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ACTIVE MEMBER LIST: September 30, 2002



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ACTIVE MEMBER LIST: September 30, 2002


  1. AIMS of America Inc., Florida

  2. Air Midwest, Wichita, Kansas

  3. Alamogordo-White Sands Regional Airport, New Mexico

  4. Aviation Council of Pennsylvania, Allentown, PA

  5. Bombardier Aerospace Regional Aircraft, Montreal, Canada

  6. Bradford Regional Airport, Pennsylvania

  7. Cape Air/Nantucket Airlines, Hyannis, Massachusetts

  8. CCAir, Charlotte, North Carolina

  9. Cheyenne Airport, Wyoming

  10. City of Naples Airport Authority, Florida

  11. City of Ponce, Puerto Rico

  12. City of Yuma, Arizona (Office of the Mayor)

  13. Clearfield-Jefferson County Airport Authority, Pennsylvania

  14. CM Associates, LLC, NC

  15. Department of Aviation, Virginia

  16. Diversified Business Enterprises, Wisconsin

  17. Dubuque Regional Airport, Iowa

  18. Durango Mountain Resort/Destination Durango, Colorado

  19. Durango Pro Focus, Texas

  20. Elite Services Group, California

  21. Fly Cheyenne, Inc., Wyoming

  22. Garden City Regional Airport, Kansas

  23. Grand Junction Area Chamber of Commerce, Colorado

  24. Great Lakes Aviation, Cheyenne, Wyoming

  25. Greater Augusta Regional Chamber of Commerce, Virginia

  26. Hartfield Coalition, Inc. West Virginia

  27. Heli-USA Airways, Nevada

  28. Hobbs Chamber of Commerce, New Mexico

  29. Hot Springs Municipal Airport, Arkansas

  30. Independent Airport Consultants International, Mesa, Arizona

  31. International Airline Support Group, Atlanta, Georgia

  32. Jackson-Madison County Airport Authority, Tennessee

  33. Kachina Technical Services and Processes, Inc., Arizona

  34. Kingman Airport Authority, Inc., Arizona

  35. Lancaster Airport Authority, Pennsylvania

  36. Lea County Regional Airport, New Mexico

  37. Lebanon Municipal Airport, New Hampshire

  38. Lynchburg Regional Airport, Virginia

  39. Manhattan Area Chamber of Commerce, Kansas

  40. Manhattan Kansas Regional Airport

  41. Mesa Airlines, Phoenix, Arizona

  42. Metropolitan Topeka Airport, Kansas

  43. Nebraska Department of Aviation, Nebraska

  44. North-South Airways, Atlanta, Georgia

  45. Owensboro-Daviess County Airport, Kentucky

  46. Page Municipal Airport, Arizona

  47. Pagosa Management Corporation, Lubbock, Texas

  48. The Perry Company, LLC, Utah

  49. Pierre Regional Airport, South Dakota

  50. Pueblo Memorial Airport, Colorado

  51. Raytheon Aircraft, Wichita, Kansas

  52. Revenue Technology Services Corporations (RTS), Dallas, Texas

  53. Rio Grande Air, New Mexico

  54. Salina Airport Authority, Kansas

  55. Shenandoah Valley Regional Airport, Staunton, Virginia

  56. Show Low Municipal Airport, AZ

  57. Standard Aero, Winnipeg, Canada

  58. Venango County Airport, Oil City/Franklin, Pennsylvania

  59. Venango County Commissioners, Oil City/Franklin, Pennsylvania

  60. Walker Field Airport Authority, Grand Junction, Colorado

  61. Watertown International Airport, New York

  62. Youngstown-Warren Regional Airport, Ohio

  63. Yuma Chamber of Commerce, Arizona



U.S. Territory:
1. Puerto Rico

City of Ponce Puerto Rico (Port of Ponce Industrial & Commercial Devo), Ponce



Canada:
1. Quebec

Bombardier Aeropsace Regional Aircraft


2. Manitoba

Standard Aero, Winnipeg


U.S. States:
1. Arizona

Mesa Air, Inc., Phoenix

Kingman Airport Authority, Inc., Kingman

Page Municipal Airport, Page

Show Low Municipal Airport, Show Low

Independent Airport Consultants International, Mesa Air, Inc.

