Essential Air Service at Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney and Wolf Point, Montana

Order 2008-1-6
OST-1997-2605

Issued January 11, 2008 | Served January 16, 2008

Order Granting Emergency Motion

In a motion filed January 9, Big Sky asks the Department to advance the effective date of the new subsidy rate scheduled for effect March 1. In support of its request. Big Sky again states that its financial condition is dire. Big Sky reports that it is working with Great Lakes to ensure a smooth, seamless transition of operations, but it has no assurance that Great Lakes will be able to assume those operations soon. Big Sky concludes that, without the new subsidy rate, it will be compelled to shut down its Montana services before a transition to Great Lakes can be completed.

We have decided to grant Big Sky's request. While 49 U.S.C. 41734 would not generally provide for a change in the rate of compensation until 180 days after the carrier has given its 90-day notice to leave, 49 U.S.C. 40109(c) grants us authority to exempt this. The essential air service program was created to ensure that eligible communities stay connected to the national air transportation system. In this case, the carrier has already shut down most of its operations and fully plans a complete liquidation. As a result, we have concluded that this case warrants the use of our exemption authority in this case to promote the chances of a smooth transition from Big Sky to Great Lakes at the seven communities without a service hiatus.

By: Michael Reynolds