OST-1998-3521
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OST-1998-3521
http://www.cityofmerced.org/depts/airport/default.asp - Merced Municipal Airport
http://www.castleairport.merced.ca.us/ - Castle Airport
Essential Air Service at Merced, California
February 18, 1998
90-Day Notice to Suspend Service at Merced, California
Service List | Attachment A - Statistics for Merced, CA
Counsel: V. Michael Strauss, 202.785.2242
Order 98-3-32 | OST-98-3521 | OST-98-3508 | OST-98-3502 | OST-98-3503 | OST-98-3496 | OST-98-3497 | OST-98-3498
Issued March 30, 1998 | Served April 3, 1998
By: Charles Hunnicutt
| Order 99-4-8 OST-98-3521 |
Issued April 12, 1999 Served April 15, 1999 |
Order Tentatively Reselecting Carrier | Mesa Air Group d/b/a United Express - 90-Day Notice to Suspend Service |
Order 99-4-8, tentatively reselects Sky West Airlines, Inc., to provide subsidized essential air service at Merced, California, for the two-year period May 1, 1999, through April 30, 2001, at an annual rate of $951,271.
By: Bradley Mims
| Order 01-5-15 OST-98-3521 |
Issued May 15, 2001 Served May 18, 2001 |
Order Requesting Proposals and Setting Final Rate Until Further Department Action | Essential Air Service at Merced, California |
| Appendix A through E | |||
| Service List |
Merced's current EAS determination was established by Orders 87-6-53 and 91-4-16 and requires two round trips a day to San Francisco (nonstop) or Los Angeles (one-stop) with enough capacity to accommodate 22 passengers a day or 37 seats each day. Consistent with EAS guidelines, service must be provided with 15-seat aircraft or larger.
SkyWest has submitted two proposals, each with 30-seat Brasilia aircraft. Under its first option, consistent with the service pattern selected by Order 99-4-8, SkyWest would provide three round trips a day to Los Angeles, one of which would operate on a one-stop basis over Visalia for an annual subsidy of $1,3170,562. In view of the increased amount of subsidy required to provide the service and the decrease in traffic from what was projected in the current contract, we requested that SkyWest submit a reduced service option. For two nonstop round trips per day to Los Angeles SkyWest would require $1,022,712 annual subsidy. We find the projected subsidy levels reasonable for either level of service proposed. Calculation of these rates is shown in Appendix B, and the service requirements and payout provisions are shown in Appendix C.
In view of the significantly lower number of passengers than was earlier projected and the increase in subsidy, we have decided to select SkyWest's second option, two nonstop round trips per day to Los Angeles. Even at the reduced frequency level, the two round trips a day with 30-seat Brasilia would easily accommodate Merced's historical traffic with a load factor of 22%.
In addition, for the reasons discussed below we will not select SkyWest for the customary two-year period. Rather, we will request proposals and explore alternative ways of meeting Merced's need for service. The projected subsidy level per passenger for SkyWest's proposed service is $136.36 per passenger, which has more than doubled from that previously projected. If this figure were to continue to increase, Merced's subsidy per passenger level would exceed the statutory $200 ceiling and Merced would no longer be eligible for subsidy support. Although SkyWest has provided very reliable service to Merced and has the benefit of the United Code Share flying into United's hub of Los Angeles, the smallest aircraft in its fleet is the 30-passenger Brasilia. This size of equipment may not be appropriate for service to Merced in light of the ease of driving to Fresno. Merced might be better served with smaller and less expensive aircraft in the hope that with greater frequency more people would use the airport at Merced instead of driving to Fresno.
By: Susan McDermott
| OST-98-3521 | August 14, 2001 | Proposal of Scenic Airlines | Essential Air Service between Merced, CA and Las Vegas, NV |
Please find enclosed our proposal for
service between Merced, CA and Las Vegas, NV with a requested subsidy totaling
$847,544. This service would be offered seven days per week, two times per day
for a total of 14 round trips per week in a 19 seat Beechcraft 1900C. Although
the Beechcraft 1900C is a smaller aircraft than that operated by Skywest, at the
same number of enplanements, we are showing only a 30% load factor and do not
feel that the smaller aircraft will in any way compromise the customer base.
Several of our management staff visited with the airport manager, Mr. Herrera, in Merced last week. We learned that the general population of Merced does not know about the availability of flights out of the airport due to lack of marketing. Scenic would start a vigorous marketing campaign and would anticipate carrying more passengers to Las Vegas than Skywest is currently flying to Los Angeles. Scenic intends to run a weekly ad that takes advantage of special offers of reduced fares from airlines departing Las Vegas and package them with our flight service to offer the community of Merced great deals to destinations like Orlando, New Orleans, Atlanta and so on. Our research regarding passenger counts over the last several years indicates that more passengers were flying out of Merced when service was to San Francisco rather than to Los Angeles. This is perhaps due to the substantial availability of flights to Los Angeles from nearby Fresno airport. All in all, Merced has proven that with frequent service, there is a pool of business that is fairly consistent at approximately 3,500 to 3,800 passengers per year.
By: Scenic Airlines, Chad Dixon
| OST-98-3521 | August 27, 2001 | Request for Community Comments | Essential Air Service at Merced, California |
By: Dennis DeVany
| OST-98-3521 | September 24, 2001 | Request for a Time Extension to Comment | Essential Air Service at Merced, California |
This is in response to your letter of August 27, 2001 regarding proposals for Essential Air Service to the City of Merced. Scenic Airlines will be making a presentation to our Airport Authority at a special meeting scheduled for Wednesday, September 26, 2001.
The Authority will, after discussing Scenic's service proposal, forward a recommendation to the City Council for consideration at their Monday, October 1, 2001 meeting.
The purpose of this letter is to request a time extension until Thursday, October 4, 2001 to provide you our comments.
By: City of Merced, Mayor Mary Jo Knudsen, 205.389.6834
| OST-98-3521 | October 2, 2001 | Community Response of City of Merced | Essential Air Service at Merced, California |
City Council Members, at their meeting of Monday, October 1, 2001, adopted a motion "approving the Eagle Canyon Airlines, Inc., dba Scenic Airlines, proposal for Essential -Air Service to Merced and authorized the City Manager to sign a letter of support to the Department of Transportation.
By: City of Merced, Mayor Mary Jo Knudsen, 205.389.6834
| Order 01-10-9 OST-98-3521 |
Issued October 18, 2001 Served October 18, 2001 |
Order Selecting Carrier | Essential Air Service at Merced, California |
| Attachments: Map, EAS |
The Department selects Eagle Jet Charter, Inc., d/b/a Scenic Airlines, to provide subsidized essential air service at Merced, California, for the two-year period beginning with the start of its service at an annual subsidy rate of $949,458 the first year and $749,433 the second year.
SkyWest has provided subsidized service at Merced for a number of years. Its most recent two-year contract established by Order 99-4-8 required eighteen round trips per week with 30-seat aircraft. That rate expired on April 30, 2001. Like so many regional carriers, SkyWest moved up to larger aircraft several years ago and retired all of its 19 seaters. The recent traffic levels at Merced did not justify the continued use of 30-seat aircraft, the smallest aircraft that SkyWest now has in its fleet, much less the eighteen round trip per week frequency level, so rather than reselecting SkyWest for an additional two-year contract, Order 2001-5-15 requested proposals from all interested carriers, reduced service to the statutory minimum of twelve round trips per week, and in the interim set a short-term final subsidy rate of $1,022,712 a year for SkyWest for that service.
In response to our request, only one carrier, Scenic Airlines, submitted a proposal. (SkyWest elected not to submit a renewal proposal.) Under its proposal, Scenic Airlines would provide two nonstop round trips a day, seven days per week, to Las Vegas with 19-Seat Beechcraft Aircraft. We have decided to select Scenic Airlines. The service it proposes would accommodate recent traffic at Merced. We note that the carrier estimates that it will need a great deal less subsidy in the second year of service, as a result of the increased traffic the carrier projects. We hope that in several years the need for continued subsidy support at Merced may be reduced.
