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OST-1996-1559

EAS Docket

Essential Air Service at Cape Girardeau / Ft. Leonard Wood, Missouri

Order 98-5-9 | OST-96-1559 | OST-96-1167 | Issued May 8, 1998 | Served May 13, 1998

Order Tentatively Reselecting Carrier and Setting Subsidy Rates

By this order, the Department is tentatively reselecting Trans States Airlines, Inc.,d/b/a Trans World Express (Trans States), to provide essential air service (EAS) at Cape Girardeau and Fort Leonard Wood, Missouri, on the one hand, and St. Louis, on the other, for the two-year period beginning May 1, 1998, at annual subsidy rates of$278,560 and $337,124, respectively.

• Appendix A - Area Map
• Appendix B - Subsidy calculation for Cape Girardeau, Missouri and Fort Leonard Wood, Missouri
• Appendix C - Essential Air Service at Cape Girardeau, Missouri and Fort Leonard Wood, Missouri
• Appendix D - Historical Traffic and Emplanements at Cape Girardeau, Missouri and Fort Leonard Wood, Missouri
• Appendix E - Service List for the State of Missouri

By: Charles Hunnicutt

Essential Air Service at Cape Girardeau / Ft. Leonard Wood, Missouri

By:  Bradley Mims

Essential Air Service at Cape Girardeau/ Ft. Leonard Wood, Missouri

By:  Corporate Airlines, Fred Breeden

Essential Air Service at Cape Girardeau / Ft. Leonard Wood, Missouri; Trans States Airlines, Inc. d/b/a Trans World Express

Order 2000-5-3 is selecting Corporate Airlines, Inc., d/b/a/ Trans World Express (Corporate Airlines) to provide subsidized essential air service at Cape Giradeau and Fort Leonard Wood, Missouri, for a two-year rate term at an annual subsidy rate of $430,925 for Cape Girardeau and $573,725 for Fort Leonard Wood,
effective on or about May 8, 2000, through May 31, 2002. The Department is also extending the subsidy rates of Trans States, for the provision of essential air service at Cape Girardeau and Fort Leonard Wood established by Order 98-5-9, until replacement service actually begins

By:  Bradley Mims

Notice of Trans States Airlines, Inc. d/b/a Trans World Express pursuant to Section 401 (j) (i) that it will terminate essential air service, effective May 2000 at the following airports; Cape Giradeau, Missouri; Fort Leonard Wood, Missouri; Marion/Herrin, Illinois; Quincy, Illinois/Hannibal, Missouri; and Burlington, Iowa. 

By:  Trans States Airlines, Robert Wigmore

By:  Department of the Army, Patsy Kay

By:  Cape Girardeau Regional Airport, Bruce Loy

Essential Air Service at Cape Girardeau and Fort Leonard Wood

By:  Read C. Van de Water

Corporate Airlines, Inc.

By: Corporate Airlines

Essential Air Service at Cape Girardeau, Missouri and Fort Leonard Wood, Missouri

Response of Mesa Air Group on behalf of its wholly-owned subsidiary Air Midwest, Inc. to request proposals 2202-7-37 for competitive proposals between Cape Girardeau/Fort Leonard Wood, Missouri and Kansas City/Saint Louis, Missouri.

By:  Mesa, Scott Lyon

EAS at Burlington, Iowa, Cape Girardeau, Ft. Leonard and Kirksville, Missouri, Jackson, Tennessee, Marion, Illinois, and Owensboro, Kentucky

Issued May 6, 2003 | Served May 9, 2003

Order 03-5-7
OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY

Order Setting Final Rates

We have made adjustments to the rates consistent with the framework established by Order 2002-2-13, namely, that we would make up for revenue reductions to the extent that they fell below those forecast in the final subsidy rates in effect on September 11, and insurance increases directly attributable to the September 11 attacks. Even though Corporate's revenue fell after September 11, only at Cape Girardeau and Kirksville did they fall below those forecast in the subsidy rate, and we adjusted those rates accordingly. At all seven communities, the only other adjustments we made were for increased hull and liability insurance (other than general and administrative and return elements which are set as a percentage of expenses).

