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Salina Airport

EAS Docket

Essential Air Service at Salina, Kansas

Midwest Express Inc., a Mesa Air Group subsidiary, intends to discontinue scheduled non-subsidized Essential Air Service between Salina Kansas, and Kansas City effective April 20, 2002. Air Midwest, Inc. is currently operating three daily round trips using Beech 1900 aircraft. Although Air Midwest would prefer to continue providing scheduled air service to Salina, the substantial cost increases resulting from increased federal regulations for regional carriers makes it impossible to continue without an EAS subsidy. The absence of any subsidy requires Air Midwest to advise the Department of Transportation that scheduled air service will be discontinued.

By:  Midwest Express, William Kostel

Order 2002-3-31 is prohibiting Air Midwest, Inc., d/b/a US Airways Express (Air Midwest), from terminating its unsubsidized service at Salina, Kansas; (b) requiring the carrier to maintain service between the community and Kansas City, Missouri, for an initial 30-day period following the end of the notice period; and (c) requesting proposals from carriers interested in providing replacement service at the community. Proposals due April 23, 2002.

Salina is guaranteed to receive at least a minimum level of air service under the Essential Air Service (EAS) program by virtue of the fact that it received service from a certificated carrier on October 24, 1978, the date the Airline Deregulation Act of 1978 was signed into law. (See 49 U.S.C. 41731-41742 for the EAS program's governing statutes.) On January 23, 2002, Air Midwest filed a 90-day notice of its intent to suspend its unsubsidized scheduled air service at Salina, effective on April 24, 2002. Air Midwest is the only carrier serving the Salina community. Air Midwest's service consists of two daily nonstop and one daily one-stop round trips to Kansas City International Airport. Air Midwest uses 19-seat, Beech 1900.-D turboprop aircraft to serve the community.

By: Read Van de Water

The order requesting proposals for the Salina, KS market was docketed April 3rd with a response date of April 23rd. Due to a large volume of proposals both EAS and Air 21 we have been unable to adequately prepare this proposal. As a result, Mesa Air Group is formally requesting a one week extension tc submit our response. We would request an extension until 5pm EST on April 30th, 2002.

By:  Mesa Air Group

By:  Gus Carbonell

By:  John McCamant

In response to the Department's request for proposals to provide Essential Air Service at Salina, Kansas, Mesa Air Group on behalf of its wholly owned subsidiary, Air Midwest, herby submits the following three service options:

• Option 1 - 2 weekday and 2 weekend one-stop roundtrips between Salina, KS & Kansas City, MO

• Option 2 - 2 weekday and 2 weekend nonstop roundtrips between Salina, KS & Kansas City, MO 
• Option 3 - 3 weekday and 3 weekend nonstop roundtrips between Salina. KS & Kansas City

By:  Mesa, Gus Carbonell, 602.685.4108, gus.carbonell@mesa-air.com

Order 2002-5-10 extends Air Midwest, Inc., d/b/a US Airways Express's (Air Midwest) service obligation at Salina, Kansas, for another 30 days, through June 24, 2002. Petitions are due May 24, 2002.

By:  Randall Bennett

By:  Hertz Salina, Jason Ford

Resolution recommending acceptance of Mesa's option 3 proposal.

By:  Salina Airport Authority, Robert Miller

By:  City of Salina, Mayor Kristin Seaton

By:  Business Community of Salina

By:  Board of Commissioners of Salina County, Kansas, Sharon Barragree

Enclosed for the record is City of Salina Resolution No. 02-5837, repressing the support of the City of Salina, Kansas for "Option 3" proposal from Mesa Air Group for Essential Air Service at Salina. The City's Governing Body has reviewed this matter carefully, and strongly believes the Mesa Air Group proposed option to provide 3 weekday and 3 weekend nonstop roundtrips between Salina, Kansas and Kansas City is necessary to serve the public interest.

By:  City of Salina, Dennis Kissinger

By:  Salina Airport Authority, Timothy Rogers

On January 23, 2002, Air Midwest filed a 90-day notice of its intent to suspend its subsidized service at Salina, Kansas, effective April 24, 2002. By Order 2002-3-31, March 29, 2002, the Department prohibited Air Midwest from suspending service at Salina for 30 days beyond the end of its 90-day notice period, and requested proposals 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 June 24, 2002, by Order 2002-5-10. Although Air Midwest has submitted a proposal, 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 Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

By:  Lawrence Herschbach

By:  Randall Bennett

On January 23, 2002, Air Midwest filed a 90-day notice of its intent to suspend its unsubsidized service at Salina, Kansas, effective April 24, 2002. By Order 2002-3-31, March 29, 2002, the Department prohibited Air Midwest from suspending service at Salina for 30 days beyond the end of its 90-day notice period, and requested proposals 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 August 23, 2002, by Order 2002-7-13.