We have reviewed Merced's EAS definition and will change it to allow air service to any large or medium hub, in view of the proposed service to Las Vegas. We have reviewed Scenic Airlines' proposal at Merced as well as the community's traffic history. For the year ended June 30, 200 1, Merced generated 4,5 80 enplaned passengers, an average of 14.6 enplanements per day. Scenic's two-round-trip-a-day service pattern is sufficient to accommodate that passenger level and still provide ample capacity for growth. Thus, we find that the proposed service and subsidy levels are appropriate.
By: Read Van de Water
| OST-98-3521 | February 26, 2002 Docketed March 21, 2002 |
Correspondence of The City of Merced | 90-Day Notice to Suspend Service at Merced, California |
Correspondence of the City of Merced to consent to allow Scenic Airlines to operate a modified schedule effective immediately through April 7, 2002.
By: Hubert Walsh, Mayor
| OST-98-3521 | February 27, 2002 Docketed March 21, 2002 |
Correspondence of The City of Merced | 90-Day Notice to Suspend Service at Merced, California |
Correspondence of the City of Merced replying to the request for temporary flight schedule change at Merced Municipal Airport.
By: Hubert Walsh, Mayor
| Order 02-5-20 OST-98-3521 |
Issued May 23, 2002 Served May 29, 2002 |
Order Setting Final Rates | 90-Day Notice to Suspend Service at Merced, California |
Scenic was selected by Order 2001-10-9 to provide 14 nonstop round trips per week between Merced and Las Vegas with Beech 1900 aircraft. The first year rate was set at $949,458 and the second year at $749,433, and Scenic began service on November 1, 2001. By this order we are revising the final rates for Scenic to $1,031,224 the first year and $844,479 the second year. The only adjustment made to the rate (other than G&A and return element which were set as a percentage of expenses) was for increased hull and liability insurance.
The Department sets the final subsidy rate for Eagle Jet Charter Airlines, Inc., d/b/a Scenic Airlines, Inc., for the provision of essential air service at Merced, California, as described in Appendix C, to be payable as follows: for each calendar month during which essential air service is provided, the amount of compensation shall be subject to the weekly ceiling and shall be determined by multiplying the subsidy-eligible flights completed during the month to Las Vegas by $722.65 the first year and $591.79 the second year.
By: Read Van de Water
| OST-98-3521 | November 26, 2002 Docketed December 12, 2002 |
Correspondence | 90-Day Notice to Suspend Service at Merced, California |
The City of Merced has been informed that Scenic Airlines will move service from Las Vegas Executive Airport to the North Las Vegas Airport effective November 21, 2002. We are in favor of the move and have no complaints regarding the change.
By: Huber Walsh
Order 04-1-9
OST-98-3521
Issued January 13, 2004 | Served January 16, 2004
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Merced, California, for a new two‑year period, with or without subsidy. The order reflects new, streamlined procedures for processing such proposals.
By Order 2001‑10‑9, October 18, 2001, the Department selected Eagle Canyon Airlines, Inc., dlb/a Scenic Airlines, to provide subsidized essential air service at Merced, California, through October 31, 2003. Under that order, Scenic operates 14 nonstop round trips a week with 19‑seat Beech 1900 aircraft. In response to the terrorist attacks, many subsidized carriers were faced with less revenue yet were not allowed to reduce service.' Because of this, the Department issued Order 2002‑5‑20, May 18, 2002, which increased all essential air service subsidy rates across the board, including Scenic's rate, on a retroactive basis. Under the terms of that order, Scenic's rates were adjusted upward to $1,031,224 for the first year and $844,479 for the second year.
Scenic Airlines inaugurated service to Merced on November 1, 2001, in response to our selection. During the year ended October 2003, the most recent 12‑month period for which traffic data are available, Merced averaged 21 passenger enplanements per day.
By: Karan Bhatia
Order 04-1-21
OST-98-3521
Issued and Served January 26, 2004
By Order 2001-10-9, October 18, 2001, the Department selected Eagle Canyon Airlines, Inc., dlb/a Scenic Airlines, to provide subsidized essential air service (EAS) at Merced, California, through October 31, 2003. Under that order, Scenic operates 14 nonstop round trips a week with 19-seat Beech 1900 aircraft to Las Vegas. First and second-year subsidy rates were set at $949,458 and $749,433. Most recently, by Order 2004-1-9 we requested proposals for EAS at Merced, because our selection of Scenic expired on October 31, 2003. Proposals are due February 17.
The carrier has agreed to continue providing the service set by Order 2002‑5‑20 at the lower second year rate of $844,479 temporarily while we complete a carrier‑selection case. We have reviewed that rate and find it reasonable. By extending the second‑year rate the carrier will be continue to be compensated and the Department will have certainty as to its ultimate subsidy exposure in the interim. The rate is significantly lower than the first‑year rate of $1,031,224 that expired on October 31, 2002. We will continue to process the carrier‑selection proceeding.
By: Karan Bhatia
February 16, 2004
Re: Proposal of Scenic Airlines
Our company was selected as the air carrier to provide essential air service at Merced, California on October 18th, 2001 for a two-year period at an annual subsidy amount of $849,446 with a first year subsidy rate of $949,458 and a second year rate of $749,433. On May 23rd, 2002 the rates were increased to a first year rate of $1,031,224 and a second year rate of $844,479 from emergency subsidy funding that was available for carriers experiencing post 9/11 financial challenges from lower passenger revenues and higher operating cost. This would provide for an annual average of $937,852 of the first year and second year revised and final rates. Taking into consideration that the actual expiring rate is $937,852, Scenic Airlines is pleased to present you with our proposal for a renewal of two years that accomplishes a 31% reduction to $645,751 annual subsidy for the same service and frequency. This represents a reduction of $292,101 over expiring rates. Additionally, Scenic Airlines is submitting a proposal for renewal of three years that accomplishes a 35% reduction to $611,119 annual subsidy for the same service and frequency representing a reduction of $326,733 over expiring rates. The proposed reduction in required government financial aid has been accomplished from a significant increase in passenger enpianements that have been generated by our unique approach to air service. The average origin & destination passengers prior to Scenic Airlines were approximately 7,600.
By: Chad Dixon
Order 04-3-6
OST-98-3521 - Mesa Air Group d/b/a United Express - 90-Day Notice to Suspend Service
Issued and Served March 9, 2004
Because only one carrier, Scenic, submitted proposals, the community was not faced with a decision between competing carriers. The community did, however, express a preference for Scenic's two‑year proposal over its three‑year option. Because the typical carrier‑selection is for a two‑year period, we will honor the community's choice.
We note that the carrier has done an outstanding job at Merced. Its has almost doubled the traffic forecast in its original proposal, from 7,600 projected to 13,018, overcoming the impact of the terrorist attacks of 9/11 on most carriers' traffic results. As a result, the subsidy rate has come down nearly $200,000 from the current rate of $844,479. Scenic's traffic increases and subsidy reductions are among the highest for any subsidized carrier in the aftermath of the terrorist attacks. Scenic's development of Merced is even more remarkable given the nearby competitive service at Fresno to Los Angeles and San Francisco, and the fact that the carrier it replaced, Sky West, operated as a United Express code‑share partner to a United hub, Los Angeles. We note that the carrier has operated to North Las Vegas, where it has its own passenger terminal, since inaugurating service to Merced. It buses connecting passengers to McCarran, the main airport, and provides complimentary snacks and beverages along with free television and internet services at its terminal.
By: Karan Bhatia
Order 2005-11-20
OST-1998-3521
Issued November 29, 2005 | Served December 2, 2005
Order Requesting Proposals - Bookmarked
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Merced, California, for a new two-year period, with or without subsidy.
With specific respect to Merced, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering 12 to 14 round trips a week to Las Vegas. Such service is generally consistent with what the community currently receives, and fully satisfies its 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.
Scenic Airlines inaugurated service to Merced on November 1,2001, in response to our selection and was selected for another two-year award from April 1,2004 through March 31, 2006. During the 12-month period ended October 2005, Merced averaged nearly 46 passengers per day (23 inbound and 23 outbound). We note that traffic levels have steadily increased since Scenic started serving the route.
