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OST-2003-15128 - EAS at Escanaba, MI
http://www.deltacountymi.org/airport.php/ - Delta County Airport, Escanaba, MI
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Essential Air Service at Escanaba, Micihigan OST-2003-15128 - Intent to Terminate Service at Escanaba, Michigan May 6, 2003 Notice of Termination of Service at Escanaba, Michigan Though Midwest Connect would prefer to continue providing scheduled air service at Escanaba, increasing costs, and reduced passenger revenue have caused Midwest Connect to incur unsustainable operating losses in providing Escanaba service. Midwest Connect intends to terminate the service July 31, 2003. The effective date of this Notice is April 30, 2003. Objections to this Notice are due within 20 days of this Notice. By: Michael Mooney, 414-570-3660
May 16, 2003 Correspondence of Delta County Economic Development Alliance Midwest Airlines is an essential component of our community. Not only is Midwest the most comfortable and customer oriented air service that I have ever encountered, but it also provides crucial service to our economic well-being as a community. The ability to bring business and tourist passengers to our community is important, but more essential to our business community is the ability to get our company representatives and service technicians, and small product like samples out quickly and efficiently to customers who keep our base industries going and growing. The Delta County community relies on Midwest Express for air service. Their presence in our community has been a tremendous asset. We hope it can continue. By: Linda Hirvonen, 906-786-2192
Order 2003-6-19 Issued June 13, 2003 | Served June 18, 2003 Order Prohibiting Suspension of Service and Requesting Proposals | Word Since Skyway is the only carrier providing scheduled air service at Escanaba, its proposed termination would eliminate all air service to the community. Thus, in accordance with 49 U.S.C. 41734, we must prohibit Skyway from suspending service at Escanaba for an initial 30day period beyond the end of the 90-day notice period, through September 4, 2003, or until suitable replacement service has been inaugurated at the community, whichever occurs first. By: Michael Reynolds
May 8, 2003 Re: Letter from State of Michigan DOT While we recognize the increasing difficulty in operating profitable air service at smaller communities, we remain concerned about continued service reductions at small community airports such as ESC. As you know, in January 2002, seat availability was reduced by approximately 70% with the departure of Northwest Airlink from the ESC market. Any further reductions would continue to force local travelers to seek less practical air service alternatives. By: Rob Abent
July 7, 2003 Request of Skyway Airlines for Extension of Time Counsel: Silverburg Goldman, Robert Silverburg, 202-944-3300
Issued July 8, 2003 | Served July 11, 2003 Notice of Extension, the Department grants all potentially interested applicants until July 23, 2003, to submit service proposals for the subject point. By: Dennis J. DeVany
July 22, 2003 Request of Mesaba for Extension of Due Date for Proposals By: Mesaba, John Spanjers, spanjers_john@mesaba.com
Issued July 23, 2003 | Served July 24, 2003 We have received a request from Mesaba Aviation, d/b/a Northwest Airlink, for an additional one-week extension. We will grant this request. As is our normal practice, we will therefore grant all potentially interested applicants until July 30, 2003, to submit service proposals for the subject point. By: Dennis DeVany
August 6, 2003 Response of Mesa Air Group to Request for Proposals By: Scott Lyon, 602-685-4368, scott.lyon@mesa-air.com
August 6, 2003 Proposal of Northwest Airlines Counsel: Northwest, Megan Rae Rosia, 202-842-3193, megan.rosia@nwa.com
July 30, 2003 Proposal of Skyway Airlines, Inc. d/b/a Midwest Connect Counsel: Silverberg Goldman, Robert Silverbergm 202-944-3300
August 14, 2003 Correspondence of Skyway Airlines Letter from Skyway Airlines, Inc. d/b/a Midwest Connect, certifying that on August 14, 2003, a copy of the proposal of Skyway Airlines, Inc., d/b/a Midwest Connect to provide essential air service at Escanaba, Michigan was served upon the persons listed on the attached service list. Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300
Order 2003-8-27 Issued August 27, 2003 | Served September 2, 2003 Order Extending Service Obligation By: Randall Bennett
Order 2003-10-2 Issued October 1, 2003 | Served October 6, 2003 Order Extending Service Obligation | Word On May 7, 2003, Skyway filed a 90-day notice of its intent to suspend its unsubsidized service at Escanaba, effective August 5, 2003.' By Order 2003-6-19, June 13, 2003, the Department prohibited Skyway from suspending service beyond the end of its 90-day notice period, through September 4, 2003, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 U.S.C. 41734, we have extended Skyway's service obligation for additional 30-day periods, the latest through October 6, 2003, by Order 2003-8-27. 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 Skyway's service obligation at Escanaba for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first. By: Randall Bennett
September 5, 2003 Correspondence of Michigan Department of Transportation Mesaba Aviation in its proposal to return service to ESC, would offer one less frequency than the current schedule, no nonstop hub service, and pairing with the larger markets of Pellston and Houghton/Hancock. These factors would likely reduce the utility of the service as well as the number of available seats for ESC and the paired airports. The proposal submitted by Mesa Air Group, offers a schedule similar in frequency, seat capacity, and aircraft type compared to the current schedule. However, as the proposal is based on service to Chicago O'Hare Airport, limited connecting opportunities exist on the carrier's system. Furthermore, both competing proposals require markedly greater financial subsidy than that required by the incumbent carrier, Midwest Connect. Therefore, we urge selection of Midwest Connect to provide EAS service at ESC based on their current proposal . By: Pauline Misjak
