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OST-2007-28671 - EAS at Macon, GA
http://www.cityofmacon.net/CityDept/aviation.htm - Middle Georgia Regional Airport
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Essential Air Service at Macon and Atlanta, Georgia July 2, 2007 Ninety-Day Notice of Termination of Atlantic Southeast Airlines Macon's essential air service requirements were established by Order 1984-2-40, issued February 10, 1984, which requires at least two daily round trips to Atlanta providing sufficient capacity to accommodate 40 daily enplanements. See Order 1986-9-72. Under the 60-percent load-factor standard subsequently established by the Airport and Airway Safety and Capacity Expansion Act of 1987, P.L. 100-223, the number of guaranteed seats is therefore 67. See Order 2005-1-19. Delta and ASA are currently the only carriers operating scheduled service to Macon. Thus, the termination of the ASA service will reduce air transportation at Macon to a level below the essential air service determination set forth in Order 1984-2-40. Although Delta and ASA would prefer to continue providing scheduled air service to Macon, the limited demand for this service makes it impossible to do so as an economic matter. ASA and Delta therefore regret that they must cancel all service they currently provide to Macon effective October 1, 2007. Before ending its Macon service, ASA or Delta will contact all passengers holding reservations on the discontinued flights to notify them of the schedule changes and to assist them in arranging alternative transportation. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Order 2007-7-12 Issued and Served July 13, 2007 Order Prohibiting Suspension of Service and Requesting Proposals Atlantic Southeast's proposed termination of service at Macon would leave it with no 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 Macon for an initial 30-day period, through October 30, 2007, consisting of two daily round trips with either regional jets or large turboprop aircraft. Furthermore, we will require Atlantic Southeast to continue to maintain that level of service at Macon for successive 30-day periods until we have completed processing the carrier-replacement case and the new carrier has actually started service. Macon’s service needs may be met with two round trips a day with either regional jets or larger cabin-class turboprops such as the ATR-72 or Embraer Brasilia. Because of the community’s large traffic generating potential and proximity to Atlanta, we encourage proposals for more frequent service with smaller aircraft, e.g., three or four daily round trips with 19-seat aircraft. All service to Atlanta should be nonstop. At the same time, we would not dismiss any proposal out of hand without first consulting with the community officials. We recognize that there is convenient ground transportation between Macon and Atlanta, and air service to another hub or service with larger aircraft may be more appropriate. We encourage any proposal that would simultaneously satisfy the community’s needs and minimize taxpayer expenditures. We note that, even though passenger levels have fallen dramatically over thee last several years, Macon is still a strong trafficgenerating community by EAS standards, averaging 33 enplanements per day for the year ended April 30, 2007, the most recent annual period. As a result, we expect either subsidy-free proposals, or proposals at very modest subsidy levels. Carriers interested in filing proposals at Macon, with or without subsidy, should file them with our staff no later than August 22, 2007. By: Michael Reynolds
August 22, 2007 Proposal of Delta and Atlantic Southeast d/b/a Delta Connection Delta and ASA wish to be selected to continue jointly providing essential air service to Macon for a two-year period beginning October 1, 2007. Delta and ASA propose to offer two daily roundtrip flights between Macon and Delta's Atlanta hub, using a combination of ATR and CRJ-200 aircraft to fulfill Macon's EAS requirements. Delta and ASA's two-year EAS proposal requires subsidy in the amount of $2,894,506 in the first year Delta and ASA currently jointly provide essential air service at Macon. The service is operated by ASA as a Delta Connection carrier under a fee for service agreement with Delta. Under the Delta Connection agreement, Delta determines the routes and schedules to be flown by the ASA aircraft used on these routes, pays ASA a fee for operation of the routes, markets the Delta Connection service as a component of Delta’s global route network, and bears the full risk for revenue performance of the flights. ASA does not sell tickets under its own code nor does it currently have the sales or marketing infrastructure to do so. Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
Order 2007-8-30 Issued August 28, 2007 | Served August 31, 2007 The Department requests proposals from carriers interested in providing essential air service at Macon, Georgia. Carriers should submit their proposals, with subsidy if necessary, by September 20, 2007. Macon’s service needs may be met with two round trips a day with cabin-class turboprops such as the 30-seat Brasilia. Because of the community’s largc traffic generating potential and proximity to Atlanta, we encourage proposals for more frequent service with smaller aircraft, e.g., three or four daily round trips with 19-seat aircraft. All service to Atlanta should be nonstop. We recognize that there is convenient ground transportation between Macon and Atlanta, and air service to another hub may be more appropriate. We encourage any proposal that would simultaneously satisfy the community’s needs and minimize taxpayer expenditures. By: Todd Homan