By: Todd Homan
January 3, 2006
All operations proposed would utilize our modem fleet of Raytheon/Beecheraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. Mesa has a long history of offering Essential Air Service throughout the country, from New Mexico to New York. We intend to operate this service under our Codeshare agreement with America West, allowing for convenient connections in Las Vegas.
|
Option # |
Hub(s) |
Service |
Annual Subsidy |
|
1 |
LAS |
2 RT: Merced to Las Vegas |
$725,490 |
|
|
|
(2 RT M-F& 1 RT Sa-Su) |
|
|
2 |
LAS |
2 RT: Merced to Las Vegas Daily |
$867,077 |
|
3** |
LAS |
3 RTs on M-F-Su; 2 RTs on Tu-W-Th |
$999,993 |
Mesa's service would utilize Las Vegas McCarran International Airport and allow for seamless connections to all major airlines and allow for interline ticketing and baggage for most major airlines at the airport. This should help to increase the practical usage of Merced's service.
We feel that our proposal as America West Express will allow the passengers for Merced to have significantly more cost-effective and convenient connecting options. Potential service to Las Vegas would enable quick and economic access to 161 flights to 62 America West destinations. Low local fares will allow O&D traffic to each community, while the connecting options are numerous.
By: Air Midwest, Mickey Bowman
January 3, 2006
Scenic Airlines' Proposal | Word
Our proposal offers 14 roundtrip flights per week between Merced and North Las Vegas for a period of 2 years for a total subsidy requirement of $696,788 per year. Flight service will be operated in a Beechcraft 1900, a pressurized turboprop aircraft with 19 seats.
Although this proposal represents an increase of $51,037 or 8% over the expiring subsidy, the increase in the cost of fuel today over fuel cost estimates from two years ago is substantially more than the total increase in subsidy requirement. The fuel estimate for this bid is $562,392 compared to $298,954 from our previous bid, an 88% increase. The fact that the fuel cost alone is driving the increase in subsidy demonstrates the continued strength of market performance by Scenic. Our revenue production continues to improve because of our responsible rise in ticket fares while maintaining passenger production. Stated in a different way, if fuel cost had remained the same as 2003, we would be providing the DOT with another significant subsidy reduction for this service. However, even with elevated fuel costs, this bid still represents a savings of 26% on the initial EAS subsidy rates that we were awarded when originally receiving the contract in 2001.
Scenic has improved reliability of our flight service by acquiring several additional Beechcraft 1900 aircraft to better support our scheduled service system but in particular, our keystone, Merced. As Scenic does not have a large scheduled service network, this was a substantial investment for our company.
Although Scenic is seeking support for an increase in subsidy, our long term goal remains to develop any subsidized market in which we operate to a point of being self-sufficient. Our intentions are clear from our past accomplishments. Our goal is that the expansion of other flight service to Reno enables us to offer significant reductions to the subsidy requirement in the future.
By: Scenic, Chad Dixon
December 31, 2005
Vision Air's Comments on Merced Proposals | Word
Aviation Ventures d/b/a Vision Air has chosen to serve the Merced, California to/from Las Vegas air corridor as a 135 on demand carrier. As a 135 on demand carrier, Vision Air is not eligible for EAS subsidy nor does the Management of Vision Air believe a subsidy is warranted for this market as the economic viability and potential market demand demonstrates the potential profitability of air service to Merced, California from the Las Vegas area.
As an on demand 135 operator that is in the process of transitioning to a 121 scheduled carrier, Vision Air cannot publish a schedule nor hold itself out to the public in any way as a scheduled airline. Vision Air can and has established preferred on demand estimated departure and arrival times and will document in our brochures and advertising, daily on demand morning departures with daily on demand afternoon/early evening returns. Vision Air may also request to fly up to four flights per week under part 380 on a published charter schedule pre-approved by the DOT’s charter division. Upon the inevitable approval of Vision Air’s 121 application, Vision Air may some day fly Merced, California to Las Vegas, Nevada as scheduled service or opt to add scheduled service to Southern California.
Vision Air’s market development for on demand service as a 135 operator to and from Merced would offer one way airfare starting at $79 for seniors, students and military personnel. Additional categories of on demand airfare would start at $89 for locals with California or Nevada identification, starting at $99 as a public fare, $109 for sightseeing fare and $129 as a last minute fare. Our one-day fully commissioned tour packages to Yosemite start at $329 with overnights starting at $359 per person double occupancy.
By: Vision Air, Warren Kaplan
http://ci.merced.ca.us/depts/airport/default.asp - Merced Municipal Airport/Macready Field
January 11, 2006
Letters to:
I would like to update you on the essential air service situation at Merced and give you an opportunity to submit any comments if you wish. As you know, by Order 2005-11-20, December 3, 2005, the Department solicited proposals from all interested air carriers to provide service at Merced. In response to that order, we received a total of four proposals from two carriers. Scenic Airlines submitted one proposal and Mesa Air Group d/b/a Air Midwest submitted a proposal with three different options.
Scenic has proposed to continue its current service to North Las Vegas Airport, for an annual subsidy of $696,788 at its same level of service, 14 round trips per week using Beechcraft 1900 aircraft.
Each of Mesa’s proposals offers service to Las Vegas McCarran International Airport using Beechcraft B-1900D aircraft. Mesa states that it intends to operate this service under a code-share agreement with America West, as America West Express, which will allow passengers quick access to 161 flights to 62 America West destinations, in addition to other major airlines at McCarran. Mesa’s first option offers 12 round trips per week (2 round trips Monday through Friday and 1 round trip each on Saturday and Sunday) for an annual subsidy of $725,490. Mesa’s second option is 14 round trips per week (2 round trips daily) for $867,077 per year. Mesa’s third option is made contingent on the Department selecting Mesa to provide EAS service at Cedar City, Utah. It proposes three round trips to Las Vegas on Monday, Friday, and Sunday; two round trips on Tuesday, Wednesday, and Thursday, and one round trip on Saturday for an annual subsidy of $999,993. We expect to make a carrier-selection decision on the Cedar City case soon, i.e., before we decide this case.
My purpose in writing to you at this time is to request any final comments you might have on the carriers’ service and subsidy proposals before we submit a recommendation on the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs.
By: Dennis DeVany
January 17, 2006
Extension of Time to File Community Comments
This is to advise all parties that we have decided to grant the requested extension to file community comments. Community comments must now be filed no later than February 10, 2006.
By: Dennis DeVany
February 8, 2006
City of Merced in Support of Scenic Airlines' Proposal
The City of Merced is pleased to submit our recommendation for award of essential air service subsidy.
It was the unanimous decision of the Merced City Council on February 6, 2006 that Scenic Airlines be recommended as the City of Merced's choice as recipient of the EAS subsidy. The City believes that this will best serve the transportation needs of the community.
By: Mayor, Ellie, Wooten
Issued March 28, 2006 | Served March 31, 2006
Order Selecting Carrier | Word
By this order, we are selecting Scenic Airlines to provide essential air service with 19-passenger Beechcraft 1900 aircraft at Merced, California, for two years beginning April 1, 2006. The annual subsidy rate will be set at $696,788.
By Order 2004-3-6, issued March 9, 2004, the Department selected Eagle Canyon Airlines, Inc. d/b/a Scenic Airlines to provide subsidized EAS at Merced for a two-year period. That order established a subsidy of $645,751 per year for service consisting of 14 nonstop round trips each week to North Las Vegas with 19-seat Beech 1900. The carrier's contract expires March 31, 2006.
Scenic submitted a proposal to continue to provide 14 round trips per week to North Las Vegas with 19-passenger Beech 1900 aircraft for annual subsidy of $696,788, the same level of service that it has provided for the last two years.
We shall make this selection at Merced contingent upon the Department’s receiving properly executed certifications from Scenic Airlines, that it is in compliance with the Department’s regulations regarding drug-free workplaces and nondiscrimination, as well as the regulations governing lobbying activities.
By: Michael Reynolds
May 16, 2006
Ninety-Day Notice of Scenic Airlines of Intent to Terminate EAS Service
Scenic Airlines gives notice of its intent to terminate all service at Merced, California on August 15, 2006.
