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OST-2004-19916 - EAS at Visalia, CA
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Essential Air Service at Visalia, California OST-2004-19916 - EAS at Visalia, CA December 14, 2004 Re: 90-Notice of Intent to Terminate EAS at Visalia/Fresno, CA SkyWest currently serves Visalia/Fresno twice daily utilizing the 30-passenger turboprop Brasilias. We carried 2,195 passengers over the last twelve months, which represented a 6% load factor. Due to continued poor economic climate and continued losses resulting from unusually low load factors, we'd like this letter to serve as official 90 day notice of termination of the Visalia service. Given current demand at Visalia, the market would be much better served with a smaller aircraft and different service pattern. SkyWest is eager to assist the DOT and the City of Visalia in finding a replacement carrier which better suits the needs of the community. By: Eric Christensen
Order 2004-12-23 Issued December 30, 2004 | Served January 7, 2005 Order Prohibiting Suspension of Service and Requesting Proposals By this order, the Department is prohibiting SkyWest Airlines, Inc., a United Airlines code-share operator, from suspending service at Visalia, California, and requesting proposals from carriers interested in providing replacement essential air service (EAS). By Order 93-6-13 the Department defined EAS for Visalia as requiring two round trips a day to either Los Angeles, San Francisco, or San Jose. Service was to be provided with no more than one intermediate stop, and the aircraft were to have two pilots, two engines, and at least 15 seats with air stair access to the cabin. With the consent of the community, any of these conditions may be waived. On December 15, 2004, Sky West filed a 90-day notice to terminate all of its subsidy-free service at Visalia, effective March 15, 2005. The carrier stated that it generated a 6 percent load factor at Visalia. SkyWest serves the market with 30-seat Brasilias, and noted that the market would be better served with smaller aircraft and a different service pattern. Visalia is located 173 miles north of Los Angeles, 188 miles southeast of San Francisco, and 35 miles south of Fresno. SkyWest currently provides two round trips a day over a Visalia-FresnoLos Angeles routing with 30-seat Brasilia aircraft. By: Karan Bhatia
January 14, 2005 Re: Supplemental Information from The City of Visalia On January 5, 2005, the Department of Transportation issued an Order Requesting Proposals from airlines interested in providing air service at the Visalia Municipal Airport. Based on discussions between the City of Visalia and the Department of Transportation, it was agreed upon that the City of Visalia could provide supplemental information that would be included into the docket to give prospective airlines a more comprehensive understanding of the historical patronage of air service at the Visalia Municipal Airport. On December 15, 2004, SkyWest Airlines, Inc., a United Airlines codeshare operator, filed a 90-day notice to terminate all of its subsidy free service at Visalia, effective March 15, 2005. The filing of this notice was the culmination and direct result of three and a half years of schedule reductions and changes that ultimately led to the artificial depression of the market in Visalia. As detailed in Tables 1 & 2 below and again in Appendix 1 of this letter in more detail, passenger enplanements had been on a steady increase since 1997, when SkyWest began serving our community, and only began to fall as a result of United's changes to the scheduled service. The table only contains data up through 2001, since the Appendix B of Docket OST-2004-19916 provides enplanement data from 2002 through 2004. By: Mario Cifuentez II
February 1, 2005 Re: Scenic Airlines Request for a 10-Day Extension of the Proposal Deadline | Word The Order Prohibiting Suspension of Service and Requesting Proposals for Essential Air Service at Visalia, California was served on January 7, 2005. The due date for proposals is no later than February 6, 2005. Scenic Airlines would like to submit a proposal for service between Visalia, CA and North Las Vegas, NV, however, we are unable complete the documentation needed before February 6th. Scenic has been preparing to start two new routes in Nevada on March 2nd and we have been under pressure since early January to meet numerous deadlines for completion of items that were needed to keep that service on schedule. Scenic Airlines respectfully requests a 10-day extension of the proposal deadline to February 16, 2005. We fully expect to have all of our work and research completed with respect to Visalia by that date. By: Mary Schneider
February 3, 2005 Re: Letter Granting Extension | Word On February 1, 2004, Scenic Airlines, Inc., requested an extension of time, until February 16, to file a competitive proposal in response to Order 2004-12-23, served January 7. That order requested competitive proposals be submitted by February 7, 2005, for EAS at Visalia, California. This is to advise all parties that we have decided to grant Scenic’s request for an extension of time to file. Objections and/or competitive proposals, in response to our actions in Order 2004-12-23, must now be filed no later than February 16, 2005. By: Dennis DeVany
