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http://www.watertownsdairport.com/ - Watertown Regional Airport

Essential Air Service at Watertown, South Dakota

No other carrier is currently serving Watertown. After Mesaba terminates service, Watertown will be left with no service.

Counsel:  Mesaba Airlines, John Fredericksen, 612.726.5151

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.

By:  Read Van de Water

By:  Randall Bennett

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.

By:  Mesaba Aviation, Robert Weil

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.

By:  Randall Bennett

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.

By:  Randall Bennett

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:  Randall Bennett

Northwest did not make a corresponding fare reduction at the Watertown facility even though the result was that now Watertown faced the same plight that Northwest was attempting to resolve in another location.     In addition, Northwest began to deliver the remaining flights at time schedules that do not allow passengers to make adequate connecting flights. This forces business fliers to add additional cost of overnights to seemingly easy sales calls. At the time the carrier made these fare and schedule changes, Watertown had approximately 10,000 boardings per year. Since the changes, as could be expected, our local boardings have decreased. We believe due to the above-mentioned marketing decisions and not necessarily due to lack of passengers will be that the businesses either will not be able to grow at a rate that would be possible with adequate air service or they may decide to not locate within the nation's smaller rural communities. Both of these results will tend to negate the very efforts of the administration to have a broad based economic recovery covering all sectors of the nation.

By:  Focus Watertown, Richard Benda

Historically, Watertown has been served by three flights per day. That level of service was instrumental in the gradual development of over 10,000 enplanements at the Watertown Airport in 1997. Unfortunate marketing and competitive decisions made by our air carrier resulted in declining enplanement levels over the past two to three years. As a result, Watertown's service was reduced to two flights per day (prior to having three flights restored through the above mentioned legislation), and the need to pursue EAS funding evolved. Through a sustained collaborative effort between Northwest Airlines, our congressional delegation and the City of Watertown, however, significant improvements have been made to the competitive fare structure and flight schedules, and we are confident that those changes will facilitate the restoration of higher enplanement numbers.

By:  City of Watertown, Brenda Barger

By:  Randall Bennett

By:  Read Van de Water

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:  Randall Bennett

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.

By:  Randall Bennett

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:  Randall Bennett

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: Randall Bennett

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:  Randall Bennett

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:  Randall Bennett

By: Read Van de Water

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:  Randall Bennett

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:  Randall Bennett

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:  Randall Bennett

Order 03-04-23
OST-01-10642 - Thief River Falls, MN
OST-01-10644 - Watertown, SD
OST-01-10682 - Mason City, IA
OST-01-10684 - Fort Dodge, IA

Issued April 30, 2003 | Served May 5, 2003

Order Extending Service Obligation | Word

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: Randall Bennett

Order 03-6-5
OST-01-10644 - EAS at Watertown, SD

Issued June 3, 2003 | Served June 6, 2003

Order Extending Service Obligation | Word

The Department extends the service obligation of Mesaba Aviation, Inc., d/b/a Mesaba Airlines, Watertown, South Dakota, for an additional 30 days, through July 7, 2003.

By: Randall Bennett

Order 03-6-27
OST-01-10644 - EAS at Watertown, SD

Issued June 24, 2003 | Served June 24, 2003

Order Extending Service Obligation | Word

The Department extends the service obligation of Mesaba Aviation, Inc. d/b/a Mesaba Airlines (Mesaba), at Watertown, South Dakota, for an additional 30 days, through August 6, 2003.

By: Randall Bennett

June 24, 2003

Withdrawal of Great Lakes Aviation

By: Douglass Voss, 307-432-7010

Order 03-7-4
OST-01-10644 - EAS at Watertown, SD

Issued July 2, 2003 | Served July 8, 2003

Order Selecting Carrier | Word

By: Michael Reynolds

Order 2005-5-5
OST-2001-10644

Issued May 11, 2005 | Served May 16, 2005

Order Requesting Proposals

With respect to Watertown specifically, we expect proposals offering service levels commensurate with the levels the community currently receives. Thus, we request proposals consisting of service, at a minimum, of three nonstop round trips each weekday and five nonstop round trips each weekend to Minneapolis with two‑pilot, twin‑engine aircraft having at least 15 passenger seats. We also encourage proposals to hubs other than the traditional service to Minneapolis that can be provided in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose. Also, they need not limit themselves to these requirements if they envision other, potentially more attractive service possibilities with subsidy requests that remain competitive.

By: Karan Bhatia

June 15, 2005

Proposal of Mesa Air Group d/b/a/ Air Midwest to Provide Essential Air Service

All operations proposed would utilize our modem fleet of 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. Mesa will explore all opportunities for codeshares at Omaha, but feels that operating as Mesa Airlines, with our commitment to low fares and quality customer service, will provide Watertown with superior service, at a significant cost savings.

