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OST-2003-14604

 


Essential Air Service at Victoria, Texas

OST-03-14604 February 26, 2003 Intention of ExpressJet Airlines Inc. d/b/a Continental Express To Terminate Service Essential Air Service at Victoria, Texas - Termination of Service - ExpressJet

ExpressJet presently operates three daily roundtrips between Victoria and Houston four days per week and two daily roundtrips three days per week using 37-seat Embraer ERJ 135 aircraft.  The level of essential air service established for Victoria requires two weekday and two weekend flights between Victoria and Houston providing capacity for 40 passengers each weekday and over each weekend period, with at least 62 seats inbound and 62 seats outbound required.  Since no other airline currently serves Victoria, ExpressJet's termination of service at Victoria will eliminate all air service at Victoria.

Counsel: Crowell Moring, Bruce Keiner, 202-624-2615


Essential Air Service at Victoria, Texas

OST-03-14604 March 18, 2003 Objection of the Victoria County Airport Commission

Microsoft Word

90-Day Notice of ExpressJet, Inc. d/b/a Continental Express to Terminate Service

The Victoria County Airport Commission, operator of the Victoria Regional Airport, objects to the Continental Airlines proposal to terminate service.  Continental is seeking to discontinue service between Victoria and Bush Intercontinental Airport in Houston, Texas, effective May 31, 2003.

Continental states that its desires to terminate service to due to the loss of revenue because of decreased passenger loads. The Commission believes much of the loss of revenue can be attributed to the existing fare structure that encourages passengers to travel to other airports to make connections. For example, many Continental fares out of Austin-Bergstrom International Airport connecting to the same flight in Houston are as much as $200 less than the fares from Victoria. Additionally, there are have been as many as fifteen fares for the Victoria to Houston segment. This multi-fare structure has confused and alienated potential passengers. The result is that they are encouraged to drive to other locations to begin their air travel.  Another factor in decreasing passenger counts is the ever-changing flight schedule. One round trip on Tuesdays and Wednesdays has been on again and off again for the last several months. Additionally, the current schedule creates excessive layover times when trying to make connecting flights at Bush Intercontinental.     

By: Patrick Rhodes

April 24, 2003

OST-03-14604 - Essential Air Service at Victoria, Texas

Proposal of SkyWest Airlines

Sky West Airlines is in the final stages of completing a deal to becoming a Continental code-sharing partner for several markets from Houston, Texas. We expect our agreement to be finalized the week of May 12, 2003. One of the first markets they have ask us to serve is Victoria, Texas. We understand that Express Jet has filed a 90-day notice for that market, and that proposal for replacement service are due today.

Sky West submits the attached bid for Victoria utilizing the 30- passenger Embraer Brasilia. Our requested service pattern will be 3 trips per day and we can initiate service July 1, 2003 Our bid is subject to us reaching an agreement with Continental to become a Continental Connection carrier.

By: Eric Christensen


Proposal of Mesa Air Group

By: Scott Lyon, 602-685-4368, scott.lyon@mesa-air.com


Proposal of Great Lakes Airlines

By: Great Lakes Airlines


May 2, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Comments of A. Grimsley

By: A. Grimsley


May 12, 2003

OST-03-14604 - 90-Day Notice Express, Inc. d/b/a Continental Express to Terminate Service

Comments of Kara Hope

By: Kara Hope


May 12, 2003

OST-03-14604 - 90-Day Notice Express, Inc. d/b/a Continental Express to Terminate Service

Comments of W.E. White

By: W.E. White


May 19, 2003

OST-03-14604 - 90-Day Notice Express, Inc. d/b/a Continental Express to Terminate Service

Comments of Stephanie H. Dahl

I am a native Victorian whose Mother still lives there. I have been living in the New York area for over 30 years, and she and I have been making regular trips back and forth three or four times a year all that time. Air travel into Victoria, in terms of expense, scheduling and general uncertainty, has been a problem we have learned to live with, begrudgingly. Things were just starting to get a bit better recently, when Continental Express started using larger planes, and now here we are again... I am presently trying to make reservations for a mid-June flight from IGA to VCT and it seems impossible to plan. Guess I'll have to rent a car, again, from Houston, pay outrageous inter-city drop-off fees, and deal with whether or not the Victoria Airport is even open to return the vehicle! Since I've been through this so often, my vote for a new carrier would definitely be for one that services Houston, because at least those of us who end up having to drive to Victoria because of eratic air service can do so in three hours from IAH.

By: Stephanie H. Dahl


May 23, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence of Linda Zealy

By: Linda Zeal


May 23, 2003

Correspondence of Mr. & Mrs. William C. Foster, Mr. & Mrs. Gary L. Foster and Margaret C. Foster

By: Mr. & Mrs. William C. Foster, Mr. & Mrs. Gary L. Foster and Margaret C. Foster


May 23, 2003

Correspondence of W.E. White

By: W.E. White


May 23, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence of Denny I. Arnold

By: Denny I. Arnold


May 23, 2003

Correspondence of Henry J. Weber

By: Henry Weber


May 23, 2003

Correspondence of John W. Griffin

By: John W. Griffin


May 22, 2003

Correspondence of Victoria County Airport Commission | Word

By: Patrick Rhodes


May 23, 2003

Correspondence of Victoria County Airport Commission

By: Patrick Rhodes


May 23, 2003

Correspondence of William Price

By: William Price


May 23, 2003

Correspondence of William Zwerschke

By: William Zwerschke


May 27, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Community Response to Air Service Proposals | Word

The Victoria Regional Airport Air Service Task Force declares its support for the selection of SkyWest Airlines by the U. S.Department of Transportation as the commercial carrier to serve the Victoria Regional Airport.

