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OST-2002-12800

http://www.leacounty.net/Hobbs%20Airport.htm - Lea County Regional Airport


Essential Air Service at Hobbs, New Mexico

OST-2002-12800 - Hobbs May 24, 2002
Docketed July 11, 2002
Notice of Mesa Air Group to Terminate Scheduled Air Services Termination of Scheduled Air Service at Hobbs, New Mexico
    Service List  

The termination of service by Air Midwest will reduce air transportation at Hobbs, New Mexico to a level below the essential air service determination made in Order 2000-11-19.

Though Air Midwest would prefer to continue providing scheduled air service in Hobbs, the substantial costs resulting from increased federal regulations for regional carriers makes it impossible to continue without Essential Air Service subsidy. The absence of this subsidy requires Air Midwest to advise the Department that scheduled air service will be discontinued.

At present, Air Midwest is the sole provider of certificated scheduled air service at Hobbs, New Mexico. Air Midwest is hereby providing public notice of its intent to terminate scheduled air service with the expiration of the 90-day notice as required. Any objections to this Notice to Terminate Service must be filed within twenty (20) days from the date of this filing, in accordance with 14 C.F.R. §323.10.

By:  Mesa Air Group, Scott Lyon, 602.685.4368, scott.lyon@mesa-air.com 



Order 02-8-09
OST-02-12800
OST-02-12802

Issued August 12, 2002
Served August 15, 2002 
Order Prohibiting Termination of Service and Requesting Proposals Termination of Scheduled Air Service at Carlsbad and Hobbs, New Mexico

Order 2002-8-9, the Department (a) prohibits Mesa Air Group, Inc. d/b/a Air Midwest (Air Midwest) from terminating its unsubsidized services at Carlsbad and Hobbs, New Mexico; (b) requires the carrier to maintain service between the communities and Albuquerque, New Mexico, for an initial 30-day period following the end of the notice period, through September 23, 2002; and; (c) requests proposals from carriers interested in providing replacement service at one or both communities.

By:  Read Van de Water



OST-02-12800 October 8, 2002 Proposal of Mesa Air Group, Inc. on behalf of Air Midwest, Inc. Intent to Terminate Scheduled Air Service At Carlsbad, New Mexico

By: Mesa Air Group, Inc.



Order 02-10-35
OST-02-12802

OST-02-12800
Issued October 29, 2002
Served November 1, 2002
Order Extending Service Obligation Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico

On May 24, 2002, Air Midwest, Inc., filed 90-day notices of its intent to suspend its unsubsidized service at Carlsbad and Hobbs, New Mexico, effective August 23, 2002. By Order 2002-8-9, August 12, 2002, the Department prohibited Air Midwest from suspending service at the communities for an initial 30-day period, through September 23, 2002, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service.  Although we have received proposals, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest's service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

Order 02-10-36
OST-02-12802

OST-02-12800
Issued October 29, 2002
Served November 1, 2002
Order Extending Service Obligation Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico

On May 24, 2002, Air Midwest, Inc., filed 90-day notices of its intent to suspend its unsubsidized service at Carlsbad and Hobbs, New Mexico, effective August 23, 2002. By Order 2002-8-9, August 12, 2002, the Department prohibited Air Midwest from suspending service at the communities for an initial 30-day period, through September 23, 2002, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service.

By: Randall Bennett



Order 02-11-8
OST-02-12800
OST-02-12802
Issued November 19, 2002
Served November 22, 2002
Order Extending Service Obligation

Word Document

Intent to Terminate Scheduled Air Service at Carlsbad, New Mexico

Order 2002-11-8, the Department extends Air Midwest's service obligation at Carlsbad and Hobbs, New Mexico, for an additional 30 days, through December 23, 2002.

By: Randall Bennett



Order 03-1-2
OST-02-12800
OST-02-12802
Issued January 2, 2003
Served January 7, 2003
Order Extending Service Obligation

Word Document

Notice of Intent to Terminate Scheduled Air Service at Carlsbad, New Mexico

Order 2002-1-2, the Department extends Air Midwest's service obligation at Carlsbad and Hobbs, New Mexico, for an additional 30 days, through January 22, 2003.