Yuma Chamber of Commerce, Yuma

Marilyn Young, Mayor, City of Yuma

Kachina Technical Services and Processes, Inc., Phoenix

Melanie Grinstead-Hanak, Mayor, Lake Havasu City


2. Arkansas

Hot Springs Municipal Airport, Hot Springs


3. California

Elite Services Group, Walnut Creek

4. Colorado

Pueblo Memorial Airport, Pueblo

Walker Field Airport Authority, Grand Junction

Grand Junction Area Chamber of Commerce, Grand Junction

Durango Mountain Resort/Destination Durango, Durango
5. Florida

AIMS of America Inc.

City of Naples Airport Authority, Naples

6. Georgia

North-South Airways, Inc., Atlanta

International Airline Support Group, Atlanta


7. Iowa

Dubuque Regional Airport, Dubuque


8. Kansas

Air Midwest, Wichita

Raytheon Systems, Wichita

Salina Airport Authority, Salina

Garden City Regional Airport, Garden City

Metropolitan Topeka Airport, Topeka

Manhattan (KS) Area Chamber of Commerce, Manhattan

Manhattan Regional Airport, Manhattan

9. Kentucky

Owensboro-Daviess County Airport, Owensboro

10. Massachusetts

Cape Air Nantucket Airlines, Hyannis


11. Nebraska

Nebraska Department of Aeronautics, Lincoln


12. Nevada

Heli USA Airways, Las Vegas


13. New Hampshire

Lebanon Municipal Airport, West Lebanon


14. New Mexico

Alamogordo-White Sands Regional Airport, Alamogordo

Hobbs Chamber of Commerce, Hobbs

Lea County Regional Airport, Hobbs

Rio Grande Air, El Prado

15. New York

Watertown International Airport, Watertown
16. North Carolina

CCAir, Charlotte

CM Associates, LLC, Charlotte
17. Ohio

Youngstown-Warren Regional Airport/Western Reserve Port Authority, Vienna


18. Pennsylvania

Aviation Council of Pennsylvania, Allentown, PA

Bradford Regional Airport, Lewis Run

Clearfield-Jefferson County Airport Authority, Falls Creek

Lancaster Airport Authority, Lancaster

Venago County Airport, Franklin

Venango County Commissioners, Franklin

19. South Dakota

Pierre Regional Airport, Pierre
20. Tennessee

Jackson-Madison County Airport Authority, Jackson


21. Texas

Durango Pro Focus, Midland

Pagosa Management Corporation, Lubbock

Revenue Technology Services Corporation, Irving


22. Utah

The Perry Company, LLC, Park City


23. Virginia

Lynchburg Regional Airport, Lynchburg

Shenandoah Valley Regional Airport, Weyers Cave

Greater Augusta Regional Chamber of Commerce, Fisherville

Virginia Department of Aviation, Richmond

24. West Virginia

Hart Field Coalition, Inc., Morgantown
25. Wisconsin

Diversified Business Enterprises, Milwaukee


26. Wyoming

Great Lakes Aviation, Cheyenne

Cheyenne Airport, Cheyenne

Fly Cheyenne, Inc., Cheyenne




1 Exhibit A lists current members.

2 60 FR 16230, 16274.

3 49 U.S.C.A. § 44701(A).

4 Sam Kazman , “Comments of the Competitive Enterprise Institute to the Federal Aviation Administration on its Proposed Rule to Increase Regulations on Certain Commuter Airlines Now Flying Under Part 135: 60 FR 16,230 (Mar. 29, 1995) Docket No. 28,154”, Competitive Enterprise Institute, Speeches & Presentations, June 27, 1995 "As FAA’s notice makes clear, the safety of part 135 airlines has not fallen; to the contrary, it has increased. "

See attached document.