By: John Roberts


May 28, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence of BP Chemical Co.

By: Dan Williamson


May 29, 2003

Comments of Joyce Cardinell

By: Joyce Cardinell


May 29, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Comments of Dupont Corporation | Word

By: Bruce Chinn


Essential Air Service at Victoria, Texas

Issued and Served June 2, 2003

Order 03-6-1
OST-03-14604
- 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Order Setting Final Rate

On February 26, 2003, Express Jet Holdings, Inc., dlb/a Continental Express (Express) filed a 90-day notice to suspend its subsidy-free air service at Victoria, Texas. Order 2003-4-2, April 1, 2003, required Express to continue providing essential air service to Victoria while we processed a carrier-selection case. In the meantime, Express is entitled to be compensated for its forced service. The carrier and staff have agreed to an annual subsidy rate of $1,269,675 to provide two daily nonstop round trips to Houston with 35-seat EMB-135 aircraft. We will make the agreed-to subsidy rate effective from June 1, 2003, until further Department action, i.e., until we select a replacement carrier and the service is fully in place.

Appendix A - Victoria, Texas, and the Surrounding Region
Appendix B - Subsidy Rate
Appendix C - Note

By: Read C. Van de Water


June 4, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence of Citizens Medical Center

By: David P. Brown


June 4, 2003

Correspondence of First Victoria National Bank

By: Tom J. Curtis


June 4, 2003

Correspondence of Stephen Hipes

By: Stephen Hipes


June 4, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence of Associated Builders & Contractors, Inc

Both professionally and professionally, I am completely supportive of securing Sky West air service in Victoria, Texas. I travel extensively and it is extremely important to have local service available. It is a direct link for area economic development and I am/will be supportive of and encourage every effort to facilitate a return to local air service.

By: Kathy Autry


June 4, 2003

Correspondence of Port of Victoria

Victoria is a vitally important transportation, economic, medical and educational hub in South Central Texas. The Victoria Barge Canal links the Victoria area to the Gulf Intracoastal Waterway, making the Canal a leading force in the success of this region with over 11,000 jobs and $324.2 million in personal annual income as a direct result. However, in order to sustain Victoria’s success and its ability to experience continued growth and development, it is critical that Victoria have reliable, cost effective air service to Houston. With that in mind, as Chairman of the Victoria County Navigation District, I strongly support Sky West’s proposal to provide this essential service to Houston through the Victoria Regional Airport.

By: Lee Swearingen


June 4, 2003

Withdrawal of Proposal of Great Lakes Airlines

Please Consider this email Great Lakes Airlines' official withdrawal of our proposal to serve VCT to IAH.

By: Dave Thomas, dthomas@greatlakesav.com


Issued June 5, 2003 | Served June 10, 2003

Order 03-6-6
OST-03-14604 - Notice of ExpressJet to Termination Service

Order Extending Service Obligation

Although we have received proposals, this case will not be completed by the end of this holdin period. Thus, in accordance with 49 U.S.C. 41734(c), we must extend ExpressJet's service obligation at Victoria for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first.

By: Randall Bennett


June 9, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence of Equistar Chemicals

By: Shelly Heuser


June 9, 2003

Correspondence of University of Houston-Victoria

By: Carole Parks


June 9, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence

By: Shirley


June 6, 2003

Request of Essential Air Service and Domestic Analysis Division

While we received your preliminary views earlier, we would now appreciate receiving your final comments on the carriers' proposals before we make our recommendation to the Assistant Secretary. We ask that you submit your comments within two weeks of receipt of this letter.

By: Dennis DeVany


June 20, 2003

OST-03-14604 - 90-Day Notice of Express, Inc. d/b/a Continental Express to Terminate Service

Correspondence of Victoria Regional Airport

The Airport Commission voted to affirm their preliminary position of supporting the proposal from SkyWest Airlines. The Air Service Task Force position remains unchanged from the previously submitted resolution supporting SkyWest Airlines. We look forward to the final selection of a replacement carrier for this market, and support the selection of SkyWest Airlines, Inc.

By: Patrick Rhodes, 361-578-2704


Essential Air Service at Victoria, Texas

Issued June 26, 2003 | Served July 1, 2003

Order 03-6-34
OST-03-14604 - Notice of ExpressJet to Terminate Service

Order Selecting Carrier and Establishing Final Subsidy Rate | Word

After careful consideration of both carriers' proposals and the community's comments, we have decided to select Sky West's proposal, which offers 18 nonstop round trips a week to Houston with 30-seat Brasilias at an annual subsidy of $464,869. Sky West has informed us that it expects to be able to begin service at Victoria on August 1, at which time we will end our reliance on ExpressJet to provide essential air service there.

By: Michael Reynolds


Essential Air Service at Victoria, Texas

Issued July 2, 2003 | Served July 8, 2003

Order 03-7-2
OST-03-14604 - Notice of Continental Express to Terminate Service at Victoria, TX

Order Extending Service Obligation

By: Randall Bennett


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