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OST-1997-2761

http://www.flybeckley.com/
http://www.ci.bluefield.wv.us/
http://www.princetonwv.net/

EAS Docket

Essential Air Service at Beckley, Bluefield/Princeton, West Virginia

Order 1997-7-23
OST-1997-2761

Issued July 24, 1997 | Served July 30, 1997

Order Revising Service and Subsidy Rate

By this order, the Department is allowing Colgan Air, Inc., d/lo/a Continental Express, to begin operating its essential air service from Beckley and Bluefield/Princeton, West Virginia, to Dulles International Airport rather than the communities' traditional hub of Charlotte, effective immediately. In addition, the Department is increasing the service levels and subsidy rate for Colgan's service at the two communities beginning October 1, 1997, or when the increased service pattern is implemented, whichever is later, through the remainder of the carrier's present rate term, which ends on July 31, 1998.

Appendix A | Appendix B | Appendix C | Appendix D

By: Charles Hunnicutt

Order 1998-7-2 | OST-1997-2761 | Issued July 1, 1998 | Served July 8, 1998

Order Tentatively Reselecting Carrier and Setting Subsidy Rate

By this order, the Department is tentatively reselecting Colgan Air, Inc., d/b/a Continental Connection, to provide essential air service at Beckley and Bluefield/Princeton, West Virginia,for the two-year period beginning August 1, 1998, at an annual subsidy rate of $1,255,024,and providing for objections or competing proposals from other interested carriers.

• Appendix A: Map with Surrounding Area
• Appendix B: Colgan Air, Inc. d/b/a Continental Connection Annual Compensation Requirement
• Appendix C: Historic Enplanements
• Appendix D: Colgan Air, Inc. d/b/a Continental Connection Essential Air Service
• Appendix E: Service List

By: Charles Hunnicutt

Order 2000-8-16 is tentatively reselecting Colgan Air, Inc., d/b/a US Airways Express, to provide essential air service at Beckley and Bluefield/Princeton, West Virginia, for the two-year period beginning August 1, 2000, at an annual subsidy rate of $1,715,060, and providing for objections or competing proposals from other interested carriers.

By:  Francisco Sanchez

By:  US Airways Express, Michael Colgan

By:  City of Beckley, Emmett Pugh 

By:  Raleigh County Memorial Airport, Tom Cochran

By:  Mercer County Airport Authority, John Gilley

Order 2002-3-27 sets short-term subsidy rates, retroactive to October 1, 2001, for Colgan Air's essential air service (EAS) at Augusta/Waterville, Bar Harbor, and Rockland, Maine, and Rutland, Vermont, through December 31, 2002; at Presque Isle, Maine, through May 31, 2003; and at Beckley and Princeton/Bluefield, West Virginia, trhough July 31, 2002.

Colgan was selected to provide subsidized service to Beckley and Princeton/Bluefield by Order 2000-8-16, with the rate due to expire on July 31, 2002; to Presque Isle/Houlton, Maine, by Order 2001-2-9, expiring May 31, 2003; and at Augusta/Waterville, Bar Harbor, and Rockland, Maine, and Rutland Vermont, by Order 2001-1-22, expiring December 31, 2002. Colgan and the staff have agreed to new subsidy rates for its three subsidized routes. On each route, we have recognized decreased revenue based on the carrier's actual experience since October 1, 2001, and a projected gradual recovery of traffic going forward.

By:  Read Van de Water

After a thorough review of Colgan's proposal and its recent service history, we have tentatively decided to select Colgan's Option B for its service at Beckley and Bluefield/Princeton for the two-year period beginning August 1, 2002. The rate appears reasonable for the service to be provided, and Colgan's performance continues to be satisfactory. When we last selected Colgan to serve Beckley and Bluefield/Princeton for the two-year period beginning August 1, 2000, we expressed concern that traffic at the communities no longer justified four round trips a day. As we noted at the time, the communities' traffic has declined substantially since the early 1990s, when each of them generated more than 30 enplanements a day. Traffic has shown little improvement since we last reviewed the communities' requirements. During the 12-month period ended September 30, 2001, Beckley averaged just 7.2 enplanements a day and Bluefield/Princeton 9.0 enplanements a day -- a total of just 16 passengers for 76 seats.⁵ Under the circumstances, we have concluded that three round trips a day will more efficiently meet the communities' current needs.

As usual, we will allow interested parties 20 days from the date of this order to object to our decision or to file competing proposals. If no timely objections or competing proposals are filed, this order will automatically become final. We expect persons objecting to our tentative decision to support their objections with relevant and material facts. We will not entertain general, vague or unsupported objections.

By:  Read Van de Water

Response of Mesa Air Group on Behalf of its wholly-owned subsidiary Air Midwest Show Cause Order 2002-4-25 for Competitive Proposals between Pittsburgh, PA & Beckley Bluefield, W.V. Mesa Air Group on behalf of it wholly owned subsidiary, Air Midwest, Inc. hereby submits an alternative proposal per the requirements of Order 2002-4-25 for Essential Air Service between Pittsburgh, PA and Beckley, WV & Bluefield, WV.

