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OST-1997-2515 - EAS at Kirksville, MO
http://www.kirksvillecity.com/Kirksvilleregionalairport/index.htm
Essential Air Service at Kirksville, Missouri
Order 1997-5-9 | OST-1997-2515 (44895) | Issued May 13, 1997 | Served May 19, 1997
Order Tentatively Selecting Carrier and Setting Final Rates
By this order we are tentatively selecting Redwing Airways, Inc. (Redwing), to provide subsidized essential air service at Kirksville, Missouri, for the two-year period beginning
Appendix A | Appendix B | Appendix C | Appendix D
By: Charles Hunnicutt
| Order 99-7-21 OST-97-2515 |
Issued July 30, 1999 | Order Extending Rate and Requesting Proposals | EAS at Kirksville, MO |
By: Bradley Mims
| Order 97-5-9 OST-97-2515 |
August 27, 1999 | Order Tentatively Selecting Carrier and Setting Final Rates | EAS at Kirksville, MO |
By: Redwing Airways, Craig Shorten
| Order 00-10-10 OST-97-2515 |
Issued October 12, 2000 Served October 12, 2000 |
Emergency Order Requesting Proposals | EAS at Kirksville, MO |
| Appendix A: Historical Traffic | |||
| Service List |
Redwing Airways began serving Kirksville on March 4, 1991, with an 8-seat, unpressurized, piston-powered, Beech QueenAir aircraft. In 1994, Redwing carried a total of 5,458 O&D passengers, its best year. Since that time, traffic has declined, partly because of service cutbacks brought about by Congressional budget cuts in 1996 and 1997, and totaled 2,590 for the year ended December 31, 1999. In order to help carriers make their traffic and revenue projections, Appendix A shows historical traffic data.
Since Redwing appears to have ceased operations as of October 11, we are taking immediate steps on an expedited basis to secure suitable replacement service. We request that any carriers interested in providing essential air service at Kirksville, file their proposals within five days of the service date of this order. We ask that carriers submit proposals for two or three round trips per service day to either St. Louis or Kansas City, or other appropriate hub destination, with 15-seat or larger, pressurized aircraft. Carriers may also submit proposals for service with smaller aircraft and more frequencies, subject to the continuing concurrence of the Kirksville community.
By: Randall Bennett
| Order 00-10-33 OST-97-2515 |
Issued October 27, 2000 Served November 1, 2000 |
Order Selecting Carrier and Setting Final Rate | Essential Air Service at Kirksville, Missouri |
| Exhibits: Subsidy Calculation, EAS to be Provided |
By: Francisco Sanchez
| Order 03-1-13 OST-97-2515 OST-00-7881 |
Issued and Served January 16, 2003 | Order Setting Interim Subsidy Rates | Essential Air Service at Kirksville, Missouri and Marion, Illinois |
By Order 2000-12-22, December 29, 2000, Corporate was selected to provide subsidized EAS at Marion, Illinois, for the two-year period through November 29, 2002. Similarily, by Order 2000-10-33, October 27, 2000, Corporate was selected to provide subsidized EAS at Kirksville, Missouri, for the two-year period through December 5, 2002. Those rates have expired without our having established new rates. Consequently, it is necessary for us to extend the expired rates as interim rates, subject to retroactive adjustment, in order to ensure that Corporate will continued to be paid for its services until we can establish new final rates retroactive to November 30, 2002, in the case of Marion, and retroactive to December 6, 2002, in the case of Kirksville. The new final rates may be higher, lower or the same as the interim rates we are extending here.
By: Randall Bennett
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
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
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 18, 2005
Re: Missouri State Senator John Cauthorn Letter in Support of Essential Air Service
By: John Cauthorn
January 28, 2005
By: Debbie Masten and James McGovern
January 28, 2005
By: James McGovern
January 20, 2005
Proposal of Multi-Aero d/b/a Air Choice One - Kirksville, MO
January 25, 2005
By: James McGovern
January 25, 2005
By: Robert Behnen
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
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
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
OST-97-2515 - EAS at Kirksville, MO
March 24, 2005
Re: Comments of The City of Kirksville
Our community is somewhat different than the other EAS communities, we are within a half-days drive to four larger communities with reliable air service - St Louis, Kansas City and Des Moines, Iowa. The community needs to know that the service is going to arrive. Others within our region need to know that the service is available. We ask that you consider the proposals as the affect each community, and that for Kirksville, you consider MESA Air as the provider.
