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OST-2001-10685 - EAS at Laurel/Hattiesburg, MS

http://www.hlrairport.com/ - Hattiesburg/Laurel Regional Airport


EAS Docket



Essential Air Service at Laurel/Hattiesburg, Mississippi

OST-2001-10685 September 21, 2001 Notice of Termination of Service at Laurel/Hattiesburg, Mississippi Termination of Service at Laurel/Hattiesburg, Mississippi
    Service List  

Express intends to terminate the service on January 1, 2002. No other carrier is currently serving Laurel/Hattiesburg. After Express terminates service, Laurel/Hattiesburg will be left with no service.

Counsel:  Espress I, Philip[ Trenary, 901.348.4100



OST-01-10685 October 5, 2001 Objection of Hattiesburg-Laurel Regional Airport Termination of Service at Laurel/Hattiesburg, Mississippi

It is indeed unfortunate that Northwest Airlink finds itself in the extraordinary circumstance, brought about by terrorism, where they feel it is necessary to make this request to terminate service to our regional airport. Currently we enjoy a mutually beneficial relationship with the Airlink. In fact, in the past six years our annual boardings have nearly tripled, thereby, demonstrating the commercial viability of our air traveler market and the high caliber of Northwest Airlink service that they have provided here. If the Airlink were to terminate service this conununity would lose its only airline and with it the quantifiable benefit of nearly $3 million of direct economic activity and more importantly, the unquantiflable value of improving our competitiveness to attract new industry and also being able to support the economic prosperity of our existing enterprises.

While we firmly object to Northwest AirLink's terminating service here, we do not have any objection whatsoever to the Airlink receiving federal subsidies for continuing their excellent service to our community.

By:  Hattiesburg-Laurel Regional Airport, Lynn Cartidge



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   

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



Order 02-1-07
OST-01-10685
Issued January 18, 2002
Served January 24, 2002
Order Extending Service Obligation Termination of Service at Laurel/Hattiesburg, Mississippi

By:  Randall Bennett



OST-01-10685 January 28, 2002 Extension of Deadline for Filing Proposals Termination of Service at Laurel/Hattiesburg, Mississippi

By:  Dennis DeVany



OST-01-10685

February 5, 2002 Essential Air Service Proposal of Great Lakes Aviation Termination of Service at Laurel/Hattiesburg, MS

 



Order 02-2-08
OST-01-10685
Issued February 11, 2002
Served February 1, 2002
Order to Show Cause Termination of Service at Laurel/Hattiesburg, Mississippi

By this order we are directing Express Airlines I, (Express) to show cause why the Department should not dismiss its claim for hold-in subsidy at Laurel/Hattiesburg, Mississippi. The carrier has requested annual compensation of $2,222,783 for three nonstop round trips a day to Memphis with Saab 340 aircraft, the level of service we are requiring the carrier to provide.

We have concluded that the methodology used by Express to calculate subsidy is not appropriate. Given the fixed-fee basis under which Express serves this market, Northwest, not Express, is the party that would sustain losses if revenue generated to and from Laurel/Hattiesburg were inadequate. The proper basis for determining subsidy need in this circumstance is not Express's expenses of operating between Memphis and Laurel/Hattiesburg less a prorated portion of revenue for passengers traveling beyond Memphis on Northwest. Rather, the proper basis for calculating subsidy need for such service is the effect that Express's service to Laurel/Hattiesburg has on Northwest's network profits. A majority of passengers that Express carries between Memphis and Laurel/Hattiesburg travel beyond Memphis throughout Northwest's domestic and worldwide systems. Thus, whether or not Express earns a profit on the Memphis-Laurel/Hattiesburg segment does not dictate whether that service turns a profit for Northwest's system. Indeed, since the cost of operating a spoke segment to a network hub may include most costs of moving passengers from the spoke city to points throughout Northwest's system, it is not unlikely that a carrier will suffer losses on the spoke segment while earning profits overall due to the flow traffic and revenue that spoke generates for the network. Accordingly, we have tentatively determined to dismiss Express's subsidy claim for its hold­in service at Laurel/Hattiesburg.