Scenic currently provides 14 round-trip flights per week with 19-passenger Beech 1900 aircraft between North Las Vegas Airport and MCE. The service operates on the following schedule:
Daily except Sunday Dep VGT 0900
Dep MCE 1105Arr MCE 1045
Arr VGT 1235Sunday Only Dep VGT 1100
Dep MCE 1205Arr MCE 1145
Arr VGT 1335Daily Dep VGT 1700
Dep MCE 1905Arr MCE 1845
Arr VGT 2035
No other scheduled air service is provided at MCE.
Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com
May 24, 2006
City of Merced Providing Airport Lease Information
We understand that the U.S. Department of Transportation will soon issue a Request for Proposals ,for EAS service to Merced, California. The Merced route was recently awarded to Scenic Airlines, but Scenic has issued a 90-day notice to terminate service (as of August 14, 2006).
The City of Merced wishes to have a seamless transition of air service from Scenic to a successor airline. To assist in this, we are providing each proposer (that we know of) with identical information on the lease of the Merced Municipal Airport Terminal, which is a cost which should be reflected in their EAS proposals to the Department of Transportation.
The lease cost for the Merced terminal is $4,500 monthly, or $54,000 annually. In the event that a proposer includes different lease rate information in their proposal, the Department is advised that information is inaccurate.
By: William Cahill
Order 2006-6-10
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
OST-1995-361 - Ely, NV
Issued June 8, 2006 | Served June 13, 2006
Order Prohibiting Termination of Service and Requesting Proposals - Bookmarked
By this order, the Department is (a) prohibiting Scenic Airlines from terminating its subsidized service at Merced and Visalia, California, and Ely, Nevada. at the end of its 90-day notice period, and (b) requesting proposals from carriers interested in providing essential air service at the communities, with or without subsidy.
Because Scenic's termination of service at Merced, Visalia, and Ely would leave the communities without any scheduled air service, we must prohibit the carrier from terminating such service at the end of its 90-say notice period, and require it to maintain service at the communities, for an initial 30-day period, consisting of 14 round trips per week from Merced to North Las Vegas; 10 nonstop round trips per week from Visalia to North Las Vegas; and 6 nonstop round trips a week from Ely to both North Las Vegas and Elko. Furthermore, we will require Scenic to maintain service at all three communities for successive 30-day periods until we have completed processing the carrier replacement case and the new carrier has actually started service.
With specific respect to Merced and Visalia, we expect proposals consisting of service with 15-scat or larger aircraft offering two nonstop round trips each weekday (12 to 14 weekly round trips) to San Francisco. Los Angeles, Las Vegas McCarran, or another suitable huh. For Visalia, based on the latest traffic data, subsidy levels cannot exceed $896,200 per year because of the S200 subsidy per passenger cap. The Department is prohibited from paying subsidy for essential air service at any community in the 48 contiguous states where such subsidy amounts to more than $200 per passenger, unless that community is located more than 210 miles from the nearest large- or medium-hub airport. Visalia is located less than 210 miles from several large- and medium-huh airports (Los Angeles, 187 miles; San Jose, 95 miles; and Burbank, 171 miles), so the $200 cap will apply.
At Ely, we expect proposals consisting of service with 15-seat or larger aircraft offering one nonstop round trip each weekday and weekend to Reno, Salt Lake City, Las Vegas McCarran, or other suitable hub. If aircraft smaller than 15-seat aircraft are proposed, a minimum of two round trip flights to a suitable huh should he offered. Such service is generally consistent with what the communities currently receive. 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: Michael Reynolds
June 19, 2006
Comments of Merced County Department of Commerce, Aviation and Economic Development
When the Department of Defense, through the Base Realignment and Closing Commission, closed Castle Air Force Base, the Airport Reuse Plan developed included passenger service. In August 2000, the County of Merced (the newly designated Local Reuse Authority for Castle) began an aggressive program to develop Castle as a commercial airport. Today, Castle Airport is about to gain Part 139 certification by the FAA and thus would be an ideal base for Essential Air Service to the Merced community.
The purpose of this letter is to inform you that Castle is in contact with prospective operators for Merced EAS and to inform other prospective operators of our interest in hosting commercial air service. We want to demonstrate to them the advantages offered by Castle Airport.
I would appreciate your confirmation that Castle Airport is eligible for the EAS subsidy for service to the Merced community.
By: John Fowler
June 22, 2006
Re: City of Merced Will Only Accept Proposals for Service at Merced Municipal Airport
The City wishes to advise you, and prospective carriers who may consider proposing for the EAS program, that the City will only support proposals for service at the Merced Municipal Airport (MCE). The 1976 Airline Deregulation Act (PL 95‑504) provided a guarantee of service to specified airports, including Merced. No other airport in the region was specified, and therefore no other airport is eligible for EAS program support.
By: Ellie Wooten, Mayor
June 28, 2006
Answer of Scenic Airlines to Merced County Letter
Scenic takes no position on the question raised by Merced County or whether one airport or the other is preferable. Scenic does, however, object strenuously to any delay in the selection of a replacement carrier, or in the inauguration of service by that carrier, that may be occasioned by Merced County's request or by its participation in this proceeding.
Scenic acknowledges that it cannot discontinue Merced service until replacement service begins. By the same token, however, the 90-day period that commenced May 16th upon Scenic's filing of notice of intent to terminate service is intended to allow ample time for selection of a replacement carrier and inauguration of service by that carrier.
In Scenic's view, were the selection of a replacement carrier complicated or delayed in any manner by Merced County's June 19 request or by its participation in this proceeding, such a result would be inconsistent with the protection against delay to which carriers terminating EAS are entitled by law. Merced County could have made its request to the Department months or even years ago. DOT should not permit a "johnny come lately" to bog down this proceeding in any way.
Counsel: Garofalo Goerlich, Aaron Goerlich, 202-776-3974, agoerlich@ggh-airlaw.com
June 27, 2006
Merced County in Support of Castle Airport
In developing your proposal options to serve the "Merced Community", please accept the County of Merced's invitation to look at and consider Castle Airport. Following an exhaustive review of the appropriate Federal documents and a thorough discussion with Mr. DeVany, it is clear that Castle Airport is an Essential Air Service - "eligible place." Although Castle Airport is new to airline operations, we believe the Merced Community and proposing airline will be better served by conducting operations at Castle.
By: Michael Nelson
July 7, 2006
We have received Scenic Airlines' answer dated June 28, 2006, to Merced County's letter of June 19, 2006.
Please be advised that the request of Merced County for consideration of Castle Airport and Merced County's participation in the proceedings will not result in a delay in the selection of a replacement carrier in any way, and for a number of reasons, may expedite the selection.
Airlines should give careful and due consideration to the Merced County proposal and should not allow or permit the outgoing carrier to dictate Merced County's participation in the process. By giving due consideration to Merced County's proposal, the replacement carrier will avail itself of every opportunity to succeed in the Merced community.
Counsel: City of Merced, Ruben Castillo
OST-1998-3521 - Merced
OST-2004-19916 - Visalia
OST-1995-361 - Ely
July 13, 2006
All operations proposed would utilize our modern fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. Mesa has a long history of offering Essential Air Service throughout the country, from New Mexico to New York. The service will operate as America West Express/US Airways Express allowing for convenient connections in Las Vegas or Salt Lake City.
Option Community Hub Service Total Subsidy Request 1 Merced
VisaliaLAS
LAS23 RT per week to LAS (4 RTs M,W,Th,F: 3 RTs T,Sun: 1 RT: Sat)
23 RT per week to LAS (4 RTs M,W,Th,F: 3 RTs T,Sun: 1 RT: Sat)$1,599,207 2 Merced
VisaliaLAS
LAS13 RTs per week to LAS
12 RTs per week to LAS$1,666,666 3 Merced
VisaliaLAS
LAS18 RTs per week to LAS
18 RTs per week to LAS$1,624,965 4 Ely SLC 6 RTs per week to SLC (no flights on Sat) $647,709
By: Mesa Air Group, Mickey Bowman
April 20, 2006
Proposals of Big Sky Airlines | Word
Big Sky has one combined operational proposal. All flights will be operated with modern 19 passenger Beechcraft 1900D aircraft, offering a stand-up cabin.