By: Read C. Van de Water

Issued May 9, 2003 | Served May 14, 2003

Order 03-5-12
OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY
OST-03-14492 - Quincy, IL

Order Setting Final Rates | Word

As discussed in Order 2002-2-13, the Department authorized emergency EAS payments to all subsidized carriers because of the losses suffered by them in the face of generally lower revenue and higher costs after the terrorist attacks of September 11, 2001, combined with the fact that the EAS carriers are paid on a pre-agreed, fixed rate per flight. Recently, Order 2003-5-7, issued May 6, 2003, set final rates for seven of the above communities (all except Quincy) from October 1, 2001, until the respective ends of the various contracts. This Order sets final rates that go into effect at the expiration of those contracts, and will remain in effect until further Department action while we process the various carrier selection proceedings for all the communities.

By: Read C. Van de Water

Essential Air Service at Burlington, Iowa, Cape Girardeau, Ft. Leonard, and Kirksville, Missouri, Jackson, Tennessee, Marion/Herrin, Illinois, and Owensboro, Kentucky

Order 04-12-13
OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-97-2515 - EAS at Kirksville, MO
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-00-7855 - EAS at Owensboro, KY

Issued and Served December 22, 2004

Order requesting Proposals, and Order to Show Cause Tentatively Termination Subsidy Eligibility and Allowing Suspension of Service | Word

By this order, the Department is requesting interested persons to show cause why we should not terminate the essential air service subsidy eligibility of Kirksville, Missouri, and allow Corporate Airlines, Inc., d/b/a American Connection, to suspend its subsidized service. The Department is also requesting proposals from carriers interested in providing EAS at the other communities identified above for new two-year periods. Proposals to provide subsidized EAS at each of the above communities, as well as objections to the Department’s tentative decision to terminate the subsidy eligibility of Kirksville, are due within 30 days of the service date of this order.

With the end of the current rate term approaching, we conducted a review of the communities' traffic results in anticipation of requesting carrier proposals for a new rate term beginning at the end of their current two-year terms. During calendar year 2003, Burlington averaged 24.0 enplanements a day, Cape Girardeau 23.7, Ft. Leonard Wood 20.0, Jackson 14.0, Marion/Herrin 34.6, Owensboro 17.6, and Kirksville 7.1. The Department is prohibited from subsidizing service at communities where the subsidy amounts to more than $200 per passenger, unless they are more than 210 highway miles from the nearest large or medium hub.' Based on the 2003 traffic level of 4,428 passengers and the current subsidy rate of $968,249, Kirksville's subsidy per passenger is $218.67 and, thus, exceeds the $200-per-passenger ceiling.

We request that any carriers interested in providing essential air service at any or all of the communities, including Kirksville, and with or without subsidy, file their proposals within 30 days of the service date of this order. With respect to each community, we expect proposals consisting of service, at a minimum, with two‑pilot, twin‑engine aircraft with at least 15 passenger seats, and offering two or three one‑stop or nonstop round trips each weekday and each weekend period to St. Louis or any other suitable hub such as Kansas City or Memphis.

By: Karan Bhatia

January 31, 2005

Proposal of Great Lakes Aviation - Cape Girardeau, MO

OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-00-7855 - EAS at Owensboro, KY
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-97-2515 - EAS at Kirksville, MO

February 9, 2005

Re: Request for Comments from The Honorable Cliff Hammock, Mayor of The City of Waynesville

I would like to update you on the essential air service situation at Ft. Leonard Wood and give you an opportunity to submit any comments if you wish. As you know, by Order 2004-12-13, December 29, 2004, the Department solicited proposals from all interested air carriers to provide service at Ft. Leonard Wood and six other communities in Iowa, Illinois, Kentucky, and Tennessee. In response to that order, we received a total of 42 proposal options from five carriers - Corporate Airlines, Inc. d/b/a American Connection, Great Lakes Aviation, Ltd., Mesa Air Group d/b/a Air Midwest, Mesaba Aviation d/b/a Northwest Airlink, and Multi-Aero, Inc. d/b/a Air Choice One, Inc. Please note that while Corporate, Great Lakes, and Air Midwest submitted a number of service options, each of their options represents an indivisible package that cannot be separated on a community by community basis. Also, some carriers submitted options involving fewer than six communities. For example, Mesaba submitted a proposal for just Jackson, Tennessee. While we would normally write up a brief summary of all the proposals, it is not practical in this case given the number of options. While we would normally write up a brief summary of all the proposals, it is not practical in this case given the number of options.

