Served:  May 9, 2006



 

         UNITED STATES OF AMERICA

   DEPARTMENT OF TRANSPORTATION

           OFFICE OF THE SECRETARY

                  WASHINGTON, D.C.

Issued by the Department of Transportation

on the 4th day of May, 2006



Essential Air Service at

VERNAL, UTAH

MOAB, UTAH

Under 49 U.S.C. 41731 et seq.	

Dockets OST-1997-2706

and OST-1997-2827



NOTICE OF CONTINUING ESSENTIAL AIR SERVICE PAYMENTS

By Order 2006-3-21, issued March 22, 2006, the Department selected Mesa
Air Group, Inc., d/b/a Air Midwest (Air Midwest) to provide essential
air service (EAS) with 19-passenger Raytheon/Beechcraft B-1900D aircraft
at Vernal and Moab, Utah, for two years, through May 31, 2008,
replacing the incumbent, Mountain Bird Inc. d/b/a Salmon Air (Salmon
Air).  The annual subsidy rates were set at $562,720 for Vernal and
$1,298,784 for Moab.  The Department also set Salmon Air’s short-term,
annual subsidy rates at $555,771 for Vernal and $783,608 for Moab for
its provision of EAS from March 1, 2006, until Air Midwest inaugurated
service at both communities.

Immediately following the issuance of Order 2006-3-21, the Department
discovered that neither Vernal-Uintah County Airport (Vernal) nor
Canyonlands Field (Moab) met the operational and safety requirements
established under Title 14, Code of Federal Regulations, Part 139, and
therefore can not accommodate Air Midwest’s 19-passenger aircraft.  As
a result, Air Midwest is not able to commence EAS at either Vernal or
Moab until the airports become compliant.  

Department staff has spoken with both communities, both air carriers,
and the Federal Aviation Administration, and all parties have agreed to
work toward a July 2nd transition.  Therefore, the Department will
continue to compensate Salmon Air at the previously established
short-term rates through July 1st.

TODD M. HOMAN

Acting Director