By: Mari Macomber, Mayor
March 30, 2005
Ex-Parte Letter to Congressman Kenny Hulshof
By: Norman Mineta
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
July 19, 2005
Comments of City of Kirksville, Missouri
On behalf of the City of Kirksville, Missouri, I extend our deepest appreciation to you and your fine staff for the careful overview and consideration that resulted in the reselection of RegionsAir, Inc., dba American Connection, formerly known as Corporate Airlines. We are very thankful for the decision to continue essential air service to this area.
By: Mari Macomber
Issued June 26, 2006 | Served June 29, 2006
Order to Show Cause - Tentatively Terminating Subsidy Eligibility and Allowing Suspension of Service
We have reviewed the community's traffic results for calendar year 2005 and for the year ended May 31, 2006, and determined that the subsidy per passenger far exceeds $200. In 2005, Kirksville generated 2,793 passengers, which, when coupled with the current annual subsidy of $840,200, results in a subsidy per passenger of $300.82. Kirksville's traffic increased slightly for the year ending May 31, 2006, to 3,140, equaling a subsidy per passenger of $267.58, still well above the $200 cap.
We note that these traffic levels are below those of prior years, and we are aware that RegionsAir (then Corporate Airlines) suffered a fatal accident in October 2004 while attempting to land at Kirksville, which could account for some of the drop off. We also note that at about the same time, American Airlines was reducing its service at St. Louis by about one half. RegionsAir operates this service as American Connection, offering seamless on‑line connections throughout American Airlines' system. This reduction in flights by American Airlines at St. Louis could also have had a negative effect on traffic as fewer on‑line connecting opportunities were available for passengers making connections to destinations beyond the St. Louis hub. In any event, the subsidy per passenger is well over the $200 cap and, although there are some slight signs of improvement, traffic would still need to increase by more than one third to bring the subsidy per passenger into compliance with the statute.
Based on all of the above, we have tentatively decided to terminate Kirksville's subsidy eligibility as of October 1, 2006, and allow RegionsAir to suspend service on that date, if it chooses.
By: Michael Reynolds
June 29, 2006
Re: Congressman Kenny Hulshof Request for Extension of Time Period for Objections
I request the time period for objections to Order 2006-6-32 be extended. Such an extension will allow the local community and other stakeholders to consider all of the facts involved in this decision and present thorough arguments justifying continued air service to Kirksville, Missouri.
By: Kenny Hulshof
June 30, 2006
Re: City of Kirksville Request for 30-Day Extension to the Comment Period
The City of Kirksville has received the Order Tentatively Terminating Subsidy Eligibility and Allowing Suspension of Service, served June 29, 2006. The Order gives interested persons 20 days after the service date to submit objections to the Department of Transportation. We respectfully request a 30-day extension to the comment period in order to allow adequate time to prepare a response to this tentative order to suspend Essential Air Service to the Kirksville area.
By: City of Kirksville
Issued July 3, 2006 | Served July 7, 2006
Order Extending Time for Filing Objections
On June 30, the Mayor of Kirksville requested a 30‑day extension in order to allow adequate time to prepare its response. In order to give the community every opportunity to prepare a complete objection, the Department will grant the community's request for an extension for the filing of objections for 30 days, until August 18.
By: Michael Reynolds
July 10, 2006
Missouri DOT in Opposition to Termination of Service
I am writing to oppose terminating essential air service support from the U.S. Department of Transportation to the Kirksville Regional Airport. Your department's continuation of the essential air service subsidy is critical to the stability and economic success of Kirksville and the north central Missouri region.
Discontinuing the essential air service program at this time would create a significant transportation void for both Kirksville and the north central Missouri region. I hope you will continue to work closely with the City of Kirksville to address their air service needs and continue this much needed service.
