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OST-1996-1901

Alamogordo Municipal Airport
Holloman Air Force Base

Kingman and Prescott, Arizona; Cortez, Colorado; Alamogordo/Holliman Air Force Base, New Mexico; Clovis, New Mexico and Silver City/Hurley/Deming, New Mexico (EAS)

Order 97-11-9 | OST-96-1899 | OST-96-1900 | OST-1996-1901 | OST-96-1902 | OST-96-1903 | Issued November 6, 1997 | Served November 13, 1997

Order Revising Service Levels and Subsidy Rates

By this order the Department of Transportation is authorizing increased service levels and subsidy rates for the subsidized essential air service provided by Mesa Air Group at the six communities listed above beginning when the increased service is implemented (but no earlier than October 1, 1997) through September 30, 1998.

Exhibit A: Map | Exhibit B: Calculation of Compensation Requirement | Exhibit C: EAS Service | Exhibit D: Historical Traffic

By: Charles Hunnicutt

The Department directs all interested persons to show cause within 20 days from the date of service of this order why it should not reselect Mesa Air Group to provide basic essential air service at Kingman and Prescott, Arizona, and Alamogordo/Holloman Air Force Base, Clovis, and Silver City/Hurley/Deming, New Mexico, as described in Appendix D to this order, for the period of October 1, 1998, through September 30, 2000;

By:  Charles Hunnicutt

Final Order 99-9-17 is making final the tentative selection originally proposed in show-cause Order 98-12-26, December 22, 1998, of Mesa Air Group to provide basic essential air service with subsidy support at Kingman and Prescott, Arizona

By:  Bradley Mims

We have tentatively decided to reselect Mesa to provide essential air service at the five Arizona and New Mexico points for another two-year period. We have reviewed the service and traffic history for these communities and find that the service proposed is reasonable. We also tentatively find that Mesa's proposed subsidy rates are reasonable.

As is our customary procedure, we contacted Mesa when the end of the selection period at the five points was approaching and requested that, if the carrier found that subsidy was necessary for its continued service at the communities, it submit a proposal to the Department. Mesa responded by submitting and negotiating with us a proposal to continue to provide the current service levels (all with 19-passenger Beech 1900 aircraft): 18 one-stop or nonstop Kingman-Phoenix and 18 nonstop Prescott-Phoenix round trips each week for $1,083,003 per year; 18 nonstop Alamogordo-Albuquerque round trips each week for $923,789 annually; 18 nonstop Clovis-Albuquerque round trips each week for $1,118,197 annually; and 18 nonstop Silver City-Albuquerque round trips each week for $935,667 annually.

By:  Susan McDermott

The Applicant was initially certified by the FAA on December 5, 1995. Rio Grande Air began air service in June of 1999 with service between Taos, Los Alamos, and Albuquerque, New Mexico. The company has since discontinued the Los Alamos service, but has added flights to Farmington, NM and Durango, CO. And beginning July 1, 2001, RGA will begin air service to Santa Fe and Ruldoso, NM also. RGA flies single-engine, nine-passenger Cessna Grand Caravan aircraft.

The Applicant will provide:

• 4 round trips from ALM- ABQ on Mon., Tues., Th, & Fri.
• 3 round trips from ALM - ABQ on Wed., & Sun.
• 2 round trips from ALM - ABQ on Sat.

Counsel:  Rio Grande Air, Tim Wooldridge, 505.737.0505 

Because a $50 million budget can no longer cover the program's current commitments, the Administration's budget proposal also includes a proposal to revise some of the standards under which communities are ineligible for subsidy-supported scheduled air service. Under the proposed revisions, communities would not be eligible if they are:

• Located within 100 highway miles of the nearest large or medium hub airport² The current standard is 70 highway miles for both large and medium hubs. Located within 70 highway miles of the nearest small hub airport. There is no current standard addressing communities' proximity to small hub airports.
• Located within 50 highway miles of the nearest non-hub airport offering jet service. There is no current standard addressing communities' proximity to non-hub jet service.

The statutory prohibition against continuing to subsidize communities requiring subsidy of more than $200 per passenger, except for exceptionally isolated points, would remain unchanged.  The proposed revisions would allow the Department to continue to meet its core obligation of ensuring that truly isolated communities continue to receive at least a minimum level of scheduled air service and thereby remain connected to the national air transportation system. At the same time, it would curtail spending for local service at communities that are within reasonable driving distances of service at other airports.

In light of the program's current spending rate and the Administration's budget proposal, we have decided to issue this statement of proposed policy now, to give the communities and carriers ample notice of the program reductions that we will implement in the event that Congress enacts them into law. Those reductions will result in the termination of subsidy at the 17 communities listed below as of October 1, 2001 -- the first day of fiscal year 2002 -- and will allow the carriers providing subsidized service at those communities to discontinue service on the same date, if they choose, without the need to provide individual notice. Implementation of the reductions at the very outset of the next fiscal year is necessary for program spending to remain within the proposed $50 million budget. Waiting to initiate the process until Congress has already acted could delay implementation of the reductions and require us to make even deeper program cuts, affecting more communities, in order to remain within our budgetary constraints.

By:  Susan McDermott

By:  City of Alamogordo, Donald Carroll

By:  Mesa Air Group, Jonathan Ornstein

By:  Otero County Economic Development Council, Larry Shulse

By:  Alamogordo-White Sands Regional Airport, Duke Prewitt, 505.439.4110

Correspondence of the City of Alamogordo in support of Rio Grande Air being awarded Federal EAS subsidies to provide air service to the Alamogordo area and surrounding communities

By:  City of Alamogordo, Donald Carrolly 

By:  Department of the Air Force, John Neill 

Order 2002-4-18 is selecting Rio Grande Air to provide subsidized basic essential air service for a two-year period at Alamogordo/Holloman Air Force Base, New Mexico, for an annual subsidy rate of $849,235.