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Tim Bradshaw, Owensboro-Daviess County Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Robert Butler, Mayor of The City of Marion, IL

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Gary Chick, Waynesville Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Mike Edwards, Mayor of Burlington, IA

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Charles Farmer, Mayor of The City of Jackson, TN

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Mayor Jerry Gist, Madison County Courthouse

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Rodney Hendrix, Jackson-Madison County Airport Authority

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Douglas Kimmel, Williamson County Airport Authority Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Jay Knudtson, Mayor of Cape Girardeau, MO

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Sharon Leeper, Southeast Iowa Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Bruce Loy, Cape Girardeau Regional Airport Airport Manager

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Debbie Masten, Mayor of The City of Kirksville, MO

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Waymond Morris, Mayor of The City of Owensboro, KY

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Brian Morrissey, Ft. Leonard Director of Logistics

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from The Honorable Victor Ritter, Mayor of The City of Herrin, IL

By: Dennis DeVany

February 9, 2005

Re: Request for Comments from Jody Sayer, Kirksville, Regional Airport Airport Supervisor

By: Dennis DeVany

OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY

February 15, 2005

Re: Southeast Iowa Regional Airport Letter Requesting Extension of Deadline

By: Sharon Leeper

February 16, 2005

Re: Letter Extending Deadline for Filing Community Comments

At the request of the Southeast Iowa Regional Airport Authority, as well as of several other communities, we are extending the deadline for filing community comments for the carrier selection case in the above-listed dockets from February 25, 2005, to March 15, 2005.

By: Dennis DeVany

March 9, 2005

Re: Request for an Extension of Time

Due to a local complication involving the timing of my Airport Advisory Board meetings and the Cape Girardeau City Council meetings, I have run into a problem with the time frame established for community input regarding the most recent Essential Air Service airline proposals. While I regret the potential delay in a final U.S. Department of Transportation decision on this matter, I need to request an extension of time for our community comments from the first extended date of March 15, 2005, to a new date of March 25, 2005. This extension will allow my Airport Advisory Board to interview with the interested airlines and submit a recommendation to our next City Council meeting on March 21, 2005, for Council approval. That recommendation will then be forwarded to your department prior to March 25, 2005.

By: Bruce Loy

OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-97-2515 - EAS at Kirksville, MO
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-00-7855 - EAS at Owensboro, KY

March 9, 2005

Re: Extension of Time to File Community Comments

The Airport Manager of Cape Girardeau, Missouri, has requested a second extension, from March 15, until March 25, to file the community's comments in response to our letter of February 9, 2005. The extension is necessary because of an unforeseen scheduling conflict involving the Cape Girardeau's City Council meeting, scheduled for March 21, and a meeting of the community's Airport Advisory Board that was scheduled to review the various carrier proposals and make a carrier‑selection recommendation to the Cape Girardeau City Council.

This is to advise all parties that we have decided to grant the requested extension to file community comments. Community comments must now be filed no later than March 25, 2005.

By: EAS & Domestic Analysis Division, Dennis DeVany

March 24, 2005

Re: Comments of The City of Cape Girardeau

The proposal by Great Lakes Aviation for service between Cape Girardeau and St. Louis has not been seriously considered at this time due to the lack of a code share relationship with a major airline combined with the fact that we currently have daily service to St. Louis. While we have great respect for Chuck Howell, the President and CEO of the airline, it would not make sense for Cape Girardeau to select Great Lakes Aviation when we already have equivalent service provided by RegionsAir with the American Airlines code share relationship. RegionsAir also has a respectable history at Cape Girardeau for reliability and on‑time performance.

