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Order 2007-6-10 - EAS at Kingman and Prescott, Page and Show Low, AZ - Selecting Carrier, Setting Subsidy Rate and Terminating Show-Cause Proceeding

http://www.kingmanairportauthority.com/ - Kingman Airport
http://www.cityofprescott.net/visitors/airport/ - Prescott Municipal Airport
http://www.cityofpage.org/airport.htm - Page Municipal Airport
http://www.ci.show-low.az.us/departments/airport/ - Show Low Municipal Airport


Essential Air Service at Kingman and Prescott, Page and Show Low, Arizona

Order 2007-6-10
OST-1996-1899 - Kingman and Prescott, Arizona
OST-1997-2694 - Page, Arizona
OST-1998-4409 - Show Low, Arizona

Issued June 13, 2007 | Served June 18, 2007

Order Selecting Carrier, Setting Subsidy Rate and Terminating Show-Cause Proceeding

By this order, we are selecting Mesa Air Group, Inc. d/b/a Air Midwest to provide subsidized essential air service at Kingman and Prescott, Arizona, for two years, beginning when the carrier full service. Service will consist of three round trips a day (18 per week) with 19-seat Beech 1900D aircraft over a Kingman-Prescott-Phoenix or Prescott -Kingman-Las Vegas routing, at a total annual subsidy of $1,798,489 for both communities. Also by this order, the Department is terminating the show-cause proceeding tentatively terminating subsidy at Kingman because Air Midwest's proposal we are selecting is below the $200-per passenger statutory ceiling.

We are also selecting Great Lakes Aviation, Ltd. to provide subsidized EAS at Page and Show Low, Arizona, for two years, with the new contract term beginning when Air Midwest inaugurates service at Kingman and Prescott. The annual subsidy rates for Page and Show Low will be $1,497,556 and $988,181, respectively. Page will receive 19 weekly nonstop round trips to Phoenix with the option to provide one more frequency during peak times and one fewer during non peaks. One round trip a day may be substituted to either Las Vegas (nonstop) or Denver (one-stop) with no change in subsidy. Show Low will receive 14 nonstop round trips per week to Phoenix with 19-passenger Beechcraft 1900D aircraft.

The total annual subsidy for all four communities in this Order is $4,284,226 compared to the current rates of $3,854,958.

This case is fairly straightforward. Kingman and Prescott support the same Air Midwest proposal and Page and Show Low each support continued service by Great Lakes. Since the proposals are very close in subsidy amounts, we are selecting the proposals that the communities recommended.

We will set the two-year contract period for all four communities beginning when Air Midwest inaugurates full EAS at Kingman and Prescott, and ending on the last day of the 24th month thereafter so that all communities remain on the same cycle, and we can solicit bids for all four communities. In the meantime, Great Lakes will continue to provide service to Kingman and Prescott, as submitted in its bid, until Air Midwest begins service.

By: Michael Reynolds



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