Counsel:  Mesa Air Group, Scott Lyon , 602.685.4108, scott.lyon@mesa-air.com

We feel that Colgan Air has provided above average service to our market and maintained a very helpful attitude throughout their tenure here.

By:  Mercer County Airport, John Gilley

Our two Southern. cities in West Virginia, (Beckley/Bluefield) being served by Colgan Air, Inc has proven to be a positive direction for our Air Service requirements for this community. On May 2, 2002 we received a copy of Order 2002-4-25 tentatively reselecting Colgan Air, Inc., to continue to provide Essential Air Service to our area. However, a notice advising us that Mesa Airlines has filed a counter proposal to provide this same service followed this order. Although both carriers are qualified to provide this service, we are very pleased with the service Colgan Air has offered the Beckley, Raleigh County area for the past 8 years. Recent affiliation with US Airways Express has further enhanced their ability to serve our community with better connections and matching fares. Colgan Air presently bases the Beech 1900 D at Beckley, that dedicates this aircraft to daily service, which gives us an early morning departure for Pittsburgh that has received positive support from the business as well as the leisure traveler. The proven track record Colgan Air has displayed over the past 8 years to this community, gives opportunity to future growth in our Air Service, complementing economic stability for the citizens of Raleigh and surrounding Counties. Therefore, we are reluctant to switch to another carrier, and we respectfully request the Department of Transportation reject the Show Cause submitted by Mesa Airlines, and allow the order reselecting Colgan Air, Inc., to stand. Thank you for consideration of this request.

By:  Tom Cochran, Airport Manager 

Mesa Air Group, Inc., on behalf of its subsidiary, Air Midwest, Inc., respectfully withdraws, without prejudice, its proposal to provide Essential Air Service, OST 1997-2761-14, at Beckley, West Virginia and Bluefield, West Virginia.

By: Scott Lyon

Since the only competing proposal has been withdrawn and we have received no objections, we will finalize the tentative findings and conclusions set forth in Order 2002-4-25, and thus select Colgan to provide subsidized service at Beckley and Bluefield/Princeton for the two-year period beginning August 1, 2002, under the terms and at the subsidy rate contained in that order.

By: Randall Bennett

Order 04-04-13
OST-97-2761

Issued April 20, 2004 | Served April 23, 2004

Order Requesting Proposals

By Orders 2002-4-25, April 29, 2002, and 2002-10-34, October 28, 2002, the Department selected Colgan Air, Inc., d/b/a US Airways Express, to provide subsidized essential air service at Beckley and Bluefield for the two‑year period through July 31, 2004, by operating 18 nonstop or one‑stop round trips a week to either Pittsburgh or Washington's Dulles International Airport with 19‑seat Beech 1900 aircraft at a subsidy of $2,067,693 annually.

As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at the communities, with or without subsidy, for the two year period beginning August 1, 2004. Carriers should file their proposals within 30 days of the date of service of this order. At the end of that period, our staff will docket the proposals, thereby making them public, and direct each carrier to serve a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will provide a summary of the proposals to the communities and ask them to submit their final comments. We will give full consideration to all proposals that are timely filed.

By: Karan Bhatia

May 25, 2004

Re: Proposal of Colgan Air

After discussing various service options with the communities, Colgan's proposal provides a variety of options which are intended to enhance the service to the communities.

• Option A offers 18 nonstop or onestop roundtrips per week from the two communities to Pittsburgh and requires a subsidy of $1,968,936
• Option B offers 18 nonstop or onestop roundtrips per week from the two communities to Washington's Dulles International airport and requires a subsidy of $1,967,715
• Option C offers 18 nonstop or onestop roundtrips per week from the two communities to Charlotte Douglas International airport and requires a subsidy of $1,916,880
• Option D offers 12 nonstop or onestop roundtrips per week from the two communities to Charlotte Douglas International Airport and 6 nonstop or onestop roundtrips per week from the two communities to Columbus, OH and requires a subsidy of $1,986,292
• Option E offers 12 nonstop or onestop roundtrips pre week from the two communities to Washington's Dulles International and 6 nonstop or onestop roundtrips per week from the two communities to Columbus, OH and requires a subsidy of $2,017,064

Service to Charlotte, lAD and Columbus is subject to the approval of US Airways in order to be operated using the US Airways code. The goal of providing service to other gateways is to allow for better connecting opportunities that would enhance the service options from the two communities.

By: Michael Colgan

May 20, 2004

Re: Proposal of Corporate Airlines

By: Corporate Airlines

May 24, 2004

Re: Proposal of Mesa Air Group d/b/a Air Midwest

Mesa Air Group, Inc. d/b/a Air Midwest is pleased to submit a proposal to provide Essential Air Service at Beckley & Bluefield, West Virginia. Service options include traditional Pittsburgh-only patterns of varying frequency levels. However, in light of recent passenger declines, we have also included some bolder options with service to Dulles, which is fast becoming a low-fare battleground and may help restore pre-9/11 enplanements. All flights will be operated with a pressurized turboprop Beech 1900D aircraft with 19 seats.

All options would be operated with a US Airways code share, however we hope to leverage our existing relationship and related agreements to extend a United code to options #3 and #4.