While the proposal by Mesa Air Group to provide direct service to Chicago Midway is an attractive one, a variety of issues surfaced when comparing to the proposal of RegionsAir. First of all, the relationship that we have had with RegionsAir providing service as American Connection has been a fairly good one. There have certainly been some problems since American Airlines downsized their operations out of the St. Louis hub and our passenger boardings have suffered since that time. Additionally, we have concerns regarding the lack of marketing efforts by RegionsAir over the course of the past two years. However, the code share agreement that RegionsAir enjoys with American Airlines and the name recognition associated with American Airlines, is a major benefit to our community. It is our belief that this code share agreement outweighs any benefits of the Mesa proposal, which does not include such an agreement.

In researching fares, it is our opinion that our Cape Girardeau passengers will enjoy lower fares with RegionsAir than they would with Mesa. The lower fares are one of the resulting benefits of the code share agreement between RegionsAir and American Airlines. Additionally, those passengers who currently have American Airline frequent flyer benefits will continue to enjoy those benefits if we retain service with RegionsAir.

By: Douglas Leslie, Mayor

Essential Air Service at Burlington, Iowa, Cape Girardeau, Ft. Leonard, and Kirksville, Missouri, Jackson, Tennessee, Marion/Herrin, Illinois, and Owensboro, Kentucky

Order 2005-6-14
OST-01-8731 - EAS at Burlington, IA
OST-96-1559 - EAS at Cape Girardeau, MO
OST-96-1167 - EAS at Ft. Leonard Wood, MO
OST-97-2515 - EAS at Kirksville, MO
OST-00-7857 - EAS at Jackson, TN
OST-00-7881 - EAS at Marion/Herrin, IL
OST-00-7855 - EAS at Owensboro, KY

Issued June 15, 2005 | Served June 20, 2005

Order Reselecting Carrier and Terminating Show-Cause Proceeding

By this order, the Department is reselecting RegionsAir, Inc. d/b/a American Connection, formerly known as Corporate Airlines (RegionsAir), to provide subsidized essential air service at each of the above communities for a new two-year period from June 1, 2005, through May 31, 2007, for a combined annual subsidy of $7,306,249. Also by this order, the Department is terminating the show-cause proceeding tentatively terminating subsidy at Kirksville, Missouri, as RegionsAir's selected proposal is below the $200-per-passenger cap.

This was a difficult decision based on the number of proposals presented and the fact that all of the applicants, with the exception of Multi-Aero, are current providers of EAS and have demonstrated their ability to provide reliable air service at other communities across the country. It is further complicated by the fact that the carriers' proposals cannot be broken apart. There is no combination of proposals that would provide each community with the service they support. This means we are faced with a decision that, by its very nature, must go against some of the communities' wishes. We also note that some support service options that would provide more service than they currently receive, and we are not in a position to subsidize increased service levels. The EAS program is designed to ensure that every eligible community receives a safety-net level of service that provides access to the national air transportation system, which may not be the level of service that communities would like to receive.

By: Karan Bhatia

Order 2006-12-25
OST-2001-8731 - Burlington, IA
OST-1996-1559 - Cape Giradeau, MO
OST-1996-1167 - Ft. Leonard Wood, MO
OST-2000-7857 - Jackson, TN
OST-2000-7881 - Marion/Herrin, IL
OST-2000-7855 - Owensboro, KY

Issued December 27, 2006 | Served January 2, 2007

Order Requesting Proposals

Passenger traffic has increased slightly at each of the six communities compared to calendar year 2004 levels. Passenger enplanements for 2006 range from a high of 36 a day at Marion/Herrin to a low of 11 a day at Jackson, while the number of enplanements at Burlington, Cape Girardeau, and Ft. Leonard Wood each average about 24 a day, and at Owensboro, they average about 15 a day.