October 9, 2003 Correspondence of Delta County Airport and Parks Commission/Delta County Airport I am encouraged by the level of interest from multiple carriers, but clearly Northwest's proposal of two flights a day would underserve our community. Three flights a day would possibly work with service to a major hub like Detroit. The Mesa proposal would I believe provide the most boardings since we would have access to a major hub in O'Hare, however this proposal seems cost prohibitive. Midwest's submission appears to be the best overall choice in balancing all issues even though it falls short of what I believe is needed to properly provide this community with enough boardings to get back to pre 9-11 service (we have less than half of the boardings we had before 9-11). Additionally, we know from personal experience that Midwest does have a refreshing customer-oriented attitude in the airline industry, a service industry. By: Richard Severson
October 24, 2003 Re: Withdrawal of Application of Mesaba By: Bryan Ebensteiner
Order 2003-10-30 Issued October 29, 2003 | Served November 3, 2003 Order Extending Service Obligation By: Randall Bennett
Order 2003-12-3 Issued December 2, 2003 | Served December 5, 2003 Order Extending Service Obligation 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 Skyway's service obligation at Escanaba for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first. By: Randall Bennett
Order 2003-12-19 Issued December 23, 2003 | Served December 30, 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 Skyway's service obligation at Escanaba for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first. By: Randall Bennett
February 5, 2004 Order Extending Service Obligation 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 Skyway's service obligation at Escanaba for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first. By: Karan Bhatia
Issued: March 8, 2004 | Served: March 11, 2004 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 Skyway's service obligation at Escanaba for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first By: Randall Bennett
March 11, 2004 Re: Notice Withdrawing Proposal of Mesa Airlines Mesa hereby withdraws its proposal from the Escanaba EAS case. By: Mesa, Scott Lyon
Issued April 1, 2004 | Served April 6, 2004 Order Selecting Carrier | Word We will select Skyway Airlines, Inc., d/b/a Midwest Connect, as described above, to provide subsidized EAS at Escanaba for the period of August 5, 2003, through March 31, 2006, for $290,952 annually. (See Appendix B for a summary calculation of this rate.) Skyway has successfully served Escanaba for over five years, and the community is satisfied with the carrier’s performance. In addition, Skyway has a good track record of providing reliable essential air service in the Great Lakes region. Finally, we find that the subsidy rate is reasonable for the level of service to be provided. By: Karan Bhatia
Order 2005-12-17 Issued December 29, 2005 | Served January 4, 2006 Order Requesting Proposals - Bookmarked By this order, the Department is requesting proposals from carriers interested in providing essential air service at Escanaba, Michigan, for a new two-year period, with or without subsidy, beginning April 1, 2006. We expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering three round trips a day to Milwaukee, or 18-19 round trips a week. Interested carriers should prepare their proposals with every expectation that their initial proposals will represent their final and only proposals. By: Todd Homan
February 3, 2006 Request for Extension of Time to Complete RFP - Email Message Skyway Airlines is interested in continuing EAS service to Escanaba, MI. However, I was unaware that the RFP deadline was today. Could you please grant us an extension of one week to complete our RFP? Counsel: Skyway, Tony Intravaia, tony.intravaia@midwestairlines.com
February 6, 2006 Skyway Airlines, Inc. has requested an extension, from February 3, 2006 until February 10, 2006, to file its proposal to continue to provide Essential Air Service at Escanaba, Michigan for a new two-year period. This is to advise all parties that we have decided to grant the requested extension to file proposals. Proposals must be receive by no later than February 10, 2006. By: Dennis DeVany
February 10, 2006 Proposal of Skyway Airlines d/b/a Midwest Connect I am pleased to submit Skyway Airlines’, d/b/a Midwest Connect, an affiliate of Midwest Airlines, Inc., proposal to continue providing Essential Air Service to the community of Escanaba, Michigan for the period April 1, 2006 through March 31, 2008. Under our proposal, Escanaba will continue to be provided service with our 19-seat Beechcraft 1900D aircraft. All flights will flow through our passenger-friendly hub in Milwaukee, Wisconsin. From Milwaukee, these flights can connect to more than 40 cities via Midwest Airlines and Midwest Connect. Enclosed with this letter is an economic analysis of our proposal. The enclosures describe the level of service to be provided, operating statistics and Skyway‑developed revenue assumptions predicated on prevailing average fares and prorate. During 2005, Skyway carried 19,029 passengers into and out of Escanaba. Our business plan anticipates a 3.6% increase to 19,711 passengers in 2006. For expenses, we either used allocated forecasted actual costs (with all allocations shown for clarity) or forecasted actual costs developed in the course of preparation of the financial analysis. The costs and expenses are conservative and indicate an annual subsidy requirement for Skyway's service offering. Although the required subsidy has increased from our current contract, the increases are appropriate in light of our increased costs, including dramatic and sustained increases in the cost of fuel. By: Skyway, Anthony Intravaia
May 17, 2006 DOT Letter Requesting Community Comments of:
I would like to update you on the Essential Air Service situation at Escanaba and give you an opportunity to submit comments if you wish. As you may know, by Order 2005-12-17, December 29, 2005, the Department solicited proposals from all interested carriers to provide service at Escanaba. In response to that order, the Department received a proposal only from Skyway Airlines, Inc. d/b/a Midwest Connect. Because the subsidy cost of the only applicant’s initial proposal was over $800,000 more than its rate-term ended March 31, 2006, Department staff entered into an informal rate negotiation with Skyway. The results of those negotiations are summarized in Attachment A (subsidy calculations) and Attachment B (schedules) to this letter. I should note that during these negotiations, Skyway expressed its intentions to eliminate the 19-passenger Beechcraft 1900 from its aircraft fleet within a year or so. We request that you review this information as expeditiously as possible and submit any comments you may have on the carrier selection as soon as possible, but in any case no later than June 9,2006. By: Dennis DeVany
May 31, 2006 Comments of Delta County Airport Thank you for the opportunity to respond to Skyway Airlines, Inc. proposal. Two issues of concern with the carrier's service would be more seats at peak times and a larger aircraft. Both these issues would be addressed with the substitution of the Jet. Even though flight frequency might be cut, number of seats would actually increase because of the larger aircraft used. Using any schedule combination of Jet and Beechcraft 1900 producing fewer seats available would be undesirable. The timing of the schedule for meeting the connecting bank times at the hub would also be critical. The one-year contract seems short but in light of their timing with other nearby communities this makes sense. One other issue I'd like to address is the lack of access to Lansing this community has. If there were an opportunity in the future for the airlines to address this need it would be greatly appreciated by the community. Historical boarding information indicates that enplanements would increase. By: Airport Manager, Connie Ness
June 7, 2006 Comments of Delta County Board of Commissioners Since the City of Escanaba is the Delta County seat and the location of many State Office Buildings, there is a great urgency for air travel to Lansing. Your efforts to restore this vital link to Escanaba would be greatly appreciated. By: Thomas Elegeert
Order 2006-6-23 Issued June 21, 2006 | Served June 26, 2006 By Order 2004-4-3, issued April 1, 2004, the Department selected Skyway to provide subsidized EAS at Escanaba for the two-year period through March 31, 2006. That order established an annual subsidy of $290,952 for three round trips each weekday and four round trips each weekend to Milwaukee with 19-passenger Beech 1900D aircraft, with a limited number of intermediate stops at Iron Mountain/Kingsford, Michigan. In anticipation of the end of the rate term, the Department issued Order 2005-12-17 on December 29, 2005, soliciting proposals to provide efficient EAS, with subsidy support it necessary, at Escanaba. Skyway, the incumbent EAS provider for Escanaba, was the only air carrier to submit a proposal. Under its original proposal, Escanaba would continue to receive three round trips each weekday and four round trips each weekend to Milwaukee with 19-passenger Beechcraft 1900D aircraft, with a limited number of intermediate stops at Iron Mountain/Kingsford, Michigan. The original annual subsidy request was $1,104,086 per year. By this order the Department is reselecting Skyway Airlines, Inc., d/b/a Midwest Connect, to provide subsidized essential air service at Escanaba, Michigan, at an annual subsidy rate of $908,903 for the period April 1, 2006, through May 31, 2007. By: Michael Reynolds
Order 2007-1-2 Issued January 5, 2007 | Served January 10, 2007 By this order, the Department is requesting proposals from air carriers interested in providing essential air service at: Iron Mountain/Kingsford, Michigan; Ironwood, Michigan/Ashland, Wisconsin; Manistee/Ludington, Michigan; and Escanaba, Michigan, for a new two-year period, beginning June 1, 2007, with or without subsidy. With specific respect to Iron Mountain/Kingsford, Ironwood/Ashland, Manistee/Ludington and Escanaba, the Department expects proposals consisting of service with 19-passenger aircraft and offering a mix of two or three round trips a day between each community and Milwaukee. Larger aircraft, offering fewer daily trips may be substituted in lieu of the 19-passenger aircraft, higher frequency service so long as the number of available seats between the EAS community and the hub are approximately equivalent. Such service is generally 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. By: Todd Homan
Order 2007-2-8 Issued February 6, 2007 | Served February 9, 2007 By Order 2007-1-2, January 5, 2007, the Department requested proposals from air carriers interested in providing essential air service at: Iron Mountain/Kingsford, Michigan; Ironwood, Michigan/Ashland, Wisconsin; Manistee/Ludington, Michigan; and Escanaba, Michigan, for a new two-year period, beginning June 1, 2007, with or without subsidy. Upon review and consultation with the Gogebic-Iron County Airport Manager and Skyway Airlines, Inc., d/b/a Midwest Connect, the incumbent EAS air carrier, it was discovered that the enplanement data detailed in Appendix B of Order 2007-1-2, was incorrect. The corrected data for Calendar Years 2005 and 2006 are detailed in Appendix B. Carriers should file their proposals no later that February 9, 2007. Consistent with EAS Program practice, we will give full consideration to all proposals filed in a timely manner. By: Todd Homan
OST-1999-5175 - EAS at Iron Mountain/Kingsford, MI
February 8, 2007 Proposal of Great Lakes Aviation
Great Lakes will provide service at these Essential Air Service points in a similar fashion as is offered in Denver and utilize our interline agreements with all the major carriers, which will enable connecting bag service through the Milwaukee hub. In addition, we are anticipating executing a code-sharing agreement with Midwest Airlines to allow passengers a seamless connection at Midwest Airlines Milwaukee hub. All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment. Counsel: Great Lakes, Michael Matthews, 307-432-7000
February 2, 2007 In response to the Department’s Order 2007-1-2, Mesaba Aviation, Inc., doing business as Northwest Airlink, is enclosing a detailed subsidy proposal for essential air service at Escanaba, MI at a level of thirteen roundtrip, non-stop flights per week using 34-seat Saab 340 aircraft from Northwest’s DTW hub.
