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OST-2003-14822 |
http://www.flyleb.com/ - Lebanon Airport
Essential Air Service at Lebanon, New Hampshire
| OST-2003-14822 | March 25, 2003 | 90-Day Notice of Colgan Air, Inc. d/b/a US Air Express of Intent to Terminate Essential Air Service | Essential Air Service at Lebanon, New Hampshire |
The level of Essential Air Service established for Lebanon requires two daily trips between Lebanon and New York City and Lebanon and Boston, MA. In September of 2000, Colgan Air, Inc. commenced service between Lebanon, New Hampshire and New York LaGuardia Airport with the 19-seat Beechcraft 1900 aircraft. This service was previously operated by another US Airways Express carrier, Air Midwest Airlines. Air Midwest, at the same time, operated service between Lebanon and Philadelphia which has subsequently been discontinued.
Colgan Air has determined it cannot continue to operate this service economically, without subsidy due to the decline in passenger traffic and increases to fuel and insurance expenses. During 2002, Colgan carried 12,482 passengers for a load factor of 37%. During the period from January through March 2003, Colgan has experienced a reduction of more than 10% in year over year passenger traffic.
By: Michael Colgan
Order 03-6-4
OST-03-14822 - Essential Air Service at Lebanon, New Hampshire
Issued June 2, 2003 | Served June 5, 2003
Order Prohibiting Suspension of Service and Requesting Proposals | Word
The Department prohibits Colgan Air, Inc., d/b/a US Airways Express, from suspending its unsubsidized service at Lebanon, and requests proposals from carriers interested in providing replacement service at the community.
By: Read C. Van de Water
Order 03-7-13
OST-03-14822 - EAS at Lebanon, NH
Issued July 11, 2003 | Served July 16, 2003
Order Extending Service Obligation | Word
The Department extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express (Colgan), at Lebanon, New Hampshire, for an additional 30 days, through August 25, 2003.
By: Randall Bennett
Order 03-7-16
OST-03-14822 - EAS at Lebanon, NH
Issued and Served July 11, 2003
The Department sets the final subsidy rate for Colgan Air, Inc., for the provision of essential air service at Lebanon, New Hampshire, 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 New York by $597.43.
By: Michael Reynolds
July 14, 2003
Proposal of Colgan Air, Inc. d/b/a USAirways Express
By: Colgan Air
Order 03-8-16
OST-03-14822 - EAS at Lebanon, NH
Issued August 13, 2003 | Served August 18, 2003
Order Extending Service Obligation | Word
Although we have received proposals, this case will not be completed by the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Colgan's service obligation at Lebanon for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.
By: Randall Bennett
Order 03-0-20
OST-03-14822 - EAS at Lebanon, NH
Issued September 24, 2003 | Served September 29, 2003
Order Extending Service Obligation | Word
Although we have received a proposal, this case will not be completed by the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Colgan's service obligation at Lebanon for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.
By: Michael Reynolds
Order 03-10-14
OST-03-14822 - EAS at Lebanon, NH
Issued October 15, 2003 | Served October 20, 2003
Order Extending Service Obligation | Word
Although we have received a proposal, this case will not be completed by the end of the current hold-in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Colgan’s service obligation at Lebanon for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.
By: Randall Bennett
Order 03-11-17
OST-03-14822 - EAS at Lebanon, NH
Issued November 19, 2003 | Served November 24, 2003
Order Extending Service Obligation | Word
This case will not be completed by the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Colgan's service obligation at Lebanon for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.
By: Randall Bennett
Order 03-12-22
OST-03-14822
Issued December 24, 2003 | Served December 31, 2003
Order Extending Service Obligation
This case will not be completed by the end of the current hold-in period. Therefore, in
accordance with 49 U.S.C. 41734(c), we will extend Colgan’s service obligation at Lebanon
for an additional 30 days, or until reliable replacement service actually begins, whichever
occurs first.
