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Order 2004-8-17 - EAS at Plattsburgh and Saranac/Lake Placid - Selecting Carrier
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Essential Air Service at Plattsburgh and Saranac Lake/Lake Placid, New York Order 04-08-17 Issued August 16, 2004 | Served August 19, 2004 Order Selecting Carrier and Setting Subsidy Rate | Word By this order, the Department is (a) selecting CommutAir to provide essential air service at Plattsburgh and Saranac Lake/Lake Placid, New York, for a two-year period, and (b) establishing an annual subsidy rate of $1,507,928 for service consisting of one round trip to Boston and two round trips to Albany each weekday, and two round trips to Boston and one round trip to Albany each weekend period. Service is to be provided with 19-seat Beech 1900-D aircraft. CommutAir is requesting $1.5 million for service consisting of two round trips to Albany and one round trip to Boston each weekday. Air Midwest's option offering comparable service (Option 5) would require an annual subsidy of $2.4 million, or $1.8 million more than CommutAir over the two‑year life of the contract. The only Air Midwest option comparable in cost to that of CommutAir is Option 1 offering only two round trips a day to Albany, and even that option requires about $170,000 more subsidy for each of two years. Both carriers have considerable experience operating scheduled air service in the Northeast region and both operate the same type aircraft‑‑a pressurized 19‑seat Beech 1900‑D. Even if our decision would be between options of comparable price, we would nevertheless still select CommutAir's proposal because it offers three daily round trips (one to a major hub) versus two for Air Midwest's Option 1, and it has strong community support. In addition, CommutAir has the advantage of having its code‑share arrangements with Continental Airlines already in place for its current service at the communities, while Air Midwest does not. CommutAir's proposal is clearly superior to all of the options offered by Air Midwest. By: Karan Bhatia OST-2000-8025 - EAS at Saranac Lake/Lake Placid, NY November 9, 2004 Corrected Appendix A for Order 2004-8-17 Memorandum of Dennis DeVany, Chief of the EAS & Domestic analysis Division submitting a corrected Appendix A for Order 2004-8-17. By: Dennis DeVany |
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