By: Pete Rahn
July 12, 2006
State Representative Behnen in Support of Kirksville, Missouri
I have recently been informed the Department of Transportation is considering terminating the subsidy eligibility of Kirksville, Missouri Regional Airport. I strongly encourage the department to rethink its position.
By: State Representative Robert Behnen
July 31, 2006
State Representative Brian Munzlinger in Opposition of Termination of Service
I understand that by Order 2006-6-32, the Department of Transportation tentatively terminated Kirksville, Missouri’s Essential Air Service eligibility and allowed RegionsAir Inc. d/b/a American Connection to terminate service to the community. I adamantly oppose terminating EAS supported service to Kirksville. I also respectfully urge the Department to accept another air service proposal that demonstrates it can serve Kirksville’s need while staying below the $200 per passenger cap.
I am sure you are aware of the many problems with RegionsAir that clearly shows a lack of responsible action on their part. Please do not penalize the citizens of Kirksville because of the unreliable service provided by the incumbent air carrier.
I highly recommend continuing the EAS supported flights to Kirksville and accepting another air service proposal that demonstrates it can serve Kirksville’s need while staying below the $200 per passenger cap.
By: Brian Munzlinger, 573-751-7985, brian.munzlinger@house.mo.gov
August 7, 2006
Missouri Congressmen in Opposition to Termination of Service
As you know, per Order 2006-6-32, the Department of Transportation tentatively terminated Kirksville, Missouri's Essential Air Service eligibility and allowed RegionsAir Inc. d/b/a American Connection to terminate service to the community. We oppose terminating EAS supported service to Kirksville, and respectfully urge DOT to consider accepting another air service proposal that demonstrates it can serve Kirksville's need while staying below the $200 per passenger cap established under the EAS program.
Without EAS supported air service, Kirksville is significantly isolated from regularly scheduled air service. With this distance comes difficultly in attracting and retaining businesses. Kirksville is located more than 100 miles away from the Interstate Highway System and 173 and 200 highway miles away from Kansas City International Airport and Lambert-St. Louis International Airport, respectively. In terms of driving time, Kirksville is located more than three hours away from either of these airports. In short, regular air service is Kirksville's economic development lifeline.
By: Kenny Hulshof, Kit Bond and Jim Talent
August 15, 2006
State Representative Kathy Chinn in Opposition to Termination of Service
By Order 2006-6-32,the Department of Transportation tentatively terminated Kirksville, Missouri's Essential Air Service eligibility and allowed RegionsAir Inc. d/b/a American Connection to terminate service to the community. I strongly oppose this order and support continued EAS subsidized flights to Kirksville.
By: Kathy Chinn, 573-751-2629, kathy.chinn@house.mo.gov
August 16, 2006
City of Kirksville in Opposition to Termination of Service and in Support of Mesa Air
The City of Kirksville is respectfully responding to Order 2006-6-32, the Department of Transportation tentatively terminating Kirksville, Missouri's Essential Air Service eligibility. We oppose terminating EAS supported service to Kirksville, and urge DOT to accept an air service proposal being submitted by MESA Air, that demonstrates it can serve Kirksville's need while staying below the $200 per passenger cap established under the EAS program.
The proposal being submitted by MESA Air has a much improved schedule with flights into Kansas City at times when the connectivity will be high. This will be a major improvement for our community. Should you find that MESA Air's proposal meets the program requirements, we respectfully request that DOT accept their proposal.
By: Mayor Martha Rove
August 17, 2006
RegionsAir Objection to Termination of Service
On June 15, 2005 (Order 2005-6-14), the DOT "selected RegionsAir status quo proposal #1, to serve all seven communities for the two-year period from June 1, 2005, through May 31, 2007, at a combined annual subsidy of $7,306,249 -- slightly above the carrier's current subsidy of $7,286,347." The DOT went on to state that it chose RegionsAir based on the four factors set forth in 49 U.S.C. 41733(c)(1). DOT went on to state that it chose RegionsAir because they provided the best relative subsidy costs, especially considering that the subsidy difference is spread among seven EAS communities.