This selection decision poses an unusual issue in that the aircraft type that Rio Grande Air proposes to operate does not meet either the twin-engine standard or the 15-or-morepassenger-seat standard required by our governing statutes (49 U.S.C. 41732(b)(3) and (b)(5)) and by the Department's current essential air service determination for Alamogordo/Holloman Air Force Base set by Order 94-9-10, September 9, 1994. We apprised the civic parties of this in our letters of January 14, 2002, and indicated further that the Department would not select Rio Grande's proposal, absent support for it from each of the communities. The City and the Air Force Base each addressed the aircraft type issues in their responses and support Rio Grande Air, notwithstanding that its aircraft do not meet the minimum size or two-engine requirements. (The City and the Air Force Base essentially waive the requirement for a twin engine, 15-passenger aircraft for the duration of this contract period.) The requirement for service by an aircraft with two engines appears in 49 USC 41731(b)(5); under 49 USC 40109(c), the Department may grant an exemption from any requirement in §41731 (and elsewhere) if doing so is in the public interest. Given the community's support and Rio Grande's operating record, we find it in the public interest to grant an exemption in this case from the requirement for two engines.

By:  Read C. Van de Water

Order 03-5-25
OST-96-1899 - Kingman and Prescott, Arizona
OST-96-1901 - Alamogordo/Holloman AFB, New Mexico
OST-96-1902 - Clovis, New Mexico
OST-96-1903 - Silver City/Hurley/Deming, New Mexico

Issued May 23, 2003 | Served May 29, 2003

Order Setting Interim Subsidy Rates | Word

By Order 2001-5-18, May 15, 2001, the Department selected Mesa Airlines to provide subsidized essential air service at Kingman, Prescott, Alamogordo/Holloman Air Force Base, Clovis and Silver City/Hurley/Deming through March 31, 2003. Those rates have expired without our having established new rates as yet. Consequently, it is necessary for us to extend the expired rates as interim rates, subject to retroactive adjustment, in order to ensure that Mesa will continued to be paid for its services until the we can establish new final rates, retroactive to April 1, 2003. The new final rates may be higher, lower or the same as the interim rates we are extending here.

The Department extends as interim rates the recently expired subsidy rates for the essential air services operated by Mesa Airlines, Inc., d/b/a US Airways Express, at the five communities, until new final rates can be established.

By: Randall Bennett

Order 04-3-21
OST-96-1901 - EAS-Alamogordo-Holloman AFB
OST-96-1352 - EAS- Topeka

Issued March 22, 2004 | Served March 25, 2004

Order Establishing Final Subsidy Rates | Word

As a result of discussions with Department staff, Mesa has agreed that the interim rates set by Order 2002-2-13 for Alamogordo/Holloman Air Force Base and Topeka should now be established as the final rates. Upon review, we find that those rates are reasonable for the services at issue, and we will establish them as the final rates for the balance of the carriers’ contract periods: from October 1, 2001, through May 26, 2002, for Mesa’ service at Alamogordo/Holloman Air Force Base, and from October 1, 2001, through April 30, 2003, for Air Midwest’s service at Topeka.

By: Karan Bhatia

Order 04-06-23
OST-96-1901 - EAS at Alamogordo/Holloman Air Force Base, NM

Issued June 25, 2004 | Served June 30, 2004

Order Requesting Proposals on an Emergency Basis | Word

By Order 2002-4-18, April 22, 2002, the Department selected Edelweiss Holdings, Inc., d/b/a Rio Grande Air, to provide subsidized essential air service at Alamogordo/Holloman Air Force Base to Albuquerque, with nine-passenger-seat Cessna Caravan aircraft at an annual subsidy rate of $849,235. This service was to consist of a minimum of four nonstop round trips to Albuquerque on each of four weekdays, three nonstop round trips to Albuquerque on the remaining weekday, and five nonstop round trips to Albuquerque over the weekend period. Rio Grande Air inaugurated this service on May 27, 2002. By the terms of Order 2002-4-18, the selection period ended on May 31, 2004. Shortly afterward, on June 22, 2004, Rio Grande Air ceased its commuter air carrier operations. Consequently, the Department must take steps to assure that essential air service will continue to be provided at Alamogordo/Holloman Air Force Base (subject to the consideration discussed under "Service and Traffic History," below).

By: Karan Bhatia

Order 04-07-01
OST-96-1901

Issued July 1, 2004 | Served July 7, 2004

Setting Interim Subsidy Rate | Word

By this order, the Department is extending as an interim rate the recently expired subsidy rate of $849,235 annually set by Order 2002-4-18, April 22, 2002, for the essential air service operated by Edelweiss Holdings, Inc., d/b/a Rio Grande Air, at Alamogordo/Holloman Air Force Base, New Mexico, until new final rates can be established.

By Order 2002-4-18 the Department selected Rio Grande Air to provide subsidized basic essential air service at Alamogordo/Holloman Air Force Base through May 31, 2004, at a subsidy rate of $849,235 annually. This rate has expired without our having established a new rate as yet. Consequently, it is necessary for us to extend the expired rate as an interim rates, subject to retroactive adjustment, in order to ensure that Rio Grande Air will continue to be paid for its service until the we can establish a new final rate, retroactive to June 1, 2004. The new final rate may be higher, lower or the same as the interim rate we are extending here.

By: Randall Bennett

July 14, 2004

Response of Westward Airways

The service proposed by such bid offers the subsidy-eligible community of Alamogordo / Holloman Air Force Base, New Mexico, two Alamogordo - Albuquerque flights and three Albuquerque - Alamogordo flights each weekday and each Sunday, as well as one Alamogordo -Albuquerque flight and two Albuquerque - Alamogordo flights each Saturday.

By: Kristi Feusner, 308-220-3838 x3020, kfeusner@westwardairways.com

July 15, 2004

Re: Corrected Proposal to Provide Essential Air Service (Great Lakes)

By: Dave Thomas

July 15, 2004

Re: Updated Proposal to Provide Essential Air Service (Mesa)

By: Linda Larsen

July 15, 2004

Re: Subsidy Calculations (Arizona Express)

By: Dan Hall

July 26, 2004

Re: Request for Comments from The Honorable Donald Carroll

I would like to update you on the essential air service situation at Alamogordo/Holloman Air Force Base and to give you an opportunity to submit any comments if you wish. As you know, by Order 2004-6-23, the Department solicited proposals on an emergency basis from all interested air carriers to provide service at Alamogordo/Holloman Air Force Base. In response to that order, we received proposals from Arizona Express Airlines, Great Lakes Aviation, Ltd., Mesa Air Group, Inc., d/b/a Air Midwest, and Westward Airways, Inc.

