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Order 2005-2-11 - EAS at Muscle Shoals, AL - Reselecting Carrier and Establishing Subsidy Rates
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Essential Air Service at Muscle Shoals, Alabama Order 2005-02-11 Issued February 16, 2005 | Served February 22, 2005 Order Reselecting Carrier and Establishing Subsidy Rates By this order, the Department is re-selecting Mesaba Aviation, Inc. d/b/a Northwest Airlink, to provide subsidized essential air service for the two-year period beginning February 1, 2005, at an annual rate of $1,364,697. Air Midwest's proposed service to Nashville would not be provided under a codeshare arrangement and, thus, would not offer the Muscle Shoals community similar benefits. We have always given great weight to the applicants' relative subsidy requirements. Here, Mesaba's proposal requires $184,000 more in subsidy than Air Midwest's. While we recognize that the two service proposals are not identical (Mesaba's would, e.g., offer service with a larger aircraft), and that Mesaba's subsidy is only six percent higher than the current rate, we are concerned about the higher cost of Mesaba's proposal. Nonetheless, we conclude that the higher costs of Mesaba's proposal do not outweigh the other factors, described above, all of which point toward the selection of Mesaba. We expect the community to continue to work diligently with Mesaba in an effort to raise traffic levels and, thus, reduce future subsidy requirements. By: Karan Bhatia |
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