kansas Order 04-02-14 Issued February 17, 2004 | Served February 20, 2004 Order Selecting Carrier | Word Air Midwest’s subsidy request for Salina and Manhattan combined is $721,605. That includes its current rate of $536,237 for serving Salina, meaning that the implicit cost of serving Manhattan is a relatively modest $185,368. Further, if we were to select Multi-Aero to serve Manhattan, the cost of securing Salina’s EAS would likely increase -- perhaps considerably. The current subsidy of $536,237 covers only the costs of Air Midwest’s operating the 58-mile Salina-Manhattan segment. The subsidy costs of flying the nonstop 161-mile Salina-Kansas City route could be far greater than the current rate of $536,237, and likely even greater than the combined rate of $721,605 for service to both communities. Thus, the selection of Multi-Aero to serve Manhattan would result in minimal subsidy savings, and might even require more subsidy than Air Midwest’s proposal to serve Salina and Manhattan together over a Salina-Manhattan-Kansas City routing. By: Karan Bhatia |
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