By: Randall Bennett



Order 03-1-21
OST-02-12802
OST-02-12800
Issued January 21, 2003
Served January 24, 2003
Order Extending Service Obligation Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico

Although we have received proposals, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest’s service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett



Order 03-02-12
OST-02-12802
OST-02-12800
Issued February 13, 2003
Served February 19, 2003
Order Extending Service Obligation Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico

Although we have received proposals, this case will not be completed before the end of the current hold-in period.  In accordance with 49 U.S.C. 41734, we will extend Air Midwest’s service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By:  Read C. Van de Water



Order 03-03-14
OST-02-12802
OST-02-12800
Issued March 20, 2003
Served March 25, 2003
Order Extending Service Obligation

Microsoft Word

Essential Air Service at Carlsbad, New Mexico and Hobbs, New Mexico - Air Midwest

Although we have received proposals, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest's service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By:  Randall Bennett



Order 03-03-26
OST-02-12802
OST-02-12800
Issued March 31, 2003
Served April 3, 2003
Order Extending Service Obligation

Microsoft Word

Essential Air Service at Carlsbad and Hobbs, New Mexico

The Department extends Air Midwest's service obligation at Carlsbad and Hobbs, New Mexico, for an additional 30 days, through May 23, 2003.  Although we have received proposals, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest’s service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett



Order 03-5-11
OST-02-12800 - Essential Air Service at Hobbs, New Mexico

Issued May 8, 2003 | Served May 13, 2003

Order Extending Service Obligation | Word

The Department extends Air Midwest's service obligation at Hobbs, New Mexico, for an additional 30 days, through June 23, 2003. Although we have received a proposal, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest’s service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett



Order 03-6-10
OST-02-12800 - EAS at Hobbes, NM

Issued June 5, 2003 | Served June 10, 2003

Order Extending Service Obligation | Word

The Department extends Air Midwest's service obligation at Hobbs, New Mexico, for an additional 30 days, through July 23, 2003. Although we have received a proposal, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest's service obligation for an additional 30-day period, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett



Order 03-07-01
OST-02-12800

Issued July 2, 2003 | Served July 8, 2003

Order Extending Service Obligation

By: Randall Bennett



Order 03-8-21
OST-02-12800 - EAS at Hobbs, NM

Issued August 19, 2003 | Served August 22, 2003

Order Extending Service Obligation | Word

The Department extends Air Midwest's service obligation at Hobbs, New Mexico, for an additional 30 days, through September 22, 2003. Although we have received a proposal, this case will not be completed before the end of the current hold-in period. In accordance with 49 U.S.C. 41734, we will extend Air Midwest’s service obligation for an additional 30-day period, or until suitable replacement service actually begins, whichever occurs first.

By: Michael Reynolds



August 19, 2003

Letter Seeking Community Comments

By: Dennis DeVany


August 19, 2003

Letter Seeking Community Comments

By: Dennis DeVany


August 19, 2003

Letter Seeking Community Comments

By: Dennis DeVany


August 19, 2003

Letter Seeking Community Comments

By: Dennis DeVany



August 26, 2003

Correspondence of the New Mexico Department of Transportation

I am pleased to see that Mesa has submitted a proposal to continue air service as part of the US DOT Essential Air Service Program. I have reviewed their two Commission proposals and, after discussions with Lea County officials, I believe the three flights per day option would be the most beneficial to the community. Primary concerns Johnny Cope continue to be service reliability and ticket prices, however. Chairman District 2 As an aside, I assume the inclusion of Clovis (CVN) in the two proposal data attachments is incorrect since both proposed options are for service to Albuquerque David Schutz via Roswell. Vice Chairman District 5 We look forward to a favorable decision by the Department of Transportation concerning this vital air service to Lea County.

By: Mike Rice


August 25, 2003

Memorandum from Lea County Airports

We need to bring to your attention that the City of Hobbs, specifically Mayor Bobby Wallach, has absolutely no conned/onto the Lea County Regional Airport authority. Our airport, which is located next to the City of Hobbs, is strictly a county function and all future correspondence should be directed to our county commission chairman Mr. Ross Black, whose is address 100 N. Main, Lovington, NM 88260.

