Essential Air Service at Ely, Nevada

Order 04-02-19
OST-95-361

February 19, 2004

Order Reselecting Carrier

After careful consideration of the carriers’ proposals and the community’s views, we have decided to reselect Scenic at its proposed subsidy rate. Scenic has developed the market-traffic is up significantly, and subsidy is down substantially from the prior rate, a significant accomplishment, especially in the aftermath of the terrorist attacks. As the Mayor indicates, Ely has had reliable service for the first time in several years, given the demise of previous service providers. Given the community support for Scenic and the fact that the proposals of Salmon Air and Air Midwest require higher subsidy levels, the decision is between Scenic and Arizona Express. Arizona Express is the only carrier to request less subsidy than Scenic, and the difference in subsidy, though significant ($698,078 vs. $568,002), is not dispositive, in view of the checkered history of service at this community, and the disruption that would be caused by yet another carrier transition. In addition, we have concerns with Arizona Express’s proposal. Under our new streamlined carrier-selection procedures, a premium is placed on carriers submitting best and final offers. There are sets of information they may choose to submit in order to be fully descriptive, and other sets that are required.

By: Karan Bhatia