Based on this Order (Order 2005-6-14) and having accepted Option 1, which included Kirksville, DOT entered into a contract with RegionsAir for two years beginning June 1, 2005 until May 31, 2007. DOT had the same historical traffic projections to which RegionsAir was privy. RegionsAir relying on said contract has incurred various costs and liability as well as projected a certain profit margin. From the time of the Request for Proposals, RegionsAir gave DOT a number of options. RegionsAir still has eight months on said contract. If said contract as it relates to Kirksville was now to be terminated pursuant to Order 2006-6-32 with eight months still left on the Option 1 Contract, DOT would be unjustly enriched to the detriment of RegionsAir who would now have to bear the additional costs of the unallocated overhead.
Ultimately by ordering the termination of subsidy for Kirksville while that community is under contract, DOT is attempting to circumvent Option 1; which it chose in favor of Option 2, without providing RegionsAir the benefit of the Option 2 proposal. DOT needs to provide RegionsAir the rates submitted in its proposal under Option 2 for the remainder of the contract term.
By: RegionsAir, Tracey Robinson-Coffee
August 10, 2006
Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit one proposal that demonstrates the ability to provide Essential Air Service below the $200 per passenger subsidy cap at Kirksville, Missouri. Mesa's proposed option would contemplate service to Mesa's growing hub in Kansas City.
All operations proposed would utilize our modern fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. Mesa has a long history of offering Essential Air Service throughout the country, from New Mexico to New York. We intend to operate this service under as US Airways Express.
Option #1 Hub(s) Service Annual Subsidy 1 MCI 2 RT: IRK to MCI
(1 RT on Sat, Sun)$627,100
Counsel: Air Midwest, Mickey Bowman
Issued August 22, 2006 | Served August 25, 2006
Order Selecting Carrier, Setting Subsidy Rate and Terminating Show Cause Proceeding
By this order. the Department is selecting Air Midwest, Inc., a wholly owned subsidy of Mesa Air Group, Inc., d/b/a US Airways Express, to provide essential air service at Kirksville. Missouri, at an annual subsidy rate of $627,100. This rate and carrier selection will become effective for the two-year period beginning when Air Midwest replaces RegionsAir, Inc. d/b/a American Connection at Kirksville. Also by this order, the Department is terminating the show-cause proceeding tentatively terminating subsidy at Kirksville because Air Midwest's proposal we are selecting is below the $200-per-passenger statutory ceiling.
By: Michael Reynolds
September 12, 2006
Comments of the City of Kirksville
The City of Kirksville, Missouri, greatly appreciates the Order Selecting Carrier Air Midwest Inc., subsidy of Mesa Air Group, Inc. to provide essential air service at Kirksville, Missouri. We look forward to Air Midwest serving the community with twice-a-day air transportation to and from Kansas City, Missouri.
By: Mayor Martha Rowe
October 6, 2006
DOT Letter in Response to RegionsAir Objection to Termination of Subsidy Eligibility
After careful consideration of all the relevant facts in this matter we have decided to deny your request to pay the higher subsidy rates for the six remaining communities served to St. Louis for several reasons. As your letter clearly indicates, RegionsAir was well aware of the possibility that Kirksville might drop out of the program because of the $200 cap, as we had expressed concern about the low number of passengers at Kirksville when we issued the Request for Proposals. By submitting a proposal in the context of a carrier-selection proceeding, a carrier assumes the risk that, during the contract term, changes in traffic and/or the per passenger subsidy rate might result in a community’s disqualification from the EAS program.
While I regret that I could not comply with your request, I hope this helps explain the Department’s reasoning in this matter.
By: Michael Reynolds
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
January 21, 2008
Notice of Air Midwest to Terminate Service
Air Midwest, Inc. respectfully serves notice upon the Department of Transportation, in accordance with 14 C.RR. §323.3 and 14 C.F.R. §323.4, of its intent to discontinue scheduled subsidized Essential Air Service between Kirksville, Missouri and Kansas City, Missouri effective April 20, 2008.
