EAS HOLD-IN AUTHORITY QUESTION: What happens when the last carrier serving a community with subsidy wants to leave that community?
Again, that carrier must first file a notice of its intent to suspend service — a 90-day notice under the EAS statutes. We follow the same drill as we do in the subsidy-free example, although the likelihood of securing subsidy-free replacement service is much less. We hold the incumbent in and issue an RFP. In this case, however, the incumbent carrier continues to receive the same subsidy rate for six months, at which time it is eligible for a rate increase. The six-month period discourages carriers from deliberately submitting below-cost proposals to get selected and immediately coming back to the Department hoping to get a higher subsidy rate. Eligible communities are guaranteed to receive at least a minimum level of air service; thus, absent a carrier’s going out of business, there should not be a service hiatus at any EAS community. In the unlikely event that a subsidy-free carrier begins providing competing service at a subsidized community, we do not unilaterally terminate the c
Related Questions
- EAS HOLD-IN AUTHORITY QUESTION: What happens when the last carrier serving a community with subsidy wants to leave that community?
- EAS HOLD-IN AUTHORITY QUESTION: What happens when the last carrier serving a community subsidy-free wants to leave that community?
- What happens if the Local Authority wants to dispose of the land?
