OST-2001-10642 - EAS at Thief River Falls, MN

No other carrier is currently serving Thief River Falls. However, this airport is located less than 60 miles from Grand Forks, North Dakota, a non-hub airport that offers jet service. Mesaba currently operates three daily roundtrip flights and 2 additional roundtrip flights six days each week between Grand Forks and Minneapolis/St. Paul. Mesaba operates these flights using Avro RJ Avroliner and Saab SF340 aircraft.

The City suggests that a reasonable level of essential air service to the Regional Airport should include, as a minimum, 3 inbound flights and 3 outbound flights on weekdays and 2 inbound flights and 2 outbound flights on Saturdays and Sundays to/from Minneapolis/St. Paul (hereafter "MSP"). The service should be operated on a one-stop basis, but a two-stop basis would be acceptable.

On May 1, 2000, Mesaba Airlines reduced the number of daily round trip flights from 3 flights to 2 flights. Since that cut in service, the Regional Airport has had average monthly boardings of 512 which projects to average annual boardings of 6,146. The reduction of flights and the inconvenient schedule have made use of the air service more difficult and less user friendly, particularly, for the business traveler.

Mesaba appreciates TVF’s need for additional service and agrees that 3 roundtrip flights each weekday might have increased traffic in the TVF-Minneapolis market. However, had 3 roundtrip flights been operated each weekday, substantially higher losses would have been incurred. Mesaba, moreover, is not aware of the Department permitting subsidies for service that exceeds the basic essential air service level. DOT Order 85-5-132 requires that the EAS carrier must provide at least 2 roundtrip flights each weekday and over the weekend between TVF and Minneapolis. The maximum number of intermediate stops permitted is two. The Order also requires that for aircraft with 15 seats or more, the carrier must provide 18 passenger seats in each direction each service day. Mesaba has done what the Department requires.

On September 17, 2001, Mesaba filed separate 90-day notices of its intent to suspend its unsubsidized scheduled air service at Thief River Falls and Watertown, effective on January 1, 2002. Subsequently, on September 21, 2001, Mesaba filed 90-day notices to suspend service at Fort Dodge and Mason City, both also with an effective date of January 1, 2002. In addition, on September 21, 2001, Express I filed a 90-day notice of its intent to suspend unsubsidized scheduled air service at Laurel/Hattiesburg, again with an effective date of January 1, 2002. Mesaba is the only carrier serving Fort Dodge, Mason City, Watertown and Thief River Falls; Express I is the only carrier serving Laurel/Hattiesburg. Specific details about the service at each community are provided below. In addition, Appendix B provides a summary of the historical passenger traffic based on a 10% sample of all ticketed passengers who flew in and out of each community.

Four one-way Saab SF340 flights between TVF and MSP by Northwest Airlines through Mesaba currently provide the only scheduled passenger air service for this city. Even with these flights, a satisfactory level of essential air service for TVF is not being met, and without them not even a single hub will be accessible to citizens and businesses of Thief River Falls and the northwest Minnesota region that the airport is meant to serve.

In response to the Department's Order 2001-12-26, Mesaba Aviation, Inc. d/b/a Mesaba Airlines (Mesaba), submits proposals to provide essential air service, with subsidies, at the above-captioned points. Mesaba has been prohibited from terminating unsubsidized service at these points by Order 200112-26. Mesaba's service proposals, requests for subsidies and related information are set forth in the attached exhibits. As indicated, Mesaba proposes to provide subsidized service as follows (a) Fort Dodge-Mason City-Minneapolis/St. Paul; (b) Mason City-Minneapolis/St. Paul; (c) Watertown Minneapolis/St. Paul; and (d) Thief River Falls-Bemidji/Grand Forks- Minneapolis/St. Paul. Mesaba will provide the service as "Northwest Airlink" service.

On September 17, 2001, Mesaba Aviation, Inc., d/b/a Mesaba Airlines (Mesaba), filed 90-day notices of its intent to suspend its subsidy-free service at Thief River Falls, Minnesota and Watertown, South Dakota, effective January 1, 2002. Subsequently, on September 21, 2001, Mesaba filed 90-day notices to suspend service at Fort Dodge and Mason City, Iowa, also effective January 1, 2002. By Order 2001-12-26, December 31, 2001, the Department prohibited Mesaba from suspending service beyond the end of its 90-day notice period, through January 31, 2002, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service.

Although we have received proposals from Corporate Airlines, Great Lakes Aviation and Mesaba, these cases will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Mesaba's service obligation at the four communities listed above for an additional 30 days, or until replacement service actually begins, whichever occurs first.