By:  Read Van de Water



OST-01-10685 February 7, 2002
Docketed February 20, 2002
Essential Air Service Proposal of Corporate Airlines Termination of Service at Laurel/Hattiesburg, Mississippi

By:  Corporate Airlines

OST-01-10685 February 20, 2002 Essential Air Service Proposal of Northwest Airlink, Express Airlines Termination of Service at Laurel/Hattiesburg, Mississippi

By:  Northwest Airlink, Curtis Sawyer



Order 02-3-01
OST-01-10685
Issued March 4, 2002
Served March 7, 2002 
Order Extending Service Obligation Termination of Service at Laurel/Hattiesburg, Mississippi

We require Express Airlines I, d/b/a Northwest Airlink, to maintain essential air service between Laurel/Hattiesburg and Memphis, Tennessee, as specified in ordering paragraph 2 of Order 2001-12-26; for an additional 30-day period through April 3, 2002, or until a carrier capable of providing reliable replacement service actually begins service, whichever occurs first.

By:  Randall Bennett



OST-01-10685 March 5, 2002
Docketed March 11, 2002
Comments of Hattiesburg-Laurel Regional Airport Termination of Service at Laurel/Hattiesburg, Mississippi

A clear indication of the beginning of a passenger boardings rebound from the downturn caused by 9-11 is this February's performance. This month, traffic was up 29% over the same month last year. Considering that February is historically a slow month, if we project this same rate of increase for our peak month of July, we see that we could very well have 54 average daily passengers boardings which would require a 90 daily seat guarantee in order to prevent a "capacity cap" on our traffic.

Corporate Airlines: This airline has a superb reputation as a feeder for American Airlines at the St. Louis Hub. There are, however, some severe limitations to their operating a route from this region to the Memphis Hub. One of these is the capacity limitations just mentioned in Paragraph B.5 above. Another major problem currently is their lack of code sharing agreements with anyone beside American. Right now American only operates about 6% of the connecting flights in Memphis, so our travelers would have inadequate options for travel beyond Memphis. Since almost all of our passengers need to travel beyond Memphis, this is a clear disadvantage. To correct this situation, Corporate Airlines would have to establish a system wide code share agreement with Northwest that would allow a full spectrum of both domestic and international connections, as well as a baggage interline agreement with Northwest. In conclusion, for the reasons stated above, this community strongly recommends that the Northwest proposal for 3 or 2 daily flights (preferably 3) be selected.

By:  Hattiesburg-Laurel Regional Airport, Jim McNeil



OST-01-10685

April 2, 2002 Proposal of Northwest Airlink to Provide Essential Air Service Termination of Service at Laurel/Hattiesburg, MS

Counsel:  Northwest Airlink, Sawyer Curtis



OST-01-10685

April 1, 2002
Docketed April 3, 2002
Re:  Results of Meeting Held to Discuss Compensation Termination of Service at Laurel/Hattiesburg, MS

For NW, Ms. Rosia stated that NW's claim for compensation had been prepared, in her estimation, consistently with other fee/departure arrangements that DOT has evaluated. She added that the compensation figure had not been arrived at on a fully-allocated, system-wide basis, but on a lower­cost segment basis. (She and Mr. Hunnicutt stated that, as a general proposition, if all EAS carriers calculated their costs on a system-wide basis, the resulting figures would be so large as to over­whelm the EAS budget.) She noted NW's recent $1 billion annual loss and reduction of 10,000 personnel positions.

For DOT, Mr. DeVany remarked on NW's revenue allocation to the Laurel/Hattiesburg segment for through passengers of only $63 (of a total fare for Laurel/Hattiesburg-Memphis that Mr. DeVany said was $160 or so), and asked how that figure was derived." He recognized network impacts of such through service and the danger of allocating too much cost and not enough revenue to the Laurel/ Hattiesburg-Memphis segment, to the detriment of the EAS budget. Mr. DeVany said that the EAS staff has had little experience with fee/departure arrangements, particularly between wholly-owned carriers in the same corporate family.