By:  Randall Bennett

Order 2002-9-10, the Department extends Air Midwest, Inc., d/b/a US Airways Express's (Air Midwest) service obligation at Salina, Kansas, for another 30 days, through October 23, 2002.  Although Air Midwest has submitted a proposal, 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 Air Midwest’s service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Although Air Midwest has submitted a proposal, 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 Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Read C. Van de Water

Although Air Midwest has submitted a proposal, 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 Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

Exparte letter from Norman Y. Mineta, Secretary, Department of Transportation to the Honorable Jerry Moran regarding Mesa Airlines' proposals to serve the Salina community under the Essential Air Service (EAS) program administered by the Department of Transportation

By: Norman Mineta

Order 2003-1-3, the Department extends Air Midwest, Inc., d/b/a US Airways Express's (Air Midwest) service obligation at Salina, Kansas, for another 30 days, through January 22, 2003.

By: Randall Bennett

On January 23, 2002, Air Midwest filed a 90-day notice of its intent to suspend its unsubsidized service at Salina, Kansas, effective April 24, 2002.  By Order 2002-3-31, March 29, 2002, the Department prohibited Air Midwest from suspending service at Salina for 30 days beyond the end of its 90-day notice period, and requested proposals 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 January 22, 2003, by Order 2003-1-3.

By: Randall Bennett

On January 23, 2002, Air Midwest filed a 90-day notice of its intent to suspend its unsubsidized service at Salina, Kansas, effective April 24, 2002.  By Order 2002-3-31, March 29, 2002, the Department prohibited Air Midwest from suspending service at Salina for 30 days beyond the end of its 90-day notice period, and requested proposals 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 January 22, 2003, by Order 2003-1-3.

By: Randall Bennett

Although Air Midwest has submitted a proposal, 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 Air Midwest’s service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Although Air Midwest has submitted a proposal, 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 Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett

By this order, the Department of Transportation is extending Air Midwest, Inc., d/b/a US Airways Express’s (Air Midwest) service obligation at Salina, Kansas, for another 30 days through May 23, 2003.  Although Air Midwest has submitted a proposal, 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 Air Midwest’s service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Read C. Van de Water

Order 03-5-13
OST-02-11376 - 90 Day Notice to Terminate Scheduled Air Service Between Salina, Kansas, and Kansas City, Kansas

Issued May 9, 2003 | Served May 14, 2003

Order Extending Service Obligation | Word

The Department extends Air Midwest, Inc., d/b/a US Airways Express's service obligation at Salina, Kansas, for an additional 30 days, through June 23, 2003.

By: Randall Bennett

Order 03-6-18
OST-02-11376 - 90 Day Notice to Terminate Scheduled Air Service Between Salina, Kansas and Kansas City, Kansas

Issued June 12, 2003 | Served June 17, 2003

Order Extending Service Obligation | Word

The Department extends Air Midwest, Inc., d/b/a US Airways Express's service obligation at Salina, Kansas, for an additional 30 days, through July 23, 2003. Although Air Midwest has submitted a proposal, 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 Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Order 03-7-3
OST-02-11376 - Notice of Air Midwest to Terminate Service at Salina, KS

Issued July 2, 2003 | Served July 8, 2003

Order Extending Service Obligation

By: Randall Bennett

Order 03-8-15
OST-02-11376 - EAS at Salina, KS

Issued August 13, 2003 | Served August 18, 2003

Order Extending Service Obligation | Word

Although Air Midwest has submitted a proposal, 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 Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Order 03-8-23
OST-02-11376 - EAS at Salina, KS

Issued and Served August 21, 2003

Order Setting Final Rates

The Department sets the final subsidy rate for Air Midwest for the provision of essential air service at Salina, Kansas, 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 and from Kansas City by $239.92; and, sets the final subsidy rate for Air Midwest for the provision of essential air service at Salina, Kansas, 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 and from Kansas City by $299.41.

By: Michael Reynolds

Order 03-9-12
OST-02-11376 - EAS at Salina, KS

Issued September 16, 2003 | Served September 19, 2003

Order Extending Service Obligation | Word

This case will not be completed before the end of the current 30-day hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Order 03-10-19
OST-02-11376 - EAS at Salina, KS

Issued October 17, 2003 | Served October 22, 2003

Order Extending Service Obligation

Air Midwest is eligible for compensation for its forced service. By Order 2003-8-23, August 21, 2003, the Department set annual subsidy rates to be paid while the carrier-selection case is processed. The carrier will be paid $321,968 for a mixture of two and three daily onestop round trips to Kansas City for the period of April 24, 2002, through March 31, 2003; and, $536,237 for three daily one-stop round trips to Kansas City, until further Department action. All service is to be provided using 19-seat Beech 1900D aircraft.

By: Michael Reynolds

Order 03-11-18
OST-02-11376 - EAS at Salina, KS

Issued November 19, 2003 | Served November 24, 2003

Order Extending Service Obligation | Word

This case will not be completed before the end of the current 30-day hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest’s service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

December 5, 2003

Correspondence of the Essential Air Service Division

I would like to update you on the essential air service situation at Sauna and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a carrier and service option for a prospective two‑year period. We are sending an identical letter to Mayor Jilka. As you know, we recently issued Order 2003‑8‑23, August 21, 2003, setting final rates, until further Department action, for Air Midwest's (Air Midwest, Inc., a wholly owned subsidiary of Mesa Air Group, Inc.) subsidized service to Salina at an annual cost of $536,237, with the service consisting of three one‑stop round trips a day, via Manhattan, to Kansas City with 19‑seat Beech 1900D turboprop aircraft, operated as US Airways Express. That order indicated that the rate would be effective until we select a replacement carrier, either Air Midwest or another carrier, and the service is fully in place.