Mesa's second option is contingent upon the DOT reversing its decision to select Mesaba for service to Fort Dodge & Mason City. With the Maintenance Rotation flight from Omaha to Kansas City already built into the Fort Dodge and Mason City option, Mesa would not have to include that expense in our bid for Watertown. The same aircraft would also be utilized in all 3 communities, thereby also eliminating the ownership cost for the Watertown option.

By: Air Midwest, Mickey Bowman

June 13, 2005

Proposal of Mesaba Aviation d/b/a Northwest Airlink to Provide Essential Air Service

In response to the Department's Order 2005‑5‑5, Mesaba Aviation, Inc.. doing business as Northwest Airlink, is enclosing its detailed subsidy proposal for essential air service at Watertown, SD at a level of two roundtrip flights per day, using 34‑seat Saab 340 aircraft from Northwest's MSP hub. These flights will continue on to Pierre, giving Watertown residents convenient twice daily non‑stop service to South Dakota's State Capital.

Although this is a slight reduction in capacity when compared to the current schedule, the service levels are commensurate with Watertown demand and wilt require significantly less subsidy from the DOT. We look forward to the opportunity to continue providing essential air service to the Watertown community.

By: Northwest Airlink, John Spanjers

July 11, 2005

Comments of Craig Crismon

We strongly urge you to do everything in your powers to maintain the status quo for air service in our town. Our airlink is our connection to civilization. It's a fantastic feeling to know we can hop aboard a plane at an airport a few miles down the road and go anywhere in the world. We have been extremely grateful to have such a wonderful service.

July 11, 2005

Comments of Mike Tomlinson

My flights from Watertown always require connections in Minneapolis. I would be inconvenienced greatly with any reduction in service (less daily flights or later flights) at the Watertown airport. [would strongly urge you to maintain our current level of service.

July 20, 2005

Extended Community-Comment Period

Based on the June 29 request submitted by former Mayor Brenda Barger for additional time to prepare a response to the proposals submitted by Mesa Air Group and Mesaba Airlines, we extended the community-comment period from July 18 to August 18. For your convenience, I am enclosing a copy of the Memorandum granting the extension.

By: Dennis DeVany

July 18, 2005

Comments of City of Watertown

One thing that is readily apparent is that the City definitely desires to maintain its relationship with Mesaba Airlines, our current carrier. Changing our airline service to a commercial carrier such as Mesa Airlines would be unacceptable to the City of Watertown and certainly would not meet our current or future commercial airlines needs.

By: Paul Fox

July 12, 2005

Comments of Reliabank

Watertown needs an essential air service from a viable airline and a schedule that will allow enplanements to increase. We'd like three flights per day on a Saab 340 rather than a Beech 1900. I am convinced that with better marketing of the Mesaba flights, enplanements will increase as the economy of Watertown, SD grows.

By: David Johnson

July 21, 2005

Comments of Lentz, Inc.

As an airline passenger and a business owner, I encourage your office to review the proposals for Essential Air Service in Watertown, SD. We need to maintain the level of service that we currently offer in order for our local businesses to remain effective and competitive in the global marketplace.

By: Elizabeth Lentz

Order 2005-9-9
OST-2001-10644

Issued September 9, 2005 | Served September 14, 2005

Order Re-Selecting Carrier and Establishing Subsidy Rates - Bookmarked

The Department re-selects Mesaba Aviation, Inc. d/b/a Northwest Airlink, to provide essential air service at Watertown, South Dakota, as described in Appendix B for the two year period from August 1, 2005, through July 31, 2007.

The Department sets the final rate of compensation for Mesaba Aviation, Inc. d/b/a Northwest Airlink, for the provision of essential air service at Watertown, South Dakota, as described in Appendix B for the two-year period fiom August 1, 2005, through July 31, 2007, 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 set forth by Appendix B and shall be determined by multiplying the subsidy-eligible flights each way completed during the month by $858.073.

By: Karan Bhatia

Order 2007-5-1
OST-2001-10644

Issued May 2, 2007 | Served May 7, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Watertown, South Dakota, for a new two-year period, with or without subsidy, beginning August 1, 2007.

Proposals should provide sufficient capacity to accommodate historical levels of traffic. Specifically for Watertown, we request proposals for service consisting of two round trips each day to Minneapolis (14 rts/wk), with 30-seat aircraft or three round trips on weekdays and weekends (18 rt/wk) with 19-seat aircraft. 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

May 30, 2007

Proposals of Mesaba Airlines

Option #1 is at a level of fourteen roundtrip, non-stop flights per week using 34-seat Saab 340 aircraft from Northwest's MSP hub.