By: Scott Lyon

May 25, 2004

Re: Ex Parte Letter to the Honorable Emmett Pugh, III

By: Dennis DeVany

May 25, 2004

Re: Ex Parte Letter to the Honorable Robert Perkinson, Jr.

By: Dennis DeVany

May 25, 2004

Re: Ex Parte Letter to the Honorable Ron Lively

By: Dennis DeVany

June 3, 2004

Re: Selection of Colgan Air for EAS

The City of Beckley has reviewed the various proposals concerning the Essential Air Service subsidy and offers the following comments:

Colgan Air, Inc., the current carrier, offers the proposal which I feel will meet the needs of our area. Specifically, Colgan Option D with 12 scheduled trips to Charlotte Douglas International Airport and 6 scheduled trips to Columbus, Ohio is the preferred option for the City of Beckley. The subsidy for this option is $1,986,292. Colgan Option E with 12 scheduled trips to Washington Dulles and 6 scheduled trips to Columbus, Ohio is our second option. This would require a subsidy of $2,017,064.

By: Emmet Pugh III

June 3, 2004

Re: Raleigh County Memorial Airport Comments on EAS Options

The present carrier Colgan Air Inc., has served this area for several years with safety, efficiency and interest in our market. The proposal Option "1)" by Colgan Air, as our first choice and will impact our airport in a more positive direction for the future, with 12 scheduled Rights to Charlotte Douglas International Airport, and 6 scheduled flights to Columbus, Ohio requiring a subsidy of $1,986,292.

As a second option, Colgan Air option "E" with 12 scheduled flights to Washington, Dulles, and 6 scheduled flights to Columbus, Ohio requiring a subsidy of $2,017,064.

By: Tom Cochran

June 9, 2004

Re: Mercer County Airport Letter in Support of Colgan Air

Over the past year, boardings are down for Bluefield. A review of the contributing factors in this decline reveal that these factors have been temporary ones and have been remedied. First, a series of power outages affected service and accounted for 56 cancellations. A new power line was placed and no service interruptions have been experienced since this time.

Secondly, a series of dates were designated by the PIT hub for closing, which resulted in a decline of connecting flights of 40%. This was due in no part by our airport, but was generated by a drop in demand for service from PIT and was perceived to be due to the trepidation created by the war in Iraq. No such closings are anticipated at this time; however, US Airways has indicated that they wish to downgrade their status from "hub city" to "focus city" which makes it less desireable as our designated route.

By: Barry Wiley II

Order 04-06-14
OST-97-2761 - Essential Air Service at Beckley and Bluefield/Princeton, WV

Issued June 18, 2004 | Served June 23, 2004

Order Selecting Carrier and Establishing Subsidy Rate

By this order, the Department is selecting Colgan Air, Inc., d/b/a US Airways Express, continue providing essential air service at Beckley and Bluefield/Princeton, West Virginia, the two-year period beginning August 1, 2004, at an annual subsidy of $2,017,064. After a thorough review of the three carriers' proposals and both communities' comments, we have decided to select Colgan's Option E for the new two-year period. Our decision is consistent with the communities' preferences, Colgan's proposed rate is reasonable for the service at issue, and Colgan's performance continues to be satisfactory.

By: Karan Bhatia

July 13, 2004

Re: Request for an Extension of the Current Operating Subsidy (Colgan)

Colgan Air respectfully requests an extension of the current operating subsidy set forth in Order 2002-4-25 until September 12, 2004. As a US Airways Express carrier, Colgan Air is subject to the system schedule submission rules set forth by US Airways. The Order re-selecting Colgan was issued after the US Airways system schedule deadline for August. As such, the earliest possible date for transition to the new service option set forth by Order 2004-6-14 is September 13, 2004.

By: Pati Barth

Order 04-07-20
OST-97-2761 - Essential Air Service at Beckley and Bluefield/Princeton, WV

Issued July 22, 2004 | Served July 27, 2004

Order | Word

We will grant Colgan’s request by extending the current rate until Colgan implements the new service pattern or until October 1, whichever is first, at which time the new rate will become effective. If Colgan has not implemented the new service pattern by October 1, the new, slightly lower subsidy rate will nonetheless become effective on that date. Although the effective date of the new rate term is being briefly postponed here, it will continue to run through July 31, 2006.

By: Karan Bhatia

May 2, 2005

Re: Comments of Mercer County Airport

On April 21, 2005 the Mercer County Airport Authority met and unanimously approved the discontinuation of the Columbus Service. Colgan has made a commitment to provide additional service to Washington‑Dulles.

By: Randall Earnest, Manager

May 3, 2005

Re: Comments of Raleigh County Memorial Airport

In a diligent effort to make changes of improvement to the EAS Air Service program at Raleigh County Memorial Airport (BKW), we are requesting approval from your office to discontinue service from Beckley, WV to Columbus, OH, and add the flight to Dulles International Airport maintaining a total of 18 flights a week.

On March 28, 2005 the Raleigh County Airport Authority passed a motion to discontinue Air Service to Columbus, OH by a unanimous vote of all board members present. It is the concern of this board that the community can be better served with this new proposal, adding more frequency to the Dulles market. With this schedule, we will also be able to protect our military inductees that fly from this Airport, and will offer more code sharing opportunities to the flying public.