By: Dennis DeVany

December 5, 2003

Correspondence of the Essential Air Service Division to the Honorable Alan Jika

By: Dennis DeVany

December 16, 2003

Proposal Mesa Airlnes on Behalf of Air Midwest to Provide Essential Air Service

Included in this proposal are several options (OPTIONS 1-4) for the communities and DOT to consider. Currently Air Midwest is serving Manhattan with 3 non-stop trips per weekday to Kansas City; and Salina is receiving 3 one-stop trips to Kansas City (via Manhattan) per weekday. All of these flights are operated under a USAir code share agreement. Mesa intends to continue to operate these flights as USAir Express.

Bid Options 1 & 2 are Manhattan stand alone bids. Option 1 (subsidy $250,573) continues the current 3 trip schedule while Option 2 (subsidy $387,831) adds a 4th round trip to Kansas City. We believe the 4th trip will generate incremental passengers and help grow air travel from Manhattan.

Bid Options 3 & 4 combine the Salina service that is currently stopping in Manhattan with the proposed Manhattan 3 & 4 round trip scenarios. The combined bids are slightly less expensive because the 2 cities combined more fully utilize the aircraft. Option 3 (subsidy $721,605) is a 3 round trip schedule for both cities. Option 4 (subsidy $874,432) contains a 4th round trip for Manhattan and 3 round trips serving Salina.

All of the flight options in this proposal will be operated by Beech 1900D aircraft. The Beech 1900D is a pressurized turboprop aircraft with 19 seats and a standup cabin. Currently Air Midwest operates the largest fleet of Beech 1900's in the world.

By: Mesa, Scott Lyon, 602-685-4368

Order 04-1-11
OST-02-11376

Issued January 13, 2004 | Served January 16, 2004

Order Extending Service Obligation

Air Midwest is eligible for compensation for its forced service. By Order 2003-8-23, August 21, 2003, the Department set annual subsidy rates to be paid while the carrier-selection case is processed. The carrier will be paid $321,968 for a mixture of two and three daily onestop round trips to Kansas City for the period of April 24, 2002, through March 31, 2003; and, $536,237 for three daily one-stop round trips to Kansas City, until further Department action. All service is to be provided using 19-seat Beech 1900D aircraft. This case will not be completed before the end of the current 30-day hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Order 04-02-14
OST-03-15483 - EAS at Manhattan, KS
OST-02-11376 - EAS at Salina, KS

Issued February 17, 2004 | Served February 20, 2004

Order Selecting Carrier | Word

Air Midwest’s subsidy request for Salina and Manhattan combined is $721,605.  That includes its current rate of $536,237 for serving Salina, meaning that the implicit cost of serving Manhattan is a relatively modest $185,368.  Further, if we were to select Multi-Aero to serve Manhattan, the cost of securing Salina’s EAS would likely increase -- perhaps considerably.  The current subsidy of $536,237 covers only the costs of Air Midwest’s operating the 58-mile Salina-Manhattan segment.  The subsidy costs of flying the nonstop 161-mile Salina-Kansas City route could be far greater than the current rate of $536,237, and likely even greater than the combined rate of $721,605 for service to both communities.  Thus, the selection of Multi-Aero to serve Manhattan would result in minimal subsidy savings, and might even require more subsidy than Air Midwest’s proposal to serve Salina and Manhattan together over a Salina-Manhattan-Kansas City routing.

By: Karan Bhatia

Order 2005-11-9
OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

Issued November 7, 2005 | Served November 10, 2005

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Manhattan and Salina, Kansas, for the two-year period beginning March 1, 2006.

Manhattan and Salina were served without subsidy for a number of years until Air Midwest, a wholly-owned subsidiary of Mesa Air Group, Inc., d/b/a US Airways Express filed 90-day notices to suspend service at both communities. In response to those 90-day notices, the Department issued Order 2001-12-26 and Order 2002-3-3, prohibiting the carrier from suspending service at Sauna and Manhattan, respectively, and requesting proposals for replacement service. By Order 2004-2-14, Air Midwest was selected for the two-year period through February 28, 2006, at Manhattan and Salina at a combined annual subsidy rate of $721,605 to provide three round trips each weekday and weekend (18 round trips per week) to Kansas City using 19-seat Beech 1900-D turboprop aircraft over a Salina Manhattan -Kansas City routing.

Air Midwest filed to suspend service at Salina on January 23, 2002, and at Manhattan on June 30, 2003.