By: Todd Homan

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

January 30, 2007

Extension of Proposal Due Date

By Order 2006-12-25, December 27, 2006, the Department requested proposals from carriers interested in providing essential air service at any or all of the above communities no later than February 1, 2007. In an email dated January 29, Mesa Air Group, Inc. requested a one-week extension of the due date for filing proposals until February 8. Before responding to the carriier, we contacted each of the six communities listed above either by phone or email to learn whether they supported or did not support Mesa's request. Only one community opposed the extension. Thus, we are hereby granting Mesa's request and extending the due date for proposals from all interested carriers until February 8.

By: Mike Waters

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herron, IL
OST-2000-7855 - EAS at Owensboro, KY

February 8, 2007

Proposals of Air Midwest - Bookmarked

Mesa's proposed options would contemplate service with a combination of hubs at Chicago Midway, Kansas City, Memphis, Nashville, and St. Louis.

Mesa proposes to operate all flights as a combination of Mesa Airlines, US Airways Express and Midwest Connect. All operations at Chicago Midway will be Mesa Airlines. Mesa plans on pursuing a primary codeshare relationship with American Airlines in both St Louis and Nashville if awarded service to those respective hubs as we assume the incumbent carrier will not serve these markets without subsidy. Option #2, with service to Memphis, is contingent upon receiving a Northwest Airlines codeshare, which we are currently pursuing. We have established an internal deadline of March 1 for this process and reserve the right to rescind this option should we be unable to come to terms with Northwest.

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.

By: Mesa Airlines, Jeffrey Hartz

Feburary 8, 2007

Proposals of RegionsAir

RegionsAir is proposing 6 options that would offer a variety of services to continue operating the vital link to American Airlines’ hub city of St. Louis, Missouri. All flights will be sold and marketed as AmericanConnection utilizing 19 seat BAe Jetstream 32 turboprop aircraft. Flights will be timed to offer optimal connecting opportunities to American Airlines’ flights at St. Louis Lambert International Airport.

Unfortunately the company has had some operational issues in the past few months that have negatively impacted performance causing an increase in cancellations and delays. The primary problem was unexpected engine removals last summer and fall compounded with significantly higher fuel costs than anticipated in the current contracts. The company is addressing capital issues with funding from an outside investment group. The company’s Cleveland operation, which further strained resources, is ending this spring.

The company realizes that many passengers were impacted by recent and unexpected cancellations, it anticipates the capital infusion to allow a rapid return to the previous high standard. By early summer, RegionsAir will have sufficient Jetstream aircraft, to provide an optimal schedule including an operational spare aircraft to assure reliability.

By: RegionsAir

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

February 8, 2007

Proposals of Big Sky Airlines - Bookmarked

All flights will be operated with modern 19 passenger Beechcraft 1900D aircraft.

Community	Proposal 1	Proposal 2	Proposal 3	Proposal 4
Burlington	St. Louis	Cincinnati	St. Louis	N/A
Cape Girardeau	St. Louis	Cincinnati	N/A	Cincinnati
Ft. Leonard Wood	St. Louis	Cincinnati	St. Louis	N/A
Jackson	St. Louis	Cincinnati	N/A	Cincinnati
Marion/Herrin	St. Louis	Cincinnati	St. Louis	N/A
Owensboro	St. Louis	Cincinnati	N/A	Cincinnati
Annual Subsidy	$6,838,269	$8,356,955	$3,243,889	$3,247,440

Counsel: Big Sky, Fred deLeeuw, 406-247-3912, fred.deleeuw@bigskyair.com

February 8, 2007

Proposal of Great Lakes Aviation

Proposal Part	Service Point(s)	Hub(s) Served	Round Trips	Equipment	Subsidy Requirement	Passengers Forecast	Average Fare
1	Burlington	St. Louis	3	1900D	$943,793	16,000	$79.00
2	Cape Girardeau	St. Louis	3	1900D	$949,956	16,500	$69.00
3	Ft. Leonard Wood	St. Louis	3	1900D	$519,858	17,500	$89.00
4	Jackson	St. Louis	2	1900D	$1,072,948	7500	$99.00
5	Marion/Herrin	St. Louis	4	1900D	$1,126,810	25,000	$59.00
6	Owensboro	St. Louis	2	1900D	$968,470	10,500	$77.00

Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered in Denver and utilize our interline agreements with all the major carriers, which will (enable connecting bag service through the St. Louis hub. In addition, we will endeavor to obtain code-sharing arrangements with major carriers serving the St. Louis market, to allow passengers in these EAS markets the seamless service, in which they are accustomed to, through St. Louis to the destinations served by our partners and prospective partners.