Big Sky's schedule provides flights at times that make it convenient to travel. Big Sky proposes to offer 14 weekly non-stop round trip flights in the Merced-Las Vegas market, 11 weekly non-stop round-trip flights in the Visalia-Las Vegas market and 6 non-stop round-trip flights in the Ely-Las Vegas market. If successful in winning this bid, Big Sky intends to add a daily unsubsidized non-stop flight from Ely to Elko, Nevada with continuing through plane service to Boise, Idaho.
Big Sky offers code-share service with its partners, Alaska Airlines, Horizon Air, America West Airlines, which became a much larger US Airways, after the completion of its merger, and Northwest Airlines.
Flight # Cities Leave Arrive Frequency 10 Merced-Las Vegas 6:45am 8:15am Daily 20 Las Vegas-Merced 9:00am 10:00am Daily 30 Merced-Las Vegas 11:00am 12:30pm Daily 40 Las Vegas-Merced 8:00pm 9:30pm Daily 50 Visalia-Las Vegas 7:00am 8:30am X7 60 Las Vegas-Visalia 2:00pm 3:30pm X67 70 Visalia-Las Vegas 4:00pm 5:30pm X67 80 Las Vegas-Visalia 8:30pm 10:00pm X6 70 Ely-Las Vegas 12:15pm 1:30pm X7 90 Las Vegas-Ely 9:00am 10:20am X7
By: Big Sky, Fred deLeeuw, 406-247-3912, fred.deleeuw@bigskyair.com
July 13, 2006
Proposals of Great Lakes Aviation
This contains the response of Great Lakes Aviation to Order Requesting Proposals 2006-6-10, served June 13, 2006.
The Great Lakes proposals contemplate conveniently timed connecting services with our Code Share partners United and Frontier at the Las Vegas-McCarran Airport.
These proposals contemplate the use of pressurized 19 seat Beech 1900D's in each case.
Proposal # Service Point Hub Served Round Trips Equipment Subsidy Requirement Passengers Forecast Subsidy per Passenger 1 Merced Las Vegas 2 1900D $757,907 15,776 $48.04 2 Visalia Las Vegas 2 1900D $872,582 10,000 $87.26 3 Ely Las Vegas 1 1900D $908,560 2,600 $349.45 4 Ely Las Vegas 2 1900D $1,176,936 5,200 $226.33
By: Great Lakes, Michael Matthews, 307-432-7030, mmatthews@greatlakesav.com
OST-1998-3521 - Merced
OST-2004-19916 - Visalia
OST-1995-361 - Ely
July 17, 2006
DOT Letter Requesting Comments of:
I would like to update you on the essential air service situation at Merced and give you an opportunity to submit any comments if you wish. As you know, by Order 2006-6-10, June 13, 2006, the Department solicited proposals from all interested air carriers to provide service at Merced, as well as at Visalia, California, and Ely, Nevada. In response to that order, we received proposals from three carriers: Mesa Air Group, Inc. d/b/a Air Midwest, Big Sky Airlines, and Great Lakes Aviation.
My purpose in writing to you at this time is to request any final comments you might have on the carriers’ service and subsidy proposals before we submit a recommendation on the carrier-selection issue to the Assistant Secretary for Aviation and International Affairs.
We request that you review each proposal and service option and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than August 7, 2006.
By: Dennis DeVany
August 3, 2006
Greater Merced Chamber of Commerce in Support of Mesa Airlines
Basad upon the information provided in each of the three carrier separate proposals each carriers financial solvency and their ability to provide truly seamless connections and service from the local airport, I would have to concur with the City of Merced's recommendation that Mesa Airlines Option #1, containing 23 weekly flights, be selected as the proposal that will best benefit this growing community long term.
In the event that Mesa Option #1 is not chosen, then I would like to also concur with the decision of the Merced Airport Authority, selecting Great Lakes Aviation to provide the EAS from Merced to Las Vegas.
By: Steve Newvine
August 1, 2006
Merced County in Support of Mesa Airlines
After careful consideration we recommend DOT select either the Mesa Airline proposal (preferably Option 1) or the Great Lakes Airline proposal with Service to Castle Airport. Mesa’s proposal seems a bit stronger, but we recognize both airlines would fit the immediate passenger demand in Merced and both are considering further expansion to include larger aircraft.
By: Michael Nelson
August 4, 2006
City of Merced in Support of Mesa Airlines Option 1
The City Council of the City of Merced met on Thursday, August 3, 2006, and unanimously recommends that DOT select the proposal for Option 1 (23 flights weekly) from Mesa Airlines. However, in the event that DOT does not select Option 1 from Mesa, the City recommends that Great Lakes Airlines be selected.
By: Mayor Ellie Wooten
August 8, 2006
Atwater Chamber of Commerce in Support of Castle Airport
I am writing on behalf of the Atwater Chamber of Commerce and to express our support for passenger airline service at Castle Airport. On behalf of our Board of Directors and the businesses within this community that we represent we believe that Castle is an exceptional airport and an ideal location for passenger service.
Castle is conveniently located, essentially in the center of a rapidly growing County, making it a natural choice for the business and pleasure traveler. Castle has a long runway and extensive parking areas for aircraft and vehicles. It is a great location for Essential Air Service now and for expanded services to this community for the business traveler into the future.
By: Robert Rodarte
August 4, 2006
City of Merced in Support of Merced Municipal Airport
The City of Merced, as owner and operator of the Merced Municipal Airport, intends to keep and maintain continued air transportation service for the benefit of its citizens, as well as residents in the surrounding communities, through the continuing award of the EAS program to air carriers serving the Merced Municipal Airport.
Castle Airport does not possess the required FAA certificate to operate commercial air service. As such, any proposal submitted seeking EAS funding for Castle Airport should be rejected in total, Only the Merced Municipal Airport in the greater Merced Community meets the EAS Program requirements and is eligible for the EAS Program benefits.
Counsel: Steven Wang
August 7, 2006
I am writing as a member of the City of Merced’s Economic Development Advisory Committee, the Merced Airport Authority, and the local business community to respectfully ask that you support and approve the City Council’s unanimous recommendation concerning the EAS Program Proposal for Merced, California as described below:
The City of Merced recommends that the Department of Transportation select the proposal for Option 1(23 flights weekly) from Mesa Airlines. However, in the event the DOT does not select Option 1 from Mesa, the City recommends that Great Lakes Airlines be selected.
The Merced Municipal Airport is a Part 139 Certificated Airport, and is well equipped to continue providing quality commercial air service to its residents, businesses, and visitors through the EAS program.
By: Janet Young
August 4, 2006
Gemini Flight Support in Support of Castle Airport
Our company wishes to take this opportunity to express out support for passenger airline service at Castle Airport. Castle is an excellent airport and an ideal location for passenger service in a rapidly growing area. Castle is convenient for traveler's departures and arrivals. Castle's 11,800 foot runway, extensive aircraft ramp area and other infrastructure makes it very practicable and safe for passenger service.
Castle's location, essentially in the center of Merced County makes it a natural choice for the business and pleasure traveler. Castle is not encroached by housing and has no noise or hours of operations restrictions. It is a natural location for Essential Air Service now and expanded services to this community in the future.
By: Stanley Thurston
August 7, 2006
Merced County Department of Commerce, Aviation and Economic Development in Support of Castle Airport
Despite a variety of attempts to discredit Castle Airport over the past month to prevent Castle from being awarded a Part 139 Certificate, Castle has essentially been awarded that certlficate.
Therefore, to set the record straight, I have included a letter fiom the FAA Certifying Oficial that shows proof that Castle Airport has met ALL requirements for the Part 139 Certificate award except having an airline agreeing to begin scheduled service here.
Furthermore, the airlines should be cognizant of the message expressed by all the posted letters of support for Castle Airport.