As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at Manhattan and Sauna, with or without subsidy, for the two-year period beginning March 1, 2006. Carriers should file their proposals within 30 clays of the date of service of this order. At the end of that period, our staff will docket proposals, thereby making them public, and direct each carrier to serve a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will provide a summary of the proposals to the communities and ask them to submit their final comments. We will give full consideration to all proposals that are timely filed.

By: Todd Homan

OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

December 9, 2005

Proposal of RegionsAir, Inc.

RegionsAir proposes the following weekly frequency to/from STL: MHK - 36; SLN - 36.

Both Salina and Manhattan will have nonstop and one-stop service to St. Louis for a combined 36 weekly departures for each community. Specifically, Salina will have 11 nonstop and 25 one-stop departures per week; Manhattan will have 25 nonstop and 11 one-stop departures per week.

By: RegionsAir

December 12, 2005

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

There are 6 services days in a week: Monday-Friday and Saturday/Sunday.

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.

Mesa has seen great passenger enplanements improvements in both markets during the past year, and we feel that we can continue to see an improvement in these markets. We especially feel that having a 4th Roundtrip on Monday, Wednesdays and Fridays for Manhattan is particularly important to help grow their traffic even more. Mesa has also seen an incredible increase in the cost of fuel during the prior two year period, which accounts for nearly a $200,000 need of additional subsidy over our current rate.

By: Air Midwest

December 22, 205

• Letter to Deborah Devine Requesting Final Comments
• Letter to Tim Rogers Requesting Final Comments

I would like to update you on the essential air service situation at Salina and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a carrier and service option for a new two-year period.

Air Midwest offers four options all of which would serve Kansas City using 19-seat Beech 1900D turboprop aircraft. Air Midwest has code-share agreements with US Airways and Midwest Express Airlines.

Multi-Aero offers two options for Manhattan - Kansas City service using either a six-passenger Piper Navajo (twin-engine, piston powered), or a 9-passenger Cessna Caravan (single-engine, turboprop). The carrier did not submit a proposal to serve Salina. Multi-Aero does not have a code-share agreement with a large air carrier for service at Kansas City. Multi-Aero’s proposals do not meet the
statutory requirement for 15-seat or larger aircraft, and the Caravan proposal does not meet the twin-engine requirement. Thus, in order for either proposal to be selected by the Department, Manhattan would have to waive those statutory rights.

RegionsAir offers a single proposal for Manhattan and Salina - St. Louis, MO, service at an annual subsidy of $2,707,604 using 30-passenger Saab 340 turboprop aircraft. RegionsAir has a code-share agreement with American Airlines for service at St. Louis.

Although not mentioned in the Request for Proposals, the Department is statutorily precluded from selecting any proposal for subsidized service that exceeds $200 per passenger, unless the community is more than 2 10 miles from the closest hub. Based on the most recent annual passenger data available, the year ending September 30,2005, Salina generated 4,763 passengers, meaning that the maximum annual subsidy we could authorize for Salina service is $952,600. Because we allocate the subsidy 50-50% over a linear routing where both communities receive the same number of round trips, the maximum subsidy we can authorize for a combined Manhattan-Salina proposal is $1,905,200. Thus, the proposal submitted by RegionsAir for $2,707,604 is not selectable.

OST-2002-11376 - Salina
OST-2003-15483 - Manhattan

December 27, 2005

Grant of Extension to File Community Comments

The City of Manhattan, Kansas, has requested an extension, from January 17, until January 23, to file the community’s comments in response to our letter of December 22, 2005.

The extension is necessary because Manhattan’s Airport Advisory Board is not scheduled to discuss the carrier selection issue until it meets on January 9, 2006. In addition, the Manhattan City Commission will not discuss the Advisory Board’s recommendations nor prepare its final comments to the Department prior to the Commission meeting on January 17, 2006.

This is to advise all parties that we have decided to grant the requested extension to file community comments. Community comments from both Salina and Manhattan must now be filed no later than January 23, 2006.

By: Dennis DeVany

December 22, 2005

Re: Resolution Passed by Salina Airport Authority Supporting Mesa Air Group

Enclosed is a resolution passed by the Board of Directors of the Salina Airport Authority expressing its support for Mesa Air Group's Option No. Four providing two nonstop roundtrips between Salina, Kansas and Kansas City, Missouri, each service day. The resolution details the basis for the Board's determination.

By: Salina Airport, Timothy Rogers

January 3, 2006

City of Salina Supporting Mesa Air Group

The City of Salina supports the Mesa Air Group Option 4 for Two weekday and one weekend nonstop roundtrip flights between Salina and the Kansas City International Airport. The nonstop flights will enable Mesa Air Group to stimulate and grow passenger enplanements at the Salina Airport.

Mesa Air Group's Option 4 recognizes the need for nonstop flights in order to rebuild our air service to a point where the subsidy can either be reduced or eliminated.

