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Show Frontier Left Out in Subsidy Hike, Officio! Soys in Letter In answer to a recent letter from Robert Campbell, Camp-bell, attorney for Utah Agencies, Frontier Airlines Airlin-es this week retorted that final order for subsidies had been adopted for all local service carriers ox.. cept Frontier. Campbell had stated in his letter that it was his opinion that Frontier had received the subsidies and that services to small communities com-munities such as Moab would be upgraded to the 1968 level. Frontier's spokesman, Richard Fitzgerald, stated that if subsidies under Class Rate V are accepted by the carirer, they ara "only calculated to enabie carriers to continue the services which they were already providing in May 1970," not improve them as Campbell had suggested. suggest-ed. Fitzgerald continued, "Aside from the fact that there was no allowance in the subsidy order for increased in-creased service, the cost of providing air transportation transpor-tation srevice over low density routes has substantially sub-stantially increased over the level which existed during the year ended September Sep-tember 1970, which was the base period upon which the Class Rate V is fixed. Thus the amount of subsidy sub-sidy provided under Class Rate V is no longer adequate ade-quate to support the level of service. provided in the past much less increased increas-ed service." Finally, it was stated, ". . . the cost of provid. ing air transportation ser-. ser-. vice to "the smaller communities com-munities has increased at an extraordinary rate during dur-ing the past few years. This has been accompan ied by a major reduction in subsidy payments. Frontier's Fron-tier's so-called 'trunkline routes' have had the effect ef-fect of reducing the amount am-ount of subsidy needed to maintain Frontier's system sys-tem services, but the profit pro-fit from these routes has not been nearly enough to offset the combination of increased costs and reduced re-duced subsidy payments on low-density, short-haul services. Morever, Class Rate V does not adequately adequat-ely correct the situation since the subsidy granted is ' currently, less than it takes to cover the cost of providing the system service." |