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OST-1997-2842 - EAS at Massena, Ogdensburg and Watertown, New York

http://www.massenaworks.com/town/airport.asp - Town of Massena Airport
http://en.wikipedia.org/wiki/Ogdensburg_International_Airport - Ogdensburg International Airport
http://watertownairport.com/ - Watertown Airport

EAS Docket

Essential Air Service at Massena, Ogdensburg, Watertown, New York

Order 97-9-14 | OST-97-2842 (47439) | Issued September 12, 1997 | Served September 18, 1997

Order Tentatively Selecting Carrier and Setting Subsidy Rate

By this order, the Department is tentatively selecting Mesa Airlines, Inc., d/b/a USAir Express (Mesa), to provide essential air service at Massena, Ogdensburg and Watertown, New York, for a two-year period, at an annual subsidy of $799,114.

Appendix A - Map | Appendix B - Historical Enplanements | Appendix C - Mesa Airlines EAS | Appendix D - Calculation of Annual Compensation Requirement | Appendix E - Service List

By: Charles Hunnicutt

Massena, Ogdensburg, Watertown, New York

Order 2000-4-2 tentatively reselects Mesa Airlines, Inc., to provide essential air service at Massena, Ogdensburg and Watertown, New York, as described in Appendix B, for the period beginning October 1, 1999, through September 30, 2001 at an annual subsidy of $1,115,507. Interested parties having objections to
the selection of Mesa or competing service proposals are directed to file objections or competing service proposals no later than 20 days from the date of service of this order

By:  Bradley Mims

Massena, Ogdensburg, Watertown, New York

By:  Francisco Sanchez

Essential Air Service at Massena, New York and Ogdensburg, New York

By:  Champlain Enterprises, Joel Raymond 

Essential Air Service at Massena, New York and Ogdensburg, New York

By: City of Ogdensburg, New York, William Nelson

Essential Air Services At Muscle Shoals, AL; Owensboro Davies County Regional Airport; Jackson, TN; Topeka, Kansas; Alamogordo/Hollman AFB, New Mexico; Hot Springs and Jonesboro, Arkansas; Pueblo, Colorado; Hana, Hawaii; Kamuela, Hawaii; Augusta/Waterville; Oneida County Airport; Massena, New York; Enid, OK; Oil City/Franklin, Pennsylvania; Ponce, Puerto Rico; Oshkosh, Wisconsin

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

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

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

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

By:  Susan McDermott

Essential Air Services At Alamogordo/Hollman AFB, New Mexico; Massenaand Ogdensburg, New York; Oil City/Franklin, Pennsylvania; Air Midwest, Inc.

By:  Mesa Air Group, Jonathan Ornstein

Essential Air Service at Massena, New York and Ogdensburg, New York

By: Mesa Air Group, Inc.

Mesa Air Group, Inc. d/b/a United Express, Great Lakes Aviation, Ltd. and Alaska Airlines, Inc.

By:  Randall Bennett

Mesa Airlines, Inc.

By Order 2000-4-2, issued April 3, 2000, Mesa was selected to continue providing essential air service at Massena, Ogdensburg and Watertown, for a two-year period from October 1, 1999, through September 30, 2001. Subsidy was set at an annual rate of $1,115,507 for Mesa's provision of three round trips each weekday, and three each weekend, between Massena, Ogdensburg and Watertown, and Pittsburgh, with 19-seat Beech 1900 aircraft.  By Order 2001-10-17, issued October 31, 2001, the Department extended Mesa's expired subsidy rate for Upstate New York until further notice, subject to adjustment retroactive to October 1, 2001, pending the resolution of the Department's final fiscal year 2002 budget.

The Department is now conducting a carrier selection case for Upstate New York and proposals to provide essential air service have been submitted by Mesa and CommutAir. Although negotiations have been completed with both carriers, the State of New York has requested that the Department delay final action on the selection decision pending further study by the communities and the State of the air service needs for the region.

In the meantime, Mesa and the Department have agreed to an annual subsidy rate of $1,905,432 for a new two-year rate term for a level of service identical to that now being provided by the carrier. Thus, we will set this new rate as a final rate for Mesa, retroactive to October 1, 2001, until further Department action, pending the completion of the carrier selection case.

By:  Read Van de Water

Essential Air Service at Massena, New York and Ogdensburg, New York

A survey to estimate corporate/institutional demand for air service at the Ogdensburg and Massena Airports.

By:  Town of Massena, Ram Chugh

EAS at Massena, Ogdensburg, and Watertown, NY / Mesa Airlines, Inc.

We request that any carriers interested in providing essential air service at Massena, Ogdensburg and Watertown, file their proposals within 30 days of the service date of this order. Proposals may contemplate continued service to Pittsburgh, or any other appropriate hub destination such as, but not limited to, New York City, Syracuse, Albany, Newark or Boston. We will entertain proposals to other hubs that provide access to the national air transportation system in order to give the Department and the communities as broad an array of proposals as possible from which to choose. Of course, as always, we will formally solicit the communities' views on any service options we receive before making a long-term carrier selection decision. We ask that carriers submit proposals for three round trips per service day to the hub with 15-seat or larger, pressurized aircraft. In order to assist carriers in making their traffic and revenue forecasts, we have included historical traffic data in Appendix A.

By:  Read Van de Water

Essential Air Service at Massena, New York and Ogdensburg, New York

By:  Mesa Air Group, Colleen O'Day, 602.685.4352

Essential Air Service at Massena, New York and Ogdensburg, New York

By:  Dennis DeVany

Essential Air Service at Massena, New York and Ogdensburg, New York

Champlain Enterprises Inc. (CEI) would like to submit this letter of support for the attached proposal for air service between the points of Massena, Ogdensburg and Watertown, NY to our hub in Albany, NY. Our proposed service pattern is to offer three direct round trips to Albany each weekday and three direct round trips over each weekend. The proposed annual subsidy for all three communities is $2,594,730.