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.

By: Dennis DeVany

July 26, 2004

Re: Request for Comments from Brigadier General Kurt Cichowski

By: Dennis DeVany

July 26, 2004

Re: Request for Comments from Wayne York

By: Dennis DeVany

July 26, 2004

Re: Request for Comments from Rudy Clark

By: Dennis DeVany

July 21, 2004

Re: Certificate of Service

By: Mary Kelly

August 4, 2004

Re: Request for an Extension of Time

The City is in the process of evaluating the proposals from the various carriers who have responded to the RFP. The City is working with representatives from Holloman Air Force Base in order to have a coordinated response. The City of Alamogordo does not believe we can have an adequate evaluation and response to you by the August 13, 2004 deadline.

By: Donald Carroll

August 9, 2004

Re: Letter Announcing Public Session to Select the EAS Contract

By: Kurt Cichowski

Issued August 11, 2004 | Served August 16, 2004

Notice of Extension

We have received a request dated August 4, 2004, from the Mayor of Alamogordo, requesting an extension until September 17, 2004, for submitting the civic parties' comments. In support of his request, the Mayor states that questions have arisen that have required additional research by the City of Alamogordo.

We will grant this request, and in so doing, will grant all of the civic parties until September 17, 2004, to submit their comments on the service proposals for Alamogordo/Holloman Air Force Base.

By: Dennis DeVany

September 15, 2004

Re: Letter from the City of Alamogordo Recommending Westward Airways

This letter is to inform the Department of Transportation that the City Commission of the City of Alamogordo, New Mexico has recommended Westward Airways Incorporated for Essential Air Service. The recommendation is contingent upon Westward Airways applying for membership in the Airline Reporting Corporation (ARC) which is essential for providing services to Holloman Air Force Base.

Although Mesa Air Group was extensively discussed as a viable service provider, the final recommendation of Westward Airways was adopted during the September 14, 2004 Alamogordo City Commission Meeting.

By: Donald Carroll

September 20, 2004

Re: Letter from the Department of the Air Force Describing the Conditions Westward Airways Must Meet

The city of Alamogordo met in public session on 14 Sep 04 to select a carrier to provide air service under the Essential Air Service Program. The city selected Westward Airways which does not meet the requirements to provide an aircraft with twin engine, 15 passenger capacity. In order to be selected by DOT, a waiver is required. Accordingly, Holloman waives the requirement for a twin engine, 15 passenger aircraft for this contract period.

A secondary issue is that the airline must be a member of the Airline Reporting Commission (ARC) in order for Holloman to make travel reservations. The city of Alamogordo has made the selection of Westward Airways contingent upon applying for membership in the ARC. Holloman concurs with this requirement.

By: Andrew Papp

September 30, 2004

Re: Letter from ARC Regarding the Application of Westward Airways

Westward Airways, based in Scottsbluff, Nebraska, is an applicant to participate in ARC's Area Settlement Plan, the financial settlement system between travel agency locations/Corporate Travel Departments in the U.S., Puerto Rico, and the U.S. Virgin Islands and global participating passenger airlines/railroads. The application process can be lengthy due to our participation requirements. However, we are working closely with Westward Airways in order to complete the application process in a timely manner and for the airline to become an ARC participating carrier.

By: Valerie Kirk

Order 04-10-09
OST-96-1901 - EAS at Alamogordo and Holloman AFB, NM

Issued October 18, 2004 | Served October 21, 2004

Order Selecting Carrier | Word

After a thorough review of the carriers' proposals and the communities' comments, we have decided to select Westward Airways to provide essential air service at Alamogordo/Holloman Air Force Base for a two‑year period. Our decision is consistent with the communities' preferences and statutory criteria. The carrier's proposed rate is reasonable, and the carrier's commuter/regional service at the communities it currently serves in Nebraska is satisfactory.

In light of the foregoing, we will select Westward Airways' proposal to provide essential air service at Alamogordo/Holloman Air Force Base. This proposal would provide the community with two and one-half nonstop round trips on weekdays and Sundays and one and one-half nonstop round trips on Saturdays with 9-passenger-seat Pilatus PC-12 aircraft to Albuquerque for an annual subsidy rate of $518,870. This decision maintains service at the community and gives each community party its preferred carrier. The subsidy rate compares favorably with those of Arizona Express Airlines ($498,787) and the selectable proposal of Air Midwest ($523,790 for the carrier's Option Number One) for comparable service. Thus, all meaningful selection criteria point to the selection of Westward Airways.

By: Karan Bhatia

July 25, 2005

Re: Westward Airways Cancellation of All Scheduled Flights

Westward Airways has canceled all scheduled flights at this time.

By: Westward, Eldon Anthony, eldon.anthony@westwardairways.com

Order 2005-7-26
OST-1996-1901

Issued July 27, 2005 | Served August 1, 2005

Order Requesting Proposals on an Emergency Basis | Word

During the seven month period that Westward Airways served Alamogordo/Holloman Air Force Base, the carrier did not report any passenger traffic data to the Department.  During the 12 months ended March 31, 2004, the most recent 12-month period for which traffic data are available, Alamogordo/Holloman Air Force Base averaged 4.7 enplanements a day.  This figure represents a decline of 40 percent from the level registered during calendar year 2000, prior to the terrorist attacks of September 11. We have determined that Alamogordo/Holloman Air Force Base is less than 210 miles from Albuquerque International Airport; hence, the subsidy-per-passenger criterion becomes critical.

By: Randall Bennett

August 15, 2005

Proposal of Valley Air Express, Inc.

Valley Air Express Proposes to provide Essential Air Service from Alamogordo/Holloman Air Force Base to Albuquerque at a rate of $592,170. This proposed service consists of two non-stop round-trip flights between Alamogordo and Albuquerque each day with the single-pilot, 9 passenger seat, twin-engine, un-pressurized Piper Navajo aircraft. Valley Air Express is prepared to commence flight operations within 30 days of order.