All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.

Counsel: Great Lakes, Michael Matthews, 307-432-7000

February 12, 2007

DOT Letters Requesting Community Comments of:

• Cape Girardeau Regional Airport Manager
• Ft. Leonard Wood Transportation Office
• Mayor of Burlington, IA
• Mayor of Cape Girardeau, MO
• Mayor of Herrin, IL
• Mayor of Jackson, TN
• Mayor of Madison County, TN
• Mayor of Marion, IL
• Mayor of Owensboro, KY
• Mayor of Waynesville, MO
• McKellar-Sipes Regional Airport Manager
• Owenboro-Daviess County Airport Manager
• Southeast Iowa Regional Airport Director
• Waynesville Regional Airport at Forney Army Field Manager
• Williamson County Regional Airport Manager

As you know, RegionsAir, Inc. d/b/a American Connection, serves your community, as well as five others, to St. Louis, and their contract expires on May 31, 2007. In anticipation of that, we issued Order 2006-12-25, December 27, 2006, soliciting proposals from carriers interested in providing subsidized service at all six communities in the region, for a new, two-year period, beginning June 1. In response to our request, we received proposals from RegionsAir, Inc. (6 options), Mesa Air Group d/b/a Air Midwest, Inc. (8 options), Big Sky Airlines, Inc. (4 options), and Great Lakes Aviation, Ltd. (6 options). While we would normally compose a brief summary of all of the proposals, that is not practical in this case given the number of options.

With specific respect to Marion/Herrin, we note that the community recently began to receive service to Chicago in addition to RegionsAir’s service to St. Louis under the Department’s essential air service program. For the present, we are willing to continue to subsidize service to St. Louis, or some other hub, in recognition of the joint state-and-local effort to build Marion/Herrin’s air service, and in view of the fact that Air Midwest’s service has just begun. We intend to defer our consideration of the implications of this new service on Marion/Herrin’s air service needs until we can assess the results of the new service.

My purpose in writing to you at this time is to request any final comments you might have on the proposals before we submit a carrier-selection recommendation to the Assistant Secretary for Aviation and International Affairs. We request that you review the proposal and submit any comments you may have as soon as possible, but in no case later than March 7.

By: Dennis DeVany

OST-01-8731 - Burlington, IA
OST-96-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-96-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-97-2515 - Kirksville, MO
OST-00-7857 - Jackson, TN
OST-00-7881 - Marion, IL
OST-00-7855 - Owensboro, KY

February 23, 2007

Re: Kansas City International Airport Support for Air Midwest Option 4 or 5

Air Midwest's proposals include a unique fare product which will offer low local fares that then become "add‑on" fares on connecting flights. This will stimulate local traffic to Kansas City. In addition to the convenient online options Air Midwest proposes with its mainline partners, EAS travelers will have the ability to connect with all major airlines using Air Midwest's convenient local fare "add‑on" product.

When compared to the other connecting hubs listed in the competing proposals, fares from Kansas City International Airport are substantially lower. Kansas City fares are 37 percent lower than Cincinnati, 29 percent lower than Memphis, and 9 percent lower than St. Louis. While the average fares at ChicagoMidway are compelling, travelers connecting in Chicago-Midway instead of Kansas City International Airport have fewer nonstop destinations and one third less marketing airlines to connect to.

By: Mark VanLoh

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

March 2, 2007

Statement of American Airlines

American Airlines, Inc. hereby states that it has signed a letter of intent with Great Lakes Aviation, Ltd. To operate American Connection‑branded service to from St. Louis in the event that Great Lakes Aviation is selected in this proceeding.

Counsel: American, Carl Nelson, 202-496-5647

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

March 2, 2007

Opposition of Great Lakes Aviation bid by RegionsAir

We feel that the Department should reject Great Lakes bid for the 6 markets currently served by RegionsAir to St. Louis.