By: City of Salina, Deborah Divine

Order 2006-3-15
OST-2002-11376 - Salina, KS
OST-2003-15483 - Manhattan, KS

Issued March 15, 2006 | Served March 20, 2006

Order Re-selecting Carrier and Establishing Subsidy Rate

By Order 2004-2-14, the Department selected Air Midwest to provide three nonstop round trips on weekdays and on weekends to Kansas City over a Salina - Manhattan - Kansas City routing with 19-seat Beech 1900D turboprop aircraft for the two-year period ending February 28, 2006, at an annual subsidy of $721,605. As the end of that two-year contract period was approaching, the Department issued Order 2005-11-9 on November 7, 2005, requesting proposals from carriers interested in providing EAS at Manhattan and Salina for a new two-year period beginning March 1, 2006, with or without subsidy. In response to our request, we received proposals from three carriers: Air Midwest, the incumbent; Multi-Aero, Inc., d/b/a Air Choice One; and RegionsAir, Inc., d/b/a American Connection.

After carefully considering this matter, including a thorough review of the carriers’ proposals, as well as the communities’ comments, we have decided to select Air Midwest’s Option 1, the status quo option to continue the carrier’s current service at both Manhattan and Salina for a new two-year period beginning March 1, 2006, at the annual subsidy rate of $974,008.

The principal consideration regarding the choice of Option 1 over either Option 2 or the combination of Options 3 and 4 is whether demand warrants our paying additional subsidy to support additional service. During 2004, Air Midwest generated an average of 26 enplanements a day at Manhattan and 9 at Salina. The total of 35 enplanements a day can easily be accommodated on Air Midwest’s three round trips a day with 19 seaters at a load factor of 61 percent over the critical Manhattan - Kansas City segment. Further, Air Midwest forecast an average load factor of only 52 percent over the whole route. Thus, we do not find that there is insufficient capacity on the existing service. Moreover, the EAS program was designed to provide a safety-net level of service, not as a market development tool, nor to support all the service that a community might want.

We shall make this selection at Manhattan and Salina contingent upon the Department’s receiving properly executed certifications from Mesa Air Group, Inc., d/b/a Air Midwest, that it is in compliance with the Department’s regulations regarding drug-free workplaces, nondiscrimination, and lobbying activities.

By: Michael Reynolds

March 30, 2007

Request of Air Midwest to Alter EAS Pattern of Service

Air Midwest, Inc. respectfully requests the Department of Transportation, in accordance with the 14 C.F.R. 323.3 and 14 C.F.R. 323.4, of its intent to alter the subsidized pattern of service for Salina, Kansas set forth in Order 2006-3-15 between Salina and Kansas City. In that order the DOT selected Air Midwest to operate three one-stop round trips to Kansas City each weekday and weekend. The current pattern of service, with one-stop service over Manhattan, has greatly reduced the number of seats available for the community to utilize, as the ridership in Manhattan continues to increase.

If approved by the DOT, Air Midwest will operate two Salina to Kansas City nonstop roundtrips each weekday and weekend. Air Midwest is willing to make this change at no increase in the subsidy level set forth in Order 2006-3-15.

Counsel: Mesa Air Group, Jeffrey Hartz, 602-685-4186

March 29, 2007

Comments of Salina Airport Authority

The city of Salina supports the Mesa Air Group proposal to change its flight schedule and service pattern at the Salina Municipal Airport from three flights per day (SLN-MHK-MCI) to two flights per day (SLN-MCI). This change is consistent with the December 2005 community responses which expressed the opinion that Salina would best be served with nonstop service to the Kansas City International Airport. In a letter dated January 3, 2006, the Mayor of Salina stated, "nonstop flights will enable Air Midwest to stimulate and grow passenger enplanements at the Salina Airport."

By: Executive Director, Timothy Rogers

March 29, 2007

Re: City of Salina and County of Saline Support for Mesa Air Group d/b/a US Airways Express, Air Midwest

The City of Salina supports the Mesa Air Group, Inc. (d/b/a US Airways Express, Air Midwest) proposal to change its flight schedule and service pattern at the Salina Municipal Airport (SLN) from three flights per day (SLN‑MHK-MCI) to two flights per day (SLN‑MCI). This change is consistent with the December, 2005 community responses which expressed the opinion that Salina would best be served with nonstop service to the Kansas City International Airport. In a letter dated January 3, 2006, the Mayor of Salina stated, "nonstop flights will enable Air Midwest to stimulate and grow passenger enplanements at the Sauna Airport.

The rapid decline in passenger enplanements at Salina has clearly demonstrated the need to provide Salina nonstop flights and "untie" the Salina and Manhattan markets.

With the flight schedule and service pattern change, Mesa/Air Midwest will also address the need to de‑emphasize its U.S. Airways code share and emphasize its Midwest Airlines code share. The number of Midwest's daily departures at MCI exceeds US Airways. The cities served by Midwest better matches the Sauna markets top thirty destinations.

By: City of Salina and County of Saline

Order 2007-4-6
OST-2002-11376

Issued April 4, 2007 | Served April 9, 2007

Order Approving Alternate Service Pattern

By this order, the Department is approving an alternate service pattern for Salina, Kansas, by allowing Mesa Air Group, Inc. d/b/a Air Midwest to provide two nonstop round trips a day to Kansas City instead of three one-stop round trips a day.