September 20, 2007 Email Message - Gulfstream International Request for Submission Extension Gulfstream International Airlines is interested in submitting a bid for EAS to Macon, Georgia. We understand, however, that the bids are due to close today and we will not be able to comply with that deadline. We respectfully request that DOT allows an extension until September 26th, at which time our bid should be ready. By: Gulfstream, Dave Hackett, dhacke@gulfstreamair.com
September 20, 2007 DOT Grant of Submission Extension By Order 2007-8-30, August 28, 2007, the Department requested proposals from carriers interested in providing essential air service at Macon, Georgia, no later than September 20, 2007. In an email dated September 20, Gulfstream International Airlines requested an extension of the due date for filing purposes. We are hereby grating Gulfstream's request and extending the due date for proposals fro all interested carriers until September 26, 2007. By: Dennis DeVany
Order 2007-10-20 Issued October 16, 2007 | Served October 19, 2007 On July 2, 2007, Atlantic Southeast Airlines filed a 90-day notice to suspend its subsidy-free EAS at Macon, Georgia, effective October 1, 2007. We initially requested proposals by Order 2007-6-12, July 13, 2007, and required ASA to provide two daily nonstop round trips per day to Atlanta with either regional jets or ATR-72 aircraft The order noted that Macon is a major community of 100,000 residents, 79 miles from the Atlanta airport, and had never previously needed subsidy support from the EAS program. ASA operates its service to Macon pursuant to a code-share agreement with Delta Air Lines. Macon's service needs may be met with two round trips a day with 30-seat or larger aircraft. Because of the community's large traffic generating potential and proximity to Atlanta, we encourage proposals for more frequent service with smaller aircraft, e.g., three or four daily round trips with 19-seat aircraft. All service to Atlanta should be nonstop. We encourage proposals that meet the community's requirements in an efficient manner. We recognize that there is convenient ground transportation between Macon and Atlanta, so service to another hub, or service with a mix of larger and smaller aircraft, may be more appropriate. 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 with subsidy requirements that remain competitive. By: Todd Homan
Order 2007-10-22 Issued and Served October 18, 2007 On July 2, 2007, Atlantic Southeast Airlines, Inc. filed a 90-day notice of intent to suspend its subsidy-free service at Macon, Georgia, effective October 1, 2007. ASA provides Macon's only scheduled service. Order 2007-7-12, July 13, 2007, prohibited ASA from terminating that service, and required it to maintain service at Macon consisting of two daily round trips until replacement service could be secured. The order also requested replacement service. We are continuing to seek replacement service at Macon. The carrier has agreed to a rate of $1,968,830 per year for two daily, nonstop turnaround trips to Atlanta with either regional jets or large turboprops -- the only aircraft in its fleet. We have reviewed ASA's proposed rate and find it reasonable for the service provided. The calculation of this subsidy is shown in Appendix B. We note that this high level of subsidy is driven by the fact that ASA does not possess any aircraft smaller than regional jets or very large turboprops. The level of subsidy would likely be considerably less if the service were provided with smaller, less expensive aircraft. In the meantime, ASA is entitled to be compensated for its service. We will continue to process the carrier-selection proceeding, and will relieve ASA and its code-share partner, Delta Air Lines, Inc., of this obligation as soon as possible. By: Michael Reynolds
Order 2007-10-29 Issued October 25, 2007 | Served October 30, 2007 Order Extending Service Obligation | Word By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines at Macon, Georgia for an additional 30 days, through November 30, 2007. By Order 2007-7-12, July 13, 2007, the Department prohibited the carrier from suspending service through October 30, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. The Department resolicited proposals by Order 2007-10-20, and proposals are due November 19. By: Todd Homan
Order 2007-11-19 Issued November 26, 2007 | Served November 29, 2007 Order Extending Service Obligation | Word By this order, the DOT extends the EAS obligation of ASA at Macon, Georgia for an additional 30 days, through December 31, 2007. By: Todd Homan