By: Tom Cochran, Manager

May 3, 2005

Re: Request of Colgan Air

Despite efforts by both Colgan Air, Inc and the communities, the ridership of the Columbus service has yet to materialize. In ajoint meeting with airport managers from Beckley and Bluefield, it was determined that the community would be better served by discontinuing the Columbus service and reinstating a third round trip flight to Washington Dulles International Airport.

Colgan Air, mc, in cooperation with each community, hereby requests the Departments approval to discontinue Columbus service and reinstate a third weekly round trip to Dufles originally proposed as Option B in the request for proposals requiring a subsidy of $1,955,715 with adjustments. Upon the department's approval, Colgan Air, Inc anticipates the alternate service pattern become effective July 2005.

By: Michael Colgan, President

Order 2005-5-16
OST-1997-2761

Issued May 31, 2005 | Served June 3, 2005

Order Approving Alternate Service Pattern and Revising Subsidy Payout

In a letter dated May 3, Colgan requests that it be permitted to implement an alternate service pattern for Beckley and Bluefield/Princeton by operating all of the communities' services‑‑i.e., all 18 round trips a week‑‑to Dulles. Colgan also states that it is prepared to accept a modified subsidy of $1,955,715 annually for the alternate service pattern. Colgan anticipates implementing the new service pattern in July.

We will approve Colgan's request to implement the alternate service pattern, and will revise Colgan's subsidy payout to reflect its modified subsidy request. Colgan's proposal is supported by both communities and will reduce the subsidy necessary to maintain their services.

By: Karan Bhatia

Order 2006-5-8
OST-1997-2761

Issued May 11, 2006 | Served May 16, 2006

Order Requesting Proposals - Bookmarked

By Orders 2004-6-14 and 2004-7-20, the Department selected Colgan Air d/b/a US Airways Express to provide subsidized essential air service at Beckley and Bluefield/Princeton for the two-year period through July 31, 206, by operating 12 non-stop or one-stop trips a week to Washington's Dulles International Airport plus 6 to Columbus with 19-seat Beech 1900 aircraft at a subsidy of $2,017,064 annually. Later, by Order 2005-5-16, the Department approved Colgan's request to operate all of the communities' services - i.e. all 18 round trips a week - to Dulles, at a slightly reduced subsidy of $1,955,715 annually.

As the end of the current rate term approaches, we will seek proposals with or without subsidy requests, from carriers interested in providing replacement service at Beckley and Bluefield/Princeton.

With respect to Beckley and Bluefield/Princeton specifically, we request proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft containing at least 15 passenger seats, and offering 18 round trips a week to Dulles, Charlotte, Pittsburgh, or any other suitable hub.

By: Michael Reynolds

June 12, 2006

Civic Letters of Support

By: Mercer County Airport Authority, Barry Wiley

June 16, 2006

Proposal of Colgan Air

Colgan respectfully submits a proposal to continue providing subsidized service between the community of Beckley, West Virginia and Washington's Dulles International Airport. This proposal uses Beech-1900D aircraft and would require an annual subsidy of $1,930,759.

Unfortunately, we are unable to provide an economic proposal for Bluefield/Princeton, West Virginia, given the statutory ceiling that limits the allowed subsidy for service to this community. However, we are prepared to continue to provide one-stop or tag service to Bluefield/Princeton, West Virginia on an unsubsidized basis as long as the service remains economically viable.

The proposed service would offer Beckley 18 non-stop flights each week to Washington Dulles of which not more than 9 may become one-stop flights via Bluefield. Colgan also will reserve the right, subject to community and DOT approval, to upgrade service to Saab-340A or Saab-340B aircraft while decreasing the number of weekly trips to 12 non-stop flights of which not more than 6 may become one-stop flights via Bluefield for the same subsidy rate. This upgrade would allow for cabin class aircraft as well as the ability for the service to carry a different code that improves connectivity via Washington Dulles.

Origin	Destination	Departs	Arrives	Stops	Equipment
BKW	IAD	635	745	0	BE1
IAD	BKW	825	935	0	BE1
BKW	IAD	1100	1210	0	BE1
IAD	BKW	1250	1400	0	BE1
BKW	IAD	1525	1635	0	BE1
IAD	BKW	1720	1830	0	BE1

By: Michael Colgan, 703-331-3101

June

Proposals of RegionsAir - Bookmarked

Option 1, Using Saab 340A:

		Flight #	Departs	Arrives	Frequency
BKW	CLE	5540	7:00	8:32	X7
CLE	BKW	5541	10:00	11:32	X6

Option 2, Using British Aerospace Jetstream 32:

		Flight #	Departs	Arrives	Frequency
BKW	BLF	5540	7:00	7:30	X7
BLF	BKW	5540	8:00	9:00	X7
CLT	BLF	5541	10:00	11:00	X6
BLF	BKW	5541	11:30	12:00	X7
BKW	BLF	5542	16:00	16:30	X6
BLF	CLT	5542	17:00	18:00	X6
CLT	BLF	5543	18:30	19:30	X6
BLF	BKW	5543	20:00	20:30	X6