By: Scott Malta
August 4, 2006
Merced Municipal Airport Authority in Support of Mesa Airlines
As chairman of the Merced Municipal Airport Authority, and after having thoroughly weighed the intricacies of each of the three proposals submitted to us, I feel it is important for you to be aware of the position I alone took with respect to the recommendation now placed in your hands. Serving on the ad-hoc subcommittee, I dissented (6-1) with the full vote of the Airport Authority which took place on Monday, 31 July 2006. My recommendation is to have Great Lakes Airlines - rather than Mesa - serve the Merced community.
On 31 July 2006, the Merced Municipal Airport Authority voted 6-1 in favor of the recommendation now under your consideration. I remain confident as the sole dissenter that Great Lakes Airlines would best serve this community and I concur with city officials in Visalia, California, that Great Lakes would have the most sincere, respectable, and professional business relationship with the communities it might serve.
By: Scott Chastain
August 8, 2006
Clarification of Mayor of Merced
I am in receipt of a copy of a letter sent to you from Scott Chastain, Chairman, Merced Airport Authority, expressing his minority view regarding EAS selection for Merced.
This letter is intended to reaffirm the unanimous action of the City Council and six members of the Airport Authority. The carrier of choice is Mesa Airlines with their proposal (option 1) to service Merced with 23 flights weekly. If Mesa is not selected with option 1, the City Council and Airport Authority would recommend Great Lakes Airlines.
While Mr. Chastain is free to express his personal viewpoint, he does not represent the City Council or the Airport Authority in this matter.
By: Mayor Ellie Wooten
Order 2006-8-29
OST-1998-3521 - Merced
OST-2004-19916 - Visalia
OST-1995-361 - Ely
Issued August 30, 2006 | Served September 5, 2006
By this order, we are selecting Mesa Air Group Inc. d/b/a Air Midwest to provide subsidized essential air service at Merced and Visalia, California, and Ely, Nevada, for two years, beginning when the carrier inaugurates service. Merced and Visalia will receive 23 weekly round trips to Las Vegas, operated on a Las Vegas - Merced - Visalia - Las Vegas or Las Vegas - Visalia - Merced - Las Vegas routing at an annual subsidy rate of $1,599.207. Ely will receive 6 nonstop round trips each week to Salt Lake City at an annual subsidy rate of $647,709. Air Midwest will operate as America West Express/US Airways Express and serve each community with 19-passenger Beech 1900-D aircraft.
By: Michael Reynolds
Order 2006-9-3
OST-1998-3521 - Merced
OST-2004-19916 - Visalia
OST-1995-361 - Ely
Issue September 5, 2006 | Served September 8, 2006
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Scenic Airlines, Inc. at Ely, Nevada, and Merced and Visalia, California, for an additional 30 days, through October 16, 2006.
Since October 14th is a Saturday, this hold-in period will end on Monday, October 16th.
By: Todd Homan
OST-1998-3521 - EAS at Merced, CA
OST-2004-19916 - EAS at Visalia, CA
September 5, 2006
Re: Scenic Airlines Change in Service
We are pleased that Air Midwest has been selected to operate in your communities and are working hard to do whatever we can to make the change in service a smooth transition. However, Scenic Airlines has suffered a substantial number of resignations among its Beech 1900 crews. Additionally, on Sunday, September 3rd we had a major engine failure on one of our three Beech 1900 aircraft which will now be down for service for up to 8 weeks.
Unfortunately, this puts us in a position where we must make some changes in order to maintain any level of service at Merced and Visalia. I have proposed to the Department of Transportation that Scenic continues service in a Beech 1900 aircraft to Merced and Visalia with one stop service to Las Vegas, as Air Midwest is planning when they take over. Scenic would increase VIS service from 10 round trips per week to 14 round trips per week. MCE would remain at 14 round trips per week, Additionally, we would add extra flights on the weekend as demand would warrant for travel between the cities.
By: Scenic, Mark Slack
OST-1998-3521 - Merced
OST-2004-19916 - Visalia
OST-1995-361 - Ely
September 7, 2006
Re: Scenic Airlines Schedule and Aircraft Changes
This schedule allows us to perform maintenance on the Beech aircraft on Saturdays, and allows us to maintain the Yosemite tour business to Merced on the same schedule as is currently marketed. As flights are booked full, we will be willing to add additional segments, particularly on Fridays and Sundays, to accommodate the passengers wishing to travel over the weekend.
As we discussed, it is still unknown how long the engine maintenance will take on our Beech 1900C aircraft. Until the repair is made, we will only have two Beech 1900D aircraft to operate, and then only until their lease expires on October 3rd.
By: Mark Slack
OST-1998-3521 - EAS at Merced, CA
OST-2004-19916 - EAS at Visalia, CA
September 13, 2006
Re: City of Merced Does Not Support Scenic's Change in Service
After careful consideration, the City does not support the proposed change in service. Scenic only needs to continue until Mesa Airlines commences service. Surely, you can obtain additional pilots arid keep the aircraft serviced until that occurs
By: Elie Wooten, Mayor
OST-1998-3521 - EAS at Merced
OST-2004-19916 - EAS at Visalia
September 26, 2006
City of Merced Letter to Scenic Airlines
By letter dated September 5, 2006, Scenic Airlines sought the City's support for a reduction in the level of service currently provided to Merced.
By letter dated September 13, 2006, the City of Merced informed you that it does a support the proposed change/reduction in service you currently provide between Merced and Las Vegas. Given that you are facing severe personnel shortfalls for the aircraft assigned to this route, we will accept the changed service levels if Merced passengers are accommodated based on current reservations held in your system.
By: Mayor Ellie Wooten
Order 2006-10-2
OST-1995-361 - EAS at Ely, NV
OST-1998-3521 - EAS at Merced, CA
OST-2004-19916 - EAS at Visalia, CA
Issued October 2, 2006 | Served October 5, 2006
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Scenic Airlines. Inc. at Ely, Nevada, and Merced and Visalia, California, for an additional 30 days. through November 15, 2006.
By: Todd Homan
Order 2006-11-4
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
OST-1995-361 - Ely, NV
Issued November 2, 2006 | Served November 7, 2006
Order Extending Service Obligation
By this order, we require Scenic Airlines to maintain its current level of essential air service at Ely, Nevada, and Merced and Visalia, California. as described in Appendix D of Order 2006-6-10, for an additional 30 days, through December 15, 2006, or until Air Midwest actually begins service, whichever occurs first.
By: Todd Homan
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
OST-1995-361 - Ely, NV
November 22, 2006
Exception to Normal Payout Procedures for Subsidized Carriers Under an Alternative Service Pattern
On September 27, 2006, Scenic Airlines implemented an alternate service pattern at Merced and Visalia, California, due to equipment shortages. Air Midwest was award two-year contract to serve Merced and Visalia (as well as Ely, Nevada) after Scenic Airlines filed notice to leave all three markets to revert to an all-charter company. Due to Scenic's decision to cease scheduled service, one aircraft was due to return to the lessor during the first week of October. One of their other aircraft had damaged sustained to an engine. In order to serve both Merced and Visalia with one aircraft, Scenic began operating the flights on a North Las Vegas - Merced - Visalia - North Las Vegas or North Las Vegas - Visalia - Merced - North Las Vegas routing in order to preserve the required frequencies. This met Merced's minimum level of service and gave Visalia 4 more weekly frequencies than was authorized under Order 2005-4-25.
We ask that you pay Scenic for the applicable flights from September 27, 2006, through November 18, 2006, at the rate of $428.07 per flight.
By: Dennis DeVany
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
OST-1995-361 - Ely, NV
May 21, 2007
Notice of Air Midwest to Terminate Essential Air Service
Air Midwest, Inc. respectfully serves notice upon the Department of Transportation, in accordance with 14 C.F.R. 323.3 and 14 C.ER. 323.4, of its intent to discontinue scheduled subsidized Essential Air Service between Ely, Nevada as well as Merced and Visalia, California and Las Vegas, Nevada effective August 19, 2007.
At present, Air Midwest is the sole provider of certificated scheduled air service at Ely, Nevada as well as Merced and Visalia, California. Air Midwest is hereby providing public notice of its intent to terminate scheduled air service with the expiration of the 90-day notice as required. Any objections to this Notice to Terminate Service must be filed within twenty days from the date of this filing, in accordance with 14 C.F.R. 323.10.
