Order 2008-5-20

Served: May 21, 2008

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

![](media/image1.wmf){width="0.9173611111111111in"
height="0.9513888888888888in"}Issued by the Department of Transportation

> on the 16^th^ day of May, 2008

+------------------------------------------+---------------------------+
| > Essential Air Service at               | **DOCKET OST-2002-13983** |
|                                          |                           |
| **GRAND ISLAND, NEBRASKA**               | **DOCKET OST-1997-3005**  |
|                                          |                           |
| **McCOOK, NEBRASKA**                     | **DOCKET OST-1997-2935**  |
|                                          |                           |
| **EL DORADO/CAMDEN, ARKANSAS**           | **DOCKET OST-1997-2935**  |
|                                          |                           |
| **HARRISON, ARKANSAS**                   | **DOCKET OST-1997-2935**  |
|                                          |                           |
| **HOT SPRINGS, ARKANSAS**                | **DOCKET OST-1997-2935**  |
|                                          |                           |
| **JONESBORO, ARKANSAS**                  | **DOCKET OST-2006-23931** |
|                                          |                           |
| **COLUMBIA/JEFFERSON CITY, MISSOURI**    | **DOCKET OST-2006-23932** |
|                                          |                           |
| **JOPLIN, MISSOURI**                     | **DOCKET OST-1997-2515**  |
|                                          |                           |
| **KIRKSVILLE, MISSOURI**                 |                           |
|                                          |                           |
| > under 49 U.S.C. 41731 *et seq*.        |                           |
+------------------------------------------+---------------------------+

\`\`

**ORDER EXTENDING SERVICE OBLIGATION**

## Summary

By this order, the Department of Transportation extends the essential
air service (EAS) obligation of Air Midwest, Inc., at the
above-captioned communities, for an additional 30 days, through June 20,
2008.

## Background

On January 22, 2008, Air Midwest filed a 90-day notice of its intent to
suspend its subsidized service at the nine communities captioned above,
effective April 21. By Order 2008-2-2, February 1, 2008, the Department
prohibited the carrier from suspending service through May 21 at the
communities, and requested proposals, with subsidy if necessary, from
carriers interested in providing replacement service. As required by
49 U.S.C. 41734, we have extended Air Midwest's service obligation for
additional 30-day periods, the latest through April 30, 2008, by Order
2008-3-34.

By Order 2008-5-2, May 5, 2008, the Department selected several carriers
to provide replacement service at the communities, as follows: Hawaii
Island Air at Grand Island, Harrison, Hot Springs and Joplin; Great
Lakes Aviation, Ltd. at McCook and Jonesboro; Mesaba Airlines, Inc.,
d/b/a Northwest Airlink at Columbia/Jefferson City; and Multi-Aero,
Inc., d/b/a, Air Choice One at Kirksville. That order also resolicited
proposals for EAS at El Dorado/Camden, Arkansas, which are due June 13.

Since none of the carriers will be able to inaugurate service before
May 21, the end of the current hold-in period, and in accordance with 49
U.S.C. 41734(c), we must extend Air Midwest's service obligation for an
additional 30 days, or until suitable replacement service actually
begins, whichever occurs first.

On May 14, 2008, Mesa Air Group, the holding company that owns Air
Midwest, gave notice to the Department of its intention to liquidate the
airline and shut it down completely on June 30. Mesa's notice in no way
absolves Air Midwest from its statutory requirement to continue
providing service at these communities (49 U.S.C. 41734).

This order is issued under authority delegated in 49 CFR 1.56a(f).

This order is issued under authority assigned in 14 CFR 385.12(k)(5).

## ACCORDINGLY,

1\. We require Air Midwest, Inc., to maintain its current level of
essential air service at the nine above-captioned communities, for an
additional 30 days, through June 20, 2008, or until suitable replacement
service actually begins, whichever occurs first.[^1]

2\. We direct Air Midwest to retain all books, records, and other source
and summary documentation to support subsidy claims for payment, and to
preserve and maintain such documentation in a manner that readily
permits its audit and examination by representatives of the Department.
Such documentation shall be retained for seven years or until the
Department indicates that the records may be destroyed, whichever comes
first. Copies of flight logs for aircraft sold or disposed of must be
retained. The carrier may forfeit its compensation for any claim that is
not supported under the terms of this order;

3\. These dockets will remain open until further order of the
Department; and

4\. We will serve copies of this order on the mayors and airport
managers of Grand Island, McCook, El Dorado/Camden, Harrison, Hot
Springs, Jonesboro, Columbia/Jefferson City, Joplin, and Kirksville, and
on Air Midwest, Inc.

Persons entitled to petition the Department for review of this order
under the Department's Regulations, 14 CFR 385.50, must file such
petitions within ten (10) days after the date of service of this order.

This order will be effective immediately, and the filing of a petition
for review shall not preclude its effectiveness.

By:

**MICHAEL W. REYNOLDS**

Deputy Assistant Secretary for Aviation

> and International Affairs

#  {#section .mainheading}

# TODD M. HOMAN {#todd-m.-homan .mainheading}

Director

Office of Aviation Analysis

(SEAL)

*An electronic version of this document is available on the World Wide
Web at*

*www.regulations.gov*

[^1]: In accordance with 49 U.S.C. 41734(c), we will extend Air
    Midwest's service obligation for successive 30-day periods, as
    necessary, until suitable replacement service actually begins.