Option 3, Using British Aerospace Jetstream 32:

		Flight #	Departs	Arrives	Frequency
BKW	CLT	5540	7:00	8:05	X7
CLT	BKW	5541	9:00	10:05	X7
BKW	CLT	5542	17:00	18:05	X6
CLT	BKW	5543	19:00	19:05	X6

Option 4, Using Saab 340A:

		Flight #	Departs	Arrives	Frequency
BKW	CLT	5540	7:00	8:15	X7
CLT	BKW	5541	9:00	10:15	X7
BKW	CLT	5542	17:00	18:15	X6
CLT	BKW	5543	19:00	19:15	X6

By: RegionsAir

Order 2006-6-22
OST-1997-2761

Issued June 21, 2006 | Served June 26, 2006

Order Terminating Subsidy Eligibility and Allowing Suspension of Service

By Order 2006-5-8, May 11, 2006, the Department requested proposals from carriers interested in providing essential air service at Beckley and Bluefield/Princeton, West Virginia, with or without subsidy, for a new two-year rate period beginning August 1, 2006. Under the current rate term, which ends on July 31, Colgan has been operating 18 round trips a week from the two communities to Washington’s Dulles International Airport with 19-seat Beech 1900 aircraft at a subsidy of $1,955,715 annually.

We stated that, if we did not receive realistic proposals with subsidy requests under the ceiling, we would terminate Bluefield/Princeton’s subsidy eligibility and allow Colgan to discontinue its service there at the end of the current rate term.

Without any carrier proposals meeting the program’s statutory eligibility requirement, we must terminate Bluefield/Princeton’s subsidy eligibility and allow Colgan Air to suspend service there, if it chooses. As we indicated in Order 2006-5-8, our decision will be effective August 1, the end of the current rate term.

By this order, the Department is terminating the essential air service subsidy eligibility of Bluefield/Princeton, West Virginia, as of August 1, 2006, and allowing Colgan Air, Inc., d/b/a US Airways Express, to suspend service there as of the same date, if it chooses.

By: Michael Reynolds

June 21, 2006

DOT Letter Requesting Comments of:

• Mayor of Beckley

As you know, by Order 2006-5-8, May 11, 2006, the Department requested proposals from carriers interested in providing scheduled air service at Beckley and Bluefield/Princeton, with or without subsidy, for a new two-year period beginning August 1, 2006. In Bluefield/Princeton's case, however, the order noted that the Department could only consider proposals containing subsidy requests that met the essential air service program's statutory limit of $200 per passenger.

In response to our request, we have received proposals from two carriers: Colgan Air, Inc., and RegionsAir, Inc.

We would appreciate receiving your final comments on the carriers' proposals before we make our recommendation to the Assistant Secretary. We ask that you submit your comments within two weeks of receipt of this letter.

By: Dennis DeVany

June 27, 2006

Re: City of Beckley Support for Colgan Air's Proposal

In reviewing the proposals, I feel the Colgan Air proposal of 12 round trips per week to Dulles International using the 30-seat Saab 340A or 340B aircraft best fits the needs of our community. One of the main concerns I receive from the public is the size of the aircraft operating out of Beckley. The use of the 30-seat Saab would be a vast improvement over the current 19-seat Beech 1900.

By: Emmett Pugh, Mayor

June 27, 2006

Re: Raleigh County Memorial Airport Authority Support for Colgan Air's Proposal

In a meeting of the Raleigh County Memorial Airport Authority (BKW) on June 27, 2006, it was a unanimous decision of the board to accept the proposal offered by Colgan Air Inc., with 18 nonstop round trips a week to Washington DC Dulles Airport , and with the option to upgrade service to the Saab‑340. As a rural community and Airport Authority we are appreciative of the EAS program and what it means to our economic future, we continue to capture the market in this area and in southern West Virginia as is reflected in our enplanement numbers as apposed to last year.

By: RCMAA

Order 2006-7-2
OST-1997-2761

Issued July 3, 2006 | Served July 7, 2006

Order Selecting Carrier and Establishing Subsidy Rates

After a thorough review of the carriers' proposals and the community's comments, we have decided to select Colgan for a new two‑year period. Colgan's proposed subsidy is reasonable for the service at issue, and its performance continues to be satisfactory. In authorizing subsidy for Colgan's service, we will establish rates for both 18 round trips a week with 19‑seat aircraft and, alternatively, 12 round trips a week with 30‑seat aircraft.

RegionsAir's Option 2 was the only proposal that included subsidized service for Bluefield/Princeton. Although RegionsAir's subsidy request for Bluefield/Princeton falls within the $200 ceiling, Option 2 is problematic and deficient in other respects. It is predicated on RegionsAir's being able to operate the route as US Airways Express, but RegionsAir does not currently have a code-share alliance with US Airways at Charlotte or anywhere else. Furthermore, RegionsAir was able to limit its subsidy requirement only by limiting Beckley to just two round trips a day, or a total of 38 seats a day in each direction, less seat preemption at Bluefield/Princeton.