In looking over the schedules submitted by Air Midwest and the subsidies required, we feel that, at this juncture, three flights per day would be the most beneficial outcome for satisfying the passenger demand in our area. Also keep in mind that Air Midwest is no longer serving Clovis from Hobbs, but is now routing traffic through Roswell. We really have no qualms about the intermediate point change. Our only concern has been and continues to be the price of the air fare and reliability. Hopefully my reply to your questions will accelerate the finalization of your negotiations with Air Midwest since it is coming up on one year since this process started.

By: Bill Gatchell



Order 03-9-15
OST-02-12800

Issued September 22, 2003 | Served September 25, 2003

Order Selecting Carrier

We have decided to select Air Midwest's Option A, as described above, to provide subsidized EAS at Hobbs for a prospective two-year period, from July 1, 2003, through August 31, 2005, for $560,318 annually. A survey of Hobbs' historical passenger traffic reveals that the community has not been a very strong passenger-generating community in its own right, but had enjoyed subsidyfree service for more than ten years because it had been served over a Hobbs-ClovisAlbuquerque routing. Most recently, the community has experienced a sharp decline in passenger boardings, to fewer than five per service day. Thus, we cannot justify underwriting a third round trip at a subsidy rate that represents a two-thirds increase over the cost of supporting two-round-trip service and that is not necessary to accommodate the traffic. Even the two-round-trip option would average only about 2.5 passengers per flight based on recent traffic levels. We are sympathetic to the community's desire to receive more service, though, and we will continue to monitor passenger traffic at Hobbs to determine whether Federal support of three round trips would be justified at some point in the future.

By: Michael Reynolds



Order 2005-5-11
OST-2002-12800

Issued May 19, 2005 | Served May 24, 2005

Order Requesting Proposals

We expect proposals consisting of service with two-pilot, twin-engine aircraft, offering two round trips each weekday and each weekend from Hobbs to a suitable hub such as Albuquerque or any other hub offering convenient access to the nation's transportation system. 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.

Mesa Air Group carriers have served Hobbs for at least 20 years. During the year ended October 31, 2004, the most recent 12‑month period for which traffic data are available, Hobbs averaged 3.4 enplanements a day. This figure represents a decline of 57 percent from the level registered during calendar year 2000, prior to the terrorist attacks of September 11

By: Karan Bhatia



June 24, 2005

Proposal of Westward Airways | Work Plan

Westward Airways proposes to provide two daily roundtrip flights each weekday and two roundtrip weekend flights in the Hobbs / Albuquerque market. The Aircraft will be based at Hobbs. An early morning departure to the Albuquerque hub will be provided with an afternoon return back to Hobbs. The second departure from Hobbs will be scheduled for the late afternoon/early evening to the Albuquerque hub, with the subsequent return to Hobbs scheduled to retrieve passengers from the evening arrival banks into Albuquerque. Gate‑to‑Gate block times will be scheduled at approximately 64 minutes.

Westward Airways, Inc., is a Nebraska corporation with headquarters in Scottsbluff, Nebraska. The Company was developed specifically to provide air service to small and rural communities. Westward Airways has an FAA Air Carrier Operating Certificate, Part 135, and operates scheduled air service in its intra‑Nebraska markets and in New Mexico and Arizona.

By: Westward



June 23, 2005

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

Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit three proposals to provide Essential Air Service at Hobbs, New Mexico. Mesa's proposed options would continue its current service to Albuquerque and would introduce an option with MondayWednesday-Friday nonstop service to Dallas/Ft Worth. Mesa's options with one-stop service in Carlsbad (Option #2 & #3) are contingent upon Mesa being awarded the contract to continue to provide EAS service at Carlsbad, NM. Option #3 is further contingent upon Mesa being awarded the three roundtrip option for Carlsbad.

Mesa has spent a significant amount of time and money in Hobbs during the last two year contract, drastically increasing passengers over 27.5% from 2003 to 2004, and for the first 5 months of 2005, nearly a 55.5% increase in passengers from the first 5 months of 2004. Mesa has accomplished this drastic increase in passengers by working with the community, marketing the service, and lowering the average fare nearly $15 over the past two years.

