Order 01-08-9

Order 01-8-9

Essential Air Services At Muscle Shoals, AL; Owensboro Davies County Regional Airport; Jackson, TN; Topeka, Kansas; Alamogordo/Hollman AFB, New Mexico; Hot Springs and Jonesboro, Arkansas; Pueblo, Colorado; Hana, Hawaii; Kamuela, Hawaii; Augusta/Waterville; Oneida County Airport; Massena, New York; Enid, OK; Oil City/Franklin, Pennsylvania; Ponce, Puerto Rico; Oshkosh, Wisconsin

Order 01-8-9
OST-00-7856
OST-00-7855
OST-00-7857
OST-96-1352
OST-96-1901
OST-97-2935
OST-99-6589
OST-99-6502
OST-97-2833
OST-97-2784
OST-00-7556
OST-97-2842
OST-97-2401
OST-97-2523
OST-99-6592
OST-99-5712

Issued August 7, 2001
Served August 10, 2001

Statement of Proposed Policy Regarding Program Deductions

Because a $50 million budget can no longer cover the program's current commitments, the Administration's budget proposal also includes a proposal to revise some of the standards under which communities are ineligible for subsidy-supported scheduled air service. Under the proposed revisions, communities would not be eligible if they are:

Located within 100 highway miles of the nearest large or medium hub airport² The current standard is 70 highway miles for both large and medium hubs. Located within 70 highway miles of the nearest small hub airport. There is no current standard addressing communities' proximity to small hub airports.
Located within 50 highway miles of the nearest non-hub airport offering jet service. There is no current standard addressing communities' proximity to non-hub jet service.

The statutory prohibition against continuing to subsidize communities requiring subsidy of more than $200 per passenger, except for exceptionally isolated points, would remain unchanged. The proposed revisions would allow the Department to continue to meet its core obligation of ensuring that truly isolated communities continue to receive at least a minimum level of scheduled air service and thereby remain connected to the national air transportation system. At the same time, it would curtail spending for local service at communities that are within reasonable driving distances of service at other airports.

In light of the program's current spending rate and the Administration's budget proposal, we have decided to issue this statement of proposed policy now, to give the communities and carriers ample notice of the program reductions that we will implement in the event that Congress enacts them into law. Those reductions will result in the termination of subsidy at the 17 communities listed below as of October 1, 2001 -- the first day of fiscal year 2002 -- and will allow the carriers providing subsidized service at those communities to discontinue service on the same date, if they choose, without the need to provide individual notice. Implementation of the reductions at the very outset of the next fiscal year is necessary for program spending to remain within the proposed $50 million budget. Waiting to initiate the process until Congress has already acted could delay implementation of the reductions and require us to make even deeper program cuts, affecting more communities, in order to remain within our budgetary constraints.

By: Susan McDermott

Air Midwest, Inc.

Order 00-8-13
OST-96-1352

August 27, 2001

Objections of the Regional Aviation Partners

90-Day Notice to Terminate Service at Topeka, Kansas

By: Regional Aviation Partners, Maurice Parker

Essential Air Services at Alamogordo/Holloman Air Force Base, New Mexico

OST-96-1901

August 27, 2001

Objections of the Regional Aviation Partners

EAS at Alamogordo/Hollman AFB, New Mexico