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OST-2002-12802

http://www.cityofcarlsbadnm.com/public_works/airport/index.html - Cavern City Air Terminal


Essential Air Service at Carlsbad, New Mexico

OST-2002-12802 - Carlsbad May 24, 2002
Docketed July 11, 2002
Notice of Mesa Air Group to Terminate Scheduled Air Services Termination of Scheduled Air Service at Carlsbad, New Mexico
    Service List  

Though Air Midwest would prefer to continue providing scheduled air service in Carlsbad, 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 Carlsbad, 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



Order 02-8-9
OST-02-12802
September 26, 2002
Docketed October 4, 2002
Correspondence of the City of Carlsbad Termination of Scheduled Air Service at Carlsbad, New Mexico

In 1998, the United States Department of Energy Waste Isolation Pilot Plant (WIPP) became operational as the nation's first certificated nuclear waste repository for defense-­related trans-uranic materials that are currently stored above ground at a number of Department of Energy sites across the country. At the present time and for many years in the future, WIPP will serve this country as the only safe method by which to permanently remove these hazardous materials from the environment. As such, WIPP is crucial to the health and safety of the citizens of the United States.

Consequently, to serve the operational and security needs of this DOE facility, at least four (4) daily, roundtrip flights from Carlsbad to Albuquerque are absolutely essential. In support of the concerns expressed by the DOE, the National Laboratories and their contractors operating WIPP, the Governing Body of the City of Carlsbad, at its regular meeting of September 24, 2002, passed Resolution 2002-49, which I have enclosed for your review. Attached to the Resolution are letters from the DOE and other entities supporting this level of essential air service.

By: Bob Forrest



OST-02-12802-4 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.

OST-02-12802-5 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



OST-02-12802 November 13, 2002
Docketed November 14, 2002
Ex-Parte Letter to Honorable Jeff Bingamin Intent to Terminate Scheduled Air Service at Carlsbad, New Mexico

Ex Parte letter from Norman Y. Mineta to the Honorable Jeff Bingamin regarding the City of Carlsbad's request to increase the level of subsidized service at the Cavern City Airport to four round trips a day under the Essential Air Service (EAS) program administered by the Department of Transportation.

By: Norman Mineta



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



OST-02-12802 March 26, 2003 Correspondence from Various Submitters from Carlsbad, New Mexico in support of Mesa Airlines Termination of Scheduled Air Service at Carlsbad, New Mexico

By: Lorraine Allen, Vernon Asbill, Robert Forrest, Donald George, Judy Jarratt, Jody Knox, Stephen Massey, Robin Richard, Paul Shoemaker, Fred Woody, Danny York, Ines Triay, Jon Tully, Ned Fikins



Order 03-03-25
OST-02-12802
Issued March 31, 2003
Served April 3, 2003
Order Selecting Carrier

Microsoft Word

Essential Air Service at Carlsbad, New Mexico

The Department selects Air Midwest, a wholly-owned subsidiary of Mesa Air group, Inc. (Air Midwest), to provide subsidized essential air service for a prospective two-year period at Carlsbad New Mexico, at an annual rate of $560,070 and an annual, past-period, hold-in rate of $432,979.

In an attempt to balance the community’s demonstrated ability to generate significant traffic levels with our fiscal responsibility for the overall EAS program, we will authorize subsidy for Air Midwest to provide a third (one-stop) round trip each weekday and weekend. We expect the community to work closely with Air Midwest to attempt to restore passenger usage to pre-1998 levels. If traffic levels do not increase significantly over the course of this two-year contract, we would seriously consider reducing subsidy levels to support only the statutory minimum of two round trips a day for the following two-year contract. Based on all of the above, we will select Air Midwest’s Option C, to provide Carlsbad with three round trips each weekday and weekend to Albuquerque; two nonstop and one, one-stop at Roswell, New Mexico, for a new, two-year period starting when the carrier begins to provide the additional round trip to Albuquerque, at an annual subsidy of $560,070, using 19-seat Beech 1900D aircraft.

By: Read C. Van de Water



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



OST-02-12802 April 16, 2003 Ex Parte Letter  Essential Air Service at Carlsbad, New Mexico

In response to Senator Bingaman, I mentioned that it would be inappropriate for me to discuss the merits of the case or the community's request, and that I would place a memorandum covering the substance of our conversation in the case docket as a contact outside the record of the proceeding.

By: Michael Reynolds



Order 2005-4-16
OST-2002-12802 - Mesa Air - Termination of Service at Carlsbad, NM

Issued April 4, 2005 | Served April 20, 2005

Order Requesting Proposals

With respect to the specific New Mexico market at issue here, we expect proposals consisting of service with two‑pilot, twin‑engine aircraft with at least 15 passenger seats, and offering two or three round trips each weekday and each weekend from Carlsbad 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. Finally, while Carlsbad is guaranteed to receive service with 15‑seat or larger aircraft, carriers could offer service with smaller aircraft, and perhaps more frequencies, if the community was willing to accept that trade‑off We would expect carriers to work with the community before submitting such a proposal.

Mesa Air Group carriers have served Carlsbad for at least 20 years. During the year ended October 31, 2004, the most recent 12‑month period for which traffic data are available, Carlsbad averaged 10.7 enplanements a day. This figure represents a decline of 53 percent from the level registered during calendar year 2000, prior to the terrorist attacks of September 11.