By Order 2006-8-19, August 25, 2006 Air Midwest was awarded a 24 month service agreement that commenced November 5, 2006 at an annual subsidy rate of $627,100 for providing 12 nonstop Kirksville-Kansas City roundtrips each week utilizing Beech 1900D aircraft.
The termination of service by Air Midwest will reduce air transportation at Kirksville to a level below the essential air service determination set forth in Order 2006-8-19. At present, Air Midwest is the sole provider of certificated scheduled air service at Kirksville, Missouri.
By: Mesa, Tom Bacon
Order 2008-2-2
OST-2002-13983 - Grand Island
OST-1997-3005 - McCook
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro
OST-2006-23931 - Columbia/Jefferson City
OST-2006-23932 - Joplin
OST-1997-2515 - Kirksville
Issued February 1, 2008 | Served February 6, 2008
Order Prohibiting Termination of Service and Requesting Proposals | Word
By this order, the Department is (a) prohibiting Air Midwest from terminating its subsidized service at the nine, above-captioned communities for 30 days beyond the end of its 90-day notice period, and (b) requesting long-term proposals from carriers interested in providing essential air service at any or all of the communities, with or without subsidy, by February 29.
On January 22, 2008, Air Midwest filed 90-day notices with the Department of its intent to terminate its subsidized service at all nine of the above-captioned communities, plus Manhattan and Salina, Kansas,2 effective April 21, 2008. Air Midwest’s parent company, Mesa Air Group, Inc. in its 4Q2007 Revenue and Earnings statement, said that it has incurred “significant losses (at Air Midwest),” and “with little prospect of future profitability we have reluctantly begun to liquidate those assets and operations.”
With respect to each community, we expect proposals consisting of service with 15-seat or larger aircraft to a suitable hub airport, with airline connections to the national air transportation system. Service levels should be comparable to those in the table on page 2 and in Appendix D. Grand Island has specifically requested that we solicit standalone service (not connected with another city) to Kansas City (18 weekly round trips) or a combination of Kansas City (12 weekly round trips) and Denver (6 weekly round trips) service. Communities and air carriers are encouraged to work together in advance of the due date for proposals to craft a service pattern that is desirable to the community and meets the operational needs of the airline interested in submitting a proposal. In addition, carriers should be very clear as to whether a specific community’s proposal is on a stand-alone basis, or whether it is part of a larger, inseparable package with other communities.
By: Michael Reynolds
OST-2002-13983 - Grand Island, NE
OST-1997-3005 - McCook, NE
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro, AR
OST-2006-23931 - Columbia/Jefferson City, MO
OST-2006-23932 - Joplin, MO
OST-1997-2515 - Kirksville, MO
February 27, 2008
Re: Extension of Proposal Dates
By Order 2008-2-2, February 1, 2008, the Department requested proposals from air carriers interested in providing essential air service at any or all of the above communities for a two-year period beginning when the selected carrier or carriers is ready to inaugurate service. In an email dated February 26, the Chief Operating Office of Hawaii Island Air requested a three-week extension of the due date for filing carrier proposals for all of the communities, from February 29 to March 21. He stated in his email that he needed the additional time to better assess the markets and determine the feasibility of filing a proposal. In response, also by email dated February 26, we requested input from each of the affected communities regarding the carrier's request. Most of the communities support the request, and none objected. Therefore, we will grant the request and extend the due date for carrier proposals from February 29 to March 21.
By: Dennis DeVany
OST-2002-13983 - Grand Island
OST-1997-3005 - McCook
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro
OST-2006-23931 - Columbia/Jefferson City
OST-2006-23932 - Joplin
OST-1997-2515 - Kirksville
February 26, 2008
Email Message - Hawaii Island Air Request for Three-Week Extension
Hawaii Island Air is requesting a 3 week extension to better assess market and cost analysis to determine feasibility of our pending EAS application. Our intent is to bring in Dash 8 -100's to service these communities and if awarded we would like to target initial service within a 3-6 month period. I am confident that we will be able to provide an upgraded service to what is presently available to these and other out-lying communities.