By: Mesaba, John Spanjers
February 9, 2007 Skyway Airlines Will Not Submit Proposals Skyway will not be in a position to continue to provide these services in the future and, therefore, Skyway respectfully advises the Department that it will not be submitting a proposal to continue to serve the cities in response to Order 2007-1-2. However, as explained below and in the enclosed updated subsidy proposal, Skyway, if necessary, is willing to be held in at the proposed rates for a reasonable period of time until the DOT selects a replacement carrier or carriers. The principal motivation for the Skyway decision not to submit a proposal in response to the DOT's Order is the fact that the carrier took the decision several years ago to begin disposing of its fleet of Beech 1900 aircraft. Since 2004, 7 of the fleet of 14 aircraft have already been disposed of and the carrier's plan is to retire the remainder of the aircraft type from its fleet during 2007. This aspect of the carrier's fleet simplification plan will be completed prior to the end of the next two year SAG term and, therefore, Skyway is not in a position to commit to the Department that it will have the capability to provide 19 seat aircraft for this SAG service for the upcoming term. Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300
OST-1999-5175 - EAS at Iron Mountain/Kingsford, MI February 16, 2007 Requests for Community Comments of:
In anticipation of the end of Skyway Airlines’ current contract on May 31, 2007, the Department issued Order 2007-1-2 on January 5, 2007, to solicit proposals from all interested air carriers to provide EAS at the four communities identified above, for a new two-year term. In response to that order, Skyway Airlines indicated that it is disposing of its fleet of Beech 1900 aircraft, a process that is expected to be completed prior to the end of the next two-year term, and therefore did not submit a long-term proposal. It did, however, submit a request for a higher subsidy rate beginning June 1 in the event carrier transition has not occurred by then. Skyway Airlines will continue to provide EAS at all four communities until a new carrier inaugurates service so that there will be no hiatus in service. Great Lakes Aviation, Ltd. and Mesaba Aviation, Inc. were the only carriers to submit proposals for a new two-year term. We request that you review the carriers’ 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 March 9, 2007. By: Brian Swanson
February 16, 2007 Re: Letter to Escanaba Airport and Parks Manager - Request for Community Comments Re: Letter to Delta County Board of Commissioners - Request for Community Comments Re: Letter to Michigan Department of Transportation - Request for Community Comments Great Lakes submitted a four-community package bid for service to Milwaukee, utilizing 19-passenger Beech 1900D aircraft. It anticipates executing a code-sharing agreement with Midwest Airlines, although there is no guarantee of that. Great Lakes' subsidy requirement for all four communities is $3,173,058 or approximately $476,000 more than current subsidy amount. Three round trips each weekday and four each weekend (19 round trips per week). Great Lakes would require $617,415 a year for this level of service, approximately $291,000 less than the current rate. Mesaba, doing business as Northwest Airlink, submitted a proposal to provide EAS at Escanaba, Michigan, only. Mesaba would provide two nonstop round trips between Escanaba and the Detroit Metropolitan Wayne County Airport (DTW) each weekday and over each weekend, utilizing 34‑seat Saab 340 aircraft, for an annual subsidy rate of $1,297,705. This annual subsidy requirement represents an increase of approximately $389,000 over the existing rate. By: EAS Division, Dennis DeVany
OST-1996-1711 - Manistee/Ludington
February 28, 2007 Re: Delta County Airport Request for an Extension
March 1, 2007 Re: Delta County Airport Granted 7-Day Extension to File Comments By letters to the communities listed above, dated February 16, the Department offered Escanaba, Michigan the opportunity to provide comments on the essential air service proposals submitted by Great Lakes Aviation, Ltd. and Mesaba Aviation, Inc. The deadline for comments was set as March 9, 2007. In an e-mail dated February 28th, the Manager of the Delta County Airport requested a 7-day extension to file comments. We are hereby granting the community's request and extending the date for comments from the communities listed above until March 16, 2007. By: EAS & Domestic Analysis, Dennis DeVany
OST-1996-1711 - Manistee/Ludington
March 16, 2007 Comments of Michigan Department of Transportation We were disappointed to learn that Skyway Airlines did not submit a proposal to continue service in these markets. The excellent service they provided allowed each of these communities reliable access to the national air transportation system while affording a high level of customer service. However, we are encouraged that bids for replacement service have been received from Great Lakes Airlines and, in the case of Delta County Airport, by Mesaba Airlines as well. In the case of Gogebic-Iron County, Ford, and Manistee-Blacker Airports, Great Lakes Airlines is the lone bidder for replacement service with its offering of daily flights to Milwaukee's General Mitchell International Airport. Once again, we stress the importance of closely monitoring the timing and reliability of service as well as the establishment of a formal codeshare agreement with Midwest Express Airlines. Without such a code-share, service to Milwaukee will only serve origin and destination passengers and stifle market growth in these communities. While requiring greater subsidy than the proposal offered by Great Lakes Airlines, Mesaba Airlines' proposal to serve Delta County Airport appears to better meet the community's needs. As proposed, the nonstop service to Detroit Metro Airport will enable the community to regain a substantial number of passengers that were migrating to neighboring airports in search of nonstop service and/or larger aircraft. In addition, the myriad connections available through Detroit will enable Escanaba area travelers a host of recreational and business travel opportunities. By: Director, Rob Abent, 517-373-2080