February 16, 2005 Re: Proposal of Great Lakes Aviation Great Lakes's proposals to provide service at Visalia all contemplate non-stop, conveniently timed service to and from Los Angeles International Airport. As in our arrangement with United Airlines in Denver, Great Lakes will provide service at this California point as Great Lakes Airlines to LAX, and with code sharing partner United Airlines beyond Los Angeles to the extent of their route structure. In addition, Great Lakes maintains interline ticket and baggage agreements with the majority of the other carriers serving LAX, which allows for maximum utility of our air service to the airline customers flying in and out of Visalia. Great Lakes Airlines has bid this service with schedules that are useable and convenient. Traffic numbers provided by DOT in Order 2004-12-23 demonstrate very low utilization of the service since 9/11; however, we find that the schedule being provided to Visalia during that time period is unmarketable, with both round trips scheduled within three hours of each other in the middle of the day and requiring a stop in Fresno. The traffic numbers generated in Visalia during the previous five year are far more indicative of the actual size of the market. Experience in our markets suggest that traffic levels have returned to pre9/11 levels, and we believe that given the appropriate schedule and opportunity that the same will occur here. By: Dave Thomas and Charles Howell
February 16, 2005 Re: Proposal of Scenic Airlines Our proposal is for ten round trips per week between Visalia and North Las Vegas, utilizing a 19 passenger pressurized, twin-engine Beechcraft 1900D aircraft. Scenic will be operating a schedule that is better suited to the community's needs and will continue to keep fares competitive. Our schedule connects Visalia to Las Vegas early in the day and allows for evening connections returning to Visalia with extra flight segments offered for weekend travel to Las Vegas. Due to the schedule change and better marketing efforts, we are confident that Scenic can increase enplanements substantially in the first year and continue to increase enplanements in the following two years. Scenic was able to more than triple enplanements over the carrier we replaced in the Merced market, which we attribute mainly due to Las Vegas being the destination. We feel it is not unreasonable to forecast 4750 enplanements for Year 3 from Visalia, considering that in prior years, enplanements have exceeded 10,000 passengers. As Scenic will no doubt approach this number at some point, it is reasonable to conclude that the essential air service subsidy could be eliminated altogether. By: Chad Dixon
Order 2005-03-11 Issued March 8, 2005 | Served March 11, 2005 Order Extending Service Obligation By this order, the Department of Transportation extends the service obligation of SkyWest Airlines, Inc., at Visalia, California, for 30 days, through April 14, 2005. By: Randall Bennett
March 14, 2005 Re: Request for Final Comments from The Honnorable Bob Link, Mayor, Visalia By: Dennis DeVany
Order 2005-4-7 Issued April 8, 2005 | Served April 13, 2005 Order Extending Service Obligation On December 15, 2004, SkyWest filed a 90-day notice of its intent to suspend its unsubsidized service at Visalia, effective March 15, 2005. By Order 2004-12-23, December 30, 2004, the Department prohibited SkyWest from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. A required by 49 U.S.C. 41734, we have extended SkyWest's service obligation for additional 30-day periods, the latest through April 14, 2005, by Order 2005-3-11. By: Randall Bennettt
April 7, 2005 Re: Comments of The City of Visalia Based on the benefits to the community of having non‑stop service to Las Vegas, the Airport Committee unanimously supported the Scenic proposal. City Council Members, at their meeting of April 4, 2005, discussed the process and adopted a motion "approving the Scenic Airlines proposal for Essential Air Service to Visalia" and authorized the Mayor to sign a letter of support to the Department of Transportation. By: Bob Link, Mayor
Order 2005-4-25 Issued and Served April 28, 2005 We have reviewed each proposal and the community's comments. As we stated in our request for proposals (Order 2004-12-23) and our letter requesting community views, the $200 subsidy per passenger cap prohibits us from authorizing more than $451,400 in annual subsidy. All of Great Lakes' proposals far exceed that ceiling, and thus cannot be selected. Scenic's proposal falls within the $200 subsidy per passenger cap, and has the full support of the community. By: Karan Bhatia
Order 2005-5-7 Issued May 16, 2005 | Served May 19, 2005 Order Extending Service Obligation By Order 2005‑4‑25, the Department selected Scenic Airlines to provide essential air service at Visalia for a three‑year period. However, the carrier transition process will not be completed by the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend SkyWest's service obligation at Visalia for an additional 30 days, or until Scenic's service actually begins, whichever occurs first. By: Randall Bennett
Order 2005-6-7 Issued and Served June 9, 2005 Order Extending Service Obligation By Order 2005‑4‑25, the Department selected Scenic Airlines to provide essential air service at Visalia for a three‑year period. However, the carrier transition process will not be completed by the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend SkyWest's service obligation at Visalia for an additional 30 days, or until Scenic's service actually begins, whichever occurs first. By: Randall Bennett
Order 2005-7-9 Issued July 11, 2005 | Served July 14, 2005 Order Extending Service Obligation | Word By Order 2005-4-25, the Department selected Scenic Airlines to provide essential air service at Visalia for a three-year period. However, the carrier transition process will not be completed by the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend SkyWest’s service obligation at Visalia for an additional 30 days, or until Scenic’s service actually begins, whichever occurs first. By: Karan Bhatia
