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Show Controversy flies along with local com muter planes A bit of controversy and problems joined the Sky West commuter planes in the air this week as a second commuter com-muter service began operation. Sky West recently complained to the Utah Agencies that the new carrier, International Air Transport, is flying a route from Las Vegas to Salt Lake City via Cedar City without Utah Public Service Commission approval. Utah agencies, however, would not back Sky West in their arguments as the new carrier states it already has federal certification to operate in anv city in the United States. IAT official's said any federally certified carrier does not fall under state PSC jurisdiction. International Air Transport is a "mother company" to Cedar City AirAirmotive, who recently broke ground near the Cedar City Municipal Airport for a helicopter service station. IAT has been involved for some time in carrier service, most recently with helicopter service in Alaska. Utah Agencies did, however, endorse Sky West's petition to get Civil Aeronautics Board (CAB) certification, cer-tification, which opens the door to future federal subsidies and guaranteed guaran-teed loans which are on the docket to help commuter airlines. Sky West president Jerry Atkin told the Utah Agencies he felt it was unfair , for a line not regulated by the PSC to come in and compete with the St. George based airline. He said they have made a five year investment in theserviceand this year promises to be the first profitable one. Now IAT is coming in and un dercutting Sky West fares, he said. Atkin has also said there is a widespread move to start new commuter com-muter airlines in anticipation of the passage of legislation promising subsidies. An air commuter study conducted for and accepted by the Utah Transportation Tran-sportation Commission this week says an estimated 43,900 passengers would annually use a proposed "two-corridor" "two-corridor" commuter system in Utah. The study was conducted by UDOT staff w ith the assistance of a Bozeman, Mont, consulting firm. The study said there is a "definite need for rural air service" and recommended the two-corridor system. The southwest corridor would provide service from Salt Lake City to Cedar City and St. George. A "stub" leg would connect Logan and Salt Lake. Air fares should range from $17 between Salt Lake and Logan to $33 from Salt Lake to St. George, the study-said. study-said. The proposed system would require an annual operating subsidy of between $110,000 and $133,000. If the Logan to Salt Lake route were completely developed, profits from that run could cross-subsidize the other operations, they said. Total subsidy need would then be reduced to around $42,000. Eventually the study noted, the entire system could probably be able to operate without subsidy. The UDOT Commission also agreed to back the Skywest CAB petition but said they w ere not supporting Sky West over any other airline in so doing. |