OST-2003-15128 - Escanaba
March 15, 2007 Supplemental Comments of Delta County Airport The current EAS provider, Skyway, has announced its intentions to cease providing service at Delta County Airport. The US Department of Transportation has received replacement proposals from Great Lakes Airlines and from Mesaba/Northwest. The two proposals are materially different in scope, type of service, and in total subsidy cost. As will be noted herein, they also are felt to differ in regard to long-term prospects for not only re-establishing viable air service at Escanaba, but in the economic impact that would result. While neither proposal is perfect, both represent strengths and weaknesses. However, in light of the above criteria, the Mesaba/Northwest proposal clearly is the superior of the two. Furthermore, it is the only one that has the potential of rebuilding Escanaba service for the long term. By: Delta County Airport, 906-786-4902
March 16, 2007 Email Message - Comments of City of Escanaba As I stated at our last meeting, the opportunity to link up with Northwest as usual timing is everything. If indeed Mesaba will set up the flights to meet the morning and afternoon banks then it would help our area allot to offer international connections. do hope though that Mesaba will keep the current employees on as they are the greatest. I have never had such great service from any other airport in the world. I do fly often and always compare our service with that of others and there is just no comparison. Mesaba does offer better opportunities for our area to grow. We are currently very close to making some real changes and growth in the Delta County Area and need to have a air service to enable us. Again thank you for all your attention to all of our needs. By: Mayor, Judi Schwalbach
OST-1996-1711 - Manistee/Ludington March 19, 2007 Midwest Airlines, Inc. hereby states that Midwest has signed a letter of intent with Great Lakes Aviation, Ltd. to codeshare with Great Lakes on its flights between Midwest's Milwaukee, Wisconsin hub and Iron Mountain/Kingsford, Ironwood/Ashland. Manistee/Lundington and Escanaba in the event that Great Lakes is selected in this proceeding. The letter of intent states that the entry into the code share agreement by Midwest and Great Lakes is subject to mutual agreement on definitive documentation of the arrangement. Counsel: Silverberg Goldman, Robert Silverberg, 202-944-330
OST-2003-15128 - Escanaba March 30, 2007 DOT Letter to: We appreciate the communities' comments in favor of service with larger aircraft to a larger hub airport. However, as you know, the core objective of the EAS program is to provide communities with a link to the National air transportation system, and not necessarily all of the service that communities might prefer. By: Office of Aviation Analysis, Dennis DeVany
Order 2007-3-21 Issued March 30, 2007 | Served April 4, 2007 Order Selecting Carrier and Setting Final Subsidy Rates By this order, the Department is selecting Great Lakes Aviation, Ltd. to provide subsidized essential air service at all four of the above-captioned communities for the two-year period beginning when the carrier inaugurates full service. The annual subsidy rates will be set at: $797,885 for Iron Mountain/Kingsford, $799,779 for Ironwood/Ashland; $957,978 for Manistee/Ludington; and $617,415 for Escanaba. By: Andrew Steinberg
Order 2007-6-5 Issued June 6, 2007 | Served June 11, 2007 By this order, the Department is correcting the final operational and financial unit rates it will pay to Great Lakes Aviation, Ltd., to provide subsidized essential air service at the four above-captioned communities for the two-year period beginning when the carrier inaugurates full service. Great Lakes' annual subsidy rates remain unchanged; however, the corrected operational and financial unit rates are summarized in Appendix A. This order also corrects the annual total subsidy rate that Skyway Airlines, Inc., d/b/a Midwest Connect will be compensated for its provision of EAS in the interim period, until Great Lakes inaugurates full service. The Department will only subsidize the number of flights that it subsidized under the previous contract. Therefore, Skyway's annual total subsidy for its provision of EAS at all four communities will be set at $3,682,282, not $3,817,224, as stated in Order 2007-3-21. By: Todd Homan
Order 2007-10-41 Issued October 29, 2007 | Served November 1, 2007 Order Requesting Proposals | Word By this order, the Department is re-soliciting proposals from air carriers interested in providing essential air service at any or all of the four communities identified above. The carrier that was selected in March 2007 has not yet inaugurated service and, therefore, we are requesting proposals for a new two-year period, beginning when the carrier inaugurates full service, with or without subsidy. Carriers should file their proposals no later than November 19, 2007. We vacate Order 2007-3-21, selecting Great Lakes Aviation, Ltd., to provide essential air service at: Iron Mountain/Kingsford, Michigan; Ironwood, Michigan/Ashland, Wisconsin; Manistee/Ludington, Michigan; and Escanaba, Michigan. With specific respect to Iron Mountain/Kingsford, Ironwood/Ashland, Manistee/Ludington and Escanaba, the Department expects proposals consisting of service with 19-passenger aircraft and offering a mix of two or three round trips a day between each community and Milwaukee. We would also entertain proposals with larger aircraft, offering fewer daily trips. Such service is generally 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. By: Michael Reynolds