By: Michael Reynolds

July 17, 2006

Mercer County Airport Request for a 20 Day Extension to File Comments

The community of Bluefield, WV respectfully requests that the United States Department of Transportation provide community members and interested persons with adequate time to respond to the Department's Order 2006-6-22 Tentatively Terminating Subsidy Eligibility and Allowing Suspension of Service, at Bluefield/Princeton, WV.

We understand the Department recently concluded a period in which it unsuccessfully solicited bids from air carriers able to offer continued air service to Bluefield/Princeton under the $200 per passenger subsidy cap however, we feel members of our respective communities and our congressional delegation deserve an opportunity to properly respond to the DOT'S abrupt termination announcement.

While the Department typically provides interested persons with 20 days after the service date of a termination order to respond, this opportunity was never expressed to us, nor was it included in our termination order, which I should mention was never formally served to our community and not viewed until recently.

We therefore request that the DOT provide our community with at least 20 days in order to provide comments related to the Department's recent termination order. We will also utilize this time to once again seek the services of an air carrier who is willing to provide subsidized service under the $200 per passenger cap. An extension of 20 days or more would be a good faith gesture on behalf of the DOT as this could be our last opportunity to retain commercial air service.

By: Randall Earnest

July 24, 2006

DOT Response to Request for 20 Day Extension

Thank you for your letter of July 17 requesting a 20-day extension in regards to the Department's decision to terminate Bluefield/Princeton's essential air service subsidy eligibility as of August 1. You contend that you were not appropriately apprised of the termination, and you seek another opportunity to obtain a carrier to provide service.

We approved Colgan Air's switch to all-Dulles service, which was supported by the community, and we sent a letter to the two mayors dated May 27, 2005. In those letters, we clarified that we would continue to monitor the community's air traffic and if traffic did not improve sufficiently to bring the community's subsidy per passenger below the statutory $200-per-passenger subsidy ceiling, we would terminate subsidy for its service.

We waited until the current rate term was nearing its end before taking further action, and gave the community a final opportunity by issuing Order 2006-5-8 on May 11, 2006, which requested viable air carrier proposals for a new rate term within the program's $200 ceiling. Immediately after issuing the Order, Ed Niederberger of my staff faxed the order directly to you. Your congressional representatives were also informed of the process. In fact, I made some of those contacts myself.

After receiving no viable carrier proposals, we issued Order 2006-6-22, which terminated Bluefield/Princeton's subsidy as of August 1. Once again, your congressional representatives were notified of our decision to terminate the community's subsidy. Moreover, shortly after issuing Order 2006-6-22, Mr. Niederberger and his supervisor, Dennis DeVany, spoke on the phone with Mr. Blair Couch, the Hertz station owner. On June 23, two days after Order 2006-6-22 was issued, the Beckley Register-Herald published an article about the Department's decision in which Mr. Charlie Peters, President of the Mercer County Airport Authority, discussed the decision.

While we at the Department are sympathetic to your situation, we believe the record demonstrates that we have kept the community very well informed of developments and provided every reasonable opportunity to bring the subsidy rate below the $200 cap, as well as to seek out alternative carriers. Your letter does not suggest that there is any realistic prospect that the situation will suddenly reverse itself, and we frankly see no prospect for that happening either. Under the circumstances, your request for an extension is denied.

By: Michael Reynolds

August 14, 2007

Notice of Colgan Air to Terminate Service

Colgan Air, Inc. respectfully serves notice upon the Department of Transportation of our intent to discontinue scheduled air service at Bluefield/Princeton, West Virginia effective November 12, 2007.

By Order 2006-6-22 the Department terminated subsidy eligibility for Bluefield/Princeton effective August 1, 2006 and allowed "Colgan Air to suspend serve there, if it chooses."

Colgan has decided to re-work our aircraft fleet to better serve our other EAS markets, this rework will require Colgan's Washington Dulles based Beech-1900 aircraft be upgraded to Saab-340s. Although we would prefer to continue serving the community; the economics of serving Bluefield/Princeton without subsidy along with the airfield's inability to efficiently handle the Saab-340 make it impossible for Colgan to continue service.

At present time Colgan is the only provider of air service to Bluefield/Princeton and they realize that the termination of service will leave Bluefield/Princeton without scheduled air service.

By: Colgan, Michael Colgan, 703-331-3101

Order 2007-9-14
OST-1997-2761

Issued September 13, 2007 | Served September 18, 2007

Order Allowing Suspension of Service

We will allow Colgan to suspend its service at Bluefield/Princeton at the end of its 90-day notice period, as of November 13. Bluefield/Princeton’s service is no longer eligible for subsidy under the statute. Because we cannot pay subsidy for Colgan’s service, we cannot require Colgan to continue service beyond the end of the notice period. For over a year, in fact, CoIgan has continued serving the community although it no longer had any obligation to do so.

By: Michael Reynolds

Order 2008-2-23
OST-1997-2761

Issued February 19, 2008 | Served February 22, 2008

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Beckley, West Virginia, for the two-year period beginning August 1, 2008. Carriers should file their proposals no later than March 27.