By: Hawaii Island Air, Les Murashige, lmurashige@islandair.com
March 18, 2008
Service Proposals of Air Choice One
Please find our proposals to provide Essential Air Service to the communities of El Dorado, AR; Harrison, AR; Hot Springs, AR; Jonesboro, AR; Kirksville, MO. We will utilize 9-seat, twin engine turbine powered, Raytheon/Beechcraft King Air configured for 9 passenger seats. For option 12 on Kirksville we would be using a twin engine piston aircraft with six passenger seats. The aircraft will be operating with two crew members 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
March 21, 2008
Proposals of Great Lakes Aviation
Great Lakes Aviation, Ltd. is pleased to submit these proposals to provide essential air transportation at these points in Arkansas, Missouri and Nebraska. Each proposal should be considered a stand alone proposal.
We were not able to provide a proposal for Kirksville, MO that would comply with current legislation which limits subsidy, per passenger, at a $200 maximum. El Dorado and Hot Springs, AR are not commercially feasible for Great Lakes to serve to hubs within our current system and we feel would be better served by a carrier with an established hub in Dallas, TX.
Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered at our Denver hub and utilize our codeshare and interline agreements, which will enable connecting bag service through our Kansas City and St. Louis hubs. All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.
By: Great Lakes, Michael Matthews, 307-432-7000
OST-2002-13983 - Grand Island, NE
OST-1997-3005 - McCook, NE
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro, AR
OST-2006-23931 - Columbia/Jefferson City, MO
OST-2006-23932 - Joplin, MO
OST-1997-2515 - Kirksville, MO
March 21, 2008
Proposals of Hawaii Island Air
Hawaii Island Air dba Island Air respectively submits 13 proposal options for Essential Air Service at these 7 markets. These options would provide passenger service to Kansas City International Airport operating as Island Air.
Island Air currently operates 37-seat DeHavilland Dash-8-100 series aircraft in our inter-island service, and plan on utilizing the same aircraft for this service. Island Air's primary goal, besides operating within our current communities, will be to commence service to these communities in a timely manner and feel comfortable with being able to commence service within 90 to 120 days of selection.
Island Air currently operates with code shares for United Airiines & Continental Airlines and plan on having those same code shares to these markets in Kansas City. We also plan on pursuing other code share relationships in Kansas City that would be beneficial to our customers.
We would like to also reserve the right to substitute a similar 30+ seat cabin-class aircraft in place of the Dash-8 in the future, allowing us to keep our options open to growing into other aircraft.
By: Hawaii Island Air, Les Murashige, 808-840-2310, lmurashige@islandair.com
OST-2002-13983 - Grand Island, NE
OST-1997-3005 - McCook, NE
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro, AR
OST-2006-23931 - Columbia/Jefferson City, MO
OST-2006-23932 - Joplin, MO
OST-1997-2515 - Kirksville, MO
April 1, 2008
DOT Memorandum Extending Comment Period
By Order 2008-2-2, February 1, 2008, the Department prohibited Air Midwest, Inc. from terminating service at the above communities and solicited requests for proposals for essential air service. Proposals were due February 29, 2008. On February 26, Hawaii Island Air requested a 3 week extension, so that it could better assess the market and its pending EAS application. On March 25, we sent an e-mail to all of the above communities that included all proposals received for service and requested comments by April 18, 2008.
In an e-mail received April 1, the City of Columbia, Missouri, notified us of its intention to "hold a public hearing regarding the EAS proposals so that the City Coimcil will have the opportimity to hear public comments prior to making the City's determination." The city would like to set a pubhc hearing for the April 21 council meeting.
In order to give the City of Columbia enough time to summarize its response to the hearing, we will extend the deadline for community comments at all of the communities until April 23, 2008.
By: Dennis DeVany
OST-2002-13983 - Grand Island, NE
OST-1997-3005 - McCook, NE
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro, AR
OST-2006-23931 - Columbia/Jefferson City, MO
OST-2006-23932 - Joplin, MO
OST-1997-2515 - Kirksville, MO
April 8, 2008
Withdrawal of Service Options of Island Air
Please accept this as Island Air's formal withdrawal of options 3,4,6,&13 that have McCook included.