Our proposed service is to link the communities of MSS, OGS & ART with a combination of one stop and non stop flights to Albany, NY offering all three communities well timmed flights which will afford passengers convienant connections to Continental Connection's 50 plus daily flights from Albany as well as provide access to the national air transportation system by timing flights such that they will provide connections to other airlines.

By:  Champlain Enterprises, Joel Raymond

The first service option offers service to the Pittsburgh hub, in accordance with the current service pattern. Air Midwest requests $1,288,012 for service to Pittsburgh for each of the three communities.

Air Midwest offers a second service option which provides for the use of two aircraft, one servicing Watertown to the Pittsburgh hub, and the other providing service to Albany for both Massena and Ogdensburg. Air Midwest requests $1,769,611 for supplying this service.

Air Midwest proposes a third service option, which offers service to both Albany, New York and the Pittsburgh, Pennsylvania hubs. The second service option contemplates three weekday one stop, two stop or nonstop flights to either the Pittsburgh or Albany hubs from all three EAS points. Air Midwest requests $1,482,481 for provision of this service.

By:  Mesa Air Group, Scott Lyon, 602.685.4368, scott.lyon@mesa-air.com

Essential Air Service at Massena, New York and Ogdensburg, New York

By:  Read Van de Water

Essential Air Service at Massena, New York

Your assistance is urgently needed to ensure the future of adequate commercial air service in the North Country. As you may be aware, the US Department of Transportation is in the process of considering several proposals for air service to Massena, Ogdensburg, and Watertown under the federally funded Essential Air Service (EAS) program. These proposals were submitted to by two airlines as a result of the communities' request to USDOT to improve the current service. Your support on air service issues in the past has been invaluable and once again we need your support to ensure that our communities receive the service that will address its needs.  We need your support to ensure that the USDOT recognizes the importance of the right air service for the North Country and to ensure that cost is not the only criterion for selection of a proposal for our communities. If the subsidy amount is the only consideration given to select service for the three communities and the current service is continued, passenger levels will continue to decline. The current service has been unable to attract local passengers and leakage of passengers will continue.

By: Massena, Sanford Cook

Essential Air Service at Massena, New York    

Our current service is provided by Mesa Airways. Three flights per day connect to U.S. Airway's hub in Pittsburgh. Ridership for Massena and Ogdensburg has been declining in recent years, and it was believed that this was due primarily to the high fares, destination, and long flights in small planes that our local service provided. Watertown, on the other hand, with its proximity to Fort Drum, saw its ridership remain steady: Soldiers from Fort Drum rely on this service to transfer to different military posts throughout the United States.  We hope your agency will consider all of the above in reaching a decision on how Essential Air Service is going to be provided to Northern New York for the next two years. We recognize that we are asking for a change in service, but we believe our choice is sound based on the above analysis. We also believe that this is the only service that will win the support of the traveling public.

By: Sanford T. Cook

The communities of Northern New York recently received proposals for continued air service to airports in Massena, Ogdensburg, and Watertown, New York. Proposals were received from two air carriers and it is deemed by the local communities that a proposal from Mesa Airlines providing service to Albany from Massena and Ogdensburg, and service to Pittsburgh from Watertown (Mesa 2 alternative) best meets the needs of the North Country. The results of a survey recently conducted by the Merwin Rural Services Institute suggest that this proposal is the best alternative for Northern New York. The proposed subsidy for this service is $1.77 million which is less than the subsidy under the present contract for service to the three airports. I ask that you support the Mesa 2 proposal, which will provide service to hubs that better meet the needs of the people of Northern New York for both business and personal travel. This proposal is certainly the most suitable for the business needs of the New York Power Authority.

By: Randy Crissman

Essential Air Service at Massena, New York

By: Charles Faud

Essential Air Service at Massena, New York

Correspondence of Ogdensburg Bridge and Port Authority in support of the Mesa Airways' proposal providing three flights per day from Massena and Ogdensburgh to Albany and three flights per day from Watertown to Pittsburgh.

By: Joseph Tracy

Essential Air Service at Massena, New York

Exparte letter from Norman Y. Mineta, Secretary, Department of Transportation to the Honorable Charles E. Schumer regarding subsidized air service under the Essential Air Service (EAS) program administered by the Department of Transportation for the northern New York communities of Massena, Ogdensburg, and Watertown.

By: Norman Mineta

Essential Air Service at Massena, New York

Correspondence of City of Ogdensburg, New York enclosing a certified copy of a resolution passed by the Ogdensburg City Council on November 25, 2002. This resolution supports Mesa Option 2 as the best proposal for Essential Air Service for Ogdensburg and the North Country.

By: Kathleen Bouchard

Correspondence of Town of Stockholm approving the proposal of Mesa Airlines for three flights per day from Watertown to Pittsburgh and three flights from Massena and Ogdensburg to Albany, New York.

By: Town of Stockholm

Approval of the Essential Air Service Program to the New York State Department of Transportation granting the communities' request for an extension to submit comments until December 20, 2002.

By: Gerardo Mendoza

Essential Air Service at Massena, New York

Correspondence of Clarkson University in support of the Essential Air Service proposal advanced by Mesa Airlines to provide three flights per day from Massena and Ogdensburg to Albany and three flights per day from Watertown to Pittsburgh.  Improved commercial air service is very important to Clarkson University and the economic development of St. Lawrence County. It would have a positive impact on the growth of student enrollment and industry-related research at Clarkson, and in expanded employment at the University as well as in secondary jobs in the community. Albany is the North Country's preferred gateway to growth. Thank you for your consideration of the University's position.