Counsel: Valley Air Express, William Delgado, 916-838-8833, wjd9227@pacbell.net

http://www.valleyairexpress.com/

August 15, 2005

Proposal of Mesa Air Group, Inc. d/b/a Air Midwest

Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit two proposals to provide Essential Air Service at Alamogordo/Holloman Air Force Base, New Mexico. Mesa's proposal would provide daily service to our current hub in Albuquerque.

All operations proposed would utilize our modem 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. We will utilize our current operation inside Albuquerque International Sunport's terminal, allowing for easy, convenient connections to all major airlines serving Albuquerque. The service will be served as Mesa Airlines.

http://www.holloman.af.mil/index.html - Holloman Air Force Base
http://www.mesa-air.com/

By: Mickey Bowman

August 18, 2005

Request for Comments of New Mexico Department of Transportation

I would like to update you on the essential air service situation at Alamogordo/Holloman Air Force Base and to give you an opportunity to submit any comments if you wish. As you know, by Order 2005-7-26, the Department solicited proposals on an emergency basis from all interested air carriers to provide service at Alamogordo/Holloman Air Force Base. In response to that order, we received proposals from Mesa Air Group, Inc., d!b/a Air Midwest, and Valley Air Express, Inc..

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.

By: Dennnis DeVany

http://www.nmshtd.state.nm.us/ - New Mexico DOT

August 18, 2005

Request for Comments of Commanding Officer of Holloman Air Force Base

I would like to update you on the essential air service situation at Alamogordo/Holloman Air Force Base and to give you an opportunity to submit any comments if you wish. As you know, by Order 2005-7-26, the Department solicited proposals on an emergency basis from all interested air carriers to provide service at Alamogordo/Holloman Air Force Base. In response to that order, we received proposals from Mesa Air Group, Inc., d!b/a Air Midwest, and Valley Air Express, Inc..

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.

By: Dennis DeVany

http://www.holloman.af.mil/index.html - Holloman Air Force Base

August 18, 2005

Request for Comments of Airport Manager, White Sands Regional Airport

I would like to update you on the essential air service situation at Alamogordo/Holloman Air Force Base and to give you an opportunity to submit any comments if you wish. As you know, by Order 2005-7-26, the Department solicited proposals on an emergency basis from all interested air carriers to provide service at Alamogordo/Holloman Air Force Base. In response to that order, we received proposals from Mesa Air Group, Inc., d!b/a Air Midwest, and Valley Air Express, Inc..

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.

By: Dennis DeVany

http://ci.alamogordo.nm.us/Airport/coaairport.html - White Sands Regional Airport

August 18, 2005

Request for Comments of Mayor of Alamogordo, New Mexico

I would like to update you on the essential air service situation at Alamogordo/Holloman Air Force Base and to give you an opportunity to submit any comments if you wish. As you know, by Order 2005-7-26, the Department solicited proposals on an emergency basis from all interested air carriers to provide service at Alamogordo/Holloman Air Force Base. In response to that order, we received proposals from Mesa Air Group, Inc., d!b/a Air Midwest, and Valley Air Express, Inc..

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.

By: Dennis DeVany

http://ci.alamogordo.nm.us/Commission/coaDistrict3.html - Mayor of Alamogordo, New Mexico

August 24, 2005

Request of the City of Alamogordo for a Two-Day Extension to File Comments

The Alamogordo City Commission met on the evening of August 23, 2005 in their regular meeting and had a lengthy discussion on the Essential Air Service Order 2005-7-26, and the responses to that order. After two hours of discussion two votes were taken, both votes resulted in a 3-3 tie, which met that no decision was made. The City Commission is constituted of seven members; during last nights meeting one of the members was out of the country.

Your letter of August 18, 2005 indicated that a response from the City needed to be received not later than September 12, 2005. The Commission has tasked me to request a two day extension to September 14, 2005. This will permit the Commission to convene as a full body, at which time the members felt certain a recommendation can be delivered.

By: Pat McCourt

http://ci.alamogordo.nm.us/

August 25, 2005

Grant of Extension of Time to File Comments

The City Manager of Alamogordo has requested a two-day extension, to September 14, 2005, in which to submit community comments on the Department’s essential air service carrier selection decision at Alamogordo/Holloman Air Force Base.

We agree to this extension. The new date for submitting comments in Docket OST-1996-1901 is now September 14, 2005.

By: Dennis DeVany

September 14, 2005

City of Alamogordo Support of Valley Air Express

The Alamogordo City Commission met in regular session on the evening of September 13, 2005, one of the items discussed was the recommendation on the Essential Air Service provider under Order 2005-7-26. After lengthy discussion the Cominission voted to recommend Valley Air Express, on the condition that Valley Air Express would provide the service to the community with a Beech King Air 100 (or equivalent or superior type of aircraft). Please see attached letter dated September 10, 2005 addressed to the City Manager of Alamogordo from William J. Delgado. This condition was a crucial factor in the debate. The City does agree to waive the minimum requirement an seating.

By: Pat McCourt

http://www.valleyairexpress.com/

September 13, 2005

Comments of Brigadier General Kurt Cichowski

I received your letter regardmg the solicitation of Essential Air Service for Alamogordo and Holloman AFB, NM. My representatives, Major Richard Smith and Mr. Joseph Amaro, attended the 23 August 2005 Alamogordo City Commission meeting to discuss the two proposals. Holloman will continue to support the city in selecting the carrier of their choice. However, if the carrier does not meet the requirements for a pressurized aircraft with two engines and at least 15-seat capacity, then it will be more dfficult to obtain DOD approved carrier status.

By: Brigadier General Kurt Cichowski
Commander 49th Fighter Wing
490 First Street, Suite 1700
Holloman AFB, NM 88330

Order 2005-10-16
OST-1996-1901

Issued October 18, 2005 | Served October 21, 2005

Order Selecting Carrier - Bookmarked

Valley Air Express’s proposal would provide the community with 14 weekly nonstop round trips with 9-passenger-seat, Piper Navajo to Albuquerque for an annual subsidy rate of $592,170. This decision restores scheduled passenger air service at the coininunity and gives the community parties their preferred carrier. The subsidy rate is virtually the same as that of the selectable proposal of Air Midwest ($588,001 for the carrier’s Option Number One) for comparable service. Thus, all meaningful selection criteria point to the selection of Valley Air Express.