Air Midwest reserves the right to change the service back to the pattern outlined in Order 2006-3-15 should the new service not generate the passengers needed to cover any subsequent costs.

By: Todd Homan

Order 2007-9-28
OST-2002-11376 - Salina
OST-2003-15483 - Manhattan

Issued September 26, 2007 | Served October 1, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Manhattan and Salina, Kansas, for the two-year period beginning March 1, 2008.

With specific respect to Manhattan and Salina, we expect that would provide Manhattan with three nonstop round trips a day with 15-seat or larger aircraft to Kansas City. For Salina, we expect either two nonstop round trips a day or three one-stop round trips a day. In order to give the Department and the communities as broad an array of proposals as possible from which to choose, carriers are also welcome to prepare more than one service option; they need not limit themselves to these requirements if they envision other, potentially more attractive service possibilities, different hubs, for example, with subsidy requirements that remain competitive. Such service is generally consistent with what the communities currently receive.

By: Todd Homan

OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

October 30, 2007

Proposals of Mesa Air

Mesa Air Group, Inc. d/b/a Air Midwest cordially submits a proposal to provide Essential Air Service from Manhattan and SaIina, Kansas to Kansas City, Missouri. All flights will be operated with a pressurized, turboprop, Beech 1900D aircraft with 19 seats. It is our intent to continue to aperate these flights under both a US Airways codeshare as US Airways Express and a Midwest Airline codeshare as Midwest Connection.

Manhattan-Kansas City, Non-Stop	Three Round Trips	$433,053
Salina-Kansas City, Non-Stop	Two Round Trips	$1,186,513

By: Mesa, Tom Bacon

OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

October 30, 2007

Proposals of Great Lakes Aviation

This document contains the response of Great Lakes Aviation, LTD. to Order Requesting Proposals 2007-9-28.

Great Lakes Aviation, LTD is pleased to submit these proposals to provide essential air transportation to the Kansas communities addressed in the Order. Great Lakes has more than 20 years of experience in providing reliable Essential Air Service. The proposed service is being offered with local service marketed and priced utilizing the Great Lakes reservations system, which includes customer ticket purchasing capability on both the Great Lakes web site and on all major web booking engines.

Great Lakes' proposals all contemplate conveniently timed mnnecting services to interline carriers and/or our code share partners United and Frontier. Our code share agreements will give Manhattan and Salina the greatest competitive oppourtunity available. Great Lakes maintains interline ticketing and baggage agreements with the majority of the other carriers operating from hubs in Kansas City, St, Louis and/or Denver. Optional service transitions to our St, Louis or Denver hubs can be provided for the same subsidy dollars when, and if, a community coordinated and supported air service transition plan is agreed upon.

The costing of the proposal contemplates the use of pressurized 19 seat Beech 1900D's which the Company has had a long histoty of operating.

By: Great Lakes, Michael Matthews, 307-432-7030, mmatthews@greatlakesav.com

OST-2002-11376 - Salina, KS
OST-2003-15483 - Manhattan, KS

November 5, 2007

DOT Letter Requesting Comments of:

• Manhattan Regional Airport Executive Director
• Mayor of Salina, KS
• Salina Airport Authority Director

Air Midwest proposes to continue to provide service at Salina for an annual subsidy of $1,186,513 using 19-seat Beech 1900D turboprop aircraft. As you know, Air Midwest operates as US Airways Express, and has codeshare agreements with US Airways and Midwest Airlines (operates as Midwest Connection) that provide seamless connections to US Airways and Midwest Airlines' flights at the Kansas City hub. The carrier also proposes to continue their current level of service at Manhattan, i.e., three non-stop round trips per day to Kansas City for an annual subsidy of $433,053.

Great Lakes' proposal is very similar in that the carrier proposes to provide Salina with two nonstop round trips per day to Kansas City or Denver. At Manhattan, it would provide three nonstop round trips to Kansas City or St Louis, with both services using 19-seat Beech 1900D turboprop aircraft. The carrier has codeshare agreements with United Air Lines and Frontier Airlines at the Denver hub. Great Lakes does not currently have any codeshare agreements with any carrier at either St. Louis or Kansas City, and, while it is negotiations with American Airlines at St. Louis and Midwest Airlines at Kansas City, whether those talks will ultimately result in a codeshare agreement is speculative at this point. Great Lakes has proposed a combined annual subsidy for service at both Sauna and Manhattan of $1,997,237.

In a related matter, you should be aware that the Department is prohibited from paying subsidy for EAS at any community where the per-passenger rate exceeds $200, unless the community is greater than 210 highway miles from the nearest large or medium hub. In this case, Salina is less than 210 highway miles from Kansas City and, therefore, is subject to the $200 subsidy-per-passenger ceiling. We note that while the community has flirted with the subsidy per passenger ceiling under Air Midwest's current subsidy rate, the carrier's proposed annual subsidy rate places the future of the community's subsidized service at obvious risk. We do note however, that Air Midwest's introduction of nonstop Kansas City service this past April appears to have greatly stimulated local passenger demand. Whether the increased passenger demand will continue in the future, or whether that increase will be enough to preserve the community's subsidized service in the future remains to be seen. Thus, we will continue to closely monitor Salina's required subsidy per passenger going forward.