By: Denny Brown

Letter of the State of New York Department of Transportation as well as the formal response from local officials form the City of Watertown of Massena, and the City of Ogdensburg regarding the proposals for air service under the Essential Air Service Program for the three communities.  The communities have unanimously selected Mesa Airlines' Proposal 2 as the option that best serves their needs. In this proposal, Mesa will provide nonstop service from Watertown to Pittsburgh and separate nonstop and one-stop service from Ogdensburg and Massena to Albany. This is the only proposal that will maintain direct service from Watertown to Pittsburgh while providing the service to Albany that Massena and Ogdensburg have stated is needed to reverse the downward trend in enplanements and to make local air service competitive.

By: Richard Chimera

Essential Air Service at Massena, Ogdensburg and Watertown, New York

After careful consideration of this matter, including all of the comments submitted in the docket, we have decided to select Air Midwest to continue to provide essential air service to Pittsburgh for Massena, Ogdensburg and Watertown, for an additional two years, in accordance with its Option 1. As set forth in Appendix A, service is to be provided with Beech 1900-D, 19-seat aircraft, at an annual subsidy of $1,288,021.

We are well aware of the strong support for service to Albany, as evidenced by the large number of comments received from elected officials, businesses, and residents in both Massena and Ogdensburg, all supporting the selection of Air Midwest’s service to the Albany airport. We are also aware of the MRSI study that concludes, among other things, that the majority of respondents are not using the local service and that businesses and institutions would be more likely to use the local air service if the destination hub were Albany instead of Pittsburgh. However, Massena and Ogdensburg’s situation must be viewed in the context of the core objectives of the EAS program, namely to subsidize air service for the most isolated communities and to ensure that travelers from those communities have access to the nation’s air transportation system. In this case, especially given that service to Albany would require either $714,000 or $1,000,000 in additional subsidy over the two-year contract period, depending on the option selected, we believe that Pittsburgh fully achieves those goals. According to the Official Airline Guide for the month of January 2003, Pittsburgh offers an average of 170 daily jet departures (not including regional jets) to domestic destinations all across the country. Albany, on the other hand, has an average of 31 daily jet departures (not including regional jets), most of which are to destinations on the East coast or Midwest. Including regional jets results in a total of 267 departures a day at Pittsburgh and 48 departures a day at Albany.

By:  Read C. Van de Water

Essential Air Service at Massena, New York

We are asking that the Department reconsider Order 2003-2-5 and reselect Air Midwest to provide essential air service at Massena, Ogdensburg and Watertown, New York, as described in Air Mid West's Proposal #2.  If however, you are unable to determine that providing commercial air service to our airports over the next two years through Albany and Pittsburgh is in keeping with the core objectives of EAS, we ask that the Department consider approving a one-year contract with Air Midwest to provide service from Massena and Ogdensburg to Albany and service from Watertown to Pittsburgh.

By: Joseph Tracy

Essential Air Service at Massena, New York

NYSDOT supports the request by the communities that the US DOT reconsider its decision to select Option 1 and select Option 2 on a trial basis by awarding a one-year: contract to Air Midwest. This arrangement would provide the service that local travelers have requested and give an opportunity to confirm that the market for Albany flights does exist at Massena and Ogdensburg. We believe the US DOT currently has funds to provide a one-year contract since the budget just approved by Congress and signed by the President provides EAS program funding at the same level as last year, $113 million. A one-year contract would allow the US DOT to react to possible budget adjustments in the future.

By: Richard Chimera

Essential Air Service at Massena, Ogdensburg, and Watertown, New York

We are denying the Petition for Reconsideration filed jointly by the City of Watertown, the Town of Massena and the Ogdensburg Bridge and Port Authority, and are affirming our decision in Order 2003-2-5 reselecting Air Midwest, Inc., d/b/a US Airways Express (Air Midwest) to continue providing essential air service at the Upstate New York communities of Massena, Ogdensburg and Watertown to Pittsburgh for a new two-year term.  However, by this order we are also allowing Air Midwest to operate either to Pittsburgh, as originally selected, or to Albany as it proposed in one of its options, at the lower Pittsburgh subsidy rate.

While we continue to find that Pittsburgh offers far more access to the national air transportation system than Albany, and that current proposals require $.5 million a year more subsidy than service to Pittsburgh, we also want to be responsive to the communities’ wishes to the extent feasible. The communities have offered a number of arguments, including an extensive study of passenger demand, as to why the service to Albany would actually attract more passengers than the traditional Pittsburgh service. Projecting passenger demand via different hubs is difficult at best, and since the September 11 terrorists attacks, has been next to impossible. Nonetheless, the communities are convinced that the Albany service would be more successful. In order to balance all of these competing interests, we are prepared to allow Air Midwest the option to serve either Pittsburgh, as originally selected, or Albany as it proposed in its Option 2, but at the rate established in Order 2003-2-5 for the Pittsburgh only service.

By: Read C. Van de Water

Essential Air Service at Massena, Ogdensburg, and Watertown, New York

Letter to Richard A. Chimera from Read C. Van de Water, Assistant Secretary for Aviation and International Affairs regarding EAS at Massena, Ogdensburg, and Watertown.

By: Read C. Van de Water

Order 2005-02-12
OST-97-2842 - EAS at Massena, Ogdensburg, and Watertown, New York

Issued February 17, 2005 | Served February 23, 2005

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Massena, Ogdensburg and Watertown, New York, for the two-year period beginning March 1, 2005.

With respect to Massena, Ogdensburg and Watertown, we expect proposals consisting of service, at a minimum, with two‑pilot, twin‑engine aircraft with at least 15 passenger seats, and offering 1 8 round trips a week to Pittsburgh or some other suitable hub. We note in particular that Massena and Ogdensburg have expressed interest in service to Albany for several years. As a result, we ask potential applicants to give particular attention to the possibility of serving Albany at subsidy rates that are competitive with Pittsburgh.