By: Randall Bennett
Order 04-1-12
OST-03-14822
Issued January 13, 2004 | Served January 16, 2004
Order Extending Service Obligation
This case will not be completed by the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Colgan's service obligation at Lebanon for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.
By: Randall Bennett
Order 04-02-15
OST-03-14822
Issued February 18, 2004 | Served February 23, 2004
Order Extending Service Obligation | Word
This case will not be completed by the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Colgan's service obligation at Lebanon for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first.
By: Randall Bennett
Order 04-3-23
OST-03-14822 - EAS at Lebanon, NH
Issued March 23, 2004 | Served March 26, 2004
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express, at Lebanon, New Hampshire, for an additional 30 days, through April 23,2004. On June 25, 2003, Colgan became eligible for compensation for its hold-in service. By Order 2003-7-16, July 11, 2003, the Department set an annual subsidy rate of $1,084,930, to be paid while the carrier-selection case is processed. The carrier will be paid for service consisting of three daily nonstop round trips between Lebanon and New York-La Guardia Airport, with 19-seat Beech 1900D aircraft.
By: Randall Bennett
Order 04-04-18
OST-03-14822 - EAS at Lebanon, NH
Issued April 22, 2004 | Served April 27, 2004
Order Extending Service Obligation
By this order, the Department of Transportation extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express, at Lebanon, New Hampshire, for an additional 30 days, through May 24, 2004.
By: Randall Bennett
Order 04-05-18
OST-03-14822 - EAS at Lebanon, NH
Issued May 21, 2004 | Served May 26, 2004
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express, at Lebanon, New Hampshire, for an additional 30 days, through June 23, 2004.
By: Randall Bennett
April 27, 2004
Re: Request to have the Route Re-Bid
It has been quite a long time since our last RFP. It could be possible that there may be carriers now interested in bidding this route that may not have bid previously. At this time we would like to request that the route be re-bid. We look forward to working with you on this and if you have any questions, please call.
By: Leon Kenison
Order 04-06-07
OST-03-14822 - EAS at Lebanon, NH
Issued June 8, 2004 | Served June 11, 2004
Order Requesting Proposals | Word
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Lebanon, New Hampshire, for a future two-year period, with or without subsidy.
The Department has already issued an order requesting proposals from carriers interested in providing essential air service at Lebanon. However, by letter dated April 27, 2004, the interim City Manager of Lebanon requested that the Department re-bid the case, noting that, since quite some time had passed since the initial request for proposals, it is possible that there may be carriers now interested in bidding on this route that may not have bid previously. In addition, as discussed below in detail, we have recently streamlined our procedures in response to a more competitive EAS environment. Because we are not close to concluding all of the subsidy rate negotiations, and because the community has so requested, we will request a new round of proposals under our new, streamlined carrierselection procedures.
By: Karan Bhatia
Order 04-06-19
OST-03-14822 - EAS at Lebanon, NH
Issued June 23, 2004
Order Extending Service Obligation
By: Karan Bhatia
July 9, 2004
Re: Proposal to Provide Essential Air Service (Colgan)
Hereby files the following proposal to continue providing subsidized essential air service between Lebanon, New Hampshire and New York's LaGuardia airport. This proposal offers 18 nonstop roundtrips per week using Beech 1900 aircraft and requires and annual subsidy of $998,752.
By: Michael Colgan
July 12, 2004
Re: Proposal to Provide Essential Air Service (Mesa)
Mesa Air Group, Inc. d/b/a Air Midwest is pleased to submit a proposal to provide Essential Air Service at Lebanon, New Hampshire. Mesa would propose to operate pressurized turboprop Beech l900 with 19 seats roundtrip from Boston, as Mesa Airlines. We will continue to explore potential marketing and code share opportunities.
By: Linda Larsen
July 13, 2004
Re: Request for Comments from Mike Farrell
I would like to update you on the essential air service situation at Lebanon and to give you an opportunity to submit any comments if you wish. As you may know, by Order 2004-6-7, June 8,2004, the Department solicited proposals from all interested air carriers to provide service at Lebanon. In response to that order, we received two proposals, one from the incumbent, Colgan Air, Inc., and the other from Mesa Air Group, Inc., d/b/a Air Midwest.