OST-1996-1711 - Manistee/Ludington November 19, 2007 Big Sky plans on operating this service as Big Sky Airlines. We will work with our code-share partners US Airways and Northwest to attempt to extend our code-share agreements to these communities. Big Sky also understands from conversations with Midwest Airlines that a similar code-share agreement will be possible if Big Sky is awarded service to these markets. Big Sky will operate the service proposed herein with the 19 seat Beechcraft 1900D aircraft. Big Sky continues to upgrade its reservation system and now offers customers the ability to have interline e-ticketing available for flights connecting to both Northwest Airlines and Alaska/Horizon Air. The service pattern includes:
By: Big Sky, Fred deLeeuw, 406-247-3931, fred.deleeuw@bigskyair.com
December 1, 2007 The Mesaba proposal gives up our minimum service level of three weekday departures for just one each direction, in trade for Mesaba. This will drive passengers like me to use Sawyer Airport (Marquette) where Mesaba offers five nonstop flights. Not only does the Big Sky proposal offer more flights to an omni-directional hub (not one flight east and one flight west) but it really offers more seats than Mesaba. Both Mesaba trips are shared with Iron Mountain That gives us two daily departures with 17 available seats each weekday. Big Sky will give us two daily departures with 19 seats serving only Escanaba, plus a third flight with 19 seats shared with Iron Mountain. As stated in the request for proposals, the average daily passenger boardings at Escanaba have been about 30. Mesaba's proposal simply is not enough seats and not enough flights, and will only lead to more bleed to Sawyer Airport.
OST-1996-1711 - Manistee/Ludington January 2, 2008 Big Sky hereby withdraws from the Michigan case. By: Fred deLeeuw
January 4, 2008 Re: Delta County Airport Support for Mesaba Airlines The service to Detroit and Minneapolis with the larger Saab aircraft, along with Mesaba' s experience and Northwest connections, provides this community with growth potential. The Delta County Airport Board and County Board of Commissioners sees this option as our best opportunity to generate more airport revenue and work towards eliminating EAS dependency. We are convinced this is a key step towards a return of our lost boardings. By: Connie Ness, Airport Manger
OST-1996-1711 - Manistee/Ludington January 8, 2008 Michigan State DOT in Support of Mesaba Airlines While encouraged by the interest of Big Sky Airlines in serving these airports, their recent announcement of reduced operations and possible liquidation precludes them as a viable bidder. Therefore, we support selection of the dtemative bids offered by Mesaba Airlines dba Northwest Airlink for service at Ford and Delta County Airports. By: Gerald Edwards
Order 2008-1-13 Issued | Served Order Selecting Carrier, Setting Final Subsidy Rates and Requesting Proposals By this order, the Department is: (a) selecting Mesaba Aviation, Inc., d/b/a Mesaba Airlines, operating as Northwest Airlink, utilizing 34-seat Saab 340 aircraft to provide subsidized EAS at Iron Mountain/Kingsford and Escanaba Michigan, at a combined annual subsidy rate of $2,251,767; and (b) requesting proposals by February 1 from carriers interested in providing EAS at Ironwood, Michigan/Ashland, Wisconsin, and Manistee/Ludington, Michigan, for a new two-year period, beginning when the carrier inaugurates full service, with or without subsidy. Mesaba will provide EAS at Iron Mountain/Kingsford and Escanaba, Michigan, for a new two-year term beginning when it inaugurates full service. By: Michael Reynolds
OST-1999-5175 - Iron Mountain/Kingsford January 18, 2008 Email Message - Comments of Northwest As we're going through the process of routing this new service for this coming summer, we're realizing (from a crew and aircraft resources standpoint) the schedule works better for us to schedule the IMT/ESC via both hubs in an "Option 3" scenario (same concept as Option #2, however, a morning departure to DTW and afternoon departure to MSP - overall pattern/tags would stay the same). I would like to approach each community and ask for their support on this change, while maintaining the same subsidy. I think you guys will be ok with this, but I just wanted to give you the heads-up in advance. By: Northwest, Tim McDonald, tim.mcdonald@nwa.com
January 23, 2008 Email Message - Comments of Delta County Airport At a regular meeting of the Delta County Board of Commissioners last night they voted unanimously in support of the new/ option presented by Northwest on January 21, 2008. In this proposal Northwest would provide service with daily flights for IMT and ESC to DTW and MSP at no additional EAS cost than the DOT selected proposal for two flights to MSP. In the process of exploring community support for this proposal we somehow received quite a media blitz and response has been overwhelmingly in favor of this new proposal. The community is really looking forward to Mesaba service with access to DTW & MSP. By: Airport Manager, Connie Ness, 906-786-4902, dcaesc@dsnet.us Order 2008-1-27 Issued January 28, 2008 | Served January 31, 2008 Order Approving an Alternate Service Pattern | Word At the urging of both communities, we received a request from Mesaba on January 18 to comport to the communities’ wishes and provide dual-hub service. Specifically, Mesaba would utilize 34-seat Saab 340 aircraft to provide seven round trips each week over an Escanaba-Iron Mountain/Kingsford-Minneapolis-Iron Mountain/Kingsford-Escanaba routing and seven round trips each week over an Detroit-Escanaba-Iron Mountain/Kingsford-Escanaba-Detroit routing for a the same annual subsidy requirement ($2,251,767) as approved by Order 2008-1-13. This alternate service pattern will also constitute the same frequency level as described in Order 2008-1-13 (14 weekly round trips). Mesaba intends to begin this new service pattern in June. By: Todd Homan