Order 2005-8-9 Issued August 15, 2005 | Served August 18, 2005 Order Extending Service Obligation By this order, the Department of Transportation extends the service obligation of SkyWest Airlines, Inc., at Visalia, California, for an additional 30 days, through September 14, 2005. By: Karan Bhatia
May 16, 2006 Ninety-Day Notice of Scenic Airlines of Intent to Terminate EAS Service Scenic Airlines gives notice of its intent to terminate all service at Visalia, California on August 15, 2006. Scenic currently provides 10 round-trip flights per week with 19-passenger Beech 1900 aircraft between North Las Vegas Airport and VIS. The service operates on the following schedule:
No other scheduled air service is provided at VIS. Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com
Order 2006-6-10 Issued June 8, 2006 | Served June 13, 2006 Order Prohibiting Termination of Service and Requesting Proposals - Bookmarked By this order, the Department is (a) prohibiting Scenic Airlines from terminating its subsidized service at Merced and Visalia, California, and Ely, Nevada. at the end of its 90-day notice period, and (b) requesting proposals from carriers interested in providing essential air service at the communities, with or without subsidy. Because Scenic's termination of service at Merced, Visalia, and Ely would leave the communities without any scheduled air service, we must prohibit the carrier from terminating such service at the end of its 90-say notice period, and require it to maintain service at the communities, for an initial 30-day period, consisting of 14 round trips per week from Merced to North Las Vegas; 10 nonstop round trips per week from Visalia to North Las Vegas; and 6 nonstop round trips a week from Ely to both North Las Vegas and Elko. Furthermore, we will require Scenic to maintain service at all three communities for successive 30-day periods until we have completed processing the carrier replacement case and the new carrier has actually started service. With specific respect to Merced and Visalia, we expect proposals consisting of service with 15-scat or larger aircraft offering two nonstop round trips each weekday (12 to 14 weekly round trips) to San Francisco. Los Angeles, Las Vegas McCarran, or another suitable huh. For Visalia, based on the latest traffic data, subsidy levels cannot exceed $896,200 per year because of the S200 subsidy per passenger cap. The Department is prohibited from paying subsidy for essential air service at any community in the 48 contiguous states where such subsidy amounts to more than $200 per passenger, unless that community is located more than 210 miles from the nearest large- or medium-hub airport. Visalia is located less than 210 miles from several large- and medium-huh airports (Los Angeles, 187 miles; San Jose, 95 miles; and Burbank, 171 miles), so the $200 cap will apply. At Ely, we expect proposals consisting of service with 15-seat or larger aircraft offering one nonstop round trip each weekday and weekend to Reno, Salt Lake City, Las Vegas McCarran, or other suitable hub. If aircraft smaller than 15-seat aircraft are proposed, a minimum of two round trip flights to a suitable huh should he offered. Such service is generally consistent with what the communities currently receive. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities -- different hubs, for example -- with subsidy requirements that remain competitive. By: Michael Reynolds
OST-1998-3521 - Merced
July 13, 2006 All operations proposed would utilize our modern fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. Mesa has a long history of offering Essential Air Service throughout the country, from New Mexico to New York. The service will operate as America West Express/US Airways Express allowing for convenient connections in Las Vegas or Salt Lake City.
By: Mesa Air Group, Mickey Bowman
April 20, 2006 Proposals of Big Sky Airlines | Word Big Sky has one combined operational proposal. All flights will be operated with modern 19 passenger Beechcraft 1900D aircraft, offering a stand-up cabin. Big Sky's schedule provides flights at times that make it convenient to travel. Big Sky proposes to offer 14 weekly non-stop round trip flights in the Merced-Las Vegas market, 11 weekly non-stop round-trip flights in the Visalia-Las Vegas market and 6 non-stop round-trip flights in the Ely-Las Vegas market. If successful in winning this bid, Big Sky intends to add a daily unsubsidized non-stop flight from Ely to Elko, Nevada with continuing through plane service to Boise, Idaho. Big Sky offers code-share service with its partners, Alaska Airlines, Horizon Air, America West Airlines, which became a much larger US Airways, after the completion of its merger, and Northwest Airlines.
By: Big Sky, Fred deLeeuw, 406-247-3912, fred.deleeuw@bigskyair.com
July 13, 2006 Proposals of Great Lakes Aviation This contains the response of Great Lakes Aviation to Order Requesting Proposals 2006-6-10, served June 13, 2006. The Great Lakes proposals contemplate conveniently timed connecting services with our Code Share partners United and Frontier at the Las Vegas-McCarran Airport. These proposals contemplate the use of pressurized 19 seat Beech 1900D's in each case.
By: Great Lakes, Michael Matthews, 307-432-7030, mmatthews@greatlakesav.com
OST-1998-3521 - Merced July 17, 2006 DOT Letter Requesting Comments of:
I would like to update you on the essential air service situation at Merced and give you an opportunity to submit any comments if you wish. As you know, by Order 2006-6-10, June 13, 2006, the Department solicited proposals from all interested air carriers to provide service at Merced, as well as at Visalia, California, and Ely, Nevada. In response to that order, we received proposals from three carriers: Mesa Air Group, Inc. d/b/a Air Midwest, Big Sky Airlines, and Great Lakes Aviation.