Great Lakes submitted a bid that was $1,000,000 less than the current contract and over $800,000 less than their bid two years ago even though fuel costs have climbed dramatically during that time. Their bid is approximately $1,300,000 less than Big Sky’s and almost $2,000,000 less than Air Midwest both flying the same aircraft as Great Lakes and proposing essentially the same service.

We find this extremely disturbing in light of Great Lake’s communications to RegionsAir. During the first few days of February the Chairman of Great Lakes called us wanting to know if the sale of our airline had closed. He said that he was interested in our Saab certification but had little interest in St. Louis as they had determined that short haul flying under a prorate contract was not a very good business. He stated that their prime focus was in Milwaukee but they would probably make a token bid for St. Louis as they had 2 years previously.

Clearly Great Lakes has by far the lowest bid. However, we feel that Great Lakes in part submitted this extremely low bid as a means of preventing RegionsAir from completing a transaction to refinance the airline and put a competitor out of business.

By: RegionsAir, Douglas Caldwell

March 6, 2007

City of Cape Girardeau in Support of Big Sky Airlines

Recommend to the US DOT to award the EAS two-year contract to Big Sky Airlines to provide scheduled air service between Cape Girardeau and Cincinnati/Northern Kentucky International Airport and to recommend to the US DOT to award such contract to Big Sky Airlines utilizing the three daily roundtrip schedules proposed by the airline as Proposal #4.

By: City Manager, Douglas Leslie

OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

March 7, 2007

Statement of Delta Air Lines

Delta Air Lines, Inc. submits this statement in support of the submission of Big Sky Transportation Co. d/b/a Big Sky Airlines to the extent it proposes to provide essential air service between the above-referenced communities and Cincinnati, Ohio. Delta further hereby advises the Department that if one of Big Sky's Cincinnati proposals (either proposal 2 or proposal 4) is selected, Delta intends to codeshare with Big Sky on those EAS flights. A codeshare relationship with Big Sky would offer passengers from the affected EAS communities access to Delta's global transportation system.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

Order 2007-3-5
OST-2001-8731 - EAS at Burlington, IA
OST-1996-1559 - EAS at Cape Girardeau, MO
OST-1996-1167 - EAS at Ft. Leonard Wood, MO
OST-2000-7857 - EAS at Jackson, TN
OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2000-7855 - EAS at Owensboro, KY

Issued March 9, 2007 | Served March 14, 2007

Order Selecting Carriers and Establishing Subsidy Rates

As the end of the two-year contract period was approaching, the Department issued Order 2006-12-25, December 27, 2006. requesting proposals for a new two-year period beginning June 1, 2007, with or without subsidy. In response to our request. we received proposals from four earners: the incumbent, Regions, Air Midwest Inc., a wholly owned subsidiary of Mesa Air Group, Inc., d/b/a US Airways Express (Air Midwest), Big Sky, and Great Lakes.

By this order, the Department is selecting Big Sky Transportation Co., d/b/a Big Sky Airlines, and Great Lakes Aviation, Ltd. to provide subsidized essential air service at the above communities for the two-year period from June 1, 2007, through May 31, 2009, using 19-seat Beech 1900D turboprop aircraft as follows: Big Sky at Cape Girardeau, Jackson, and Owensboro for a combined annual subsidy of $3,247,440: and Great Lakes at Burlington, Fort Leonard Wood, and Marion/Herrin for a combined annual subsidy of $2,590,461.

By: Andrew Steinberg

Order 2007-12-20
OST-1996-1559 - Cape Giradeau
OST-2000-7857 - Jackson
OST-1997-2842 - Massena, Ogdensburg and Watertown
OST-2000-7855 - Owensboro
OST-2003-14783 - Plattsburgh
OST-2000-8025 - Saranac Lake/Lake Placid

Issued December 20, 2007 | Served December 27, 2007

Emergency Request for Proposals for Replacement Service

By this order, the Department is (a) prohibiting Big Sky Transportation Co., d/b/a Big Sky Airlines, from suspending its service at the eight above-captioned communities at the end of its 90-day notice period, and (b) requesting proposals, with or without subsidy requests, from carriers interested in providing replacement service.  Because of the emergency nature of this case, proposals are due January 11.

