Order 2004-3-6 - EAS at Merced, California - Reselecting Carrier
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Essential Air Service at Merced, California Order 04-3-6 Issued and Served March 9, 2004 Because only one carrier, Scenic, submitted proposals, the community was not faced with a decision between competing carriers. The community did, however, express a preference for Scenic's two‑year proposal over its three‑year option. Because the typical carrier‑selection is for a two‑year period, we will honor the community's choice. We note that the carrier has done an outstanding job at Merced. Its has almost doubled the traffic forecast in its original proposal, from 7,600 projected to 13,018, overcoming the impact of the terrorist attacks of 9/11 on most carriers' traffic results. As a result, the subsidy rate has come down nearly $200,000 from the current rate of $844,479. Scenic's traffic increases and subsidy reductions are among the highest for any subsidized carrier in the aftermath of the terrorist attacks. Scenic's development of Merced is even more remarkable given the nearby competitive service at Fresno to Los Angeles and San Francisco, and the fact that the carrier it replaced, Sky West, operated as a United Express code‑share partner to a United hub, Los Angeles. We note that the carrier has operated to North Las Vegas, where it has its own passenger terminal, since inaugurating service to Merced. It buses connecting passengers to McCarran, the main airport, and provides complimentary snacks and beverages along with free television and internet services at its terminal. By: Karan Bhatia |
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