On November 13, 2007, Colgan discontinued its unsubsidized service at nearby Bluefield/Princeton, West Virginia, with which Beckley's flights had long been linked, and upgraded its aircraft on the route from Beeches to the larger Saabs while continuing to operate 18 nonstop round trips a week rather than dropping down to 12 as allowed under Order 2006-7-2. Very recently, on February 18, 2008, Colgan began operating 12 of those 18 round trips via Staunton, Virginia. Consequently, Colgan now operates 6 nonstop and 12 one-stop round trips a week from Beckley to Dulles with Saabs.

With respect to Beckley specifically, we request proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft containing at least 15 passenger seats, and offering 12 nonstop or one-stop round trips a week with 30-seat or larger aircraft, or 18 nonstop or one-stop round trips a week with 15- to 19-seat aircraft, to Dulles, Charlotte, Pittsburgh, or any other suitable hub.

By: Todd Homan

Order 2008-3-35
OST-1997-2761

Issued March 31, 2008 | Served April 3, 2008

Order Resoliciting Proposals

By this order, the Department is resoliciting proposals from carriers interested in providing essential air service at Beckley, West Virginia, for the two-year period beginning August 1, 2008.

On November 13, 2007, Colgan discontinued its unsubsidized service at nearby Bluefield/Princeton, West Virginia, with which Beckley's flights had long been linked, and upgraded its aircraft on the route from Beeches to the larger Saabs while continuing to operate 18 nonstop round trips a week rather than dropping down to 12 as allowed under Order 2006-7-2. Very recently, on February 18, 2008, Colgan began operating 12 of those 18 round trips via Staunton, Virginia. Consequently, Colgan now operates 6 nonstop and 12 one-stop round trips a week from Beckley to Dulles with Saabs.

As the end of the current rate term approached, we issued Order 2008-2-23, February 19, 2008, requesting proposals, with or without subsidy requests, from carriers interested in providing replacement service at Beckley. Because we received no proposals in response to that order, we are resoliciting proposals here. Carriers should file their proposals no later than May 1.

By: Todd Homan

May 1, 2008

Colgan Air Proposal to Provide Subsidized EAS

Colgan Air, Inc. respectfully submits a proposal to continue providing subsidized service between the community of Beckley, West Virginia and Washington Dulles International Airport. This proposal uses Saab 340 aircraft and would require an annual subsidy of $2,092,844.

The proposed service options for the West Virginia commimity is as follows: Beckley 12 round-trips per week operated as a combination of one-stop and non-stop service to Washington-Dulles. Colgan reserves the option of converting the service to 12 one-stop round trips per week.

By: Colgan George Casey, 703-331-3101

May 1, 2008

Gulfstream International Airlines Proposal to Provide EAS

Gulfstream intends to operate these flights under its existing codeshare agreement with Continental Airlines to its hub in Cleveland, Ohio. Gulfstream believes that the strength of the Continental hub at Cleveland Hopkins International Airport will have a positive effect on ridership. Gulfstream proposes to operate these flights using Beech 1900D turboprops that are pressurized and accommodate 19 passengers to the, FAA defined, medium-sized hub at Cleveland, OH. Two service patterns are offered.

The first proposed service pattern (Option 1) features 24 weekly non‑stop trips between Beckley and Cleveland, Ohio.

The second proposed service pattern (Option 2) features 12 weekly non-stop trips between Beckley and Cleveland, Ohio along with 24 weekly one-stop trips between Beckley and Cleveland operating via Greenbrier/White Sulphur SpringsfLewisburg. West Virginia. In this fashion Beckley will receive three weekday turns, mimicking the type of service pattern the community currently receives. Given the proximity of Beckley and Lewisburg, we find that we can actually operate this Option with less required subsidy than the all non-stop Option 1, as we feel the additional frequency will maintain ridership levels and the flight time involved is significantly less.

The establishment of this operation in the northeast is outside of Gulfstream's historic service area. In order to offer the quality of service that these communities deserve, it will be necessary for Gulfstream to establish sufficient operating mass as to make this service practical. Given this fact please consider these two Options wholly contingent upon Gulfstream being awarded the Essential Air Service contracts previously solicited for the communities of DuBois PA Franklin/Oil City PA and Greenbrier/White Sulphur Springs/Lewisburg WV.

By: Gulfstream, Mickey Bowman

May 5, 2008

DOT Request for Community Comments of:

• City of Beckley Mayor
• Raleigh County Memorial Airport Manager

My purpose in writing to you at this time is to give you an opportunity to submit any final comments you might have on the carriers' subsidy proposals. We request that you review this information as expeditiously as possible and submit any comments you may have as soon as possible, but in any case no later than May 26, 2008.

Colgan (the incumbent) proposes to operate 12 nonstop or one-stop round trips a week to Washington's Dulles International Airport with 34-seat Saab 340 aircraft, at the annual subsidy rate of $2,092,844. While the carrier currently provides nonstop service, it reserves the option of converting the service to 12 one-stop round trips a week. Colgan's service is operated under a codeshare agreement with United Airlines.