Order 2007-12-17 Issued December 19, 2007 | Served December 26, 2007 Order Extending Service Obligation On July 2, 2007, ASA filed a 90-day notice of its intent to suspend its unsubsidized service at Macon, effective October 1, 2007. By Order 2007-7-12, July 13, 2007, the Department prohibited the carrier from suspending service through October 30, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. The Department resolicited proposals by Order 2007-10-20, and proposals were due November 19. As required by 49 U.S.C. 41734, we have extended ASA's service obligation for additional 30-day periods, the latest through December 31, 2007, by Order 2007-11-19. Since the Department is continuing to seek replacement service at Macon, this case 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 ASA's service obligation for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first. By: Todd Homan
Order 2008-1-11 Issued January 15, 2008 | Served January 18, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through February 29, 2008. By: Todd Homan
Order 2008-2-26 Issued February 21, 2008 | Served February 26, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through March 31, 2008. By: Todd Homan
Order 2008-3-21 Issued March 24, 2008 | Served March 27, 2008 By this order, the Department is re-soliciting proposals from air carriers interested in providing essential air service at Athens and/or Macon, Georgia, for a new two-year term beginning when a replacement carrier inaugurates full service at one or both communities, with or without subsidy. Carriers should file their proposals no later than April 21, 2008. Because of each community’s traffic generating potential and proximity to Atlanta, we also encourage proposals for more frequent service with smaller aircraft, e.g., three, four, or even more daily round trips with 9- to 15-seat aircraft. All service to Atlanta should be nonstop. We recognize that there is convenient ground transportation to Atlanta at both communities, and therefore, air service to a more-distant hub, such as Memphis or Charlotte, may be more appropriate.
By: Todd Homan
Order 2008-3-37 Issued March 31, 2008 | Served April 3, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through April 30, 2008. By: Michael Reynolds
OST-2002-11348 - Athens April 14, 2008 DOT Granting Extension of Proposal Due Date By Order 2008-3-21, March 24, 2008, the Department requested proposals from carriers interested in providing essential air service at Athens and Macon, Georgia, no later than April 21, 2008. In a letter dated April 14. Vintage Props and Jets requested an extension of the due date for filing proposals for an additional two weeks. We are hereby granting the carrier's request and extending the due date for proposals from all interested carriers until May 5, 2008. By: Dennis DeVany
Order 2008-4-44 Issued April 30, 2008 | Served May 5, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through May 30, 2008. By: Michael Reynolds
OST-2002-11348 - Athens
May 5, 2008 In response to Order 2008-3-21, Pacific Wings submits its bid for provision of EAS for Athens and Macon, Georgia.
By: Pacific Wings, Greg Kahlstorf May 5, 2008 Proposals of Vintage Props & Jets Athens:
Athens, Georgia Options #1 or Option #2 must be selected along with Option #1, #2, or #3 for Macon, Georgia. All bids are based on 9 passenger Beechcraft King Air 100/200 equipment; with 2 pilots and luggage pod. Macon:
Macon, Georgia Options #1, #2, or #3 must be selected along with Option #1 or #2 for Athens, Georgia. All bids are based on 9 passenger Beechcraft King Air 100/200 equipment; with 2 pilots and luggage pod. By: Vintage Props & Jets, Nathan Vallier, 754-422-2535, nate@vpj.com
May 5, 2008 Proposal of Wings Air - Bookmarked Wings Air's proposal requires subsidy for the first year in the amount of $1,615,985 in the Athens-Atlanta market and $542,710 in the Macon-Atlanta market, and for the second year in the amount of $853,823 in the Athens-Atlanta market and zero in the Macon-Atlanta market. These subsidy rates are markedly lower than existing rates, an advantage attributable to "rightsizing" of equipment and type of operation to these very short haul markets. Concurrently with submission of this EAS proposal, Wings Air has applied to the Department for a Commuter Air Carrier Authorization as required to engage in scheduled service. Since 2005, Wings Air has been based in Lawrenceville, Georgia, and has developed a successful business targeted to charter customers traveling frequently between the Atlanta area and resort destinations such as Charleston/Kiawah Island, South Carolina, Destin, Florida, and St. Simon's Island, Georgia, as well as providing a variety of other charter flights. The carrier will utilize aircraft from its existing fleet of five PA-31-350's to serve Athens and Macon as proposed here. Wings Air's operating plan will enable it to provide a total of 54 seats per day in each direction spread over six departures in the Athens market (i.e., a total of 12 one-way sectors per day), and a total of 63 seats per day in each direction spread over seven departures in the Macon market (i.e., a total of 14 one-way sectors per day). These service levels are appropriate to the historical passenger data identified by the Department in its order re-soliciting proposals with reasonable provision for traffic growth. Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com
OST-2002-11348 - Athens May 8, 2008 DOT Request for Community Comments of:
My purpose in writing to you at this time is to request any final comments you might have on each carrier's proposals before we submit a recommendation. We request that you review each proposal and submit any comments you may have as soon as possible, but in no case later than May 28.