We have reviewed the two proposals submitted by Mesaba Airlines and Great Lakes Aviation's single proposal, which were submitted in response to your Department's Order issued on 31 December 2001. We have also had telephone conversations regarding the proposals with Northwest Airline's Director for State & Local Government Affairs, Bob Benner, who has acted as our contact with Mesaba, Great Lakes Senior Vice President of Marketing, Dick Fontaine, and the Minnesota Office of Aeronautics.

By this letter, the City of Thief River Falls wishes to strongly encourage you to negotiate a subsidy under the Essential Air Service Program (EAS) with Mesaba to provide service to the Regional Airport that would include, as a minimum, 3 daily round trips on weekdays to Minneapolis-St. Paul. We believe that the rationale for our request are clearly stated in detail under Items 4. and 5. in our formal Objection dated October 5, 2001, on file with your Department.

We have great concern about the Great Lakes Aviation proposal. Their proposal would provide only 2 round trips each day. While the flights would be direct with no intermediate stops, they are proposing to operate with Beech 1900D's, a 19 seat aircraft. For years Mesaba flew the 19 passenger Fairchild Metro II I's on its routes. These smaller aircraft were never well received by air travelers in the Region. All parties we have contacted agree that a reduction in level of service of this nature could negatively impact the number of boardings at the Regional Airport. The other concern with Great Lakes' proposal is that it apparently involves no code-sharing with Northwest Airlines or any other major carrier. This results in an inconvenience to the traveler who will have to purchase tickets from at least 2 different airlines, if they are traveling beyond Minneapolis-St. Paul. Also, they would not receive frequent flyer miles for the Thief River Falls-Twin Cities leg of their flight.

We the Newfolden City Council in representing our communities businesses and residents urge you to lend strong support for an EAS subsidy and the continuation of 3 round trips each day to the Thief River Falls Regional Airport.

I am submitting this letter, on behalf of the Roseau City Council and the citizens of the City of Roseau, to request continued and/or increased support of : commercial air services to Thief River Falls (TRF), Minnesota. The TRF Regional Airport provides an invaluable service to all of northwest Minnesota, which covers a huge geographic area. For example, the nearest available commercial airline service to Roseau is through TRF, approximately seventy (70) miles from Roseau; Alternative airports are over two (2) hours away; including Grand Forks, Bemidji and Winnipeg

The Polk County Minnesota Board of County Commissioners took action at their meeting on March 5, 2002 to support the continuation of air service to the Thief River Falls Regional Airport. The air carrier service provided to and from the Thief River Falls Airport is an important form of public transportation to many people in Northwest Minnesota. There is very limited inter-city bus traffic and Amtrak does not serve this area.

The Lancaster, Minnesota City Council wishes to support the City of Thief River Falls, Minnesota in their quest for EAS subsidy for the Thief River Falls Regional Airport. We also support the Mesaba Airline's proposal to provide 3 round trips daily to and from Thief River Falls Regional Airport. This proposal accommodates business, individuals and governmental units in their air travel needs. Our city is quite remote and needs this local the service. If the service out of the Regional Airport is terminated Lancaster residents would have to travel and additional 40 miles on top of the 60 miles we already travel to Thief River Falls for air travel. We have no bus or Amtrak services within 100 miles.

Since the December Order, you have received three proposals. The City of Hallock strongly encourages the U.S. Department of Transportation to focus on one particular Proposal, that of Mesaba Airlines which would provide 3 round-trip flights and does include participation in the EAS subsidy program. The 3 round-trip flights would return Thief River Falls to a level of service which existed prior to April, 2000. The need for the additional customer accommodation and projected increased boardings would provide an opportunity for growth to a point where a subsidy might not be needed in the future. Another advantage to this proposal involves the size of the proposed airplanes. The added comfort of the proposed 34 and 36 passenger planes would attract many passengers lost to the smaller, 19 passenger planes.

Although we have received proposals from Corporate Airlines, Great Lakes Aviation and Mesaba, these cases will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41,734(c), we will extend Mesaba's service obligation at the four communities listed abov0i for an additional 30 days, or until replacement service actually begins, whichever occurs first.