We still look forward to the opportunity to serve the other airports in this RFP and appreciate the DOT's help with this matter.
By: Island Air, Jeffrey Hartz, imapilot@gmail.com
April 8, 2008
Re: Kirksville City Council Opts Out of 15-Seat Requirement - Will Reply by April 23
The Kirksville City Council, at their regular meeting of April 1, 2008, voted to opt out of the 15-seat requirement that is currently under the essential air service guidelines. The City Council is looking fonward to evaluating the proposals, and will submit a response to the United States Department of Transportation by April 23.
By: Mayor Martha Rowe, 660-627-1224
April 21, 2008
Re: City of Kirksville in Support of Air Choice One
After careful consideration. the City Council has recommended AirChoice One as the preferred air service carrier. Please note that we did meet with representatives from AirChoice One and Sf. Louis Lambert Field Airport. The Council is comfortable with the change in destination from MCI to STL.
By: Mayor Martha Rowe, 660-627-1225
OST-2006-23931 - Columbia
OST-1997-2515 - Kirksville
April 22, 2008
Re: City of Columbia in Support of Mesaba Airlines Option 3
Following public comment, Columbia's City Council made a motion recommending the City show support for the two Mesaba options, which are listed below in priority order:
By: City Manager, William Watkins
April 22, 2008
Re: Congressman Kenny Hulshof in Support of Mesaba Airlines and Air Choice One
I request that you respect the local stakeholder's preference and award the Columbia, Missouri EAS contract to Mesaba Airlines.
When taken in concert with the City of Kirksville's preference, there is a strong case for awarding the EAS contract to Air Choice One.
By: Kenny Hulshof
OST-2006-23931 - Columbia
OST-1997-2515 - Kirksville
April 25, 2008
Re: Letter from US Senator Christopher Bond
The Columbia City Council along with the city's Airport Advisory Board have carefully weighed each option and discussed the impact each proposal will have on the Columbia community. In doing so, they have selected a proposal that will best service the surrounding community by providing several daily flights to larger airports on.a schedule that will allow for the success of the airline. Please give the Columbia City Council recommendation full and favorable consideration when reviewing Essential Air Service for the community.
April 25, 2008
Re: DOT Letter to Congressman Kenny Hulshof
Thank you for your letter of April 22 regarding the essential air service situation at Columbia and Kirksville, Missouri. You expressed support for the selection of Mesaba Airlines, d/b/a Northwest Airlink, to serve Columbia, and for Multi-Aero, Inc., d/b/a Air Choice One, to serve Kirksville.
There is not a service hiatus at either community. In addition, by Order 2008-2-2, February 1, 2008, the Department is requiring Air Midwest to continue to serve both communities, as well as seven others, while we process a carrier-selection case for all of the communities.
By: Michael Reynolds
Order 2008-5-2
OST-2002-13983 - Grand Island, NE
OST-1997-3005 - McCook, NE
OST-1997-2935 - El Dorado/Camden, Harrison, Hot Springs and Jonesboro, AR
OST-2006-23931 - Columbia/Jefferson City, MO
OST-2006-23932 - Joplin, MO
OST-1997-2515 - Kirksville, MO
Issued and Served May 5, 2008
Order Selecting Carriers, Setting Final Subsidy Rates and Requesting Proposals - Bookmarked | Word
We request that carriers interested in providing essential air service at El Dorado/Camden, Arkansas, submit their proposals, with or without subsidy requests, no later than June 13, 2008.
The Department selects Hawaii Island Air d/b/a Island Air to provide essential air service at Grand Island, Nebraska, Harrison and Hot Springs, Arkansas, and Joplin, Missouri, as described in Appendix C, pages 1-4, beginning when the carrier inaugurates full service at all four communities through the 24th month thereafter.