Gulfstream's proposal features two options: Option 1 offers 12 nonstop round trips a week to Cleveland Hopkins International Airport at the annual subsidy rate of $2,280,312. Option 2 offers 6 nonstop round trips a week, along with 12 one-stop round trips a week to Cleveland via Greenbrier/White Sulphur Springs/Lewisburg at the annual subsidy rate of $1,793,947. Gulfstream's service is operated with 19-seat Beech 1900D aircraft, under a codeshare agreement with Continental Airlines. The carrier's proposal is wholly contingent upon its being awarded the EAS contracts previously solicited for the communities of Dubois and Franklin/Oil City, PA; and Greenbrier/White Sulphur Springs/Lewisburg, WV.

By: Dennis DeVany

May 20, 2008

Re: Raleigh County Memorial Airport in Support of Colgan Air

With due respect to the (Julistream International proposal, I am very confident, selection of either of Gulfstream's proposals would move us in a negative direction of Air Service for Beckley, Raleigh and surrounding counties. First, in years past we have used Cleveland as our hub airport destination, as also Columbus, and Pittsburgh. Neither of these hub airports were able to gain community support in what they had to offer with fares, connections, and have time. Second, both options from Gulfstream propose using the Beech 1900, 19 passenger aircraft, which in its time was an efficient aircraft, however it is one being deleted from service by many carriers due to its maintenance issues and non-existent parts inventory. Third, a connecting flight from Beckley through Lcwisburg would have our passengers on board approximately 2 hours with no facilities, and unfavorable connections out of Cleveland, ihiling to support military or international traffic thm Beckley.

My comments are only with intent to express "lessons learned", in a mattet that is finally showing progress with community support and positive numbers. Colgan Air Inc. has an excellent safety record, coupled with dependable cabin Class equipment that will continue to enhance our growth for the future.

By: Tom Cochran

May 20, 2008

Re: City of Beckley in Support of Colgan

Dulles International provides a better destination than Cleveland fbi our outbound passengers; Cleveland was actually a hub destination for BeckJey several years ago but did not gain support from the community; and Gulfstream operates the Beech 1900, a 19‑passenger aircraft, where Colgan utilizes the Sabb 340 which accommodates 34 passengers. Since the introduction of the larger aircraft, boarding numbers have risen 16% since January 2008.

By: Emmett Pugh

May 20, 2008

Re: West Virginia Aeronautics Commission Suport for Colgan Air

On behalf of the West Virginia Aeronautics Commission, please accept this letter in support of EAS service for Raleigh County Memorial Airport operated by Colgan Air, Inc. Colgan Air has provided reliable service, and the Washington DC (Duties) destination has been supported by the surrounding communities and continues to grow. The recent upgrade to a cabin class aircraft, Saab 340, has also contributed to the growth in passenger numbers. A change in hub destination from Washington. DC (Dulies) to Cleveland, and any change in carrier or aircraft, will most likely result in a decrease in passengers.

By: WVAC

Center for International Understanding in Support of Colgan Air

Beckley Military Entrance Processing Station in Support of Colgan Air

May 20, 2008

West Virginia Aeronautics Commission in Opposition to Hub Change to Cleveland

On behalf of the West Virginia Aeronautics Commission, please accept this letter in support of EAS service for Raleigh County Memorial Airport operated by Colgan Air, Inc. Colgan Air has provided reliable service, and the Washington DC (Dulles) destination has been supported by the surrounding communities and continues to grow. The recent upgrade to a cabin class aircraft, Saab 340, has also contributed to the growth in passenger numbers.

A change in hub destination from Washington, DC (Dulles) to Cleveland, and any change in carrier or aircraft, will most likely result in a decrease in passengers.

By: Governor Joe Manchin, 304-558-3436

Order 2008-6-14
OST-1997-2761

Issued June 10, 2008 | Served June 13, 2008

Order Reselecting Carrier and Establishing Subsidy Rates

By this order, the Department is reselecting Pinnacle Airlines, Corp. d/b/a Colgan Air, Inc. to continue to provide subsidized essential air service at Beckley, West Virginia, for the two-year period beginning August 1, 2008, at the annual subsidy rate of $2,092,844.

In anticipation of the end of the rate term, the Department issued Order 2008-3-35, March 31, 2008, requesting proposals from carriers interested in providing replacement service at Beckley, with subsidy support if necessary, for the two-year period beginning August 1, 2008. We received proposals from Colgan (the incumbent) and Gulstream International Airlines.

Colgan proposes to operate 12 nonstop or one-stop round trips a week to Washington’s Dulles International Airport with 34-seat Saab 340 aircraft, at the annual subsidy rate of $2,092,844. While the carrier currently provides nonstop service, it reserves the option of converting all of the service to 12 one-stop round trips a week. Colgan’s service would be operated under a codeshare agreement with United Airlines.

Gulfstream’s proposal features two options: Option 1 offers 12 nonstop round trips a week to Cleveland Hopkins International Airport at the annual subsidy rate of $2,280,312. Option 2 offers 6 nonstop round trips a week, along with 12 one-stop round trips a week to Cleveland via Greenbrier/White Sulphur Springs/Lewisburg at the annual subsidy rate of $1,793,947. Gulfstream’s service would be operated with 19-seat Beech 1900D aircraft, under a codeshare agreement with Continental Airlines.

By: Michael Reynolds

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