My purpose in writing to you at this time is to request any final comments you might have on the carriers’ service and subsidy proposals before we submit a recommendation on the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs. We request that you review each proposal and service option and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than August 7, 2006. By: Dennis DeVany
July 31, 2006 City of Visalia in Support of Great Lakes Aviation City Council Members, at their meeting on July 24, 2006, discussed the merits of all three proposals and adopted a motion “Unanimously supporting the proposal by Great Lakes Aviation for Essential Air Service to Visalia,” additionally authorizing the Mayor to sign a letter of support to the Department of Transportation. AIl indications are that Great Lakes is willing to build on the type of relationship that the City had with Scenic. The fact that Great Lakes was the only airline to meet with the City prior to submitting a proposal showed us that they were willing to work closely with the community and be a true partner with our community in working towards increasing passengers and ultimately eliminating the need for subsidy at Visalia. Additionally, the City was pleased with the fact that Great Lakes has recently and/or will soon be transitioning several communities to subsidy-free service, which is our long-term goal. By: Mayor Jesus Gamboa
Order 2006-8-29 Issued August 30, 2006 | Served September 5, 2006 By this order, we are selecting Mesa Air Group Inc. d/b/a Air Midwest to provide subsidized essential air service at Merced and Visalia, California, and Ely, Nevada, for two years, beginning when the carrier inaugurates service. Merced and Visalia will receive 23 weekly round trips to Las Vegas, operated on a Las Vegas - Merced - Visalia - Las Vegas or Las Vegas - Visalia - Merced - Las Vegas routing at an annual subsidy rate of $1,599.207. Ely will receive 6 nonstop round trips each week to Salt Lake City at an annual subsidy rate of $647,709. Air Midwest will operate as America West Express/US Airways Express and serve each community with 19-passenger Beech 1900-D aircraft. By: Michael Reynolds
Order 2006-9-3 Issue September 5, 2006 | Served September 8, 2006 Order Extending Service Obligation By this order, the Department of Transportation extends the service obligation of Scenic Airlines, Inc. at Ely, Nevada, and Merced and Visalia, California, for an additional 30 days, through October 16, 2006. Since October 14th is a Saturday, this hold-in period will end on Monday, October 16th. By: Todd Homan
OST-1998-3521 - EAS at Merced, CA September 5, 2006 Re: Scenic Airlines Change in Service We are pleased that Air Midwest has been selected to operate in your communities and are working hard to do whatever we can to make the change in service a smooth transition. However, Scenic Airlines has suffered a substantial number of resignations among its Beech 1900 crews. Additionally, on Sunday, September 3rd we had a major engine failure on one of our three Beech 1900 aircraft which will now be down for service for up to 8 weeks. Unfortunately, this puts us in a position where we must make some changes in order to maintain any level of service at Merced and Visalia. I have proposed to the Department of Transportation that Scenic continues service in a Beech 1900 aircraft to Merced and Visalia with one stop service to Las Vegas, as Air Midwest is planning when they take over. Scenic would increase VIS service from 10 round trips per week to 14 round trips per week. MCE would remain at 14 round trips per week, Additionally, we would add extra flights on the weekend as demand would warrant for travel between the cities. By: Scenic, Mark Slack
OST-1998-3521 - Merced September 7, 2006 Re: Scenic Airlines Schedule and Aircraft Changes This schedule allows us to perform maintenance on the Beech aircraft on Saturdays, and allows us to maintain the Yosemite tour business to Merced on the same schedule as is currently marketed. As flights are booked full, we will be willing to add additional segments, particularly on Fridays and Sundays, to accommodate the passengers wishing to travel over the weekend. As we discussed, it is still unknown how long the engine maintenance will take on our Beech 1900C aircraft. Until the repair is made, we will only have two Beech 1900D aircraft to operate, and then only until their lease expires on October 3rd. By: Mark Slack
OST-1998-3521 - EAS at Merced, CA September 13, 2006 Re: City of Merced Does Not Support Scenic's Change in Service After careful consideration, the City does not support the proposed change in service. Scenic only needs to continue until Mesa Airlines commences service. Surely, you can obtain additional pilots arid keep the aircraft serviced until that occurs By: Elie Wooten, Mayor
OST-1998-3521 - EAS at Merced September 26, 2006 City of Merced Letter to Scenic Airlines By letter dated September 5, 2006, Scenic Airlines sought the City's support for a reduction in the level of service currently provided to Merced. By letter dated September 13, 2006, the City of Merced informed you that it does a support the proposed change/reduction in service you currently provide between Merced and Las Vegas. Given that you are facing severe personnel shortfalls for the aircraft assigned to this route, we will accept the changed service levels if Merced passengers are accommodated based on current reservations held in your system. By: Mayor Ellie Wooten
Order 2006-10-2 Issued October 2, 2006 | Served October 5, 2006 Order Extending Service Obligation By this order, the Department of Transportation extends the service obligation of Scenic Airlines. Inc. at Ely, Nevada, and Merced and Visalia, California, for an additional 30 days. through November 15, 2006. By: Todd Homan
Order 2006-11-4 Issued November 2, 2006 | Served November 7, 2006 Order Extending Service Obligation By this order, we require Scenic Airlines to maintain its current level of essential air service at Ely, Nevada, and Merced and Visalia, California. as described in Appendix D of Order 2006-6-10, for an additional 30 days, through December 15, 2006, or until Air Midwest actually begins service, whichever occurs first. By: Todd Homan
OST-1998-3521 - Merced, CA November 22, 2006 Exception to Normal Payout Procedures for Subsidized Carriers Under an Alternative Service Pattern On September 27, 2006, Scenic Airlines implemented an alternate service pattern at Merced and Visalia, California, due to equipment shortages. Air Midwest was award two-year contract to serve Merced and Visalia (as well as Ely, Nevada) after Scenic Airlines filed notice to leave all three markets to revert to an all-charter company. Due to Scenic's decision to cease scheduled service, one aircraft was due to return to the lessor during the first week of October. One of their other aircraft had damaged sustained to an engine. In order to serve both Merced and Visalia with one aircraft, Scenic began operating the flights on a North Las Vegas - Merced - Visalia - North Las Vegas or North Las Vegas - Visalia - Merced - North Las Vegas routing in order to preserve the required frequencies. This met Merced's minimum level of service and gave Visalia 4 more weekly frequencies than was authorized under Order 2005-4-25. We ask that you pay Scenic for the applicable flights from September 27, 2006, through November 18, 2006, at the rate of $428.07 per flight. By: Dennis DeVany