The Department selects Great Lakes Aviation, Ltd. to provide essential air service at McCook, Nebraska, and Jonesboro, Arkansas, as described in Appendix C, pages 5 and 6, beginning when the carrier inaugurates full service at both communities through the 24th month thereafter.
The Department selects Mesaba Aviation, Inc. d/b/a Northwest Airlink to provide essential air service at Columbia/Jefferson City, Missouri, as described in Appendix C, page 7, beginning when the carrier inaugurates service through the 24th month thereafter.
The Department selects Multi-Aero, Inc. d/b/a Air Choice One to provide essential air service at Kirksville, Missouri, as described in Appendix C, page 8, beginning when the carrier inaugurates service through the 24th month thereafter.
The Department sets the final rate of compensation for Hawaii Island Air d/b/a Island Air for the provision of essential air service at Grand Island, Nebraska, Harrison and Hot Springs, Arkansas, and Joplin, Missouri, as described in Appendix B, page 1, payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceilings set forth in Appendix C, pages 1-4, and shall be determined by multiplying the subsidy-eligible flights completed during the month by $1,233.08 (Grand Island); $1,949.02 (Harrison); $1,140.67 (Hot Springs); and $703.09 (Joplin).
The Department sets the final rate of compensation for Great Lakes Aviation, Ltd. for the provision of essential air service at McCook, Nebraska, and Jonesboro, Arkansas, as described in Appendix B, page 2 and 3, payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceilings set forth in Appendix C, pages 5 and 6, and shall be determined by multiplying the subsidy-eligible flights completed during the month by $1,290.36 (McCook); and $1,310.01 (Jonesboro).
The Department sets the final rate of compensation for Mesaba Aviation, Inc. d/b/a Northwest Airlink for the provision of essential air service at Columbia/Jefferson City, Missouri, as described in Appendix B, page 4, payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceilings set forth in Appendix C, page 6, and shall be determined by multiplying the subsidy-eligible flights completed during the month by $1,083.54.
The Department sets the final rate of compensation for Multi-Aero, Inc. d/b/a Air Choice One for the provision of essential air service at Kirksville, Missouri, as described in Appendix B, page 5, payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceilings set forth in Appendix C, page 8, and shall be determined by multiplying the subsidy-eligible flights completed during the month by $717.23.
By: Michael Reynolds
May 14, 2008
Re: Service Termination of Air Midwest
Air Midwest reluctantly advises the Department that it has decided to discontinue all air carrier operations, liquidate its assets and surrender its FAA and DOT certificates. The service terminations will occur on the following schedule:
Air Midwest has no choice but to shutdown operations. Air Midwest has determined that it does not have the financial resources to continue air carrier operations. Air Midwest is in severe financial distress due to the fact that it has incurred significant and unrelenting losses over many years and has no prospect of future profitability, particular in light of current conditions, including record high fuel prices.
This decision should come as no surprise to the Department as Air Midwest previously advised the Department of its intention to withdraw its services beginning over a year ago with its first traunch of termination notices. In addition, representatives of Air Midwest met with Dennis DeVany on March 6, 2008 to advise that Air Midwest would shortly go out of business.
While the Department solicited proposals for subsidized replacement service at these points, to date replacement services have commenced at only six points-Cedar City, Moab, Vernal, Manhattan, Salina and Alamogordo. Over nine months ago the Department selected Great Lakes Aviation to provide subsidized essential air service at Merced, Visalia, and Ely, but inexplicably Great Lakes has not yet commenced its proposed service at those points.
Air Midwest's situation is similar to the situations involving Big Sky Airlines and Skyway Airlines, both of which terminated all of their air services earlier this year. On December 20, 2007, Big Sky announced its intent to terminate all service on January 7, 2008. Although the Department issued a hold-in Order and sought replacement carriers on an emergency basis, it recognized that Big Sky would not provide service during the hold-in period. See DOT Order 2007-12-20. Similarly, Skyway Airlines terminated all air service on April 5, 2008, after a long hold-in period and prior to the commencement of service by replacement carriers. As with Big Sky and Skyway, Air Midwest does not have the financial wherewithal to continue its air carrier operations.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
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