By: Karan Bhatia

OST-97-2842 - EAS at Massena, Ogdensburg, and Watertown, New York

March 25, 2005

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

Is pleased to submit 3 proposals to provide Essential Air Service at Massena, Ogdensburg, and Watertown, New York. Mesa has grown each of these markets during the past two year term, and we look forward to continuing our service in all three communities. All operations proposed would utilize our modern fleet of Raytheon/Beecheraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. Mesa will continue to operate these flights as US Airways Express as we do today.

By: Mickey Bowman

OST-97-2842 - EAS at Massena, Ogdensburg, and Watertown, New York

March 30, 2005

Re: Request for Comments from Jeffrey Graham, Mayor of Watertown

I would like to update you on the essential air service (EAS) situation at Massena, Ogdensburg and Watertown, and to give you an opportunity to submit any comments if you wish. As you know, by Order 2005-2-12, February 17, 2005, the Department solicited proposals from all carriers interested in providing EAS at Massena, Ogdensburg and Watertown for a two-year period. In response to that order, we received a proposal from Air Midwest.

By: Dennis DeVany

April 8, 2005

Re: Comments of Jefferson County

Because Jefferson County will soon officially be "the new kid on the block", its initial interest in air service is to attempt to maintain at least the same level of commercial flight activity in and out of the Watertown International Airport as has been the case for the past several years. Consequently, Air Midwest, Inc. option #1 represents to our community the best approach to take for the immediate future, both in terms of the number of air flights available daily and the location to which our air passengers are initially traveling. Anything short of that level of air service being provided to our local residents will place the County in a precarious position in terms of attempting to at least preserve the "status quo" in order to further develop both commercial and general aviation services out of our soon-to-be facility.

By: Jefferson County, Robert Hagemann III

April 20, 2005

Re: Comments of Jefferson County / Ogdensburg NY Bridge and Port Authority / Town of Massena

We are frustrated with Mesa Airlines' continuing lack of respect for our desire to fly to another main hub besides Pittsburgh. This is shown in Option 2, which, while including two flights to Albany ‑ which these communities have repeatedly asked for and which the DOT itself recognized as a desire when it requested the current RFP's ‑ shows a subsidy needed that is obviously too high, much more than we assume the DOT would approve for this area, no matter how much we want it. In a perfect world, we would ask the DOT to approve Mesa's Option 2. But we do understand how expensive it is, at least the way Mesa sees it.

By: Jefferson County, Robert Hagemann / Ogdensburg NY Bridge and Port Authority, Joseph Tracy / Town of Massena, Sanford Cook

Essential Air Service at Massena / Ogdensburg / Watertown, New York

Order 2005-5-8
OST-1997-2842

Issued May 18, 2005 | Served May 23, 2005

Order Selecting Carrier and Setting Subsidy Rate

After careful review of this matter, including the comments submitted by the communities, we have decided to select Air Midwest to provide EAS at Massena, Ogdensburg and Watertown for a new two‑year period in accordance with its Option I. We will establish an annual subsidy rate of $1,757,834 for service with 19‑seat Beech 1900D aircraft, consisting of three round trips each weekday and each weekend period to Pittsburgh. Service between Watertown and Pittsburgh must be nonstop. Of the six flight segments each service day for Massena and Ogdensburg, up to three may be two‑stop; the remaining three may be nonstop or one‑stop. As we have done in the past, we will permit Air Midwest to provide Massena, Ogdensburg and Watertown with service to Albany, in lieu of service to Pittsburgh, or a combination of service to Pittsburgh and Albany, at the same subsidy rate established in this order for service to Pittsburgh only. The subsidy rate is reasonable for the level of service to be provided.

By: Karan Bhatia

Order 2006-10-8
OST-1997-2842

Issued October 16, 2006 | Served October 19, 2006

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Massena, Ogdensburg and Watertown, New York, for the two-year period beginning March 1, 2007, with or without subsidy.

Carriers should file their proposals within 30 days of the date of service of this order. With specific respect to Massena, Ogdensburg, and Watertown, we expect proposals consisting of three round trips per service day (18 round trips a week) to Pittsburgh with two-pilot. twin-engine. pressurized aircraft having a capacity of at least 15 passenger seats. Such service is consistent with what the communities currently receive, and fully satisfies their essential air service requirements. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option. if they choose: they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities -- different hubs, for example -- with subsidy requirements that remain competitive.

By: Todd Homan

OST-1997-2842

November 20, 2006

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

Mesa Air Group, Inc d/b/a Air Midwest submits one proposal to continue to provide Essential Air Service at Massena, Ogdensburg, and Watertown, New York. Mesa’s proposed option would continue the status quo service, with 3 roundtrip flights to US Airways’ hub in Pittsburgh. All operations proposed would utilize our modern fleet of Raytheon/Beechcraft B-1900D airliners.

Option #	Hub(s)	Service	Annual Subsidy
1	PIT	3 RT to Pittsburgh	$2,699,359

By: Mesa, Jeffrey Hartz

November 15, 2006

Response of Big Sky Transportation d/b/a Big Sky Airlines to Order 2006-10-8 Requesting Proposals

Big Sky Transportation Co. is pleased to provide a proposal for Essential Air Service at Massena, Ogdensburg and Watertown, New York. It is our belief that our proposal to provide service to Boston will enhance the level of service and ridership in these communities as we have discussed with the three communities. Big Sky’s proposal is based on service to all three communities and should be analyzed on a complete package basis. The Big Sky EAS proposal for service to all three communities is $2,097,906 annually. All flights will be operated with modern 19 passenger Beechcraft 1900D aircraft, offering a stand-up cabin.