By: Michael Reynolds

December 12, 2005

Valley Air Express Request for Extension of Time to File Documents

This note is to request an extension for Valley Air Express in its application for contract under the Essential Air Service program.

Valley Air Express has been asked to resubmit its qualification for economic authority to operate with a Commuter Air Carrier Authority certificate. All re-application requirements have been sent to the Office of Aviation Analysis. Valley Air Express is asking for an extension as the review is still in process.

By: Valley Air Express, William Delgado

Order 2006-3-26
OST-1996-1901

Issued March 27, 2006 | Served March 30, 2006

Order Requesting Proposals on an Emergency Basis | Word

By Order 2005-10-16, October 21, 2005, the Department selected Valley Air Express, Inc. to provide subsidized essential air service at Alamogordo/Holloman Air Force Base to Albuquerque, with nine-passenger Piper Navajo aircraft at an annual subsidy rate of $592,170.  This service was to consist of a minimum of 14 weekly nonstop round trips to Albuquerque.  Valley Air Express Inc. never inaugurated this service and its operations were suspended by the Federal Aviation Administration effective March 17, 2006.  Consequently, the Department must take immediate steps to reinstate essential air service at Alamogordo/Holloman Air Force Base.

We expect proposals consisting of service with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering two round trips each weekday and each weekend from Alamogordo/Holloman Air Force Base to Albuquerque.

Westward Airways was the last carrier to serve Alamogordo/Holloman Air Force Base in early 2005, but the carrier did not report any passenger traffic data to the Department.  During the 12 months ended March 31, 2004, the most recent 12-month period for which traffic data are available, Alamogordo/Holloman Air Force Base averaged 4.7 enplanements a day.  This figure represents a decline of 40 percent from the level registered during calendar year 2000, prior to the terrorist attacks of September 11.

By: Todd Harmon

April 4, 2006

Re: Request of Regional Aviation Partners to Correct Distance Measurement

On behalf of our member community Alamogordo/Holloman AFB, NM, Regional Aviation Partners files this request for correction of the distance measurement between Alamogordo/Holloman AFB, NM to the nearest L/M Hub of Albuquerque, NM to reflect 212.5 miles.

In view of the emergency order to provide air service in accordance with 49 U.S.C. 41731 et seq., we ask that you revise the order to reflect an interim distance calculation of  212.5 miles consistent with the department’s recognized criterion for determining such measurements, pending a final decision by the department on the validation of these distances.

By: RAP, Maurice Parker

April 14, 2006

Proposal of Air Midwest

Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit three proposals to provide Essential Air Service at Alamogordo/Holloman Air Force Base, New Mexico. Mesa's proposal would provide daily service to our current hub in Albuquerque.

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.

Option #	Hub(s)	Service	Annual Subsidy
1	ABQ	2 RT: ALM to ABQ (Roundrobin with ROW)	$591,506
2	ABQ	2 RT: ALM to ABQ (Roundrobin with ROW)	$717,506
3	ABQ	2 RT: ALM to ABQ (Nonstop)	$943,010

By: Air Midwest, Mickey Bowman

http://www.mesa-air.com/

April 17, 2006

Proposal of NorthEast Planes Aviation, d/b/a Colorado Airways - Bookmarked

The applicant proposes to operate twin engine, turboprop powered Beechcraft King Air 200 model aircraft in scheduled service between Alamogordo and Albuquerque, New Mexico.

Two alternative schedules are proposed. One, the aircraft would be based in Alamogordo and would fly one round trip flight per day, seven days per week. Two, the aircraft would be based in Albuquerque and would fly two round trips per day, seven days per week. Either proposal would allow needed maintenance to be completed between flights without interfering with the schedule. The main difference in the two proposals is the amount of subsidy required. One round trip per day would require an annual subsidy of approximately $290,000 compared to $592,200 in subsidy for two round trips per day, both yielding the same net profit.

In either case the flights would be timed to ensure passengers with connections in Albuquerque could catch the most desirable flights. Based upon historical data from DOT, positive cash flow and profitability would occur in the second month, with the Essential Air Service subsidies.

By: Elliott Arthur

April 14, 2006

Proposal of Island Express Airlines

This proposal from Island Express Airlines, LLC consists of two service options. Under either proposal we intend basing our aircraft and crew at Alamogordo, New Mexico in order to provide a schedule that allows same day local travel to either ABQ or ELP while also maximizing passenger connections with Southwest Airlines hub banks. Service would be made using Cessna 402 or Piper Navajo aircraft.

Of the options presented, we prefer Option 2 since it may better meet the requirements of Holloman Air Force Base, for our own convenience, permits a more easily operated flight path, and enables a higher funding for aircraft maintenance. Additionally, the connections available for ongoing passengers at El Paso are similar to those available at Albuquerque. We remain open to either service possibility depending on the Department's selection criteria and the community desires.

Option 1 proposes 14 weekly frequencies between ALM and ABQ. Our proposed schedule is as follows:

ALM	ABQ	Frequency
Dep 0630	Arr 0730	Daily
Arr 1100	Dep 1000	Daily
Dep 1500	Arr 1600	Daily
Arr 2000	Dep 1900	Daily

On this basis we estimate our subsidy requirement to be $592,398 per year, representing a rate of $199.74 per passenger.

Option 2 proposes 14 weekly frequencies between ALM and ELP. Our proposed schedule under Option 2 is as follows:

ALM	ELP	Frequency
Dep 0650	Arr 0730	Daily
Arr 1040	Dep 1000	Daily
Dep 1500	Arr 1540	Daily
Arr 1940	Dep 1900	Daily

Under our Option 2 proposal, we estimate our subsidy requirement to be $546,826 per year, representing a rate of $183.87 per passenger.

Under both options, we believe we meet the current subsidy guidelines as specified in Order 2006-3-26. Should the Department revise the mileage calculation which limits subsidy amounts, we would like to submit a revised bid along with other airlines.