OST-1998-3521 - Merced, CA May 21, 2007 Notice of Air Midwest to Terminate Essential Air Service Air Midwest, Inc. respectfully serves notice upon the Department of Transportation, in accordance with 14 C.F.R. 323.3 and 14 C.ER. 323.4, of its intent to discontinue scheduled subsidized Essential Air Service between Ely, Nevada as well as Merced and Visalia, California and Las Vegas, Nevada effective August 19, 2007. At present, Air Midwest is the sole provider of certificated scheduled air service at Ely, Nevada as well as Merced and Visalia, California. Air Midwest is hereby providing public notice of its intent to terminate scheduled air service with the expiration of the 90-day notice as required. Any objections to this Notice to Terminate Service must be filed within twenty days from the date of this filing, in accordance with 14 C.F.R. 323.10. By: Mesa, Tom Bacon, 602-685-4352
Order 2007-6-13 Issued and Served June 18, 2007 Order Prohibiting Suspensions of Service and Requesting Proposals By this order, the Department is prohibiting Air Midwest, Inc., from suspending service and requesting proposals from carriers interested in providing replacement essential air service at all of the above-captioned communities. All of these communities are guaranteed EAS, and all but Roswell are currently receiving subsidized EAS pursuant to Department orders. Air Midwest's proposed termination of service at these communities would leave them without any scheduled air service, and, thus, the Department must prohibit the carrier from terminating such service at the end of its 90-day notice period, and require it to maintain service at the communities for an initial 30-day period, through September 19, 2007, consisting of the service patterns outlined above. Furthermore, we will require Air Midwest to continue to maintain service at all of these communities for successive 30-day periods until we have completed processing the carrier-replacement case and the new carrier(s) has actually started service. We note that Air Midwest currently receives EAS subsidy at seven of these communities. In this situation, the current subsidy rates will remain in effect for 180 days after the notice was filed if replacement service has not started by then. See 49 U.S.C. 41734 (d) and (e), At Roswell, Air Midwest will be eligible for subsidy on the 91st day after the filing, i.e., August 21, 2007. Carriers interested in filing proposals at any or all of the communities, with or without subsidy, should file them no later than July 19, 2007. We expect proposals that provide comparable service levels to those that are currently provided, as described earlier. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to the current service pattern if they envision other, potentially more attractive service possibilities - different hubs, or seasonal service - with subsidy requirements that remain competitive. Carriers are free to submit more than one option, and options may be submitted for individual cities on a stand-alone basis, or alternatively as packages of two or more cities. However, carriers must make clear whether an option is proposed on a stand-alone or package basis. By: Michael Reynolds
OST-1998-3521 - Merced, CA
July 19, 2007 Proposals of Great Lakes Aviation Great Lakes will utilize its codeshare relationships with United Air Lines and Frontier Airlines as is practical.
By: Great Lakes, Michael Matthews, 307-432-7000
July 19, 2007 Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit one proposals to provide Essential Air Service at Merced & Visalia, California; Ely, Nevada; and Cedar City, Moab & Vernal Utah. Mesa has also enclosed a single "Hold-In" subsidy calculation that can be used to calculate subsidy rates for hold-ins only. It is important to note that the hold-in has service from Moab & Vernal to Salt Lake City. Due to operational constraints by our codeshare partner, we are unable to provide long-term service to Salt Lake City. This necessitates the hub for Option #1 for Moab & Vernal being changed to Phoenix. This actually benefits our passengers by allowing for nearly fifty-times more online connecting options on US Airways. Also due to operational constraints, Ely & Cedar City are unable to be separated for any "hold-in" periods, as we are unable to serve Ely without stopping in Cedar City for passengers to clear security. Option #1 is an all inclusive bid, and can not be separated or pro-rated in any form. Mesa also reserves the right to serve one up-line destination from Moab to Phoenix in Option #1 as well as serving 1-stop service for Vernal. The stop will be another Mesa market such as Farmington, Moab or any other potential future markets. All operations proposed would utilize our modem fleet of Raytheon/Beechcraft B1900D airliners. By: Mesa, Jeffrey Hartz
OST-1998-3521 - Merced, CA July 19, 2007 Vision Airlines has proposed an air service program upon our final 121 operational authority to operate EAS programs at Merced and Visalia, CA. Our proposed program would offer flights twice each day with one round trip to North Las Vegas Airport and one round trip to Long Beach Airport. The North Las Vegas Airport is not a hub airport but Vision Airlines is fully prepared to provide complimentary airport shuttle to Las Vegas McCarran Airport utilizing one of our company-owned sixty various buses and motor coaches. Our customer service staff will assist connecting passengers to other carriers such as Southwest Airlines, the largest hub airline at McCarran. Our conclusion of our 121 operating authority will bring Vision Airlines interline agreements with several National and Regional carriers. Our reservations staff is implementing a state-of-the-art one line reservation system that will offer on line booking on Vision Airlines and access to connecting air carriers. Our second city of Long Beach serves the Merced and Visalia market with medium hub service between central California and the Los Angeles basin on several carriers including carriers offering interline service upon Vision Airlines 121 operational authority. Additionally, passengers will be offered a through-fare on our Long Beach hub to the Phoenix area to be served by Vision Airlines. Vision Airlines' equipment of a 30-passenger Dornier 328 turboprop aircraft with flight attendant, restroom on board and faster airtime presents a true commuter air plane in both markets that heretofore have been served by 19-seat aircraft equipment. By: Vision, Warren Kaplan
OST-2003-16395 - Cedar City, UT July 30, 2007 DOT Request for Community Comments of:
By Order 2007-6-13 the Department requested proposals from air carriers interested in providing essential air service at: Roswell and Alamogordo/Holloman Air Force Base, New Mexico; Cedar City, Moab and Vernal, Utah; Ely, Nevada; and Merced and Visalia, California. The order was issued following 90-day notice as filed with the Department by Air Midwest, which indicated their intent to suspend service at the eight communities listed above. Subsequent to Order 2007-6-13, the Department issued a notice separating the New Mexico communities from this carrier-selection proceeding. In response to our request and subsequent notice regarding the New Mexico communities, we received proposals from the following air carriers: Air Midwest, Great Lakes, Salmon Air, SkyWest, and Vision Airlines. My purpose in writing you at this time is to request any final comments you might have on the carriers’ service and subsidy proposals before we submit a recommendation on the carrier selection issue to the Assistant Secretary for Aviation and International Affairs for decision. We request that you review this information and submit any comments you may have by August 27.