Ms. Rosia said that NW would be happy to share its methodology with DOT, but it would adhere to the figures in its initial application for compensation. Mr. Hunnicutt added that the figures that NW submitted with its initial application were both highly detailed and highly specific to Laurel/Hattiesburg service. He cautioned that DOT should not discourage code-share carriers from bidding to serve EAS points, as the EAS communities benefited from such service and clearly desired it. Mr. Mishkin said that it is necessary to use fully-allocated costs to determine what value a hub, such Memphis, contributes to the over-all NW system; a variable-cost calculation is not accurate for this purpose.

By:  Robert Ross



Order 02-4-01
OST-01-10685
Issued April 3, 2002
Served April 8, 2002
*Not Previously Released
Order Extending Service Obligation Termination of Service at Laurel/Hattiesburg, Mississippi

Although we have received proposals from both Northwest Airlink and Corporate Airlines, this case 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 Northwest Airlink's service obligation for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett



Order 02-4-05
OST-01-10685
Issued April 5, 2002
Served April 10, 2002
Order Allowing Reduction in Service Termination of Service at Laurel/Hattiesburg, Mississippi

On September 21, 2001, Express I filed a 90-day notice of its intent to suspend its unsubsidized scheduled air service at Laurel/Hattiesburg, effective on January 1, 2002. Since Express I was the only carrier serving Laurel/Hattiesburg, the Department issued Order 2001-12-26, served on January 4, 2002, requiring the carrier to continue to provide three round trips each weekday and two round trips over each weekend in the Laurel/Hattiesburg - Memphis market. We had originally required the carrier to provide three round trips a day because the flights also served Meridian, Mississippi. By sharing the seat capacity of the aircraft with Meridian, each community received one-half of the total number of seats provided in the Laurel/Hattiesburg - Meridian - Memphis market, or approximately 50 seats each way, each weekday and weekend period.

On April 1, 2002, Express I petitioned the Department to allow it to immediately reduce its current level of service at Laurel/Hattiesburg from three round trips each weekday and weekend to two. In its petition, Express I cited the fact that Laurel/Hattiesburg is now served on a nonstop, turnaround basis to Memphis, meaning that all 33 seats are available for Laurel/Hattiesburg passengers on every flight. As a result, Laurel/Hattiesburg is receiving far in excess of the number of seats required under the EAS program. As mentioned in Order 2001-12-26, the community is guaranteed a total of 44 seats in each direction every weekday and weekend. Even with two round trips a day, Express I will provide 66 seats in each direction at Laurel/Hattiesburg each weekday and weekend, far exceeding the 44-seat requirement.

By:  Read Van de Water



Order 02-4-23
OST-01-10685
Issued April 30, 2002
Served May 2, 2002
Order Extending Service Obligation Essential Air Service at Laurel/Hattiesburg, Mississippi / Express Airlines I

On April 1, 2002, Express I petitioned the Department to allow it to immediately reduce its current level of service at Laurel/Hattiesburg from three round trips a day to two, citing the fact that Laurel/Hattiesburg is now served on a nonstop, turnaround basis to Memphis, whereas it had been served over a Laurel/Hattiesburg-Meridian-Memphis routing. By Order 2002-4-5, April 5, 2002, the Department allowed Express I to reduce its level of service to two nonstop round trips a day to Memphis effective immediately.

Although we have received proposals from both Northwest Airlink and Corporate Airlines, this case 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 Northwest Airlink's service obligation for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett



OST-01-10685 May 20, 2002 Request of Corporate Airlines to Withdraw its Proposal for Laurel/Harrisburg, Mississippi Service Termination of Service at Laurel/Hattiesburg, Mississippi

By:  Corporate Airlines, Charles Howell



Order 02-5-28
OST-01-10685
Issued May 29 2002
Served June 3, 2002
Order Selecting Carrier Termination of Service at Laurel/Hattiesburg, Mississippi
      Attachment:  Service    

By this order we are selecting Mesaba Aviation, Inc. (Mesaba), d/b/a Northwest Airlink, to provide two nonstop round trips a day between Laurel/Hattiesburg, Mississippi, and Memphis beginning when the carrier inaugurates service at an annual subsidy rate of $1,056,991. (See Appendix A for a map.) For the period January 1, 2001, until Mesaba inaugurates service, we will compensate Express Airlines I, d/b/a Northwest Airlink (Express I) at the same rate.