By: Island Express, Kelley Zarvas

April 27, 2006

• Letter to Mayor of City of Alamogordo
• Letter to Airport Manager of Alamogordo-White Sands Regional Airport

I would like to update you on the essential air service situation at Alamogordo/Holloman Air Force Base and give you an opportunity to submit any comments if you wish. As you know, by Order 2006-3-26, March 27, 2006, the Department solicited proposals from all interested air carriers to provide service at Alamogordo/Holloman Air Force Base. In response to that order, we received a total of six proposals from three carriers. Mesa Air Group Inc. d/b/a Air Midwest submitted a proposal with three options, Island Express Airlines, LLC, submitted a proposal with two options, and NorthEast Planes Aviation d/b/a Colorado Airways submitted one proposal.

On a separate hut related matter, the Department received a letter from Regional Aviation Partners dated April 4, 2006, requesting the Department to reevaluate the distance between Alamogordo/Holloman AFB to the nearest large or medium hub, in this case, Albuquerque. Upon consultation with Federal Highway Administration, we have determined the distance between the communities and Albuquerque International Sunport to be 211.05 miles, thereby removing the $200 subsidy per passenger cap for communities less than 210 miles from a large or medium hub.

By: Dennis DeVany

May 1, 2006

Air Midwest Withdrawal of Proposal Options

In letter dated April 27, 2006, the Department of Transportation officially notified the community that the distance from Alamogordo/Holloman Air Force Base is 211.05 miles, and is therefore not subject to the $200 per passenger subsidy cap. As stated in Mesa's Proposal letter, we are withdrawing Option #1 that does not have any cost associated with extra impact fees that Alamogordo could levy on Mesa for their Part 139 certification.

Since the proposal for Alamogordo was submitted by Mesa Air Group, it has come to our intention that Roswell has applied for a Small Community Air Service Development Grant for Regional Jet service to both Dallas and Houston. Roswell is currently an unsubsidized route that Mesa is flying completely at-risk, and should the SCASD Grant be approved for Roswell, Mesa would be unable to continue flying Roswell to Albuquerque at its current schedule and frequency, greatly impacting Alamogordo's ability to continue to have service should Option #2 be chosen. It is for this reason, that Mesa is also withdrawing Option #2 from consideration, leaving only Option #3. This would allow the community to continue to enjoy unencumbered service, without worry of what may happen in Roswell.

By: Air Midwest, Mickey Bowman

May 10, 2006

City of Alamogordo in Support of Air Midwest

I am writing to inform you of the decision of the Alamogordo City Commission regarding choosing a carrier to provide Essential Air Service to Alamogordo/Holloman Air Force Base. This issue was discussed during the City Commission's meeting that was held on May 9, 2006. By a unanimous 7-0 vote, Mesa Air Group, Inc. d/b/a Air Midwest was recommended to provide Essential Air Service.

By: Mayor Donald Carroll

Order 2006-5-24
OST-1996-1901

Issued and Served June 1, 2006

Order Tentatively Selecting Carrier | Word

By Order 2005-10-16, October 21, 2005, the Department selected Valley Air Express, Inc. to provide subsidized essential air service at Alamogordo to Albuquerque, with nine-passenger Piper Navajo aircraft at an annual subsidy rate of $592,170.  That service was to consist of a minimum of 14 weekly nonstop round trips to Albuquerque.  Valley Air Express Inc. never inaugurated that service and its operations were suspended by the Federal Aviation Administration, effective March 17, 2006.  Subsequently, the Department issued Order 2006-3-26, March 27, 2006, requesting proposals for service on an emergency basis.

After Order 2006-3-26 was issued, we received a letter from Regional Aviation Partners requesting that the mileage calculation between Alamogordo, Holloman Air Force Base, and Albuquerque be re-examined.  They disagreed with the Department on the calculation that placed the communities less than 210 miles from Albuquerque International Sunport, therefore subjecting it to the $200 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. However, after consultation with the Federal Highway Administration, the new mileage calculation was determined to be 211.05 miles, exempting Alamogordo from the $200 per passenger cap.

By this order, we are tentatively selecting Mesa Air Group, Inc. d/b/a Air Midwest (Option 2) to provide essential air service with 19-passenger Beech 1900D aircraft at Alamogordo, New Mexico, for two years, beginning when the carrier inaugurates service.  The annual subsidy rate will be set at $717,506.

Effective Period:	The date Air Midwest inaugurates service through the end of the 24th month thereafter.
Scheduled Service:	12 round trips to Albuquerque each week
Intermediate stops and upline service:	Service to Roswell is permitted provided that at least two of the four flights each day are nonstop.
Aircraft type:	Raytheon/B-1900D (19 passenger seats).
Timing of flights:	Flights must be well-timed and well-spaced in order to ensure full compensation.
Annual compensation:	$717,506. This rate assumes an annual completion factor of 97 percent.  A compensation ceiling is to be applied per calendar week such that service above that ceiling in one week cannot make up for service shortfalls in another week.
Subsidy Rate per Flight:	$592.49
Weekly Compensation Ceiling:	$14,219.76

By: Michael Reynolds

June 30, 2006

Department of the Air Force in Support of Mesa Airlines

On May 9, 2006, the Alamogordo City Commission selected Mesa Air Group to provide Essential Air Services for Alamogordo and Holloman AFB, NM. My Traffic Management Officer and representative, Mr. Joseph Amaro, attended this meeting and concurs with the selection of Mesa Air Group. I also concur. It is our understanding that Mesa Air Group will operate a pressurized, twin-motor, 19-seat King Air 1900 Turbo Jet twice daily between Alamogordo and Albuquerque, NM. Holloman will continue to support the city in selecting the carrier of their choice. However, if the carrier does not meet the minimum requirements for a pressurized aircraft with two engines and at least 15-seat capacity, then it will be more difficult to obtain DoD approved carrier status.

By: Col. David Goldfein

February 21, 2007

Re: City of Alamogordo Letter Concerning Mesa Air's Service

The City of Alamogordo has expended substantial funds to bring the Airport up to standards. Mesa has been contacted numerous times in an attempt to get them to sign an agreement to pass the $10,000 per month through to the City of Alamogordo and to lease space in the Alamogordo‑White Sands Regional Airport's terminal building. Mesa is refusing to sign any contracts and more important, is refusing to forward any of the $10,000 per month, which the City understands DOT is paying Mesa.