OST-2003-16395 - Cedar City, UT August 15, 2007 DOT Memorandum - Granting Extension of Comments Deadline By letter dated July 30, 2007, the Department offered the civic officials of each of the above communities the opportunity to comment on the essential air service proposals submitted by Mesa Air Group, Inc., d/b/a Air Midwest, Inc.; Great Lakes Aviation, Ltd.; Sky West Airlines; Mountain Bird, Inc., d/b/a Salmon Air; and Vision Airlines, Inc., to provide subsidized air service at the communities listed above. In that letter we indicated that the deadline for submitting comments was August 27, 2007. By phone call and an email dated August 15, a copy of which is attached, the Airport Manager of the Merced Municipal Airport requested an extension of the August 27 deadline to submit comments as the City Council of Merced will not meet before September 4 to consider their recommendation to the Department. Therefore, in consideration of the City of Merced's request, we are hereby granting an extension of the deadline for submitting comments from all of the above communities from August 27 to September 6. By: Dennis DeVany
OST-1998-3521 - Merced, CA August 27, 2007 The Division, in its effort to reduce delays and relieve congestion at primary hub airports, supports the use of non-hub airports where feasible. In the case of Merced and Visalia, the proposed pairing with Long Beach/Daugherty and North Las Vegas may be a realistic alternative to Los Angeles World or Las Vegas McCarran International Airports. Clearly the airlines are in a better position to assess and plan for market demand, airport pairing, and delineating end and through passenger loads, and providing a reliable means for connecting to other flights if that is determined to be a market demand condition. Whether essential air service is provided by an established regional carrier or a start-up carrier, what must come first and foremost is the best interest of the community that is being served. We strongly encourage potential carriers to commit to providing safe, dependable service at realistic fares to service demand markets, local communities and the aviation transportation system. A positive aviation experience, whether it be through commercial airline service, general aviation, or the military is key to public support and the continued safety and utility of our airports and the air transportation system By: Division of Aeronautics, Mary Frederick, 916-654-5266, mary.frederick@dot.ca.gov
OST-1998-3521 - Merced, CA September 1, 2007 Vision Airlines has attached a revised proposed flight schedule that take into account our offer to change the routing and timing of the EAS schedule and provide tourism flights that in peak season would offer Visalia two daily (Non EAS) non-stops to Las Vegas, on daily (EAS) one stop to Las Vegas, one daily (EAS) non-stop to Long Beach and one daily (Non EAS) one stop to Phoenix. This revised offer by Vision Airlines is in recognition of the need to provide daily (EAS) non stop service both directions to Long Beach as our Hub Airport, provide tourism flights that are directed to Visalia Business Travelers, Convention Planning, Business Community and local citizens and provide times of departure that coincides with connecting service when applicable. The Long Beach Airport and current Airlines offering service have welcomed Vision Airlines flights from Visalia with open arms. The continuation of Long Beach service to the Phoenix area works both ways with flight opportunities for both Business and Leisure Travel. The combination of EAS enplanements and tourism enplanements will get the Visalia Airport to 10,000 enplanements faster then any other offer on the table. By: Vision, Warren Kaplan
September 5, 2007 City of Visalia in Support of Great Lakes Aviation All indications are that Great Lakes is willing to work with the City to grow the market and be a true partner with our community in working towards increasing passengers and ultimately eliminating the need for subsidy at Visalia. Additionally, the City was pleased with the fact that Great Lakes has recently and/or wilt soon be transitioning several communities to subsidy free service, which is our long-term goal. By: Mayor, Jesus Gamboa
Order 2007-9-1 Issued September 4, 2007 | Served September 7, 2007 Order Extending Service Obligation We require Air Midwest, Inc., to maintain its current level of essential air service at Roswell and Alamogordo/Holloman AFB, New Mexico; Cedar City, Moab and Vernal, Utah; Ely, Nevada; and Merced and Visalia, California, for an additional 30 days, through October 19, 2007, or until suitable replacement service actually begins, whichever occurs first. We will extend Air Midwest’s service obligation for successive 30-day periods, as necessary, until suitable replacement service actually begins. By: Todd Homan
September 6, 2007 Form Letter Signatures in Support of Vision Airlines
Order 2007-10-7 Issued October 4, 2007 | Served October 10, 2007 Order Selecting Carriers and Establishing Subsidy Rates | Word By this order, the Department is selecting SkyWest Airlines, and Great Lakes Aviation, Ltd. to provide subsidized essential air service at the above communities for the two-year period beginning when the carriers inaugurate full EAS. Specifically, we select SkyWest at Cedar City for the annual subsidy of $1,242,256 and Great Lakes at Merced, Visalia, Ely, Moab and Vernal for a combined annual subsidy of $5,670,244. Air Midwest is eligible to be compensated for its service until Great Lakes and SkyWest take over the routes. Pursuant to 49 U.S.C 41734(d), we will continue to compensate Air Midwest at its current rates for 180 days after it filed its notices to suspend service -- November 18 in this case. If the carrier transitions occur after November 18, we will issue another order addressing the Air Midwest’s hold-in rate after that date. This is a particularly complicated transition period, as Air Midwest is being replaced not by one carrier, as is the typical case, but by two. Before suspending service at these six communities, we expect Air Midwest to work with both SkyWest and Great Lakes to ensure a smooth transition in service. We expect all three carriers to work together on an orderly transition. Among other things, they will have to decide whether both SkyWest and Great Lakes will inaugurate service on the same day, or whether there will be a staggered transition. We expect Air Midwest to contact all passengers holding reservations for flights after the suspension date, to inform them of the change in service, and to assist them in arranging alternate transportation or to provide a refund of the ticket price, without penalty, if requested. By: Michael Reynolds