Big Sky was selected to provide essential air service at the eight communities by a series of orders. Big Sky serves all eight communities with 19-seat Beech 1900 aircraft.  All five communities in New York receive three round trips to Boston on weekdays and weekends, the levels called for in the existing contracts.  At Jackson, Owensboro and Cape Girardeau, Big Sky is providing less than the contract amount, as it had been ramping up its service after replacing RegionsAir.  Jackson and Owensboro currently receive one round trip a day to Cincinnati instead of the two called for in the contract, and Cape Girardeau receives two round trips a day instead of three.

On December 20, 2007, Big Sky filed notices of intent to suspend its subsidized EAS at all eight of the communities.  Big Sky is the only carrier providing scheduled service at the communities In its notices, Big Sky states that it is incurring unsustainable losses on these routes and that it will be forced to cease all operations at these communities on January 7, notwithstanding the statutory EAS obligations that require a full 90-day notice period.

By: Michael Reynolds

OST-1996-1559 - Cape Giradeau
OST-2000-7857 - Jackson
OST-2000-7855 - Owensboro

January 10, 2008

Proposals of Air Choice One

We will utilize 9-seat, single-engine turbine powered, Cessna Grand Caravan configured for 9 passenger seats. The aircraft will be operating with two crewmembers and air conditioning for passenger safety and comfort. All proposals are using St. Louis, MO as the hub.

By: Air Choice One, Shane Storz, 866-435-9847, shane@airchoiceone.com

January 11, 2008

Proposal of Great Lakes Aviation

Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered in our Denver hub. We will utilize our interline ticketing and baggage handling agreements, as well as, code share agreements that are available at commercially reasonable terms.

The communities should assume that the average fare proposed is based on travel distance to a St. Louis hub. If an alternate hub is chosen, average fares will increase or decrease relative to distance traveled.

The proposals for Jackson and/or Owensboro are contingent on, and require that Great Lakes be selected for Cape Girardeau. All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.

By: Michael Matthews

January 18, 2008

Re: City of Cape Girardeau in Support of Great Lakes Airlines

The decision came down to choosing a well-known airline with approximately 25 years of experience, operating nineteen passenger, twin-engine aircraft, versus an airline new to the EAS program operating smaller, nine passenger, single-engine aircraft. Both carriers appear to have some potential issues with acquiring aircraft and with having the ability to suggest possible startup times. Air Choice One did, however, predict a 90-120 start-up time from date of award. Great Lakes Aviation was less willing to predict a start-up tim frame, although they are currently working on alternatives for acquiring aircraft and pilots. While the Airport Board learned to appreciate the endeavors of the Air Choice One President, Mr. Shane Storz, and the airline was given extreme consideration based on their business plan and understanding of the smaller markets, the Board felt that Great Lakes Aviation was the better airline for the community's current air transportation needs.

By: City Manager, Douglas Leslie, 573-334-1212

Order 2008-2-1
OST-1996-1559 - Cape Girardeau
OST-2000-7857 - Jackson
OST-2000-7855 - Owensboro

Issued February 1, 2008 | Served February 6, 2008

Order Selecting Carrier and Establishing Subsidy Rates | Word

By this order, the Department is selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at the above communities for the two-year period beginning when the carrier starts full EAS at all three communities.

The communities fully support the selection of Great Lakes, and we find that the carrier’s proposed subsidy rates are reasonable for the service it intends to provide. Great Lakes is fully experienced in operating regional carrier service both as a general matter and within the essential air service program specifically. Moreover, Multi-Aero’s proposals do not meet the statutory minimum aircraft standards and did not receive the requisite endorsement from any of the communities. We note that Great Lakes is continuing discussions with American Airlines to develop a code-share agreement at St. Louis, but our decision here is not contingent on such an agreement.

Subsidy Rate per Departure: $771.13
Weekly Compensation Ceiling: $29,302.94

By: Michael Reynolds

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