Big Sky believes that ridership will increase as a result of Big Sky’s proposal to serve Boston’s Logan International Airport, where Big Sky’s customers will have access to the national transportation system and the benefits of Big Sky’s code-sharing agreements with US Airways, Northwest and Alaska Airlines/Horizon Air.

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

OST-1997-2842

November 28, 2006

DOT Letters Requesting Comments of:

• Chairman of the Jefferson County Board of Legislators
• Executive Director of Ogdensburg Bridge and Port Authority
• Mayor of Ogdensburg
• Ogdensburg International Airport Manager

Air Midwest would continue to provide both Massena and Ogdensburg with 18 weekly round trips (three each weekday and three over the weekend) to Pittsburgh with a mix of one-stop and two-stop service. Generally, three of each community's flights each weekday and weekend would be one-stop; the other three would be two-stop. Watertown would receive 18 weekly round trips (three each weekday and three over the weekend) to Pittsburgh, and all the service would be nonstop. The combined annual cost of Air Midwest's service to all three communities would be $2,699,359.

Big Sky would offer both Massena and Ogdensburg 18 weekly round trips (three each weekday and three over the weekend) to Boston with a mix of one-stop and two-stop service. Generally, two of Ogdensburg's round trips each weekday and weekend would be one-stop; the other two would be two-stop, and two of Massena's round trips each weekday and weekend would be two-stop; the other one would be one-stop. Watertown would receive 18 weekly round trips (three each weekday and three over the weekend) to Boston, and all the service would be nonstop. The combined annual subsidy of Big Sky's service would be $2,097,906.

My purpose in writing to you at this time is to request any final comments you might have on the proposals before we submit a carrier-selection recommendation to the Assistant Secretary for Aviation and International Affairs.

By: Aviation Analysis, Dennis DeVany

OST-1997-2842

December 4, 2006

Comments of the City of Watertown

On January 23, 2006, the City of Watertown transferred the Watertown International Airport to the County of Jefferson. The purpose of this correspondence is to request that any future correspondence relating to the Airport be addressed to Robert F. Hagemann, III, County Administrator, and not Mayor Jeffrey E. Graham. Also, please be advised that the correspondence from your office dated November 28, 2006 regarding the essential air service situation at Watertown was forwarded to Mr. Hagemann.

By: City Manager, Mary Corriveau

December 11, 2006

Comments of Ogdensburg Bridge & Port Authority

The community and its representatives are pleased that Big Sky has proposed to provide EAS to Boston and strongly support the Big Sky proposal over the proposal of Air Midwest to maintain service to Pittsburgh.

By: Wade Davis, 315-393-4080

OST-1997-2842

December 13, 2006

Comments of the Town of Massena

I am the Town Supervisor of the Town of Massena, New York, which is the owner of Richards Field, Massena International Airport. Therefore, I am also writing in response to your letter of November 28, 2006. (Kenneth G. MacDonnell, to whom you addressed your November 28 letter, is the Mayor of the nearby Village of Massena.)

The Town of Massena has reviewed the proposals of both Air Midwest and Big Sky. The Town supports the proposal of Big Sky as the proposal that is most favorable to the interests of the Town of Massena. It is the Town’s opinion that the Department of Transportation should select Big Sky as the airline that will provide Essential Air Service to Massena, New York.

By: Gary Edwards, 315-769-3588, supervisor@town.massena.ny.us

OST-1997-2842

December 15, 2006

Comments in Support of Big Sky Airlines:

• Congressman John McHugh
• Jefferson County Board of Legislators
• St. Lawrence Valley Air Task Force

OST-1997-2842

December 15, 2006

Comments of the City of Ogdensburg

This resolution is in support of Big Sky Airlines as the proposal for EAS for Ogdensburg and the North Country.

By: Kathleen Bouchard

December 18, 2006

Comments of St. Lawrence County Board of Legislators

St. Lawrence County Board of Legislators does hereby support the Big Sky proposal package to provide essential air service to the North country.

By: Chandra Wirtz

Order 2006-12-22
OST-1997-2842

Issued December 22, 2006 | Served December 28, 2006

Order Selecting Carrier and Establishing Subsidy Rate

By this order, the Department is selecting Big Sky Transportation Co., a wholly owned subsidiary of MAIR Holdings, Inc., d/b/a Big Sky Airlines, to provide essential air service at Massena, Ogdensburg, and Watertown, New York, consisting of 18 weekly round trips, three each weekday and three each weekend, to Boston, with 19-seat Beech 1900D turboprop aircraft for the two-year period beginning on or about March 1, 2007, at a combined annual subsidy of $2,097,906.

By: Andrew Steinberg

OST-1997-2842

December 19, 2006

Comments of Saint Regis Mohawk Tribal Council

We have reviewed the proposals that have been submitted to you from carriers interested in providing subsidized Essential Air Service at Massena, New York. Of the two proposals, the Tribe extremely prefers the proposal from Big Sky Airlines, which provides access to a better hub, more consistent and affordable rates, and a carrier willing to work with our region to develop the service that will best meet our needs. The incumbent carrier, Mesa, which proposing to continue its existing services under EAS,
provides none of these benefits.

By: Chiefs James Ransom, Lorraine White and Barbara Lazore, 528-338-2272

OST-1997-2842

January 9, 2007

Ex-Parte Letter to:

• Congressman John McHugh

As I am sure you know, after carefully considering the various issues involved, the Department issued Order 2006-12-22 on December 22, 2006, selecting the proposal supported by each of the communities - the proposal submitted by Big Sky Airlines to serve Boston, a new hub destination. I understand that the three communities have wanted service to a different hub for some time, especially since US Airways significantly downsized its operations at Pittsburgh. The new service is expected to begin on or about March 1.