By: Mesa, Tom Bacon, 602-685-4352
Order 2007-6-13
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2007-28305 - Roswell, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued and Served June 18, 2007
Order Prohibiting Suspensions of Service and Requesting Proposals
By this order, the Department is prohibiting Air Midwest, Inc., from suspending service and requesting proposals from carriers interested in providing replacement essential air service at all of the above-captioned communities. All of these communities are guaranteed EAS, and all but Roswell are currently receiving subsidized EAS pursuant to Department orders.
Air Midwest's proposed termination of service at these communities would leave them without any scheduled air service, and, thus, the Department must prohibit the carrier from terminating such service at the end of its 90-day notice period, and require it to maintain service at the communities for an initial 30-day period, through September 19, 2007, consisting of the service patterns outlined above. Furthermore, we will require Air Midwest to continue to maintain service at all of these communities for successive 30-day periods until we have completed processing the carrier-replacement case and the new carrier(s) has actually started service.
We note that Air Midwest currently receives EAS subsidy at seven of these communities. In this situation, the current subsidy rates will remain in effect for 180 days after the notice was filed if replacement service has not started by then. See 49 U.S.C. 41734 (d) and (e), At Roswell, Air Midwest will be eligible for subsidy on the 91st day after the filing, i.e., August 21, 2007.
Carriers interested in filing proposals at any or all of the communities, with or without subsidy, should file them no later than July 19, 2007. We expect proposals that provide comparable service levels to those that are currently provided, as described earlier. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to the current service pattern if they envision other, potentially more attractive service possibilities - different hubs, or seasonal service - with subsidy requirements that remain competitive. Carriers are free to submit more than one option, and options may be submitted for individual cities on a stand-alone basis, or alternatively as packages of two or more cities. However, carriers must make clear whether an option is proposed on a stand-alone or package basis.
By: Michael Reynolds
June 20, 2007
The City of Merced welcomes proposals from all airlines and is ready to work with airlines in the development of their proposals.
The City wishes to have a seamless transition of air service from Air Midwest to a successor airline. To assist in this, we are providing each potential proposer (that we know of) with identical information on the lease of the Merced Municipal Airport Terminal, which is a cost which should be reflected in their EAS proposals to the Department of Transportation.
The lease cost for the Merced terminal is $4,950 monthly, or $59,400 annually. In the event that a proposer includes different lease rate information in their proposal, the Department is advised that information is inaccurate.
By: Assistant City Manager, William Cahill
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
OST-1995-361 - Ely, NV
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
July 19, 2007
Proposals of Great Lakes Aviation
Great Lakes will utilize its codeshare relationships with United Air Lines and Frontier Airlines as is practical.
By: Great Lakes, Michael Matthews, 307-432-7000
July 19, 2007
Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit one proposals to provide Essential Air Service at Merced & Visalia, California; Ely, Nevada; and Cedar City, Moab & Vernal Utah. Mesa has also enclosed a single "Hold-In" subsidy calculation that can be used to calculate subsidy rates for hold-ins only.
It is important to note that the hold-in has service from Moab & Vernal to Salt Lake City. Due to operational constraints by our codeshare partner, we are unable to provide long-term service to Salt Lake City. This necessitates the hub for Option #1 for Moab & Vernal being changed to Phoenix. This actually benefits our passengers by allowing for nearly fifty-times more online connecting options on US Airways.
Also due to operational constraints, Ely & Cedar City are unable to be separated for any "hold-in" periods, as we are unable to serve Ely without stopping in Cedar City for passengers to clear security. Option #1 is an all inclusive bid, and can not be separated or pro-rated in any form. Mesa also reserves the right to serve one up-line destination from Moab to Phoenix in Option #1 as well as serving 1-stop service for Vernal. The stop will be another Mesa market such as Farmington, Moab or any other potential future markets.
All operations proposed would utilize our modem fleet of Raytheon/Beechcraft B1900D airliners.
By: Mesa, Jeffrey Hartz
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
July 19, 2007
Vision Airlines has proposed an air service program upon our final 121 operational authority to operate EAS programs at Merced and Visalia, CA. Our proposed program would offer flights twice each day with one round trip to North Las Vegas Airport and one round trip to Long Beach Airport. The North Las Vegas Airport is not a hub airport but Vision Airlines is fully prepared to provide complimentary airport shuttle to Las Vegas McCarran Airport utilizing one of our company-owned sixty various buses and motor coaches. Our customer service staff will assist connecting passengers to other carriers such as Southwest Airlines, the largest hub airline at McCarran. Our conclusion of our 121 operating authority will bring Vision Airlines interline agreements with several National and Regional carriers. Our reservations staff is implementing a state-of-the-art one line reservation system that will offer on line booking on Vision Airlines and access to connecting air carriers. Our second city of Long Beach serves the Merced and Visalia market with medium hub service between central California and the Los Angeles basin on several carriers including carriers offering interline service upon Vision Airlines 121 operational authority. Additionally, passengers will be offered a through-fare on our Long Beach hub to the Phoenix area to be served by Vision Airlines.
Vision Airlines' equipment of a 30-passenger Dornier 328 turboprop aircraft with flight attendant, restroom on board and faster airtime presents a true commuter air plane in both markets that heretofore have been served by 19-seat aircraft equipment.
By: Vision, Warren Kaplan
OST-2003-16395 - Cedar City, UT
OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT
OST-1995-361 - Ely, NV
OST-2004-19916 - Visalia, CA
OST-1998-3521 - Merced, CA
July 30, 2007
DOT Request for Community Comments of:
By Order 2007-6-13 the Department requested proposals from air carriers interested in providing essential air service at: Roswell and Alamogordo/Holloman Air Force Base, New Mexico; Cedar City, Moab and Vernal, Utah; Ely, Nevada; and Merced and Visalia, California. The order was issued following 90-day notice as filed with the Department by Air Midwest, which indicated their intent to suspend service at the eight communities listed above. Subsequent to Order 2007-6-13, the Department issued a notice separating the New Mexico communities from this carrier-selection proceeding. In response to our request and subsequent notice regarding the New Mexico communities, we received proposals from the following air carriers: Air Midwest, Great Lakes, Salmon Air, SkyWest, and Vision Airlines.
My purpose in writing you at this time is to request any final comments you might have on the carriers’ service and subsidy proposals before we submit a recommendation on the carrier selection issue to the Assistant Secretary for Aviation and International Affairs for decision. We request that you review this information and submit any comments you may have by August 27.
OST-2003-16395 - Cedar City, UT
OST-1997-2706 - Vernal, UT
OST-1997-2827 - Moab, UT
OST-1995-361 - Ely, NV
OST-2004-19916 - Visalia, CA
OST-1998-3521 - Merced, CA
August 15, 2007
DOT Memorandum - Granting Extension of Comments Deadline
By letter dated July 30, 2007, the Department offered the civic officials of each of the above communities the opportunity to comment on the essential air service proposals submitted by Mesa Air Group, Inc., d/b/a Air Midwest, Inc.; Great Lakes Aviation, Ltd.; Sky West Airlines; Mountain Bird, Inc., d/b/a Salmon Air; and Vision Airlines, Inc., to provide subsidized air service at the communities listed above. In that letter we indicated that the deadline for submitting comments was August 27, 2007. By phone call and an email dated August 15, a copy of which is attached, the Airport Manager of the Merced Municipal Airport requested an extension of the August 27 deadline to submit comments as the City Council of Merced will not meet before September 4 to consider their recommendation to the Department.
Therefore, in consideration of the City of Merced's request, we are hereby granting an extension of the deadline for submitting comments from all of the above communities from August 27 to September 6.