Order 2007-10-17 Issued October 15, 2007 | Served October 18, 2007 Order Extending Service Obligation The Department has issued Orders 2007-9-29 and 2007-10-7 selecting replacement service, but the new carriers have not yet inaugurated service. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at the communities for an additional 30 days, or until replacement service actually begins, whichever occurs first. By: Todd Homan
Order 2007-11-16 Issued November 21, 2007 | Served November 27, 2007 Order Extending Service Obligation By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above‑captioned communities, for an additional 30 days, through December 19, 2007. On May 22, 2007, Air Midwest filed a 90-day notice of its intent to suspend its subsidized service at the communities as of August 20. By Order 2007-6-13, June 18, 2007, the Department prohibited the carrier from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods. The Department has issued Orders 2007-9-29 and 2007-10-7 selecting replacement service, but the new carriers have not yet inaugurated service. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at the communities for an additional 30 days, or until replacement service actually begins, whichever occurs first. By: Todd Homan
Order 2007-12-15 Issued December 19, 2007 | Served December 26, 2007 Order Extending Service Obligation By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through January 18, 2008. By Order 2007-6-13, June 18, 2007, the Department prohibited the carrier from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods, the latest through December 19, 2007, by Order 2007-11-16. By: Todd Homan
Order 2008-1-8 Issued January 15, 2008 | Served January 18, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through February 19, 2008. By: Todd Homan
Order 2008-4-33 Issued April 24, 2008 | Served April 29, 2008 Order Extending Service Obligation | Word By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through May 21, 2008. By: Todd Homan
May 14, 2008 Re: Service Termination of Air Midwest Air Midwest reluctantly advises the Department that it has decided to discontinue all air carrier operations, liquidate its assets and surrender its FAA and DOT certificates. The service terminations will occur on the following schedule:
Air Midwest has no choice but to shutdown operations. Air Midwest has determined that it does not have the financial resources to continue air carrier operations. Air Midwest is in severe financial distress due to the fact that it has incurred significant and unrelenting losses over many years and has no prospect of future profitability, particular in light of current conditions, including record high fuel prices. This decision should come as no surprise to the Department as Air Midwest previously advised the Department of its intention to withdraw its services beginning over a year ago with its first traunch of termination notices. In addition, representatives of Air Midwest met with Dennis DeVany on March 6, 2008 to advise that Air Midwest would shortly go out of business. While the Department solicited proposals for subsidized replacement service at these points, to date replacement services have commenced at only six points-Cedar City, Moab, Vernal, Manhattan, Salina and Alamogordo. Over nine months ago the Department selected Great Lakes Aviation to provide subsidized essential air service at Merced, Visalia, and Ely, but inexplicably Great Lakes has not yet commenced its proposed service at those points. Air Midwest's situation is similar to the situations involving Big Sky Airlines and Skyway Airlines, both of which terminated all of their air services earlier this year. On December 20, 2007, Big Sky announced its intent to terminate all service on January 7, 2008. Although the Department issued a hold-in Order and sought replacement carriers on an emergency basis, it recognized that Big Sky would not provide service during the hold-in period. See DOT Order 2007-12-20. Similarly, Skyway Airlines terminated all air service on April 5, 2008, after a long hold-in period and prior to the commencement of service by replacement carriers. As with Big Sky and Skyway, Air Midwest does not have the financial wherewithal to continue its air carrier operations. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Essential Air Service at Merced and Visalia, California; Ely, Nevada Order 2008-5-30 Issued May 21, 2008 | Served May 27, 2008 Order Extending Service Obligation On May 22, 2007, Air Midwest filed a 90-day notice of its intent to suspend its subsidized service at the communities as of August 20. By Order 2007-6-13, June 18, 2007, the Department prohibited the carrier from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods, the latest through May 21, 2008, by Order 2008-4-33. The Department has issued Orders 2007-9-29 and 2007-10-7 selecting replacement service at these three communities. However, since none of the carriers will be able to inaugurate service before May 21, the end of the current hold-in period, and in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at the communities for an additional 30 days, or until replacement service actually begins, whichever occurs first. On May 14, 2008, Mesa Air Group, the holding company that owns Air Midwest, gave notice to the Department of its intention to liquidate the airline and shut it down completely on June 30. Mesa's notice in no way absolves Air Midwest from its statutory requirement to continue providing service at these communities (49 U.S.C. 41734).By: Todd Homan
Order 2008-5-42 Issued May 29, 2008 | Served June 3, 2008 Order Requesting Proposals | Word By this order, the Department is re-soliciting proposals for essential air service at Merced, Visalia and Ely to be filed by June 13. With specific respect to these three communities, for Merced and Visalia, we expect proposals consisting of service with 15-seat or larger aircraft offering two or three round trips each weekday and weekend to Las Vegas, Los Angeles, San Francisco, or any suitable hub with connections to the national air transportation system.. We would consider subsidizing three or even four round trips a day if the communities are served together on the same flights. At Ely, we expect one daily nonstop or one-stop round trip to Las Vegas or Denver, or another suitable hub with airline connections to the national air transportation system.