On September 17, 2001, Mesaba Aviation, Inc., d/b/a Mesaba Airlines (Mesaba), filed 90-day notices of its intent to suspend its subsidy-free service at Thief River Falls, Minnesota, and Watertown, South Dakota, effective January l, 2002. Subsequently, on September 21, 2001, Mesaba filed 90-day notices to suspend service at Fort Dodge and Mason City, Iowa, also effective January 1, 2002. By Order 2001-12-26, December 31, 2001, the Department prohibited Mesaba from suspending either service beyond the end of its 90-day notice period, through January 31, 2002, 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 Mesaba's service obligation for additional 30-day periods, the latest through May 3, 2002, by Order 2002-4-2.

By this order we are setting short-term final subsidy rates for Express Airlines I at Muscle Shoals and for Mesaba Airlines, Inc., both operating as Northwest Airlink, at Fort Dodge, Mason City, Thief River Falls, and Watertown for "hold-in" essential air service (EAS) until further Department action.

By Order 2002-7-38, July 30, 2002, the Department set short-term final subsidy rates for Mesaba's hold-in service until further Department action. In addition to Mesaba, Corporate Airlines and Great Lakes Aviation have also submitted proposals; however, these cases will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Mesaba's service obligation at the four communities listed above for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By Order 2002-7-38, July 30, 2002, the Department set short-term final subsidy rates for Mesaba's hold-in service until further Department action. In addition to Mesaba, Corporate Airlines and Great Lakes Aviation have also submitted proposals, and we are in the process of preparing a final decision. However, these cases will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Mesaba's service obligation at the four communities listed above for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By Order 2002-7-38, July 30, 2002, the Department set short-term final subsidy rates for Mesaba’s hold-in service until further Department action. In addition to Mesaba, Corporate Airlines and Great Lakes Aviation have also submitted proposals, and we are in the process of preparing a final decision. However, these cases will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Mesaba’s service obligation at the four communities listed above for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By Order 2002-7-38, July 30, 2002, the Department set short-term final subsidy rates for Mesaba's hold-in service until further Department action. In addition to Mesaba, Corporate Airlines and Great Lakes Aviation have also submitted proposals, and we are in the process of preparing a final decision. However, these cases will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Mesaba's service obligation at the four communities listed above for an additional 30 days, or until replacement service actually begins, whichever occurs first.

Order 03-5-21
OST-01-10642 - Essential Air Service at Thief River Falls, Minnesota

The Department selects Mesaba Aviation, Inc. d/b/a Northwest Airlink (Mesaba), an affiliate of Northwest Airlines, to provide subsidized essential air service (EAS) for a two-year period at Thief River Falls, Minnesota, at an annual rate of $707,017.

We have decided to select Mesaba to provide subsidized EAS at Thief River Falls for the two-year period beginning on the first day of the month following the service date of this order. Mesaba has served Thief River Falls for many years on a subsidy-free basis. However, a combination of factors affecting the entire airline industry has resulted in decreased passenger revenues and, at the same time, increased operating expenses to the extent that this formerly profitable route became unprofitable. Mesaba continues to provide Thief River Falls with a reasonable pattern of service via either Grand Forks, North Dakota, or Bemidji, Minnesota, to Northwest Airline's connecting hub at Minneapolis. Because of the carrier's long-standing service to the region and its continuing relationship with Northwest, evidenced through its Northwest Airlink codeshare, we expect Mesaba to continue to work with the Thief River Falls community to provide a complete package of connecting opportunities for local passengers, as well as for visitors to the northwest region of Minnesota. We also fully expect the Thief River Falls community to share in the responsibility for making the service successful.

Fort Dodge, Mason City and Thief River Falls were served without subsidy support until just after 9/11, when Mesaba Aviation, Inc. d/b/a Northwest Airlink, an affiliate of Northwest Airlines, filed 90-day notices of intent to suspend service at all three communities. In response to those 90-day notices, the Department issued Order 2001-12-26 prohibiting Mesaba from suspending service and requesting proposals for replacement service. At Fort Dodge and Mason City, the Department issued Order 2003-5-6, May 6, 2003, selecting Mesaba to provide three round trips on weekdays and weekends to Minneapolis routed Fort Dodge-Mason City-Minneapolis-Mason City-Fort Dodge with 34-seat, Saab 340 turboprop equipment, for an annual subsidy of $2,176,708. At Thief River Falls, the Department issued Order 2003-5-21, May 20, 2003, selecting Mesaba to provide two nonstop round trips on weekdays and weekends to Minneapolis with 34-seat, Saab 340 turboprop equipment, for an annual subsidy of $707,017.

In response to the Department's Order 2005-3-26, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing its detailed subsidy proposal for continued essential air service at Fort Dodge, IA and Mason City, IA at a level of three roundtrip flights per day, using 34-seat Saab 340 aircraft. Also enclosed is a detailed subsidy proposal for Thief River Falls, MN at a level of two roundtrip flights per day, using 34-seat Saab 340 aircraft.