By letter dated March 5, 2002, the community indicated it favored Mesaba's proposal, either two or three round trips a day, to Corporate Airlines. The community favored Mesaba based on the larger equipment it proposed, and the greater number of seats even its lower frequency option provided. (Two round trips per day with a 34-seat aircraft produces 68 seats, while three with a 19-seater produce 57 seats.) The community also appreciated the world-wide, on-line connections provided by Northwest and Northwest Airlink at the Memphis hub.

By:  Read Van de Water



OST-01-10685 May 29, 2002
Docketed August 20, 2002
Re:  Letter of Norman Mineta Stating He Cannot Comment on Ongoing Case Termination of Service at Laurel/Hattiesburg, Mississippi

By:  Norman Mineta



Order 04-04-06
OST-01-10685 - EAS at Laurel/Hattiesburg, MS

Issued June 7, 2004 | Served June 10, 2004

Order Requesting Proposals | Word

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Laurel/Hattiesburg, Mississippi, for the two-year period beginning July 1, 2004.

We expect proposals consisting of service, at a minimum, with two-pilot, twin-engine, 15-seat or larger aircraft, and two or three round trips a day to Memphis. For proposals with 30-seat or larger aircraft, we would not be inclined to authorize subsidy for more than two round trips a day. Such service is generally consistent with what the community now receives, and fully satisfies Laurel/Hattiesburg's essential air service requirements.

Prior to September 11, 2001, Laurel/Hattiesburg was served without subsidy for many years to Memphis by Mesaba. Based on a review of the historical traffic using the Hattiesburg ‑Laurel Regional Airport, the number of local passengers appears to have been growing every year through 2000, reaching a peak of 12,412 annual enplanements ‑ about 40 passenger enplanements a service day. Since then, enplanements averaged 37, 33, and 36 per day for 2001, 002, and 2003, respectively.

By: Karan Bhatia



July 8, 2004

Re: Proposal to Provide Essential Air Service (Mesa)

By Order 2004-6-6, Mesa proposes to fly pressurized turboprop Beech 1900bs with 19 seats roundtrip from New Orleans, LA or Atlanta, GA. Mesa would propose to operate these segments as Mesa Airlines (YV), but would pursue additional codeshare opportunities as well.

By: Mickey Brown


July 12, 2004

Re: Proposal to Provide Essential Air Service (Mesaba)

In response to Department’s Order 2004-6-6, Mesaba Aviation, Inc. d/b/a Mesaba Airlines hereby submits a proposal to provide essential air services at Laurel/Hattiesburg, Mississippi. Mesaba has provided subsidized service to this point pursuant to Order 2002-5-28. The Department, in Order 2004-6-6, has requested new service proposals for the two year period beginning July 1, 2004.

Mesaba has enclosed its service proposal, which includes a request for subsidy. As indicated in the attached proposal, Mesaba proposes to provide subsidized service between Laurel/Hattiesburg and Memphis. Mesaba will offer 13 roundtrip flights per week, all on a non stop basis. The total number of flight segments is 26. Mesaba will utilize this service with a combination of 33 and 34-seat Saab 340 aircraft and will operate as "Northwest Airlink".

By: John Spanjers



July 19, 2004

Re: Request for Comments from Thomas Heanue

I would like to update you on the essential air service situation at Laure/Hattiesburg and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a carrier proposal and/or service option for a new two-year period beginning July 1, 2004. We also sent an identical letter to Mayor Vincent of Laurel and to Mayor DuPree of Hattiesburg.

