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1990 - August DOT Ord. & Dec. [1] (August, 1990)

handle is hein.usfed/dotod0414 and id is 1 raw text is: Order 90-8-1 UNITED STATES OF AMERICA DEPAIRTENT OF TRANSPORTATICN OFFICE CF THE SECRETARY WNSHINGITN, D.C. Issued by the Department of Transportation on the 1st day of August, 1990 Essential Air Service for - - - - 1990 araI4A, IC A Docket 42911 under section 419 of the Federal Aviation Act of 1958, as amended ORDER SETTING FINAL SUBSIDY RATE B Order 87-9-64, September 29, 1987, the Department selected Great Lakes .Aviation, Ltd., to provide subsidized essential air service at Ottumwa, Iowa, consisting of two nonstcp round trips each weekday and over, each weekend period to Des .Mines with 15-seat Beech 99 aircraft. Subsidy was set at $238,498 per year, through October 23, 1988. Since then, Great Lakes has continued to receive $238,498 on an annual basis as a temporary subsidy rate for its service at Ottumwa. In December 1989, Great Lakes contacted the Department and requested that we consider changing the hub for Ottumwa from Des Moines to St. Louis, and that we consider combining service at Ottumwa with essential air service at Kirksville, Missouri. 1/ Because a revised service pattern including Ottumwa and Kirksville might offer subsidy savings and better service for the two communities, we agreed with the carrier's request and issued Order 90-2-21, February 9, 1990. which solicited proposals from carriers interested in providing subsidized essential air service at the two points. The carrier selection case for the two communities has not yet been completed. During the course of our negotiations with Great Lakes on its proposals to serve Ottumwa and Kirksville, we reviewed the carrier's subsidy need for continuing its service in the Ottumwa-Des Moines market pending a final carrier selection decision. We find that the carrier's revenues and expenses support a modest increase in annual subsidy from $238,498 to $253,442 per year. There- fore, we will set a final annual rate of $253,442 for Great Lakes' provision of essential air service in the Ottumwa-Des Moines market for the period October 24, 1988, until the carrier selection case is completed and the new carrier actually begins service. Great Lakes has agreed to this rate and the rate appears reascnable for the level of service being provided. (See Appendix A for a detailed explanation of the subsidy calculation for Great Lakes' Ottumwa-Des Moines service.) This order is issued under authority delegated in 49 CFR 1.56 (i). l/ Kirksville received subsidized service by Midcontinent Airlines to Kansas City until Midoontinent suspended all of its operations on December 7, 1989.

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