By: EAS Division, Dennis DeVany

OST-2002-11376 - Salina, KS
OST-2003-15483 - Manhattan, KS

November 15, 2007

Extension of Comment Period

By letter dated November 5, 2007, the Department provided an opportunity for officials in Manhattan and Salina to submit any comments they might have regarding the selection of a carrier to provide essential air service at each community for the two-year period beginning March 1, 2008. In an email dated November 20, the Executive Director of the Manhattan Regional Airport requested an extension of the due date for filing the community's comments from November 27 to December 12. He stated that following initial discussions with Air Midwest and Great Lakes, both carriers were expected to provide additional information to assist in submitting a recommendation to the Department regarding future service to their community. Accordingly, we are extending the due date for comments from both communities until December 12, 2007.

By: DOT, Mike Waters, 202-366-6494

OST-2002-11376 - Salina, KS
OST-2003-15483 - Manhattan, KS

December 6, 2007

Re: City of Manhattan Support for Air Midwest

After careful review of the proposals provided by Air Midwest, Inc. and Great Lakes Aviation. LLC, the City of Manhattan supports the proposal submitted by Air Midwest, Inc. Our decision to support the proposal of Air Midwest is primarily based on their existing code‑share agreements with US Airways and Midwest Airlines and their established presence in the region that would preclude any possible service interruption.

However, the support of Air Midwest does not come without consternation over the level of service currently provided by the airline. The poor on‑time performance of the daily morning flight is unacceptable by any measure. There are documented occurrences of this flight being over three hours late. Mr. Greg Stevens, President of Air Midwest, has acknowledged this deficiency and has promised to look at the feasibility of having an aircraft overnight at Manhattan to resolve the issue. If the airline determines this is not a feasible solution, we expect alternative actions to be implemented. As stated in previous correspondence, we strongly encourage the Department of Transportation to institute better performance standards in the Essential Air Service Agreements. Such performance standards should provide for acceptable levels of customer service. The airline presently receives a subsidy whether or not there are any passengers onboard. Simply completing a landing and take‑off from the airport should not constitute a subsidy eligible completed flight. Non‑weather related delays are within the airlines ability to mitigate and the airline should be held to a higher standard.

Additionally, with rapid and significant growth occurring in the region, there is strong evidence supporting the need for increased capacity. Air Midwest has provided the City with a proposal for a fourth daily flight and we look forward to good faith negotiations that will result in an added flight and improved service to the community.

By: Tom Phillips, Mayor

December 12, 2007

Re: City of Salina, Saline County and Salina Area Chamber of Commerce Support for Air Midwest

Salina supports the award of a March 1, 2008 to February 28, 2010 DOT EAS contract to Air Midwest as outlined in the airlines October 30, 2007 proposal.

The Salina community is aware of the EAS program's $200 subsidy - per passenger ceiling. In order to continue the current growth in passenger enplanements at Salina, the City, County, Airport Authority, and Chamber intend to enter into an Air Service Development Agreement with Air Midwest for a third flight. The use of local funds for the third flight will provide a means to further stimulate local passenger demand.

By: Salina Airport Authority

Order 2007-12-25
OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

Issued December 21, 2007 | Served December 28, 2007

Order Re-Selecting Carrier and Establishing Subsidy Rate | Word

By this order, the Department is re-selecting Air Midwest, Inc., a wholly-owned subsidiary of Mesa Air Group, Inc., d/b/a US Airways Express to provide subsidized essential air service at Manhattan and Salina, Kansas, for a total annual subsidy of $1,619,566 for the two-year period beginning March 1, 2008.

This case is straightforward.  Both Salina and Manhattan support the proposal submitted by the incumbent, Air Midwest ($1,619,566); the carrier’s proposal offers significant savings over the proposal submitted by Great Lakes ($1,997,237 – a difference of $377,671); and the carrier offers the advantage of having code-share service with US Airways and Midwest Airlines at the Kansas City hub.  Further, we note that passenger traffic has increased significantly since the upgrade to nonstop service on April 1 of this year.  Based on all of the above, we have decided to re-select Air Midwest’s proposal to provide EAS at Manhattan and Salina, Kansas, at a combined annual subsidy of $1,619,566 for a new two-year term beginning March 1, 2008.

By: Todd Homan

OST-2002-11376 - Salina
OST-2003-15483 - Manhattan

January 21, 2008

Notice of Air Midwest to Terminate Service

Air Midwest, Inc. respectfully serves notice upon the Department of Transportation, in accordance with 14 C.F.R. §323.3 and 14 C.F.R, §323.4, of its intent to discontinue scheduled subsidized Essential Air Service between Manhattan and Salina, Kansas and Kansas City, Missouri effective April 20, 2008.