By: Mary Peters

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

Issued December 20, 2007 | Served December 27, 2007

Emergency Request for Proposals for Replacement Service

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

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

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

By: Michael Reynolds

December 19, 2007

Re: Notice of Termination of Service

Big Sky will terminate all of its scheduled services at Massena, Ogdensburg and Watertown on January 7, 2008. Big Sky currently operates flights between Massena, Ogdensburg and Watertown, on the one hand, and Boston, on the other hand, with three roundtrips each weekday and each weekend using 19‑seat Beech 1900D aircraft. Big Sky also operates service between Watertown, on the one hand, and Albany, NY and Boston, on the other hand. No other carrier currently provides service at Massena, Ogdensburg and Watertown.

Big Sky has advised Delta of the service termination and Delta has informed Big Sky that Delta will contact passengers holding reservations on the discontinued flights to notify them of the schedule changes and to provide refunds or assist them in arranging alternative transportation.

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

OST-1997-2842 - Massena, Ogdensburg and Watertown
OST-2003-14783 - Plattsburgh
OST-2000-8025 - Saranac Lake/Lake Placid

January 8, 2008

Re: DOT Letter to Congressman John McHugh Regarding Big Sky Airlines

Regrettably, as you know, Big Sky ceased operations on January 7. The Department is working as expeditiously as possible to select a replacement carrier to serve the affected communities. We will be contacting each community shortly after January 11 to solicit their input before we make a carrier selection decision.

By: Andrew Steinberg

January 10, 2008

Re: Proposals of Pan Am Clipper

Pan Am is prepared to offer each of the above communities three round trips per week day to Albany, New York's state capital. In addition to the weekday flights, each community will receive one round-trip on Saturday and two round-trips on Sunday.

We believe Albany International Airport is the best option for travelers from the North Country. Not only will Albany provide travelers with intra-state service to the state's capital, but Albany International Airport is also the home to all major legacy carriers and the world's largest low cost carrier, Southwest Airlines, for those passengers looking for convenient and affordable connections.

Our fleet of British Aerospace Jetstream 3100 aircraft are the ideal equipment for this market. The Jetstream 3100 is a twin engine, pressurized all-weather turboprop aircraft that requires two flight crew members and is configured with a 19-passenger stand-up cabin.

Boston Maine Airways d/b/a Pan Am Clipper Connection proposes a subsidy rate of $1,829,967.00 per community / per year.

By: Boston-Maine, Gordon Long, 603-766-2287, glong@flypanam.com

OST-2000-8025 - Saranac Lake/Lake Placid
OST-1997-2842 - Massena, Ogdensburg, and Watertown

January 13, 2008

Re: Comments of Town of Santa Clara

As supervisor of the Town of Santa Clara, Franklin County, State of New York, I wish to endorse the application of Cape Air to be the server of the Adirondack Regional Airport. This airport is vital to the economy of this Adirondack region and it needs a server who will work with the communities to keep this vital economic entity viable.

By: Supervisor, Marcel Webb, noniemick@aol.com

January 14, 2008

Re: Comments of Town of Brighton

We are thrilled with the potential service of Cape Air. Not only will they operate a 7 day a week schedule, they also intend on basing equipment and pilots in SLK.

I've reviewed Cape Air's proposal, and it seems very well thought out and reasonable. Having recently had such a negative experience with over promising from Big Sky, however, I'd feel more comfortable if there was contractual requirements with specific dates for full schedule implementation and crew / aircraft basing in SLK.

By: Council Member, Sheila Delarm

January 14, 2008

Re: Comments of New York State North Country Airports

In the light of the Big Sky Airlines pullout from the Eastern Region we, the owners, operators, and Chambers of Commerce in the New York State North Country have come together to identify the common requisites for considering air service carriers. Our airports comprise the communities of Massena, Ogdensburg, Plattsburgh, Saranac Lake, and Watertown.

1. Initial Meeting
2. Commitment to Performance Expectations
3. Financials
4. Marketing
5. Contact Identification
6. Quarterly Status Reviews
7. Training/Capability
8. Operational Concerns

By: Airport Officials

January 14, 2008

Re: Comments of New York State North Country Airports

In the light of the Big Sky Airlines pullout from the Eastern Region we, the owners, operators, and Chambers of Commerce in the New York State North Country have come together to identify the common requisites for considering air service carriers. Our airports comprise the communities of Massena, Ogdensburg, Plattsburgh, Saranac Lake, and Watertown.

We respectfully request the US DOT add these requisites to the evaluation process when reviewing Essential Air Service bids for our airports. These will also become our own considerations during the evaluation of EAS bidders for service.

By: Massena Intl Airport, Ogdensburg Intl Airport, Plattsburgh Intl Airport and Adirondack Regional Airport

January 16, 2008

Re: Ogdensburg Bridge & Port Authority in Opposition to Pan Am Clipper

After review of the PanAM proposal, the Authority Board passed a resolution requesting that USDOT place the EAS back out to bid.

Ogdensburg passengers deserve better service under EAS than what is being proposed by PanAM. It
may mean a longer delay until air service resumes, but it will, be the right decision for the traveling public.

By: OBPA, Wade Davis

January 17, 2008

Re: Town of Massena in Opposition to Pan Am Clipper

The Town of Massena, New York respectfully recommends that the U.S. Department of Transportation reject the Response of Pan Am for the following reasons: 

First, Pan Am does not have a code‑share or interline airline agreement with any air carrier. The ability to easily connect to another carrier is important to the community and is of the essence of the EAS program. 

Second, the Town is aware that Pan Am has service reliability issues with EAS routes in New York State, including Elmira, N.Y. 

Third, Pan Am has an on-going fitness proceeding before the Department's Fitness Division (DOT-OST-2000-7668). The very existence of this proceeding raises an issue as to whether Pan Am will be able to obtain a code-share relationship with another carrier. 