5 See Figure 1, page 4, supra.

6 60 FR 16230, 16231.

7 See Figure 1, page 4, supra.

8 Kazman.

9 Kazman.

10 60 FR 16230, at 16230. “The differences between parts 121 and 135 reflect differences in the size of aircraft and the scope of the operations. Part 135 is considered to provide a level of safety comparable to part 121… ”. And see, Sam Kazman , “Comments of the Competitive Enterprise Institute to the Federal Aviation Administration on its Proposed Rule to Increase Regulations on Certain Commuter Airlines Now Flying Under Part 135: 60 FR 16,230 (Mar. 29, 1995) Docket No. 28,154”, Competitive Enterprise Institute, Speeches & Presentations, June 27, 1995

11 60 FR 16230, at 16232. And see, id, Kazman.

12 For example, the projected increase in training costs for only 10-19 seat aircraft (excluding 20-30 seat aircraft) is estimated to total $406,354,720, which is well above the FAA's estimate of $275M as the total cost originally projected to result from the rule change for 10-30 seat airplanes.

13 Id.

14 Mesa Air, Inc. (September 12, 2002). The General Accounting Office (GAO) analysis of this issue reflects the following (emphasis added):

“Information from the four airlines that served 80 percent of the passengers flying on EAS subsidized service in 1999 revealed that [complying with FAA’s regulatory rules requiring commuter carriers to meet more rigorous safety standards increased their operating costs.] Officials from Mesa and Colgan emphasized that the Commuter Safety Initiative’s new training and personnel requirements were costly. For example, Colgan officials said that training costs increased by an additional $27,000 per month, in part due to having to hire full-time trainers. Mesa officials noted that because pilots who formerly required 8 hours of cockpit training now require 40 hours, the company had to hire additional pilots to ensure that it could fully staff its operations. According to its 1998 10-K report filed with the U.S. Securities and Exchange Commission, Mesa estimated that pilot training costs rose by $2.0 million due to stricter operating requirements under the rule. Officials with Great Lakes reported that commuter rule compliance drove up its wages for mechanics between 30 and 35%. According to its 1996 10-K report, Great Lakes reported that salaries, wages and benefits increased about 8 percent from 1995 to 1996, due in part to the Commuter Safety Initiative.”





15 60 FR 16230,at 16266.

16 Infra, at footnote 12.

17 U.S. GAO Report, Essential Air Service, dated August 30, 2002, page 6, "Program Costs Have Increased More Than Passenger Use."

18 60 FR 65832, at 65833.

19 U.S. GAO Report, Essential Air Service, dated August 30, 2002, page 2, “Results in Brief.” While the GAO lists smaller aircraft use as an option, carriers who cannot afford to operate under FAR Part 121 are limited to operating single engine, piston aircraft under FAR Part 135, representing 30 year old technology that is demonstrably less reliable than the twin engine, pressurized aircraft described in the CFR. We do not believe the FAA intended to promote a return to less reliable, piston engine aircraft in today’s environment.

20 60 FR 65832, at 65837.

21 U.S. Department of Transportation Draft Regulatory Evaluation, Initial Regulatory Flexibility Determination, and Trade Impact Assessment; Executive Summary, Integration of Part 135 Commuters into Part 121, dated February 1995.

22 U.S. GAO Report, Essential Air Service, see, pages 15-25.

23 49 U.S.C.A. §41732(B)(5),(6), "Service provided in aircraft with at least 2 engines and using 2 pilots, unless scheduled air transportation has not been provided to the place in aircraft with at least 2 engines and using 2 pilots for at least 60 consecutive operating days at any time since October 31, 1978." "…service provided by pressurized aircraft when the service is provided by aircraft that regularly fly above 8,000 feet in altitude."

24 Several air carriers, such as Lone Star Airlines, have gone bankrupt, and others such as CCAir, merged with or were bought by other carriers.