By: Dennis DeVany
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
August 27, 2007
The Division, in its effort to reduce delays and relieve congestion at primary hub airports, supports the use of non-hub airports where feasible. In the case of Merced and Visalia, the proposed pairing with Long Beach/Daugherty and North Las Vegas may be a realistic alternative to Los Angeles World or Las Vegas McCarran International Airports. Clearly the airlines are in a better position to assess and plan for market demand, airport pairing, and delineating end and through passenger loads, and providing a reliable means for connecting to other flights if that is determined to be a market demand condition. Whether essential air service is provided by an established regional carrier or a start-up carrier, what must come first and foremost is the best interest of the community that is being served. We strongly encourage potential carriers to commit to providing safe, dependable service at realistic fares to service demand markets, local communities and the aviation transportation system. A positive aviation experience, whether it be through commercial airline service, general aviation, or the military is key to public support and the continued safety and utility of our airports and the air transportation system
By: Division of Aeronautics, Mary Frederick, 916-654-5266, mary.frederick@dot.ca.gov
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
September 1, 2007
Vision Airlines has attached a revised proposed flight schedule that take into account our offer to change the routing and timing of the EAS schedule and provide tourism flights that in peak season would offer Visalia two daily (Non EAS) non-stops to Las Vegas, on daily (EAS) one stop to Las Vegas, one daily (EAS) non-stop to Long Beach and one daily (Non EAS) one stop to Phoenix. This revised offer by Vision Airlines is in recognition of the need to provide daily (EAS) non stop service both directions to Long Beach as our Hub Airport, provide tourism flights that are directed to Visalia Business Travelers, Convention Planning, Business Community and local citizens and provide times of departure that coincides with connecting service when applicable. The Long Beach Airport and current Airlines offering service have welcomed Vision Airlines flights from Visalia with open arms. The continuation of Long Beach service to the Phoenix area works both ways with flight opportunities for both Business and Leisure Travel. The combination of EAS enplanements and tourism enplanements will get the Visalia Airport to 10,000 enplanements faster then any other offer on the table.
By: Vision, Warren Kaplan
Order 2007-9-1
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued September 4, 2007 | Served September 7, 2007
Order Extending Service Obligation
We require Air Midwest, Inc., to maintain its current level of essential air service at Roswell and Alamogordo/Holloman AFB, New Mexico; Cedar City, Moab and Vernal, Utah; Ely, Nevada; and Merced and Visalia, California, for an additional 30 days, through October 19, 2007, or until suitable replacement service actually begins, whichever occurs first.
We will extend Air Midwest’s service obligation for successive 30-day periods, as necessary, until suitable replacement service actually begins.
By: Todd Homan
September 5, 2007
City of Merced in Support of Vision Airlines
Our Airport Authority has reviewed proposals from the three proposers, and the City Council has considered them as well. At its meeting of September 4, 2007, the City Council adopted a motion recommending that Vision Airlines be selected for the Merced EAS service. If USDOT does not select Vision, then Great Lakes is also acceptable to the community.
By: Mayor, Ellen Wooten, 209-385-6834
Order 2007-10-7
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued October 4, 2007 | Served October 10, 2007
Order Selecting Carriers and Establishing Subsidy Rates | Word
By this order, the Department is selecting SkyWest Airlines, and Great Lakes Aviation, Ltd. to provide subsidized essential air service at the above communities for the two-year period beginning when the carriers inaugurate full EAS. Specifically, we select SkyWest at Cedar City for the annual subsidy of $1,242,256 and Great Lakes at Merced, Visalia, Ely, Moab and Vernal for a combined annual subsidy of $5,670,244.
Air Midwest is eligible to be compensated for its service until Great Lakes and SkyWest take over the routes. Pursuant to 49 U.S.C 41734(d), we will continue to compensate Air Midwest at its current rates for 180 days after it filed its notices to suspend service -- November 18 in this case. If the carrier transitions occur after November 18, we will issue another order addressing the Air Midwest’s hold-in rate after that date.
This is a particularly complicated transition period, as Air Midwest is being replaced not by one carrier, as is the typical case, but by two. Before suspending service at these six communities, we expect Air Midwest to work with both SkyWest and Great Lakes to ensure a smooth transition in service. We expect all three carriers to work together on an orderly transition. Among other things, they will have to decide whether both SkyWest and Great Lakes will inaugurate service on the same day, or whether there will be a staggered transition. We expect Air Midwest to contact all passengers holding reservations for flights after the suspension date, to inform them of the change in service, and to assist them in arranging alternate transportation or to provide a refund of the ticket price, without penalty, if requested.
By: Michael Reynolds
Order 2007-10-17
OST-1996-1901 - Alamogordo/Holloman AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued October 15, 2007 | Served October 18, 2007
Order Extending Service Obligation
The Department has issued Orders 2007-9-29 and 2007-10-7 selecting replacement service, but the new carriers have not yet inaugurated service. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at the communities for an additional 30 days, or until replacement service actually begins, whichever occurs first.
By: Todd Homan
Order 2007-11-16
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued November 21, 2007 | Served November 27, 2007
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above‑captioned communities, for an additional 30 days, through December 19, 2007.
On May 22, 2007, Air Midwest filed a 90-day notice of its intent to suspend its subsidized service at the communities as of August 20. By Order 2007-6-13, June 18, 2007, the Department prohibited the carrier from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods.
The Department has issued Orders 2007-9-29 and 2007-10-7 selecting replacement service, but the new carriers have not yet inaugurated service. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at the communities for an additional 30 days, or until replacement service actually begins, whichever occurs first.
By: Todd Homan
Order 2007-12-15
OST-1996-1901 - Alamogordo/Holloman, AFB, NM
OST-2003-16395 - Cedar City, UT
OST-1997-2827 - Moab, UT
OST-1997-2706 - Vernal, UT
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued December 19, 2007 | Served December 26, 2007
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through January 18, 2008.
By Order 2007-6-13, June 18, 2007, the Department prohibited the carrier from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods, the latest through December 19, 2007, by Order 2007-11-16.
By: Todd Homan
Order 2008-1-8
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued January 15, 2008 | Served January 18, 2008
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through February 19, 2008.
By: Todd Homan
Order 2008-2-21
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued and Served February 15, 2008
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through March 20, 2008.
By: Michael Reynolds
Order 2008-4-33
OST-1995-361 - Ely, NV
OST-1998-3521 - Merced, CA
OST-2004-19916 - Visalia, CA
Issued April 24, 2008 | Served April 29, 2008
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the above-captioned communities, for an additional 30 days, through May 21, 2008.
By: Todd Homan
May 14, 2008
Re: Service Termination of Air Midwest
Air Midwest reluctantly advises the Department that it has decided to discontinue all air carrier operations, liquidate its assets and surrender its FAA and DOT certificates. The service terminations will occur on the following schedule:
Air Midwest has no choice but to shutdown operations. Air Midwest has determined that it does not have the financial resources to continue air carrier operations. Air Midwest is in severe financial distress due to the fact that it has incurred significant and unrelenting losses over many years and has no prospect of future profitability, particular in light of current conditions, including record high fuel prices.
This decision should come as no surprise to the Department as Air Midwest previously advised the Department of its intention to withdraw its services beginning over a year ago with its first traunch of termination notices. In addition, representatives of Air Midwest met with Dennis DeVany on March 6, 2008 to advise that Air Midwest would shortly go out of business.
While the Department solicited proposals for subsidized replacement service at these points, to date replacement services have commenced at only six points-Cedar City, Moab, Vernal, Manhattan, Salina and Alamogordo. Over nine months ago the Department selected Great Lakes Aviation to provide subsidized essential air service at Merced, Visalia, and Ely, but inexplicably Great Lakes has not yet commenced its proposed service at those points.
Air Midwest's situation is similar to the situations involving Big Sky Airlines and Skyway Airlines, both of which terminated all of their air services earlier this year. On December 20, 2007, Big Sky announced its intent to terminate all service on January 7, 2008. Although the Department issued a hold-in Order and sought replacement carriers on an emergency basis, it recognized that Big Sky would not provide service during the hold-in period. See DOT Order 2007-12-20. Similarly, Skyway Airlines terminated all air service on April 5, 2008, after a long hold-in period and prior to the commencement of service by replacement carriers. As with Big Sky and Skyway, Air Midwest does not have the financial wherewithal to continue its air carrier operations.
Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com
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