Colgan proposes to provide 18 nonstop round trips a week between Lebanon and New York’s LaGuardia Airport, operated as US Airways Express, with 19-seat Beech 1900D aircraft, at an annual subsidy requirement of $998,752. Mesa proposes to provide 18 nonstop round trips a week between Lebanon and Boston, with 19-seat Beech 1900D aircraft, with an annual subsidy requirement of $1,292,267.
By: Dennis DeVany
July 13, 2004
Re: Request for Comments from Cliff Desrosiers
By: Dennis DeVany
Order 04-07-15
OST-03-14822 - EAS at Lebanon, NH
Issued July 20, 2004 | Served July 23, 2004
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express, at Lebanon, New Hampshire, for an additional 30 days, through August 23, 2004. Rate negotiations with Colgan and Mesa had stalled, and we recently received a letter from the interim City Manager of Lebanon requesting that we issue a new request for proposals. Therefore, we issued Order 2004-6-7, June 8, 2004, requesting proposals under our new, streamlined procedures for processing essential air service cases. We have received two proposals in response to our request.
By: Randall Bennett
July 29, 2004
Re: Request to Extend Submission of Comments
By: Michael Farrell
July 29, 2004
We will grant your request and will extend the date to submit comments to August 13, 2004. We look forward to your comments at that time.
By: Dennis DeVany
Order 04-08-14
OST-03-14822 - EAS at Lebanon, NH
Issued August 13, 2004 | Served August 18, 2004
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express, at Lebanon, New Hampshire, for an additional 30 days, through September 22, 2004. Since this case will not be completed by the end of the current hold-in period,' in accordance with 49 U.S.C. 41734(c), we will extend Colgan's service obligation at Lebanon for an additional 30 days, or until the carrier selection process is completed, whichever occurs first.
Rate negotiations with Colgan and Mesa had stalled, and we recently received a letter from the interim city manager of Lebanon requesting that we issue a new request for proposals. Order 2004‑6‑7, June 8, 2004, requested proposals under our new, streamlined procedures for processing essential air service cases. We have received two proposals in response to our request.
By: Randall Bennett
August 5, 2004
Re: Letter Favoring the Selection of Colgan Air to Provide EAS
In noting the apparent miscalculations, the Council, in concert with the City's Airport Advisory Committee, agreed that the LaGuardia Hub best meets the needs of the citizens of Lebanon, and voted favorably to authorize me to write a letter to the U.S. D.O.T. expressing the City's preference for choosing Colgan Air as the Essential Air Service Provider, and to further instruct the D.O.T. as to the issues identified in the financial analysis and request that D.O.T. confirm those issues with the air service providers.
By: Michael Farrell
Order 04-09-08
OST-03-14822 - EAS at Lebanon, NH
Issued September 7, 2004 | Served September 10, 2004
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express, at Lebanon, New Hampshire, for an additional 30 days, through October 22, 2004.
By: Karan Bhatia
September 9, 2004
Re: Clarification of Proposal (Colgan Air)
As you are aware, Colgan Air, Inc. filed a proposal to continue subsidized service from Lebanon, NH to New York's La Guardia airport. Subsequent to that, we realized that we provided incorrect assumptions in some cases, causing it to appear that we had several miscalculations. We are writing in order to clarify the proposal that we made. In essence, all of the cost rates included for Flying Operations, Maintenance, and Fuel are calculated based on block hours, not flight hours, consistent with the last several proposals we have presented. The assumptions shown say FH, but the actual rates and calculations are based on Block Hours.
By: Colgan Air, Michael Colgan
Order 04-10-12
OST-03-14822 - EAS at Lebanon, NH
Issued October 20, 2004 | Served October 25, 2004
Order Extending Service Obligation | Word
By this order, the Department of Transportation extends the service obligation of Colgan Air, Inc., d/b/a US Airways Express, at Lebanon, New Hampshire, for an additional 30 days, through November 22, 2004.
