Essential Air Service at Columbia/Jefferson City, Missouri

Order 2006-8-3
OST-2006-23931

Issued August 11, 2006 | Served August 16, 2006

Order Establishing Final Subsidy Rate

By Order 2006-4-6, April 6, 2006, the Department required Trans States Airlines, Inc., d/b/a American Connection, to maintain service at Columbia/Jefferson City, Missouri, after the carrier had filed a 90-day notice of intent to suspend its unsubsidized service there as of May 11, and requested proposals from carriers interested in providing replacement service, with or without subsidy, at the community. Order 2006-4-6 required Trans States to continue operating 20 nonstop round trips a week between Columbia/Jefferson City and St. Louis with 30-seat Jetstream 41 aircraft for 30 days beyond the end of the notice period, and subsequent orders are extending Trans States' service obligation for additional 30-day periods until replacement service begins.

As a result of discussions with Department staff, Trans States has agreed to an annualized subsidy rate of $1,366,325 for its ongoing hold-in service at Columbia/Jefferson City. On review, we conclude that the agreed rate is reasonable for the service at issue, and we will establish it as the final rate for Trans States' hold-in service from May 11 until another carrier begins service at the community and Trans States' service obligation ends.

By: Michael Reynolds