As you know, by Order 2002-5-28, May 29, 2002, we selected Mesaba Aviation, d/b/a Mesaba Airlines, to provide Laure/Hattiesburg 13 nonstop round trips each week to Memphis for the two-year period ending June 30, 2004. As is our normal practice near the end of a two-year contract, we issued Order 2004-6-6, which solicited proposals from carriers interested in serving Laure/Hattiesburg, either with or without subsidy, for a new two-year period. In response to our request, we received two proposals, the first from Mesa Air Group, Inc., d/b/a Air Midwest, Inc. consisting of two options, and the second from Mesaba, consisting of a single option. Since you should have received copies of the proposals from both carriers, we will only briefly summarize them below.

By: Dennis DeVany


July 19, 2004

Re: Request for Comments from The Honorable Susan Vincent

By: Dennis DeVany


July 19, 2004

Re: Request for Comments from The Honorable Johnny DuPree

By: Dennis DeVany



July 22, 2004

Re: Hattiesburg-Laurel Regional Airport Comments on EAS Proposals

We feel that Mesaba's proposal with 2-flights per day for a total of 67 seats on the 34-passenger Saab aircraft meets our current requirements and does so at the lowest cost. Currently we are experiencing an average load factor of 65% to 70% per month. With the activation of Camp Shelby as a National Guard mobilization site for troops transitioning to Iraq, we are at near capacity. Mesa's proposal would essentially be a step backward for our community offering only 57 seats daily to New Orleans or 38 seats to Atlanta, and at a much higher subsidy price.

We have worked very hard over the last two years to bring our boardings back to the level they were before the events of September 11, 2001. If the Mesa proposal were to be selected, the loss of capacity per year could mean that this Airport could drop below the 10,000 annual boardings needed to retain our eligibility for $1 million dollars annually in FAA Airport Improvement Program Entitlement Rinds. Further, it would result in the loss of $4.50 per traveling passenger facility charge collections, which would amount to a loss of another $14,782 to $45,990. Without both of these sources of funds, the

By: Thomas Heanue and Gene Walters


July 22, 2004

Re: Susan Boone Vincent Comments on EAS Proposals

Currently the Hattiesburg-Laurel area is experiencing major economic growth. With the activation of Camp Shelby as a mobilization center for National Guard and Reserve units from around the country who are supporting Operation Iraqi Freedom, the University of Southern Mississippi g d n g up for their fall semester and the development of the Howard Technology Park, we feel that we need to offer our flying public the maximum seats possible. Therefore, after careful evaluation, the Hattiesburg-Laurel Regional Airport Authority and its governing authorities, recommend and propose selection of Mesaba Airlines to provide essential air service to this region based upon its past service, the proposed subsidy rate and the seat capacity advantage of its proposal.

By: Susan Boone Vincent


July 22, 2004

Re: The City of Hattiesburg Comments on EAS Proposals

Currently the Hattiesburg/Laurel area is experiencing major economic growth. With the activation of Camp Shelby as a mobilization center for National Guard and Reserve units from around the country who are supporting Operation Iraqi Freedom, the University of Southern Mississippi gearing up for their fall semester and the development of the Howard Technology Park we feel that we need to offer our flying public the maximum seats possible. Therefore, after careful evaluation, the Hattiesburg-Laurel Regional Airport Authority and its governing authorities, recommend and propose selection of Mesaba Airlines to provide essential air service to this region based upon its past service, the proposed subsidy rate and the seat capacity advantage of its proposal.



Order 04-08-11
OST-01-10685 - EAS at Laurel/Hattiesburg, MS

Issued August 12, 2004 | Served August 17, 2004

Order Reselecting Carrier | Word

By this order, the Department is reselecting Mesaba Aviation, Inc. (Mesaba), d/b/a Northwest Airlink, to provide essential air service (EAS) at Laurel/Hattiesburg, Mississippi, for the period from July 1, 2004, through June 30, 2006, at an annual subsidy rate of $1,100,253.