By: Karan Bhatia



May 23, 2005

Proposal of Great Lakes Aviation

By: Great Lakes, Doug Voss


May 20, 2005

Proposal of Mesa Air Group

By: Mesa, Jeffrey Hartz


May 23, 2005

Proposal of Westward Airways | Calculation of Proposal

By: Westward


May 23, 2005

Re: Carlsbad Department of Development Letter of Support for Mesa Airlines

By: CDD, Robert Detweiler



May 24, 2005

Re: Update on EAS Proposals

I would like to update you on the essential air service situation at Carlsbad and to give you an opportunity to submit any comments if you wish. As you know, by Order 2005-4-16, April 15, 2005, the Department provided for all interested air carriers to submit proposals to provide essential air service at Carlsbad. In response to that order, we received two proposal options from Great Lakes Aviation, Ltd., and two proposal options from Mesa Air Group, Inc., d/b/a Air Midwest. I am attaching brief summaries of these proposals in Attachment A to this letter.

My purpose in writing to you at this time is to request any final comments you might have on the carriers' service and subsidy proposals before we submit a recommendation on the carrier selection issue to the Assistant Secretary for Aviation and International Affairs.

By: Dennis DeVany, EAS Division



May 25, 2005

Re: Comments of City of Carlsbad

All small communities suffered following September 11, 2001, with Carlsbad's passenger levels dropping nearly 55% from 2001 to 2002. The difference between many communities and Carlsbad is that Mesa has spent a significant amount of time and money during the past two years to help promote our air service: Mesa has also stimulated the market with lower fares and an enhanced schedule, all of which has led to quite an increase in passengers from 2003 to 2004. Mesa increased the passengers by 27% from 2003‑2005, and they continue to improve with over 730 passengers in March and April 2005. Currently. Mesa is on pace for over 800 passengers in May 2005, and is expecting nearly 8,000 passengers this year.

The Department of Transportation raised a concern about our third round‑trip flight in the 2003 order selecting Mesa Airlines. We believe that through the efforts of Mesa, Carlsbad should be able to retain its third round trip and we would prefer it to be as a non‑stop flight. It is our understanding that the DOT has awarded three round trips to Kingman and Page, Arizona and Harrison, Arkansas in recent months. Page has 9,000 passengers and Harrison has roughly 6,200 passengers. Carlsbad has substantially more passengers than either Kingman or Harrison and we hope we will have more than 9,000 passengers than Page.

By: City of Carlsbad, Bob Forrest



May 27, 2005

Service List

By: Great Lakes Aviation, Mary Kelly



Order 2005-7-4
OST-2002-12802

Issued July 6, 2005 | Served July 11, 2005

Order Selecting Carrier

By this order, we are selecting Mesa Air Group, Inc., d/b/a Air Midwest, to provide essential air service at Carlsbad, New Mexico, consisting of two nonstop round trips each weekday and each weekend to Albuquerque with 19-passenger Beech 1900D aircraft for two years for an annual subsidy rate of $599,671. We are also setting a subsidy rate of $689,572 on an annual basis for Air Midwest's provision of three-round-trip service at Carlsbad from June 1, 2005, until the carrier inaugurates two-round-trip-a-day service, or 90 days from the date of service of this order, whichever occurs first.

By: Karan Bhatia



August 16, 2005

Request to Consider Reinstatement of Third Round-Trip

Thank you for selecting Mesa Air Group, Inc. to provide essential air service at Carlsbad, New Mexico. Mesa Air has provided continuing and reliable air service to this community for two decades and, as you know from my previous letter of endorsement, Mesa Air has our full support.

However, I would respectfully ask that you consider reinstatement of the third round-trip a day flight. Mesa Airlines is predominately used by business travelers, the largest number of whom are associated with the Department of Energy's Waste Isolation Pilot Plant project and associated national laboratories and contractors.

With the three round trip per day flight schedule, Mesa has been able to schedule round trip arrivals and departures between Carlsbad and Albuquerque that allow passengers to arrive at both locations in and around the start of the business day with return at a reasonable hour at the end of the business day. This capability is not only favored by most of this community's business travelers but is truly essential for many businesses, particularly those associated with WIPP. Without the third round trip flight, many travelers will have to utilize ground transportation which will reduce the increasing enplanements of the past two years.

If you would consider reinstatement of the third Mesa round-trip flight per day, we would be pleased to provide additional supporting data and documentation.

By: Bob Forrest



October 21, 2005

Letter to Jeff Bingaman

Thank you for your letter of May 24 in which you express your support for the US. Department of Transportation’s Essential Air Service program and for the provision of subsidized service at Carlsbad, New Mexico, consisting of three round-trips to Albuquerque, New Mexico, each weekday and each weekend.

Unfortunately, in the case of Carlsbad, traffic levels have not demonstrated the need for additional federally-subsidized service. As Order 2005-7-4 noted, even though passenger traffic at Carlsbad has exhibited service growth over the last year, the most recent annual traflic could be accommodated on service of two round-trip flights at less than a 30-percent load factor. In other words, on an average flight, eleven out of nineteen seats would be flown empty. As I trust you will understand, under these circumstances, the Department simply cannot justify subsidizing extra service at Carlsbad at this time.

By: Norman Mineta



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 22, 2007

Re: City of Carlsbad Request for an Extension to Submit Selection

By: Carlsbad, Bob Forrest, Mayor



March 8, 2007

City of Carlsbad in Support of Pacific Wings

I am pleased to confirm the selection and recommendation that Pacific Wings, LLC, provide Essential Air Service for the city of Carlsbad, New Mexico. Their selection was made by the unanimous vote of the City Council during a public meeting this morning. This action will be reflected in the minutes of the meeting held today.

By: Mayor, Bob Forrest



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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