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1981 - August DOT Ord. & Dec. [1] (August, 1981)

handle is hein.usfed/dotod0547 and id is 1 raw text is: 


Order 81-8-1


                           UNITED STATES OF AMERICA
                           CIVIL AERONAUTICS BOARD
                               WASHINGTON, D.C.

                     +Issued Under Delegated Authority
                                August 3, 1981




Essential Air Transportation at
                                                 Docket 37236
DANVILLE, VIRGINIA


                                     ORDER

     Order 80-6-104, June 17, 1980, among other things designated Mid-South as
the carrier to provide Danville's essential air transportation; 1/  set a
subsidy level of $236,452 2/ for Mid-South's first year of operaTions; and
delegated authority to the-thief, Air Carrier Subsidy Need Division to set a
temporary rate, subject to certain limitations, 3/ to be paid Mid-South
beginning July 1, 1981 and continuing until the Tesolution of a final rate for
the second year of its operations at Danville.

     On March 23, 1981, Mid-South filed an application for change in its
service pattern at Danville. Specifically, Mid-South requested approval for it
to change the current service pattern from two round trips per day to
Raleigh/Durham, to one round trip each weekday to Washington, D.C., via
Richmond, and one round trip each weekday to Raleigh/Durham. It requested this
change due to traffic levels far below those forecast for its operations to
Raleigh/Durham, resulting in losses exceeding the maximum subsidy level.
Therefore, Mid-South proposed these service changes which it felt would result
in more traffic and stated that it would provide the proposed schedule without



1/   Cardinal/Air Virginia was providing Danville's essential air transportation
     pursuant to Order 79-9-181, September 27, 1979. Order 79-7-123, July 19,
     1979, defined essential air transportation for Danville. This level was
     modified by Order 79-9-181, September 27, 1979. The service level
     proposed by Mid-South -- two nonstop round trips each week day and two on
     the weekend between Danville and Raleigh/Durham with 18-seat Embraer
     Bandeirante equipment -- met our definition of essential air service for
     Danville.
2/   Subject to a fuel cost adjustment.
T/   The second year rate of compensation is subject to a maximum equal to
     Mid-South's subsidy rate for its first year of operations, $236,452, and a
     minimum equal to carrier's original forecast of $118,433 in subsidy need
     for the second year of operations.

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