By: Town Supervisor, Gary Edwards

January 17, 2008

Re: Albany County Airport Authority in Support of Boston-Maine

We are concerned that if the proposal from Boston-Maine Airways is rejected that another carrier will not respond and air service to these cities would be unavailable. Therefore, we strongly urge the U,S. Department of Transportation to accept the proposal by Boston-Maine Airways to provide Essential Air Service to Massena, Ogdensburg and Watertown, New York.

By: John O'Donnell

January 18, 2008

Re: Comments of Jefferson County

It would be the desire of Jefferson County to be able to continue the important dialogue with Boston Maine Airways relative to the proposal that has been submitted to your office for the near term. However, recognizing the critical decision making path that has been established by your office, which we also support, and the need to address the fundamental question of the large subsidy that is being requested of the US DOT for the next two years, we acknowledge that you may need to proceed with this important process As the owner and operator of the WIA, it is the County's desire to both secure a creditable commercial ah carrier as soon as possible and to maintain EAS support for that service To that end, we would not be in opposition to working with Boston Maine Airways in the future nor, if given the inability to be able to provide that airline with the financial support which has been requested, be opposed to the US DOT exercising its prerogative to issue another RTF because we are confident that our particular market would attract a qualified carrier.

By: County Administrator, Robert Hagemann

Order 2008-1-16
OST-1997-2842

Issued January 23, 2008 | Served January 28, 2008

Order Resoliciting Carrier Proposals

We received a number of comments in response to Boston-Maine's proposal. On January 16, the Ogdensburg Bridge and Port Authority requested that we resolicit carrier proposals. In support of its request, the Authority states that the carrier does not have a good track record with EAS routes in New York State, and it does not have contractual and marketing arrangements or interline agreements with a major carrier at the hub. It further states that the carrier's subsidy request is not reasonable based on prior EAS contracts. The Authority acknowledged that resolicitation might result in a longer service hiatus.

We have decided that it is in the public interest to resolicit proposals. As we state in all of our Requests for Proposals, we reserve the right to resolicit proposals for any number of reasons. The EAS program exists for the benefit of eligible communities, and we are statutorily required to consider a variety of factors when determining whether to choose an applicant to provide subsidized EAS at a community. These factors include: the demonstrated reliability of the applicant in providing scheduled air service; the contractual and marketing arrangements the applicant has made with a larger carrier; the interline arrangements the applicant has made with a larger carrier; and the preference of the actual and potential users of the service. In this case, for the reasons stated above, two of the three communities have asked that we resolicit proposals, and the third does not object to our resoliciting. Boston-Maine's proposal is fashioned as an inseparable three-city package, thus making it impossible to select it at Watertown while we resolicit proposals for Massena and Ogdensburg. In addition, we note that BostonMaine's continuing fitness has been challenged in a public proceeding, and the Department's Air Carrier Fitness Division is reviewing the case. Finally, we are also concerned that Boston-Maine's subsidy request of $5.5 million is more that double the prior carrier's rates and almost double the program average.

By: Michael Reynolds

February 7, 2008

Request for Submission Deadline Extension by Gulfstream International Airlines

Gulfstream International Airlines respectfully requests a two week extension of the submission deadline date of February 15, 2008 as set by the Department of Transportation in its' resolicitation of carrier proposals in the above mentioned cities. Gulfstream does not feel the current deadline date will allow it sufficient time to complete its necessary due diligence on these markets. Additionally, there will be insufficient time for Gulfstream to secure acceptance by its codeshare partners for the potential inclusion of these markets into said programs. It is apparent that participation in such a relationship is paramount in the consideration process of these communities, given their prior filings in these matters.

By: Gulfstream, Mickey Bowman, 270-689-2180

February 8, 2008

DOT Approval of Submission Deadline Extension

By Order 2008-1-16, January 23, 2008, the Department requested proposals from carriers interested in providing essential air service at Massena, Ogdensburg, and Watertown, New York, no later than February 15, 2008. In an email dated February 7, Gulfstream International Airlines requested an extension of the due date for filing proposals. We informally contacted all three communities and they support the extension. We are hereby granting Gulfstream's request and extending the due date for proposals from all interested carriers until February 29, 2008.

By: Mike Waters, 202-366-6494

January 17, 2008

Re: Albany County Airport Authority in Support of Boston-Maine Airways

With the termination of service by Big Sky Airlines, these cities have been left with no air service. Boston-Maine Airways was the only airline to respond to the Request for Proposal to serve these communities. The proposal provided 18 round trip flights per week from these cities to Albany International Airport.

We are concerned that if the proposal from Boston-Maine Airways is rejected that another carrier will not respond and air service to these cities would be unavailable. Therefore, we strongly urge the U.S. Department of Transportation to accept the proposal by Boston-Maine Airways to provide Essential Air Service to Massena, Ogdensburg and Watertown, New York.

By: John O'Donnell, 518-242-2222

February 29, 2008

Proposals of Cape Air

Cape Air would serve with Cessna 402s.

ART-ALB		ALB-ART
Departs	Arrives	Departs	Arrives
615	717	747	849
1140	1242	1312	1414
1620	1722	1752	1854
MSS-ALB		ALB-MSS
655	757	827	929
1220	1322	1352	1454
1700	1802	1832	1934
OGS-ALB		ALB-OGS
740	852	922	1034
1250	1402	1432	1544
1730	1842	1912	2025

Cape Air proposes service at per-departure subsidy rates of: ART - $578, MSS - $611, OGS - $667.

