Essential Air Service at El Dorado/Camden, Jonesboro, Harrison, Hot Springs, Arkansas / Enid and Ponca City, Oklahoma / Brownwood, Texas

Order 04-06-12
OST-97-2935
OST-97-2401
OST-97-2402

Issued June 14, 2004 | Served June 17, 2004

Order to Show Cause - Tentatively Terminating Subsidy Eligibility and Allowing Suspension of Service

By this order, the Department is requesting interested persons to show cause why we should not terminate the essential air service subsidy eligibility of Jonesboro, Arkansas, Enid and Ponca City, Oklahoma, and Brownwood, Texas, and allow Air Midwest to suspend its subsidized services at those communities as of October 1, 2004, when the current rate term expires. Objections to the Department's tentative decision are due within 30 days of the service date of this order.

With the end of the current rate term approaching, we have conducted a review of the communities' traffic results in anticipation of requesting carrier proposals for a new rate term beginning October 1. During calendar year 2003, the most recent 12-month period for which data are available, El Dorado/Camden averaged 5.9 enplanements a day, Jonesboro 6.5, Harrison 9.4, Hot Springs 9.1, Enid 6.4, Ponca City 4.2 and Brownwood 5.8. None of the seven communities have attained the traffic levels projected by Mesa/Air Midwest in its subsidy proposal. Only Harrison and Hot Springs have even approached those projections, whereas the other five communities' traffic levels range from 21 to 70 percent below the projections. In view of the below-projected traffic results and increasing carrier costs, particularly with respect to fuel, it is very likely that the subsidy necessary to support the communities' services beyond the current rate term will be substantially higher.

By: Karan Bhatia