By: Dennis DeVay
OST-2002-11348 - Athens May 9, 2008 Re: Comments of Vintage Props & Jets My carrier submitted our Best and Final offer. Pacific Wings, a veteran to the Program, submitted its best and final offer. We feel that Air Greco, d/b/a Wings Air, has not. In a news story published in the Athens Banner-Herald on May 7th, Wings Air has made the following statement:
Vintage Props & Jets is formally protesting the proposal submitted by Air Greco d/b/a Wings Air and seeks a remedy. We are asking the Department to do one of the following:
We are not opposed to Wings Air starting service between Athens/Macon to Atlanta; we are disappointed that they have disregarded the Department's rules. The company either needs to withdraw their bid, the Department needs to withdraw it, or the company should alter their bid to include NO subsidy, as stated they will do according to the newspaper articles & submission to the Air Carrier Fitness Department (EAS revenues are not accounted for in their Economic Fitness Package). By: Nathan Vallier
OST-2002-11348 - Athens May 19, 2008 Reply of Air Greco d/b/a Wings Air to Vintage Props & Jets Letter Dated May 9, 2008 The short answer to VPI's comments is that in April, when Wings Air stated its interest in serving Athens-Atlanta without subsidy, there was no way to know whether another carrier would file an EAS proposal for Athens-Atlanta, Athens-Charlotte, another Athens route, or no Athens route at all. Thus VPJ's attempt to attribute an improper motive to Wings Air is factually unsupportable. At a deeper and more significant level, however, VPJ's analysis is seriously flawed and raises questions about its concept ofthe public interest. The fundamental problem with VPJ's argument is that it ignores the possibility that a carrier, in this case Wings Air, could have an interest is serving a market on either a subsidized EAS basis or an unsubsidized non-EAS basis. Interest in the two situations is not mutually exclusive, with each triggering its own set offactors for a new entrant to consider. Most importantly, a carrier selected to provide EAS at a given community is not free to withdraw from that market and redeploy its assets at will; it is legally required to continue providing the community's EAS until such time as a replacement carrier is selected and inaugurates service. The hold-in period can drag on for many months or longer. The point that appears to have escaped VPJ is that Wings Air is interested in Athens-Atlanta on more than one basis. Wings Air would like to be selected as the subsidized EAS carrier, in which case it will accept and be bound by the countervailing obligations that status imposes. But it has an alternative interest in serving the market on a non-EAS basis, in which case it would receive no subsidy but would be free to reduce or discontinue service at will. Obviously the latter alternative would be more experimental from a marketing standpoint and may prove financially unsustainable ... but that risk is the essence of free market entry. Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com
Order 2008-5-36 Issued May 23, 2008 | Served May 30, 2008 Order Extending Service Obligation Since the Department is continuing to seek replacement service at Macon, this case 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 ASA’s service obligation for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first. We require Atlantic Southeast Airlines, Inc., to maintain its current level of essential air service at Macon, Georgia, consisting of at least two daily nonstop round trips to Atlanta with either regional jets or large turboprops (30 or more seats), for an additional 30 days through June 30, 2008, or until suitable replacement service actually begins, whichever occurs first. By: Todd Homan
May 28, 2008 City of Macon in Support of Pacific Air d/b/a Georgia Skies After careful evaluation of each of the three proposals to provide air service from the Middle Georgia Regional Airport, it is my pleasure to recommend to you that Pacific Air Holdings, flying as Georgia Skies offers the best combination of interline agreements, checked baggage transfers, attractive pricing and long term growth plans to support this community's travel needs. By: Mayor Robert Reichart, 478-751-7170
