(a) The subsidy rate generally will be set for a 2-year period, or two consecutive 1-year periods. The Department may set the rate for a shorter period in the following situations:
- (1) A commuter air carrier is replacing a larger certificated carrier at the eligible place;
- (2) Traffic at the eligible place has substantially decreased;
- (3) The Department considers the cost or revenue projections of the carrier for the second year to be unrealistic;
- (4) It is likely that there will be changes in the eligible place essential air service level; or
- (5) The uncertainties of the market or other circumstances warrant a shorter rate period.
- (b) The subsidy rate established for a carrier under this part will not be changed during the rate period unless an adjustment is required in the public interest.
- (c) At the end of the rate period, the carrier will not have a continuing right to receive subsidy for providing essential air service at the eligible place.
[ER-1398, 49 FR 49846, Dec. 24, 1984, as amended at 60 FR 43524, 43525, Aug. 22, 1995]