By: Todd Homan
Order 2008-6-1 Issued June 2, 2008 | Served June 5, 2008 Order Setting Final Rates for Air Midwest - Bookmarked On May 3, 2007, Air Midwest, Inc., filed 90-day notices to suspend its subsidized service at these four communities. By Order 2007-5-14, May 14, 2007, we prohibited Air Midwest, a wholly owned subsidiary of Mesa Air Group, from terminating its subsidized service. The two-year Essential Air Service contracts for these communities were not due to expire until well into 2008. However, under 49 U.S.C. §41734 (d), a carrier providing subsidized EAS at a community is entitled to renegotiate its level of compensation 180 days after it files notice to suspend service if a replacement carrier is not fully in place by then. Thus, Air Midwest was eligible to receive a higher level of compensation at these communities effective October 31, 2007. By Order 2007-11-9, we set final annual rates, not subject to retroactive adjustment, for these communities effective October 31. On April 9, 2008, Mesa filed in the dockets a document indicating that the rates that had been established effective October 31, 2007, by Order 2007-11-9 were no longer adequate, based on ever-increasing fuel costs and other increased costs. We have reached agreement with Air Midwest as to the appropriate level of subsidy. The only adjustment we are making to those rates set by Order 2007-11-9 are for higher unit costs for pilots, fuel, and maintenance, based on Air Midwest's internal financial statements for the quarter ended March 31, 2008. These new rates appear reasonable. We are making these rates final effective May 9, 2008, 30 days after Air Midwest requested further rate relief, through May 23, 2008, when Air Midwest terminated its service at these communities. By: Michael Reynolds
May 28, 2008 Re: Request of City of Visalia for an Expedited Request for Proposals On October 4, 2007, the Department of Transportation issued Order 2007-10-7 selecting Great Lakes Aviation to provide essential air service to Merced and Visalia California. As of Sunday, June 1, 2008, our communities will lose service with the withdrawal of Air Midwest from the communities. Since the award of the bid to Great Lakes, our communities have been actively working with Great Lakes Aviation to effect a transition in service, however, due to several factors, they are unable to commit to a date for commencement of service. We respectfully request that the Department issue an expedited Request for Proposals to allow air carriers, including Great Lakes Aviation, an opportunity to submit a bid more representative of the actual costs facing air carriers in today's environment. This will ensure that the carrier will begin sen/ing our communities on firm financial footing and allow us every opportunity to be successful in our efforts to ultimately provide subsidy free air service to the Central Valley. By: Mayor Jesus Gamboa
OST-1995-361 - Ely, NV
June 13, 2008 Proposals of Great Lakes Aviation
Counsel: Great Lakes, Michael Matthews, 307-432-7000
June 14, 2008 Email Message - Request for Community Comments In order to save time, I will forgo the usual formal letter requesting your comments, and rely instead on this e-mail, especially since Great Lakes is the only applicant. Do note, however, that there are a couple options -- designed to get service of some sort up and running as soon as possible. I ask you to get back to us by this Friday the 20th. Note that the passenger fares in the proposal do not necessarily equate to what the passenger would pay for that leg of the trip. Rather, for ex, it represents the prorated piece of a Merced-New York fare that would go to Great Lakes for the Merced-Ontario segment. As such, it doesn't include taxes and other government-imposed fees. By: Dennis DeVany
Order 2008-6-26 Issued June 18, 2008 | Served June 23, 2008 Order Selecting Carrier and Establishing Subsidy Rate | Word After carefully reviewing all of the facts in this case, including the comments submitted by the communities, we have decided to re-select Great Lakes to serve each community. The total subsidy for Great Lakes’ proposal would be $4,900,401. We find the carrier’s proposed service and subsidy levels reasonable, and the carrier has a long history of providing reliable subsidized service under the EAS program. Thus, we will select the proposal offered by Great Lakes as described above, to provide subsidized EAS through the end of the 24-month period beginning when the carrier inaugurates service at each community.
By: Michael Reynolds
June 25, 2008 Re: City of Visalia in Support of Great Lakes Aviation City Council Members, at their meeting on June 16, 2008, reviewed the proposal submitted by Great Lakes and adopted a motion "Unanimously supporting the proposal by Great Lakes Aviation for Essential Air Service to Visalia." By: Mayor Jesus Gamboa, 519-713-4512 |
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