Mesaba has proposed to continue its current service to the Northwest Airlines hub at Minneapolis, over Bemidji, for an annual subsidy of $842,518. Mesaba, a wholly owned, code‑share partner of Northwest Airlines operating as Northwest Airlink, has proposed to continue its current level and schedule of service. As you know, that service consists of two one‑stop round trips each weekday and three one‑stop round trips each weekend using 34 seat Saab 340 turboprop aircraft over a Thief River Falls ‑ Bemidji Minneapolis ‑ Bemidji ‑ Thief River Falls routing.

As a state legislator from Northwest Minnesota, (387 miles from the Capitol in St. Paul) I rely on air travel. Ensuring that there is a high quality of air service available from Thief River Falls Airport (TVF) is critical in order to link the residents and businesses of this region to the rest of the country and the world.

This is why I endorse Mesaba Airlines as the best choice to continue our air service from TVF. Mesaba, with its connections to Northwest Airlines and code share agreements, offers our community access to a worldwide air system important to our region. This type of service is vital to our ability to attract prospects as well as maintain and grow existing businesses so important to our economic development. In addition, Mesaba provides a 34‑seat Saab 340 turboprop aircraft that is a good fit for our scope of service needs. Any service which provided a smaller aircraft would diminish the level of service that the region receives.

Order 2005-6-13
OST-2001-10684 - Fort Dodge, Iowa
OST-2001-10682 - Mason City, Iowa
OST-2001-10642 - Thief River Falls, Minnesota

Issued June 15, 2005 | Served June 20, 2005

Order Tentatively Selecting Carrier

We have decided to select Mesaba on a tentative basis to provide subsidized EAS at Fort Dodge, Mason City and Thief River Falls, for the two‑year period beginning on the first day of the month following the service date of this order.

We are concerned about the significantly higher subsidy request of Mesaba compared to either of Mesa's proposals ‑‑ about half a million dollars. In looking more closely at Mesaba's Fort Dodge‑Mason City proposal, it is clear that it is basing its subsidy proposal on 20 round trips a week, two more than we are currently subsidizing. While we have been paying subsidy for 18 round trips a week, Mesaba has, in fact, been providing 20 per week ‑‑ three round trips a day Monday‑Saturday and two round trips on Sunday. Similarly, at Thief River Falls, we are currently subsidizing 12 round trips a week, whereas Mesaba is operating and based its subsidy proposal on 13 round trips a week. While carriers providing EAS‑subsidized service are free to provide service beyond the subsidized level, we will not pay compensation for such additional service.

By: Karan Bhatia

OST-2001-10684 - Fort Dodge, Iowa
OST-2001-10682 - Mason City, Iowa
OST-2001-10642 - Thief River Falls, Minnesota

June 29, 2005

Re: Mesaba d/b/a Northwest Airlink Accepts Certain Modified Subsidy Levels

In Order 2005-6-13, the Department tentatively selected Mesaba Aviation, Inc., doing business as Northwest Airlink, to provide essential air service to Fort Dodge and Mason City, Iowa and Thief River Falls, Minnesota, at certain modified subsidy levels specified in the Order. Mesaba hereby accepts that award without change and looks forward to continuing its relationship with all three communities.

By: John Spanjers

Order 2007-3-27
OST-2001-10684 - Fort Dodge, Iowa
OST-2001-10682 - Mason City, Iowa
OST-2001-10642 - Thief River Falls, Minnesota

Issued March 30, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Fort Dodge and Mason City, Iowa, and Thief River Falls, Minnesota, for a new two-year period, with or without subsidy, beginning June 1, 2007.

Specifically for these communities, we request proposals for service consisting of three round trips each day and three round trips over each weekend (18 rts/wk) at Fort Dodge and Mason City, and two round trips a day and two round trips over each weekend (12 rts/wk) at Thief River Falls, with two-pilot, twin-engine aircraft with at least 15 seats. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one 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-2001-10684 - Fort Dodge, Iowa
OST-2001-10682 - Mason City, Iowa
OST-2001-10642 - Thief River Falls, Minnesota

April 25, 2007

Proposals of Mesaba Aviation

In response to the Department's Order 2007-3-27, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing a detailed subsidy proposal for essential air service at Mason City at a level of 18 roundtrip, non-stop flights per week, and from Fort Dodge at a level of 18 one-stop flights per week using 34-seat Saab 340 aircraft from Northwest's MSP hub. The following is the current and proposed schedule:

Depart MSP Arrive MCW Arrive FOD Depart FOD Depart MCW Arrive MSP

0850 0944 1034 0500 0545 0627

1420 1512 1602 1059 1152 1237

2115 2210 2255 1622 1710 1808

Mesaba/Northwest Airlink is also enclosing a detailed subsidy for essential air service at Thief River Falls at a level of 12 roundtrip, one-stop flights per week using 34-seat Saab 340 aircraft from Northwest's MSP hub. The following is the current and proposed schedule:

Depart MSP Arrive BJI/HIB Arrive TVF Depart TVF Depart BJI/HIB Arrive MSP

1310 1427 1522 0603 0716 0816

2120 2237 2327 1603 1700 1809

By: Mesaba, John Spanjers

May 22, 2007

City of Thief River Falls in Support of Mesaba Airlines

Mesaba's proposal calls for twelve one-stop roundtrips per week to Minneapolis/St Paul. That is the current level of service. We continue to support a request for fourteen flights - two flights per day everyday. However, we firmly believe that air service in Thief River Falls can be profitable, with the reinstatement of a third daily roundtrip flight to Minneapolis/St. Paul. Thief River Falls is the "hub" of Northwestern Minnesota. We have four international companies that now employ over 1,600 employees each, plus several other companies that employ thousands more. They travel the world, and have clients that visit from all over the world. It is the business traveler that can make an airport profitable and two roundtrip flights per day does not satisfy the need. We hope a third flight will be added. Perhaps in the future a subsidy would not be necessary.

The fact that Mesaba has a formal arrangement with Northwest Airlines and can schedule connecting flights for our airport users is also a positive factor in our support.

By: Mayor Steve Nordhagen

May 31, 2007

Support of Senator Norm Coleman

I am writing in support of the City of Thief River Falls' request for additional air service between the Thief River Falls Regional Airport and the Minneapolis/St. Paul International Airport. Through your support, Thief River Falls will continue to attract greater numbers of passengers and continue as a profitable airline destination.

By: Norm Coleman

Order 2007-6-3
OST-2001-10684 - Fort Dodge, Iowa
OST-2001-10682 - Mason City, Iowa
OST-2001-10642 - Thief River Falls, Minnesota

Issued June 6, 2007 | Served June 11, 2007

Order Selecting Carrier and Establishing Subsidy Rate

By this order, the Department is reselecting Mesaba Aviation Inc., d/b/a Northwest Airlink, to continue to provide subsidized essential air service at Fort Dodge and Mason City, Iowa, and Thief River Falls, Minnesota, for the two-year period beginning June 1,2007. Service will consist of 18 round trips per week at Fort Dodge and Mason City, routed Fort Dodge-Mason City-Minneapolis/St. Paul, at the combined annual subsidy rate of $2,113,865. Service at Thief River Falls will consist of 12 one-stop round trips per week to Minneapolis/St. Paul at the annual subsidy rate of $1,065,639. All service will be provided with 34-seat Saab 340 aircraft as Northwest Airlink.

By: Andrew Steinberg

OST-2001-10642 - Thief River Falls, Minnesota	September 17, 2001	Notice of Termination of Service at Thief River Falls, Minnesota	Termination of Service at Thief River Falls, Minnesota
		Service List

OST-01-10642	October 9, 2001	Objection of City of Thief River Falls, MN to Notice of Termination of Service	Termination of Service at Thief River Falls, Minnesota
		Attachment: Airport Data, Letters in Support
		Service List

Order 01-12-26 OST-01-10642 OST-01-10644 OST-01-10682 OST-01-10684 OST-01-10685	Filed December 31, 2001 Issued January 4, 2002	Order Prohibiting Termination of Service and Requesting Proposals	Termination of Service at Mason City, Iowa; Laurel/Hattiesburg, Mississippi; Fort Dodge, Iowa; Watertown, South Dakota; Thief River Falls, Minnesota
		Appendix A: Maps
		Appendix B: Air Passenger Traffic
		Service List

Depart MSP	Arrive MCW	Arrive FOD	Depart FOD	Depart MCW	Arrive MSP
0850	0944	1034	0500	0545	0627
1420	1512	1602	1059	1152	1237
2115	2210	2255	1622	1710	1808

Depart MSP	Arrive BJI/HIB	Arrive TVF	Depart TVF	Depart BJI/HIB	Arrive MSP
1310	1427	1522	0603	0716	0816
2120	2237	2327	1603	1700	1809