Essential Air Service at Athens, Georgia

Order 04-03-25
OST-02-11348

Issued and Served March 23, 2004

Order Selecting Carrier and Establishing Subsidy Rates

We have decided to select Air Midwest's twelve nonstop‑round‑trip‑per‑week option beginning when it inaugurates that service pattern or 60 days after the date of service of this order, whichever is first, through the 24th full month thereafter, at the annual subsidy rate of $392,108. Our decision is consistent with the community's preference of air carrier, the rate is reasonable for the service at issue, and the carrier's performance continues to be satisfactory.

In this case, all of the statutorily required selection criteria point toward the selection of Air Midwest. First, the community prefers the selection of Air Midwest. Second, Air Midwest provides service at Athens under a code‑share arrangement with US Airways at Charlotte that offers beyond‑hub benefits such as one‑stop check in; interline baggage handling, through ticketing, and joint fares. Moreover, Air Midwest has operated for many years as a scheduled carrier in general and, specifically, at Athens. Corporate, on the other hand, no longer has community support, and does not have contractual or marketing arrangements with a major carrier at Atlanta ‑ both statutory criteria. Also, as indicated below, Air Midwest's subsidy rate is substantially less than that proposed by Corporate.

By: Karan Bhatia