25 U.S. GAO Report, Essential Air Service, dated April 2000, page 23.

26 U.S. GAO Report, Essential Air Service, dated August 30, 2002, page 6, "Program Costs Have Increased More Than Passenger Use." "The average subsidy per community served in the continental United States rose from nearly $424,000 in 1995 to $828,000 in 2002," an increase of 95%. "For communities in Alaska, Hawaii, and Puerto Rico, the average subsidy per community served rose from just over $90,000 to an estimated $251,000 in 2002," an increase of 179%.

27 U.S. GAO Report, Essential Air Service Report, dated April 2000, page 24, "Changes in Subsidy Levels, Air Carrier Costs, and Passenger traffic."

28 60 FR 16230, at 16274.

29 60 FR 16230, at 16274.

30 NTSB Government Aviation Accident Statistics Table 6 for FAR 121, and Table 8 for FAR 135.

31 The communities of Wichita and Salina, Kansas were particularly hurt by the loss of production of the BE-1900D resulting from the FAR Part 135 rule change. Both communities were economically disadvantaged through loss of jobs and tax revenue because of the premature shutdown by the manufacturer of the Beech 1900. Raytheon currently has 134 new and used BE-1900D’s parked due to a slow down in sales and leases to airline customers who cannot afford to acquire and operate these aircraft due to the increased operating expenses flowing directly from the rule change.

32 60 FR 16230, at 16276. "Alternatives to the proposed rule. According to the RFA, significant alternatives may include: the establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; the clarification, consolidation, or simplification of compliance and reporting requirements under the rule for such small entities; the use of performance rather than design standards; or an exemption from coverage of the rule, or any part thereof, for such small entities. "

33 60 FR 16230, at 16231. The FAA states that “while the safety level of part 135 operations has continued to improve, accident data, public perception, and recent government inquiries show a need for additional measures”.

34 60 FR 65832, at 65836. In regard to comments that higher fares resulting from this rulemaking will cause passengers to switch to less safe modes of transportation, it has been the FAA’s observation that passengers are usually willing to pay for safety.”

35 Insurance Institute for Highway Safety, Shopping for a Safer Car, p.1, (Oct. 2000).

36 “Airbag injury risk is lower in 1998 and later models because automakers have redesigned most of their airbags using less powerful inflators. Some automakers also have reduced inflation injury risk with dual deployment thresholds. Most airbag deaths and serious injuries have occurred in crashes at speeds close to the threshold at which airbags deploy -- crashes in which the bags provide relatively little additional protection to belted occupants. More new cars soon will have airbags with deployment thresholds that are higher when safety belts are used. Plus inflation forces will vary according to crash severity”. Id.

37 60 FR 16230, at 16274, “The American public demands a high degree of safety in air travel. This is manifested by the large amount of media attention given to rare accidents that do occur, by the short term reductions in revenues carriers have experienced following accidents or acts of terrorism, and by the pressure placed on the FAA as a regulator of air safety to further reduce accident rates”.

38 Sam Kazman , “Comments of the Competitive Enterprise Institute to the Federal Aviation Administration on its Proposed Rule to Increase Regulations on Certain Commuter Airlines Now Flying Under Part 135: 60 FR 16,230 (Mar. 29, 1995) Docket No. 28,154”, Competitive Enterprise Institute, Speeches & Presentations, June 27, 1995.

39 Bureau of Transportation Statistics, 2001 Pocket Guide to Transportation, (2000).

40 The costs associated with the recommended change are minor when compared to the net effect of the rule change. We estimate the cost of this safety enhancement to be less than $10K per airplane for the equipment.

41 As a practical matter, some operators may elect to continue operations under FAR Part 121, even if the exemption is granted. However, the granting of the exemption will provide viable alternatives for 10-30 operators to lower costs without compromising safety. Additionally, Category III and IV airports will benefit from lower costs associated with the hiring of additional personnel and lower expenses in acquiring fire equipment meeting FAA requirements.


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