By: Karan Bhatia



Order 2006-3-24
OST-2001-10685

Issued March 24, 2006 | Served March 29, 2006

Order Requesting Proposals | Word

By Order 2004-8-11, August 12, 2004, the Department selected Mesaba Aviation, Inc., d/b/a Northwest Airlink, to provide subsidized essential air service at LaurellHattiesburg for the two-year period through June 30, 2006, by operating two nonstop round trips each weekday and three over the weekend to Memphis with 34-seat, Saab 340 equipment, at an annual subsidy of $1,100,253.

We expect proposals consisting of service, at a minimum, with two-pilot, twin-engine, 15-seat or larger aircraft, and two or three round trips a day to Memphis. For proposals with 30-seat or larger aircraft, we would not be inclined to authorize subsidy for more than two round trips a day. Such service is generally consistent with what the community now receives, and fully satisfies Laurel/Hattiesburg's 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.

Prior to September 11, 2001, Laurel/Hattiesburg was served without subsidy for many years to Memphis by Mesaba. Historical passenger levels at the Hattiesburg-Laurel Regional Airport grew each year from 1997 through 2000, when enplanements reached 12,412 (39.5 enplanements per service day). After September 11, enplanements fell and hit a low of 10,361 (33.1 daily enplanements) in 2002. Since then, traffic has grown steadily, and in 2005 exceeded the pre-September 11 levels.

By: Todd Harmon



April 27, 2006

Proposal of Mesaba Aviation d/b/a Northwest Airlink

In response to the Department's Order 2006-3-23, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing its detailed subsidy proposal for continued essential air service at Laurel/Hattiesburg, Mississippi, at a level of two round-trip flights per day, using 34-seat Saab 340 aircraft, The following is the current and proposed schedule:

Depart MEM

Arrive PIB

Depart PIB

Arrive MEM

09:25

10:47

06:17

07:47

19:10

20:26

11:15

12:47

Northwest Airlink carriers have long provided scheduled service between Laurel /Hattiesburg and Northwest Airlines, Inc's hub in Memphis, Tennessee. and we welcome the opportunity to continue providing essential air service at Laurel/Hattiesburg, Mississippi for the two-year period beginning July 1, 2006.

By: Mesaba, William Poerstel



May 3, 2006

DOT Letters to:

I would like to update you on the essential air service situation at Laurel/Hattiesburg and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a carrier proposal and/or service option for a new two-year period beginning July 1, 2006.

In response to our request, we received a single proposal from Mesaba.

While there are no options from which to choose, we nonetheless wanted to give you an opportunity to submit any comments on the record, if you wish, before we present our recommendation to the Assistant Secretary, who will make the final decision in this case. We ask that you submit any comments you have as soon as possible, but in any case no later than May 19.

By: Dennis DeVany



May 16, 2006

Hattiesburg/Laurel Regional Airport in Support of Mesaba Airlines

The Hattiesburg-Laurel Regional Airport Authority and its governing authorities, recommend the selection of Mesaba Airlines to provide essential air service to this region.

By: Mayors Johnny Dupree and Melvin Mack



Order 2006-6-7
OST-2001-10685

Issued June 6, 2006 | Served June 9, 2006

Order Re-Selecting Carrier and Establishing Subsidy Rate

By Order 2004-8-11, the Department selected Mesaba to provide two nonstop round trips each weekday and three over the weekend to Memphis with 34-seat Saab 340 turboprop aircraft for the two-year period ending June 30, 2006, at an annual subsidy of $1,100,253. As the end of that two-year contract period was approaching, the Department issued Order 2006-3-23 on March 29, 2006, requesting proposals from carriers interested in providing EAS at Laurel/Hattiesburg for a new two-year period beginning July 1, 2006, with or without subsidy. In response to our request, only Mesaba submitted a proposal.

We will reselect Mesaba to serve Laurel/Hattiesburg for a new two-year period beginning on July 1, 2006. at the proposed annual subsidy of $917,129 to provide two daily nonstop round trips to Memphis with 33-seat Saab 340 turboprop aircraft.