January 23, 2008 Re: DOT Letter to Senator Carl Levin (MI) Despite the fact that we selected Great Lakes in March, the carrier has not commenced EAS at any of the four communities. Moreover, the carrier has been unable to provide the Department with a definitive service inauguration date. As you may know, the Department selected Mesaba's first service option with Escanaba-Iron Mountain/Kingsford-MSP routing. We appreciate the communities' comments in favor of service to both MSP and DTW. However, as you know, the core objective of the EAS program is to provide communities with a link to the national air transportation system, and not necessarily all of the service that communities might prefer. While the Mesaba option selected by the Department meets the core objective of the program, we encourage the communities and the carrier to continue to work together to optimize the service provided during this current two-year contract. By: Michael Reynolds
OST-1999-5175 - Iron Mountain/Kingsford April 1, 2008 Re: Cessation and Returning of Certificates and Authorities of Skyway Airlines As the Department is now aware, Skyway Airlines, Inc. will terminate all air carrier service after April 5, 2008. As a result. Skyway will be returning for cancellation its air carrier certificates and authorities to the DOT and FAA for cancellation. This decision was a most reluctant, but necessary one. Skyway has not earned any operating or net profits for at least the last three years and has no prospects for doing so, particularly given the current and all-time high price of aviation fuel. The cessation of all Skyway operations necessarily includes its operations to the communities Iron Mountain/Kingsford, Michigan, Ironwood, Michigan/Ashland, Wisconsin, Manistee/Lundington, Michigan and Escanaba, Michigan. Skyway has been providing EAS to the Four Communities for many years and has been "held in" (since June 1, 2007) awaiting Great Lakes to commence service—an obligation on which it defaulted leading to the decision of the Department to vacate Order 2007-3-21 selecting Great Lakes to provide subsidized service to the Four Communities. Subsequently another applicant—Big Sky—withdrew its proposal to provide the essential air service and Mesaba chose only to serve two of the four EAS points. Later in response to Order 2008-1-13, Great Lakes proposed to provide the requested air service and then seemingly, once again, backed out, after making a formal proposal to the DOT. All during this time period the Department has been aware of the plans of Skyway to eliminate its Beech 1900 aircraft fleet when the Department was so advised in writing (having previously been orally advised) on February 9, 2007 when Skyway formally announced its intention not to continue to provide the essential air service. Skyway has nonetheless continued to provide uninterrupted EAS to the Four Communities, consistently and well, even though it incurred increasingly higher unit operating costs to do so. Skyway lacks any ability to continue to offer essential air service to the Four Communities. There is no statutory basis for requiring Skyway to provide to service when it lacks the capacity to do so. Nor is there any basis to take action against Skyway's code share partner. Midwest Airlines, under §41739. This is truly an unfortunate, but totally unavoidable situation. Skyway will continue to reaccommodate previously booked passengers on other services of Midwest provided through Muskegon, Grand Rapids, Green Bay, Central Wisconsin / Wausau, and Appleton. Skyway is continuing to work with Great Lakes to assist it in achieving its objective of providing essential air service to Ironwood and Manistee and hopes to be able to successfully conclude its agreements with Great Lakes to enable the carrier to serve Ironwood and Manistee. In addtion. Skyway extends this offer of cooperation to any other carrier that may wish to submit a proposal to the DOT to provide subsidized service in response to Order 2008-1-13 should Great Lakes choose not to proceed with its proposal. Counsel: Silverberg Goldman, Robert Silverberg
OST-1996-1711 - Manistee/Ludington April 23, 2008 Re: DOT Letter to Congressman Bart Stupak First, we are not in a position to enforce contracts between third parties. Airline-airport relationships are essentially a landlord-tenant relationship, and the Department has neither the authority nor expertise to adjudicate contractual dispute between third parties. Second, the EAS program was designed to provide scheduled air service to eligible communities, not to provide revenue to airports in the form of landing fees, rents, or fuel sales. Other than enplanement funds discussed below, the Department does not have the authority to compensate airports for foregone revenues. Third, we contacted the FAA regarding your question about entitlement funds based on enplanement levels. The lack of service during calendar year 2008 at Delta County Airport may impact the airport's total enplanements and could impact their Airport Improvement Program passenger entitlement funding in FY 2010. However, Section 47114(c)(1)(E) of Title 49 of the United States Code contains a provision that allows the Department the discretion to reapportion the prior year's funding under certain circumstances. The FAA will consider its applicability to this airport and other communities that Skyway Airlines served when we are reviewing the calendar year 2008 enplanements in the spring of 2009. Finally, DOT has been closely monitoring the negotiations between Great Lakes and Midway Airlines to effect the transfer of aircraft to Great Lakes. Furthermore, meetings and phone calls to both parties have taken place at the Assistant Secretary level, something that is unprecedented in the EAS program. Ultimately, though, this is a commercial transaction that must be resolved by the respective parties. If Great Lakes is not able to start service in a timely fashion, we will re-solicit proposals for replacement service. By: Dennis DeVany