Request DOT's assistance in getting Mesa to sign the two contracts which have been presented to them to assure that Mesa will pay its rent in a timely manner for the airport facility and to assure that Mesa will pass through the $10,000 per month to the City of Alamogordo.

To advise you that the City of Alamogordo will bar Mesa from landing any aircraft at the Alamogordo‑White Sands Regional Airport beginning April 1, 2007 unless Mesa signs the two contracts which have been presented to it and brings the pass through payments current.

By: Pat McCourt

March 27, 2007

Re: City of Alamogordo Facility Lease and Contract for Pass-Through Fees

I am happy to advise you that we have received the signed Facility Lease and Contract for Pass-Through Fees. I expect the lease and contract to be approved at the City Commission meeting tonight.

We also received a paymebt of $40,000 pass-through fees for the first four months of operation.

By: City Manager, Pat McCourt, 505-439-4200

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.F.R. 323.4, of its intent to discontinue scheduled subsidized Essential Air Service between Alamogordo, New Mexico and Albuquerque, New Mexico effective August 19, 2007.

At present, Air Midwest is the sole provider of certificated scheduled air service at Alamogordo, New Mexico. 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

June 1, 2007

Objection of City of Alamogordo

Since Air Midwest is receiving a Federal Subsidy to provide Essential Air Services, consisting of 12 roundtrips each week (utilizing Beech 1900D Aircraft) Albuquerque - Alamogordo - Roswell - Albuquerque, and since there is no other Scheduled Air Service to the City, the City of Alamogordo request the DOT to hold Air Midwest to its original contract duration, providing above said services, until an appropriate substitute (approved by the DOT and the City of Alamogordo) can be found, and put in operation at the White Sands Regional Airport. Further, the City of Alamogordo requests that the DOT issue an “Emergency RFP”, if it has not already done so, for EAS to and from Alamogordo, NM.

By: City Manager, Pat McCourt, 505-439-4200

Order 2007-6-13
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2007-28305 - Roswell, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

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-2007-28305 - Roswell
OST-1996-1901 - Alamogordo/Holloman AFB

Issued and Served July 12, 2007

Notice

By Order 2007-6-13, June 18, 2007, the Department prohibited Air Midwest from suspending service at eight communities in the Southwest and requested proposals for replacement air service at all eight communities, including Alamogordo and Roswell, New Mexico.

American Eagle has begun taking reservations for service to Dallas-Forth Worth, effective September 5, 2007. That service of two daily round trips with 50-seat regional jets would provide far more capacity than the 67 seats per day guaranteed by Roswell’s EAS determination and ready access to one of the largest airports in the country and the national transportation system. The EAS program provides a safety-net when communities would otherwise not have any scheduled air service at all. In this case, Roswell will have far better access to the national air transportation system than the two or three round trips a day with 19-seat aircraft typically provided by EAS. We want to make all potential applicants aware of Eagle’s proposed service, and that we will terminate the carrier-selection case at Roswell when Eagle inaugurates its proposed service. In the meantime, we will continue to require Air Midwest to serve Roswell until Eagle inaugurates its service.

For the other seven communities for which we requested EAS proposals, only Alamogordo might be affected by Eagle’s service at Roswell. As an abundance of caution, carriers preparing EAS proposals at Alamogordo may want to include options with and without Roswell. Also, carriers may need time to revise their proposals for Alamogordo in view of these developments. We will therefore extend the deadline for filing proposals at Alamogordo from July 19 to August 7, 2007, and leave the deadline for the six other communities unchanged.

By: Michael Reynolds

August 7, 2007

Proposals of Great Lakes Aviation

The proposal contemplates the use of pressurized 19 seat Beech 1900D's.

Flt#	Freq	Flow	Schedule	Block Time	Miles	ASMS	Equip
5021	123456	ABQ-ALM	715-805	50	156	2964	BE1
5022	123456	ALM-ABQ	805-855	50	156	2964	BE1
5027	12345.7	ABQ-ALM	1430-1520	50	156	2964	BE1
5028	12345.7	ALM-ABQ	1500-1617	50	156	2964	BE1

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

OST-1996-1901 - Alamogordo/Holloman AFB
OST-2007-28305 - Roswell

August 7, 2007

Proposals of New Mexico Airlines (Pacific Wings)

On July 12, 2007 DOT advised prospective bidders of a potential loss of EAS eligibility at Roswell resulting from the introduction of regional jet service by American Airlines. For this reason, New Mexico Airlines has provided separate bids for Alamogordo and Roswell, in addition to a joint bid for both locations in the event EAS subsidies should remain in tact.

We propose to provide Alamogordo with two non-stop round trips each weekday and each weekend (12 round trips per week) to Albuquerque using factory new, nine-passenger Cessna Grand Caravan (C-208B) turboprop aircraft. At Roswell, we propose 20 non-stop round trips per week using the same aircraft.

EAS Subsidy Requirements:

Location	Annual Subsidy
Alamogordo/Holloman AFB and Roswell	$1,373,558
Alamogordo Only	$994,632
Roswell Only	$644,140

By: NMA, Franklin Ford

OST-1996-1901 - Alamogordo/Holloman AFB
OST-2007-28305 - Roswell

August 7, 2007

Proposal of Air Midwest

Mesa Air Group, Inc. d/b/a Air Midwest cordially submits a proposal to provide Essential Air Service from Alamogordo, New Mexico. Mesa proposes to submit a single option consisting of [lights operating on a round trip basis between Alamogordo, NM and Phoenix, AZ. All flights will be operated with a pressurized, turboprop, Beech 1900D aircraft with 19 seats. It is our intent to operate these flights under a US Airways codeshare as US Airways Express, subject to approval by US Airways. It should be noted that these flights can only be operated on this routine subject to Alamogordo establishing security in concert with the TSA, as all Air Midwest flights operate into sterile gates in Phoenix, AZ. Air Midwest would also reserve the right to operate to and from a down line station on this routing as well, such as Roswell, NM. Additionally, this bid is part of the larger "western" package that Air Midwest previously bid as an "all-or-nothing" award. This bid is contingent on Air Midwest being awarded that package consisting of service to Cedar City, UT; Moab, UT; Vernal, UT; Ely, NV; Merced and Visalia, CA. We contemplate being able to integrate these trips within our larger Phoenix operation and would require no additional "maintenance" flights to support them.