Mesa believes that Option #3, with the continued service from Hobbs to Albuquerque with 2 roundtrips each service day, as well as introducing service to DFW on Mon-Wed-Fri will help stimulate traffic even more, allowing the oil and gas industries of Hobbs easier access to a key destination. This option will also allow the for the discontinuance of a middle of the night maintenance ferry flight from Harrison to Little Rock, which should also improve the operational reliability for all four Arkansas EAS communities. This option will also be contingent upon the award of Carlsbad's 3 RT option to Mesa and Carlsbad agreeing to change their one-stop flight on Mon-Wed-Fri from Albuquerque to Dallas. Carlsbad has expressed interest in service to Dallas in the past, and Mesa feels that Carlsbad would support this option.

By: Mesa, Mickey Bowman



July 1, 2005

Re: Request for Final Comments - Mayor Monty Newman
Re: Request for Final Comments - Airport Supervisor Bill Gatchell
Re: Request for Final Comments - New Mexico DOT - Tom Banca

By: EAS Division, Dennis DeVany



Order 2005-8-1
OST-2002-12800

Issued August 5, 2005 | Served August 10, 2005

Order | Word

By this order, we are selecting Mesa Air Group, Inc., d/b/a Air Midwest, to provide essential air service at Hobbs, New Mexico, consisting of two one-stop round trips each weekday and each weekend to Albuquerque with 19-passenger Beech 1900D aircraft for two years for an annual subsidy rate of $519,614.

The community has expressed a preference for a service proposal from Air Midwest that would offer more capacity by providing additional service (three weekly round trips to Dallas/Fort Worth) at greater cost than the two-round-trip Albuquerque-only proposal we have before us.

By: Karan Bhatia



October 4, 2005

Letter to Jeff Bingaman

Thank you for your letter of May 24 in which you express your support for the U.S. Department of Transportation’s Essential Air Service program and for the continuation of the current level of service at Carlsbad consisting of three round-trips to Albuquerque each weekday and each weekend.

The Department is finalizing its review of proposals from three applicants. Although we have received preliminary comments from the community, consistent with longstanding program policy, the Department has also solicited any final comments the community may have on these proposals before making a decision on long-term replacement service. The Department is committed to issuing a decision as quickly as possible.

While I certainly appreciate your views, because this matter is pending before the Department, I am sure you understand that I cannot comment on the merits of any of the proposals.

By: Norman Mineta



October 18, 2005

Letter to US Senator Jeff Bingaman

Thank you for your letter of July 18 expressing support for the U.S. Department of Transportation’s Essential Air Service program and the expansion of the current level of commercial air service for Hobbs, New Mexico.

As you may know, the Department issued Order 2005-8-1 on August 5, 2005, selecting Air Midwest, Inc., to continue providing two round-trips each weekday and each weekend to Albuquerque, New Mexico, for a subsidy rate of $519,614 annually.

Unfortunately, in the case of Hobbs, traffic levels have not demonstrated the need for additional federally-subsidized service. As Order 2005-8-1 noted, even though passenger traffic at Hobbs has exhibited growth over the last three years, the most recent annual traffic could be accommodated by two round-trips at less than a nine percent load factor. In other words, on an average flight, seventeen out of nineteen seats would be empty. As I trust you will understand, under these circumstances, the Department simply cannot justify subsidizing extra service at Hobbs at this time.

By: Norman Mineta



Order 2006-12-6
OST-2002-12800

Issued December 8, 2006 | Served December 13, 2006

Order Requesting Proposals

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

With specific respect to Hobbs, we expect proposals consisting of two nonstop or one-stop round trips each weekday and each weekend utilizing 19-seat aircraft with service to Albuquerque. Such service is consistent with what the community currently receives, and fully satisfies its essential air service requirements. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one service option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities -- different hubs, for example -- with subsidy requirements that remain competitive.

By: Todd Homan



Order 2006-12-13
OST-2002-12800 - Hobbs
OST-2002-12802 - Carlsbad

Issued December 14, 2006 | Served December 19, 2006

Order Requesting Proposals

By this order, the Department is: (a) vacating Order 2006-12-6 that requested proposals from carriers interested in providing essential air service at Hobbs, New Mexico, only; and (b) requesting proposals for carriers interested in providing EAS at Hobbs and Carlsbad, New Mexico, together, for the next two-year period, beginning June 1, 2007, with or without subsidy.