By Order 2006-3-15, March 20, 2006 Air Midwest was awarded a 24 month service agreement that commenced March 1, 2006 at an annual subsidy rate of $974,008 for providing 18 Salina-Manhattan-Kansas City roundtrips each week utilizing Beech 1900D aircraft. Subsequently Order 2007-4-6 amended the service pattern allowing 18 Manhattan-Kansas City and 12 nonstop Salina-Kansas City roundtrips each week at the same level of compensation.

The termination of service by Air Midwest will reduce air transportation at both Manhattan and Salina to a level below the essential air service determination set forth in Order 2007-4-6. At present, Air Midwest is the sole provider of certificated scheduled air service at Manhattan and Salina, Kansas.

By: Mesa, Tom Bacon

OST-2002-11376 - Salina
OST-2003-15483 - Manhattan

January 22, 2008

Re: Comments of Manhattan City Manager's Office

Order 2007-12-25 selected Air Midwest, Inc. to provide Manhattan with three nonstop round trips a day with a 19-seat aircraft to Kansas City. This level of service does not adequately serve the region. We request USDOT consider subsidizing four daily flights to better meet the needs of the community. Load Factors at Manhattan were very strong in 2007 where the airport realized a 6% increase in enplanements over 2006. In their recent proposal to USDOT Air Midwest, Inc. had requested a subsidy of $19.00 per passengers which is one of the lowest subsidy requirements in the nation under the EAS program. Demand continues to be strong and as such, the City of Manhattan requests that future Requests for Proposals issued by USDOT no longer tie Manhattan with the community of Salina, KS. Combining service to the two communities only resulted in lowering seat availability for both communities.

By: Mayor, Tom Phillips, 785-587-2404, phillips@ci.manhattan.ks.us

January 23, 2008

Re: Comments of Salina Airport Authority

Salina Airport Authority requests that the U.S. DOT immediately issue hold in order requiring Air Midwest, inc. to maintain scheduled air service at Salina, Kansas as prescribed by U.S. DOT Order 2006 -3-15.

The Salina community is committed to work with another air carrier to grow SLN passenger enplanements and get below the EAS program's $200 subsidy per passenger ceiling. Local funds are available to support a local air service development agreement with a new air carrier.

By: Timothy Rogers

OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

January 25, 2008

Re: Manhattan Regional Airport Request to Expedite Selection of Replacement Carrier

On January 22, 2008 the City of Manhattan formally objected to the notice by Air Midwest, Inc. to terminate scheduled air service at Manhattan, KS. In that letter Mayor Phillips requested that the Department of Transportation take measures to prevent Air Midwest, Inc. from terminating service to Manhattan until a suitable replacement carrier is named.

In order to expedite the selection of a replacement carrier, and to minimize the impact of Air Midwest's action on this region, on behalf of the City of Manhattan, I request that the Department of Transportation immediately vacate Order 2007-12-25 awarding a 2008-2010 Essential Air Service contract to Air Midwest, Inc. and instead award the contract to Great Lakes Aviation, Ltd. in accordance with their proposal submitted October 30, 2007.

By: Airport Director, Peter Van Kuren, 785-587-4560

OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

January 22, 2008

Re: Manhattan City Manager's Office Opposing Termination of Service

On January 21, 2008 Mesa Air Group, acting for Air Midwest, Inc., served notice upon USDOT of its intent to discontinue scheduled subsidized Essential Air Service between Manhattan, KS and Kansas City, MO effective April 20, 2008. In accordance with 14 C.F.R. § 323, the City of Manhattan is objecting to the termination of essential air service to the Manhattan Regional Airport. The City of Manhattan requests USDOT prevent Air Midwest, Inc. from discontinuing service at Manhattan until, under established procedures, a suitable replacement carrier can be found.

By: Mayor, Tom Phillips

January 25, 2008

Re: Salina Airport Authority Requesting Vacating Order 2006-3-15

On behalf of the City of Salina, Saline County and the Salina Area Chamber of Commerce, the Salina Airport Authority requests that the U.S. DOT immediately vacate Order 2006-3-15 awarding a 2008 - 2010 EAS contract to Air Midwest, Inc. and award the contract to Great Lakes Aviation, LTD.

Great Lakes has assured the Salina community that the airline is prepared to provide scheduled EAS air service at SLN in accordance with its October 31, 2007 proposal. The award of the 2008 - 2010 SLN/MHK EAS contract to Great Lakes is in the best interests of Salina, KS and Manhattan, KS.

By: Timothy Rogers

Order 2008-2-5
OST-2003-15483 - Manhattan
OST-2002-11376 - Salina

Issued February 1, 2008 | Served February 6, 2008

Order Prohibiting Suspension of Service, Selecting a New Carrier and Establishing New Subsidy Rates | Word

By this order, the Department is (a) prohibiting Air Midwest, Inc., a wholly-owned subsidiary of Mesa Air Group, Inc., d/b/a US Airways Express from suspending its subsidized essential air services at Manhattan and Salina, Kansas, until Great Lakes Aviation, Ltd. begins full replacement service, and (b) selecting Great Lakes to provide those services for a new two-year period at an annual subsidy rate of $1,997,237.

By: Michael Reynolds

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