Mesa Air Group, Inc. d/b/a Air Midwest would also like to place two proposals into the record to establish hold-in compensation rates for the interim period. Give the vague nature of the viability of subsidized service to Roswell, New Mexico in the most recent order, we respectfully are submitting two scenarios, one with and one without ongoing service to Roswell. Both of these scenarios contemplate operation on these routes under out independent Mesa Airlines brand. Given the fact that this aircraft is isolated and that we have no established maintenance capability in Albuquerque, Alamogordo, or Roswell, both of these scenarios include a maintenance support flight to and from our Maintenance Base in Farmington, New Mexico. We would propose to sell seats on these flights and as a consequence have included Farmington - Albuquerque traffic and revenue in our submissions. Note that Roswell does contribute significant traffic and its inclusion requires less funding than its exclusion.

Option 1	Alamogordo-Phoenix	Two Roundtrips	$1,999,943
Hold In 1	Alamogordo-Roswell-Albuquerque (status quo)	Two Roundtrips	$1,191,885
Hold In 2	Alamogordo-Albuquerque (no Roswell service)	Two Roundtrips	$1,472,910

By: Mesa Air Group, Mickey Bowman

OST-1996-1901 - Alamogordo/Holloman AFB
OST-2007-28305 - Roswell

August 10, 2007

DOT Request for Community Comments of:

• 49th Fighter Wing Commander at Holloman AFB
• Airport Coordinator of Alamogordo Municipal Airport
• Aviation Director of New Mexico DOT
• Chaves County Development Foundation
• Mayor of City of Alamogordo
• Mayor of City of Roswell

As you know, 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 terminating the EAS carrier-selection case at Roswell because American Eagle had announced that it was beginning Roswell-Dallas/Ft. Worth service, beginning September 5. That notice also separated the Alamogordo case from the other six and extended the deadline for Alamogordo proposals. (If American Eagle does not inaugurate its proposed service, we would commence a separate EAS 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, and New Mexico 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 September 7.

By: Dennis DeVany

August 28, 2007

City of Alamogordo in Support of New Mexico Airlines

This letter is to notify you of the recommendation of the Alamogordo City Commission made at the regular meeting of the Commission August 27, 2007 concerning Essential Air Service to Alamogordo/Holloman Air Force Base. The issue was discussed and by a unanimous vote 7-0-0 vote the Commission recommends New Mexico Airlines, utilizing the Caravan (C-2088) Turboprop aircraft.

By: City Manager, Pat McCourt, 505-439-4200

August 29, 2007

Re: Follow-Up of City of Alamogordo

This letter is to follow up on my August 28, 2007 letter mailed to you yesterday. In recommending New Mexico Airlines and their Caravan (C-2088) Turboprop aircraft the City wants to make certain that we do not in any way impact our Part 139 Certification. The City wishes to continue the maintenance of its Part 139 Certification in that jet aircraft continue to use the airport.

By: City Manager, Pat McCourt, 505-439-4200

Order 2007-9-1
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

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

Order 2007-9-29
OST-1996-1901

Issued September 26, 2007 | Served October 1, 2007

Order Selecting Carrier and Setting Final Subsidy Rates

After careful consideration of this matter, including the comments of local officials, the Department has decided to select New Mexico Airlines to provide EAS at Alamogordo/Holloman Air Force Base in accordance with the carrier's proposal. New Mexico Airlines' proposal would provide 12 weekly nonstop round trips to Albuquerque International Sunport Airport, for an annual subsidy rate of $994,623. We find that the service and subsidy levels that New Mexico Airlines proposed are reasonable.

This case is very straightforward: the community supports the selection of New Mexico Airlines and its subsidy requirement represents a savings of approximately $260,000 or one million dollars when contrasted to Great Lakes' or Air Midwest's competing bids, respectively. Pacific Wings, L.L.C. is an established carrier and recently, the carrier was also awarded the BAS contracts at Carlsbad and Hobbs, New Mexico.

Further, the proposal submitted by New Mexico Airlines, utilizing 9-passenger Cessna Grand Caravan (C-208B) equipment, may ensure the effective utilization of aircraft and provide a better balance between the demand for air service with the supply of aircraft seats.

By: Michael Reynolds

Order 2007-10-17
OST-1996-1901 - Alamogordo/Holloman AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

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

November 9, 2007

Comments of City of Alamogordo

We believe that authorizing our EAS to provider to make a discretionary, en-route stop at Ruidoso between Albuquerque and Alamogordo on one daily roundtrip has the potential to enable a currently untapped flow of tourist traffic between Ruidoso and Albuquerque. It would also enable the airline to integrate service between Ruidoso and El Paso (via Alamogordo) as well as Alamogordo and El Paso with its EAS offerings.

New Mexico Airlines would continue to offer the first flight of the day between Alamogordo and Albuquerque, and the last flight of the day between Albuquerque and Alamogordo on a nonstop basis. Furthermore, the airline has indicated its willingness to perform this stop at no additional cost to the EAS program.

By: Airport Coordinator, Parker Bradley

Order 2007-12-10
OST-1996-1901

Issued December 17, 2007 | Served December 20, 2007

Order Approving an Alternate Service Pattern

In a letter faxed to the Department on November 27, the City of Alamogordo requested that the Department allow New Mexico Airlines to make an intermediate stop (at Ruidoso, New Mexico) on the afternoon round trip flight between Albuquerque and Alamogordo/Holloman Air Force Base, each weekday and each weekend. The community believes that this intermediate stop has the potential to attract additional passengers (between Ruidoso and Albuquerque) and integrates better with New Mexico Airlines' plans to serve additional destinations from Ruidoso and Alamogordo. The letter also states, "New Mexico Airlines will continue to offer the first flight of the day between Alamogordo and Albuquerque, and the last flight of the day between Albuquerque and Alamogordo, on a nonstop basis."

We approve the alternate service pattern requested by Alamogordo, New Mexico.

By: Todd Homan

Order 2007-12-15
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA

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

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