With specific respect to Hobbs and Carlsbad, the Department expects proposals consisting of service with 19-passenger aircraft and offering two nonstop or one-stop round trips a day between each community and Albuquerque. Given the traffic levels described below, two round trips a day will provide ample capacity to accommodate the historical traffic levels. Such service is consistent with what the communities currently receive, and fully satisfies their 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.

Air Midwest has served Hobbs and Carlsbad for numerous years. During the year ended December 31, 2005, Hobbs averaged 4.9 enplanernents a day, while Carlsbad averaged 13.6. We note that traffic for the last two years, while trending upward, has not fully rebounded to pre-September 11, 2001, levels.

By: Todd Homan



OST-2002-12800 - Hobbs
OST-2002-12802 - Carlsbad


January 18, 2007

Proposal of Air Midwest

Mesa’s proposed option would continue service to Albuquerque. Mesa proposes to operate all flights as Mesa Airlines.

Option # Hub(s) Service Annual Subsidy
1 ABQ 2 RT - CNM to ABQ (nonstop)
2 RT - HOB to ABC (one-stop)
$1,249,999

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.

By: Air Midwest, Jeffrey Hartz


January 18, 2007

Proposal of Pacific Wings - Bookmarked

We propose to provide a) two one-stop round trips each weekday and each weekend between Hobbs and Albuquerque; and, b) two nonstop round trips each weekday and each weekend between Carlsbad and Albuquerque using nine-passenger Cessna Grand Caravan (C-208B) turboprop aircraft, at a combined annual subsidy rate of $607,108.00.

By: Pacific Wings, Franklin Ford Jr., 808-873-0877



OST-2002-12800 - Hobbs
OST-2002-12802 - Carlsbad

January 22, 2007

Requests for Community Comments of:

In anticipation of the end of Air Midwest's current contract on May 31, 2007, the Department issued Order 2006-12-13 on December 14, 2006, to solicit proposals from all interested air carriers to provide EAS at Hobbs and Carlsbad, for a new, two-year term. In response to that order, the Department received proposals from Air Midwest and Pacific Wings, L.L.C.

We request that you review the proposals and submit any comments you may have before we submit a recommendation to the Assistant Secretary. We ask that you submit any comments you may have as soon as possible, but in any case no later than February 23, 2007. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a decision.

By: Dennis DeVany



February 20, 2007

Re: Lea County Airports Selected Air Midwest

By unanimous vote during its regularly scheduled meeting today, the Lea County Board of Commissioners selected Air Midwest to provide Essential Air Service at hobbs. This action will be reflected in the meeting minutes kept on file in the Lea County Clerk's Office.

By: Lea County Airports, Bill Gatchell


February 21, 2007

Re: City of Hobbs and County of Lea Need Additional Time

By: Lea County, Gary Schubert



March 7, 2007

Comments of Lea County Commissioners

We believe that Pacific Wings has the potential to serve the public interest, convenience and necessity by using the C-208 to promote economical and sustainable intrastate air service in Lea County, and we support the airline in this endeavor.

By: Gary Schubert



March 12, 2007

Lea County Board of Commissioners Support for Pacific Wings

At our regularly scheduled County Commissioners meeting that took place on March 6, 2007, the Lea County Board of Commissioners voted unanimously to accept the bid proposal from Pacific Wings while also waiving the requirements for a pressurized aircraft with 15 or more passenger seats.

This vote therefore rescinds the prior correspondence that I sent your agency two weeks ago.

By: Lea County Airports Manager, Bill Gatchell, 505-391-2934, bgatchell@leacounty.net



Order 2007-3-22
OST-2002-12800 - Hobbs
OST-2002-12802 - Carlsbad

Issued March 30, 2007 | Served April 4, 2007

Order Selecting Carrier and Setting Final Subsidy Rates

By this order, the Department is selecting Pacific Wings L.L.C. to provide subsidized essential air service with 9-seat Cessna Grand Caravan (C-208B) turboprop aircraft, at Hobbs and Carlsbad, New Mexico, for the two-year period beginning when the carrier inaugurates full service, for a combined annual subsidy rate of $607,108.

By: Andrew Steinberg


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