By: Cape Air, Andrew Bonney, 508-790-3122

February 29, 2008

Proposals of Gulfstream International

Gulfstream International Airlines cordially submits its proposal to provide subsidized air service to Watertown, New York from both Cleveland, Ohio and Albany, New York. The proposed service pattern would consist of two roundtrips between Watertown and Cleveland each weekday with two additional roundtrips over the course of the weekend. In addition, Gulfstream proposes to operate one roundtrip between Watertown and the state capitol at Albany, New York, Monday through Friday only. Gulfstream proposes to operate these flights using Beech 1900D turboprops that are pressurized and accommodate 19 passengers.

This bid is expressly contingent upon Gulfstream being awarded the additional Essential Air Service contract for service to DuBois, Pennsylvania (OST-2004-17617), included in a separate bid which closes Wednesday, March 5, 2008. Gulfstream currently intends to establish a maintenance base in DuBois, Pennsylvania. That base would support this northeastern expansion, including the aircraft that would operate this Watertown service. Gulfstream feels this stipulation will not have an adverse effect on the timeline of this service award, given the fact that the DuBois bid will close only five days fi'om this submission deadline.

By: Gulfstream, Mickey Bowman

March 6, 2008

Re: Ogdensburg Bridge & Port Authority in Support of Cape Air

The Authority requests the United States Department of Transportation accept the Cape Air Essential Air Service bid. The "on or before September" start date may mean a longer delay until air service resumes, but it will be the right decision for the North Country traveling public.

By: Wade Davis, 315-393-4080

March 7, 2008

Re: County of Jefferson in Support of Gulfstream International

After careful review of each of the two proposals received on February 29, 2008, for the resumption of subsidized commercial air service out of the Watertown International Airport, I am pleased to advise you that it is the unanimous opinion of the County Airport Advisory Committee, speaking on behalf of the entire Jefferson County Board of Legislators, to recommend Gulfstream International Airlines as the carrier of choice for this community. Given the specific business plan identified by each of the two very qualified airlines, it is the County's belief that the program identified by Gulfstream, which is a resumption of commercial service to both a major airline hub and the state capital, provides the best economic development opportunity for this portion of northern New York as well as greater convenience for our region's growing airline travel market.

By: Robert Hagemann, 313-785-3078

March 7, 2008

St. Lawrence Valley Air Task Force in Support of Cape Air

Awarding EAS service to Cape Air will assure that the carrier needs of three airports will be met, and brings a capable airline to this region that has indicated a potential to grow with us, and to provide larger planes at the appropriate time. Watertown's desire for the larger planes that Gulfstream proposes should not be placed above the only bid proposal on the table that will assure that the needs of all three airports will be met.

By: Daniel Pease, 315-769-1982

March 7, 2008

Town of Massena in Support of Cape Air

The Town of Massena, New York respectfully recommends that the U.S. Department of Transportation accept the Proposal of Cape Air to provide Essential Air Service to Massena, Ogdensburg and Watertown, New York as proposed by Cape Air including 21 weekly frequencies.

By: Town Supervisor, Gary Edwards, 315-769-3588, supervisor@town.massena.ny.us

March 10, 2008

Re: Subsidy Request Amendment of Cape Air

This letter is to request an adjustment to the rates of Hyannis Air Service, Inc.'s application for subsidized Essential Air Service for the community of Ogdensburg, NY. By mutual agreement with Ogdensburg Bridge and Port Authority, terminal rent will be $14,340.

Subsidy Required
Annual	$1,353,916
Per Departure	$837.35
Per Passenger	$181.58

By: Cape Air, Andrew Bonney, 508-862-9719, abonney@flycapeair.com

March 11, 2008

Re: Ogdensburg City Council in Support of Cape Air

The Ogdensburg City Council hereby supports Cape Air as the best proposal for Essential Air Service for Ogdensburg and the North Country.

By: City Clerk, Kathleen Bouchard

OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-1997-2842 - Watertown
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg

March 14, 2008

Re: Congressman John Peterson (PA) in Support of Gulfstream International Airlines

I have been informed that the bid submitted by Gulfstream for DuBois and Oil City/Franklin is contingent upon the award of contracts to four communities: DuBois PA, Oil City/Franklin PA, Watertown NY, and Greenbrier/White Sulfur Springs/Lewisburg WV. It is noteworthy that the Gulfstream International bid would feature service on 19-seat, pressurized airliner, servicing the growing, medium sized hub at Cleveland, Ohio. As many of these communities have outlined in their letters of support, Gulfstream's proposal commits the equipment necessary to provide timely, dependable service within the budgetary confines of the Subsidy rate.

Accordingly, I join with the communities in my district in supporting the four flight option as it appears to best meet the needs of the communities as well as provide greater opportunities to decrease the need for EAS subsidies in the future. I strongly encourage you to select this option and eagerly await your response.

By: John Peterson

Order 2008-3-15
OST-1997-2842

Issued and Served March 14, 2008

Order Selecting Carrier and Establishing Subsidy Rate

By this order, the Department is selecting Hyannis Air Service, Inc. d/b/a Cape Air to provide subsidized essential air service at each of the above communities, for the two-year period beginning when the carrier inaugurates full EAS pursuant to this Order, at a total annual subsidy of $3,879,863.

Cape Air filed an inseparable proposal to serve all three communities. The carrier proposes to provide Ogdensburg, Massena, and Watertown with three daily nonstop round trips (21 weekly round trips per community) to Albany with nine-seat Cessna 402 twin-engine aircraft for a total annual subsidy of $3,879,863. While the carrier has a code-share agreement with Continental Airlines for its service at Micronesia, it will serve the three communities without a code-share agreement. Cape Air has interline ticketing and baggage handling agreements with most major carriers and code-share agreements at other points in its system with JetBlue and Continental Airlines. We also understand that Cape Air may bring a maintenance facility to Albany at some point in the future, which may help the carrier ensure the reliability of its service to the three upstate communities.

By: Michael Reynolds

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