By: Karan Bhatia
Order 04-11-02
OST-03-14822 - EAS at Lebanon, NH
Issued November 5, 2004 | Served November 10, 2004
Order Selecting Carrier and Establishing Subsidy Rate | Word
After a thorough review of the proposals and community comments, we have decided to select Colgan to continue to provide essential air service at Lebanon, consisting of three daily nonstop round trips between Lebanon and New York's LaGuardia Airport, with 19-seat Beech 1900D aircraft at an annual subsidy rate of $998,752. In selecting a carrier, 49 U.S.C. 41733 requires us to consider the reliability of the applicants, the contractual and marketing arrangements the applicant has made to ensure service beyond the hub, the applicants' interline, through ticketing and baggage check-in arrangements, and the preferences of the users of the service. In addition, we have always given consideration to the applicants' relative subsidy requirements.
We are concerned that Colgan's proposal contains internal inconsistencies. For example, Colgan's Appendix (attached) showing its subsidy calculations labels flying operation expenses as based on flight hours when, in fact, it is clear that these expenses are derived using block hours, which is consistent with Colgan's historical proposals. In some cases, the carrier appears to have understated its expenses; in other cases, overstated. Nonetheless, we find that Colgan's letter of clarification is sufficient to consider its proposal.
While the Department does not require any backup documentation to support carriers' subsidy requests, we strongly encourage it. It is sufficient for a carrier simply to request a certain dollar amount of subsidy. However, if a carrier does submit supporting data for their subsidy request, we fully expect the documentation to be accurate.
By: Karan Bhatia
Issued and Served May 2, 2006
Order Requesting Proposals | Word
By Order 2004-11-12, November 5, 2004, the Department selected Colgan Air, Inc., d/b/a US Airways Express, to provide EAS at Lebanon for the two-year period through September 30, 2006, at the annual subsidy rate of $998,752, consisting of 18 round trips a week to LaGuardia International Airport with 19-seat Beech 1900D aircraft.
As the end of the current rate term approaches, in order to provide sufficient time to complete the carrier-selection process before the current contract expires, we are here requesting proposals from carriers interested in providing service at Lebanon, with or without subsidy support, for the two-year period beginning October 1, 2006. Carriers should file their proposals within 30 days of the date of service of this order.
Specifically for Lebanon, we request proposals for service consisting of 18 round trips a week to New York with two-pilot, twin-engine aircraft with at least 15 passenger seats, or 12 round trips a week with larger aircraft. We encourage proposals that meet those requirements in an efficient manner. Carriers are also welcome to propose more than one option, if they choose; they need not limit themselves to those requirements if they envision other, potentially more attractive service possibilities – different hubs, for example – with subsidy requirements that remain competitive.
By: Todd Homan
June 2, 2006
Colgan hereby files the following proposal to continue providing subsidized essential air service between Lebanon, New Hampshire and New York’s LaGuardia airport. This proposal offers 18 nonstop roundtrips per week using Beech 1900 aircraft and requires and annual subsidy of $1,069,606.
Proposed Schedule:
Origin Destination Departs Arrives Frequency LEB LGA 6:35A 7:55A 123456_ LGA LEB 8:10A 9:29A 12345_ LEB LGA 1:15P 2:29P 12345_7 LGA LEB 2:55P 4:10P 1234567 LEB LGA 4:15P 5:29P 12345_7 LGA LEB 6:30P 7:50P 12345_7
By: Colgan Air, Michael Colgan, 703-331-3101
Order 2006-6-37
OST-2003-14822
Issued June 29, 2006 | Served July 5, 2006
Order Selecting Carrier and Establishing Subsidy Rate
We have decided to reselect Colgan to continue to provide essential air service at Lebanon, consisting of 18 nonstop round trips a week between Lebanon and New York's LaGuardia Airport, with 19‑seat Beech 1900D aircraft at the annual subsidy rate of $1,069,606. In selecting a carrier, 49 U.S.C. 41733 requires us to consider the reliability of the applicants, the contractual and marketing arrangements the applicant has made to ensure service beyond the hub, the applicants' interline, through ticketing and baggage check‑in arrangements, and the preferences of the users of the service. In addition, we have always given consideration to the applicants' relative subsidy requirements.