Depart MSP	Arrive ATY	Depart ATY	Arrive MSP
1250	1412	0813	0920
2110	2223	1708	1815

Option #2 is at a level of twenty roundtrip, non-stop flights per week using 34-seat Saab 340 aircraft from Northwest's MSP hub.

Depart MSP	Arrive ATY	Depart ATY	Arrive MSP
1250	1412	0813	0920
1710	1820	1708	1815
2110	2223	1850	2020

By: Mesaba, Thomas Schmidt, 651-637-5200

June 7, 2007

Letter Requesting Comments of:

• Mayor of Watertown
• Watertown Regional Airport Manager

As you may know, by Order 2007-5-1, issued May 2,2007, the Department solicited proposals from all air carriers interested in providing essential air service at Watertown in anticipation of the end of Mesaba's current contract on July 31, 2007. In response to that order, the incumbent was the only carrier to submit a proposal.

My purpose in writing to you at this time is to request any final comments you might have on the carrier's subsidy proposal before we submit a recommendation to the Assistant Secretary on the carrier selection issue. We request that you review this information as expeditiously as possible and submit any comments you may have on the carrier selection case as soon as possible, but in any case no later than July 9, 2007.

By: Dennis DeVany

July 3, 2007

Re: Watertown Chamber of Commerce Support for Mesaba

Thank you for this opportunity to share our comments with you in reference to the proposal from Mesaba Airlines through their Northwest Airlink.

We humbly request your recommendation to award Option #2, at the annual subsidy rate of $1,970,646.00, beginning with the new contract on August 1, 2007. This option provides a third flight to Minneapolis/St. Paul for business and leisure passengers in our region. It is crucial this flight be designed to allow arrival in MSP before 7:00 a.m. to allow passengers ample time to transition to their next flight.

Increased flight frequency is necessary to attract passengers back to the Watertown Regional Airport. It is the only way we are going to increase our boardings to the pro September 11th level. This is going to take a marketing effort and the City of Watertown has applied for the grant dollars to do this marketing. At the present time our airport is underutilized. With the nearly $8 million dollar parallel taxiway improvement project nearing completion, we are privileged to have a facility such as this in our community. Our goal is to persuade more people to fly from Watertown. We can do this with your continued support of this important program.

By: John Redlinger

July 3, 2007

Watertown Regional Airport Request for Increased Funding

The Watertown Regional Airport requests increased funding for its next Essential Air Service contract, for an additional flight to Northwest‘s Minneapolis/St. Paul hub. Current EAS service in Watertown consists of 34-seat Saab SF340 turboprops that fly a Minneapolis/St. Paul - Watertown - Pierre routing, and return, twice on each weekday. Due to the ”tagged” arrangement of these flights, Northwest “saves” a certain number of seats to be booked by Pierre travelers. This causes a seat shortage in Watertown, and drives up fares to such high levels that the Airport can't compete with surrounding gateways.

The Airport has requested that Mesaba and Northwest add a single, daily Saab SF340 flight to and from Minneapolis/St. Paul that turns in Watertown, without operating a Pierre tag. The Airport firmly believes, by adding this flight with seats fully dedicated to the Watertown Regional Airport, Essential Air Service in the Watertown market will be accessible to a wider cross-section of the community. The Airport also believes the additional seats will lead to lower fares, and less leakage to other airports in the region.

By: Airport Manager, Erick Dahl

July 5, 2007

DOT Memorandum: Granting Community Request

By letters dated June 7, 2007, the Department offered civic officials of Watertown the opportunity to provide comments on the essential air service proposal submitted by Mesaba Airlines to continue to provide subsidized service at the community. The deadline for comments was set as June 9. In an email message dated July 3, 2007, the Director of the Department of Public Works of Watertown requested an extension to submit comments.

We are hereby granting the community's request and extending the deadline until July 23, 2007.

By: Dennis DeVany

Order 2007-8-19
OST-2001-10644

Issued August 20, 2007 | Served August 23, 2007

Order Reselecting Carrier and Establishing Subsidy Rates

By this order, the Department is reselecting Mesaba Aviation, Inc., d/b/a Northwest Airlink to continue to provide subsidized essential air service at Watertown, South Dakota, for the two-year period beginning August 1, 2007. Service will consist of 14 nonstop round trips per week at an annual subsidy rate of $1,189,606, with flights originating and terminating at Pierre and operated with 34-seat Saab 340 aircraft as Northwest Airlink.

By: Michael Reynolds

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