By: Michael Reynolds



Order 2008-2-9
OST-2001-10685

Issued February 6, 2008 | Served February 11, 2008

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Laurel/Hattiesburg, Mississippi, for the two-year period beginning July 1, 2008, with or without subsidy. Proposals are due by March 4.

With respect to Laurel/Hattiesburg specifically, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine, 15-seat or larger aircraft, and two or three round trips a day to Memphis, Atlanta, or New Orleans. For proposals with 30-seat or larger aircraft, we would not be inclined to authorize subsidy for more than two round trips a day.

By: Todd Homan



February 26, 2008

Proposal of Mesaba Airlines

In response to the Department's Order 2008-2-9, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing its detailed subsidy proposal for continued essential air service at Laurel/Hattiesburg, Mississippi, at a level of two roundtrip flights per day, using 34-seat Saab 340 aircraft. The following is the current and proposed schedule:

Depart MEM Arrive PIB Depart PIB Arrive MEM
0925 1045 0625 0755
1915 2030 1115 1240

We welcome the opportunity to continue providing essential air service at these communities for the two-year period beginning July 1, 2008.

By: Mesaba, John Spanjers


March 5, 2008

Re: Requests for Community Comments of:

We solicited proposals from carriers interested in serving Laurel/Hattiesburg, either with or without subsidy, for a new two-year period (Order 2008-2-9, February 6, 2008). In response to our request, we received a single proposal from Mesaba.

Mesaba's proposes a slight increase from its current service (from 13 round trips a week to 14) and would provide two nonstop round trips each day to Memphis with 34-seat Saab 340 turboprop aircraft for an annual subsidy of $1,191,435. I would note that Mesaba is proposing more service than we are currently subsidizing, as well as more service than we solicited in the request for proposals. Order 2008-2-9. While Mesaba, of course, is free to offer additional service, we are inclined to continue to subsidize 13 round trips a week. Mesaba would continue to operate as Northwest Airlink, under its code-share agreement with Northwest Airlines at Memphis.

While there are no options from which to choose, we nonetheless wanted to give you an opportunity to submit any comments on the record, if you wish, before we present our recommendation to the Assistant Secretary who will make the final decision in this case. We ask that you submit any comments you have as soon as possible, but in any case no later than March 24.

By: Dennis DeVany



March 6, 2008

Re: City of Laurel in Support of Mesaba Aviation

After careful consideration, the Hattiesburg-Laurel Regional Airport Authority and its governing authorities recommend and propose acceptance of Mesaba Airlines to provide essential air service to this region based upon its past service, the proposed subsidy rate and the seat capacity advantage of its proposal.

By: Mayor, Melvin Mack



March 13, 2008

Re: Hattiesburg-Laurel Regional Airport Support for Mesaba's Proposal

The Hattiesburg‑Laurel Regional Airport Authority is in receipt of the proposal from Mesaba Airlines, d/b/a Northwest Airlink to provide essential air service to the citizens of the Hattiesburg‑Laurel region.

As long standing partners with Northwest Airlines in providing that service, it is with great pleasure that we recommend the selection of Mesaba's proposal for essential air service to this region.

By: Danny Shows



March 12, 2008

City of Hattiesburg in Support of Mesaba Airlines

The City of Hattiesburg proposes acceptance of Mesaba Airlines to provide essential air service to its citizens based upon past service, proposed subsidy rate and the seat capacity of its proposal.

By: Mayor, Johnny DuPree



Order 2008-4-2
OST-2001-10685

Issued April 1, 2008 | Served April 4, 2008

Order Reselecting Carrier and Establishing Subsidy Rate

By this order, the Department is re-selecting Mesaba Aviation, Inc., d/b/a Northwest Airlink to provide subsidized essential air service at the hyphenated communities of Hattiesburg and Laurel, Mississippi, through the Hattiesburg–Laurel Regional Airport for the two-year period beginning July 1, 2008, for an annual subsidy of $1,191,435 with 34-seat Saab 340 turboprop aircraft.

By: Michael Reynolds


 

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