Order 2008-5-43 Issued May 29, 2008 | Served June 3, 2008 Order Selecting Carrier and Establishing Subsidy Rate | Word After careful consideration of this matter, including the comments of the Mayors of both Athens and Macon, and after carefully reviewing all three carriers’ proposals, we have decided to select Georgia Skies’ Athens - Atlanta and Macon - Atlanta proposals for a combined annual subsidy of $2,437,692 for a new, two-year term beginning when the carrier inaugurates full EAS to both communities. The carrier’s proposal for Athens would provide 12 weekly nonstop round trips to and from Atlanta for an annual subsidy rate of $1,051,386; and the carrier’s proposal for Macon would provide 26 weekly nonstop round trips to Atlanta for an annual subsidy rate of $1,386,306. We also find that Georgia Skies has an advantage over Wings Air regarding the third criterion -- enhanced connecting opportunities beyond the hub. While neither carrier has a code-share agreement with a major carrier at Atlanta, as an operating carrier, Georgia Skies does have interline ticketing and baggage handling agreements with most major carriers, while Wings Air currently has none. By: Michael Reynolds
OST-2002-11348 - Athens June 3, 2008 DOT Letter to Congressman John Linder Thank you for your May 20 letter to Secretary Mary Peters supporting the essential air service proposal submitted by Mr. Robbie Rupard, the President of Wings Air, based at Lawrenceville, Georgia. As you may know, in addition to Wings Air's proposal, we also received proposals from two other carriers -- Pacific Wings, L.L.c. d/b/a Georgia Skies, and Vintage Props & Jets. As part of the EAS carrier-selection process, the Department is required by statute to consider several factors, including the views of the affected communities. In this case, the strong support of both Athens and Macon for Georgia Skies was an important factor in our decision to select that carrier. By: Michael Reynolds
Order 2008-6-36 Issued June 25, 2008 | Served June 30, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through July 30, 2008. We have extended ASA’s service obligation for additional 30-day periods, the latest through June 30, 2008, by Order 2008-5-36. However, Pacific Wings will not have started service by the end of the current hold-in period, and, in accordance with 49 U.S.C. 41734(c), we will extend ASA’s service obligation for an additional 30 days, or until Pacific Wings actually begins service, whichever occurs first. By: Todd Homan
Order 2008-7-16 Issued July 11, 2008 | Served July 16, 2008 Order Extending Service Obligation | Word By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through August 29, 2008. On July 2, 2007, ASA filed a 90-day notice of its intent to suspend its unsubsidized service at Macon, effective October 1, 2007. By Order 2007-7-12, July 13, 2007, the Department prohibited the carrier from suspending service through October 30, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. By Order 2008-5-43, May 29, 2008, the Department selected Pacific Wings, d/b/a Georgia Skies to provide subsidized service at Macon, as well as Athens, for a new two-year period beginning when the carrier inaugurates full EAS at both communities. As required by 49 U.S.C. 41734, we have extended ASA’s service obligation for additional 30-day periods, the latest through July 30, 2008, by Order 2008-6-36. However, Pacific Wings will not have started service by the end of the current hold-in period, and, in accordance with 49 U.S.C. 41734(c), we will extend ASA’s service obligation for an additional 30 days, or until Pacific Wings actually begins service, whichever occurs first. By: Todd Homan
Issued August 7, 2008 | Served August 12, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through September 29, 2008. By Order 2008-5-43, May 29, 2008, the Department selected Pacific Wings, d/b/a Georgia Skies to provide subsidized service at Macon, as well as Athens, for a new two-year period beginning when the carrier inaugurates full EAS at both communities. As required by 49 U.S.C. 41734, we have extended ASA’s service obligation for additional 30-day periods, the latest through August 29, 2008, by Order 2008-7-16. However, Pacific Wings will not have started service by the end of the current hold-in period, and, in accordance with 49 U.S.C. 41734(c), we will extend ASA’s service obligation for an additional 30 days, or until Pacific Wings actually begins service, whichever occurs first. By: Todd Homan
Order 2008-9-24 Issued September 18, 2008 | Served September 23, 2008 Order Extending Service Obligation By this order, the Department of Transportation extends the essential air service obligation of Atlantic Southeast Airlines, Inc. at Macon, Georgia, for an additional 30 days, through October 29, 2008. By: Michael Reynolds |
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