Colgan's service as a US Airways Express carrier gives Lebanon passengers excellent access to the national air transportation system via seamless on‑line connections throughout US Airways' system. In addition, we note that passenger levels increased close to 20% from 2004 to 2005. Finally, we find that Colgan's proposed service and subsidy levels are reasonable.
By: Michael Reynolds
Order 2008-4-40
OST-2003-14822
Issued and Served April 28, 2008
Order Requesting Proposals | Word
By this order, the Department is requesting proposals from carriers interested in providing essential air service at Lebanon, New Hampshire, for a new two-year period, beginning October 1, 2008, with or without subsidy. Carriers should file their proposals no later than May 29, 2008.
With specific respect to Lebanon, we request proposals for service consisting of 18 round trips a week to New York with two-pilot, twin-engine aircraft with at least 15 passenger seats, or 12 round trips a week with larger aircraft.
By: Todd Homan
May 29, 2008
Cape Air proposes either a 4x or 6x daily service pattern to/from Boston at a subsidy level of $519 or $529 per departure, respectively. Cape Air would serve Lebanon with Cessna 402s, the workhorse of Cape Air Air’s fleet.
By: Cape Air, Andrew Bonney, 508-790-3122 x519
May 30, 2008
Colgan Air, Inc. respectfully submits a proposal to continue providing subsidized service between the community of Lebanon, New Hampshire and New York's LaGuardia Airport. This proposal uses Saab 340 aircraft and would require an annual subsidy of $2,773,662. The bid of $2,773,662 incorporates current landing fees. If the community steps in to reduce landing fees Colgan Air adjust the bid accordingly.
The proposed service options for the New Hampshire community is as follows: 18 roundtrips per week operated as non-stop service to New York's LaGuardia Airport. Colgan intends to maintain 18 round trips per week as reducing weekend frequencies would adversely impact the marketplace. Past experience suggests that a reduced schedule would not satisfy the needs of point to point business traffic or provide adequate connectivity through US Airway's focus city operation in LaGuardia.
By: Colgan, George Casey, 703-331-3101
July 8, 2008
Email Message - City of Lebanon Delaying Decision on Carrier Proposals
We presented the facts of the two bidders to the City Council as we said we would on July 2. However, this item was last thing on the agenda and at 10:30PM they decided to continue the discussion to July 16. We will have definite recommendations for them to consider and I anticipate we'll have a decision on that night of their preference. In the meantime, and as you suggested, we are starting to get lobbied by the carriers. Thank you for your patience and I will continue to keep you posted on any movements over the next week.
By: David Gobin
July 17, 2008
Re: City of Lebanon Support for Cape Air
At its regularly scheduled meeting last night (July 16, 2008), the Lebanon City Council selected and recommends to the US Department of Transportation that Hyannis Air Service, Inc., dba Cape Air, be the airline that provides commercial air service at Lebanon Municipal Airport under the terms provided in their proposal for six (6) daily round trip flights between Lebanon and Boston/Logan Airport.
By: Gregg Mandsager
Order 2008-7-27
OST-2003-14822
Issued July 25, 2008 | Served July 30, 2008
Order Selecting Carrier and Setting Final Subsidy Rates
By this order, the Department is selecting Hyannis Air Service, Inc. d/b/a Cape Air to provide subsidized essential air service at Lebanon, New Hampshire, for an annual subsidy rate of $2,245,669, for a new two-year period, beginning when the carrier inaugurates full-service.
By: Michael Reynolds
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