OST-1999-5175 - Iron Mountain/Kingsford June 12, 2008 Re: DOT Response to Congressman Bart Stupak Thank you for your letter of June 6 urging the Department to authorize an automatic fuel cost adjustment and increasing the subsidy amount paid to Mesaba Airlines for providing essential air service at Iron Mountain and Escanaba. The Department is very cognizant of the financial hardship that record‑high fuel costs are exerting on transportation‑related services and the key role air service plays in connecting rural communities to the national air transportation system. These same record‑high fuel costs are also placing severe budgetary pressure on the entire EAS program. As you know, air carriers operating smaller, less fuel‑efficient aircraft types have chose to discontinue operation of that equipment or are no longer, in business, existing contracts are typically being renewed at significantly higher subsidy levels, and many communities that were formerly served subsidy‑free now require EAS subsidy. By: Dennis DeVany
OST-1999-5175 - Iron Mountain/Kingsford June 18, 2008 Re: Ninety-Day Termination of Service by Mesaba Aviation Mesaba Aviation, Inc. hereby gives notice of its intent to discontinue service between Iron Mountain/Kingsford and Escanaba, Michigan, on the one hand, and Detroit, Michigan and Minneapolis/St. Paul, Minnesota, on the other hand, effective September 16, 2008. Mesaba’s service is operated as “Northwest Airlink” under agreements with Northwest Airlines, Inc. Northwest and Mesaba would strongly prefer to continue providing scheduled air service at Iron Mountain/Kingsford and Escanaba. However, the unprecedented and unforeseeable run-up in fuel prices has made it economically impossible for the carriers to continue to operate this service at the current EAS subsidy rate. Mesaba and Northwest therefore regret that absent an adjustment to the EAS subsidy amount, they must cancel all service they currently provide at Iron Mountain/Kingsford and Escanaba effective September 16, 2008. Mesaba will be able to continue service under either of two scenarios: (i) DOT approves an increase in the specific annual subsidy for the affected communities to compensate for current fuel costs; or (ii) the adoption by DOT of a fuel adjustment to the EAS rates for Mesaba and other similarly situated EAS carriers. Mesaba supports the adoption of a regular fuel adjustment for the EAS rates (which would be up to down depending on the price of fuel) so as to remove this harmful uncertainly from the EAS bid process. In its current schedules for September 2008, Northwest offers two daily Mesaba-operated round trips between Iron Mountain/Kingsford and Escanaba, Michigan, on the one hand, and Detroit, Michigan and Minneapolis/St. Paul, Minnesota, on the other hand, using 34-seat Saab 340 aircraft. No other carrier currently offers scheduled service to Iron Mountain/Kingsford or Escanaba. Thus, the termination of the Mesaba service will reduce air transportation at the communities to a level below essential air service determinations. Counsel: Northwest, Sascha Van der Bellen, 202-842-4184
Order 2008-6-38 Issued and Served June 26, 2008 Order Prohibiting Termination of Service and Requesting Proposals By this order, the Department is: (a) prohibiting Mesaba Aviation, Inc., d/b/a Mesaba Airlines, operating as Northwest Airlink, from terminating its subsidized service at Iron Mountain/Kingsford and Escanaba, Michigan, for 30 days beyond the end of its 90-day notice period; and (b) requesting long-term proposals from carriers interested in providing essential air service, with or without subsidy, by July 10, 2008. With specific respect to Iron Mountain/Kingsford and Escanaba, the Department expects proposals consisting of either three round trips a day (18 a week) with 19-passenger aircraft or two daily round trips (14 a week) with 30-seat or larger aircraft between each community and Minneapolis, Detroit, Milwaukee or another suitable hub where connections to the national air transportation system can be made. Carriers interested in filing proposals, with or without subsidy requests, should file them no later than July 10, 2008. By: Michael Reynolds
OST-1999-5175 - Iron Mountain/Kingsford July 2, 2008 Re: Michigan Governor Requesting Adjustment of EAS Subsidy Because of the recent spike in fuel costs, Mesaba's service between the Upper Peninsula and important hubs such as Detroit and Minneapolis is now in danger. When Mesaba was awarded its EAS subsidy to provide service to Iron Mountain and Escanaba, the projected cost of fuel was $2.47 a gallon; it has since increased to $4.66 in Iron Mountain and $3.87 in Escanaba. As a result, Mesaba expects a deficit of $600,000 per year at the current price of fuel. These unanticipated expenses could result in another suspension of this critical service to Michigan communities if quick action is not taken. When service is interrupted, these communities have no air service to the lower peninsula, a critical issue for families and businesses. I understand that the U.S. Department of Transportation has the authority to make adjustments to EAS subsidies under current law. To prevent further service interruptions to Michigan's Upper Peninsula, I am requesting that U.S. DOT adjust the EAS subsidy to Mesaba Airlines to reflect the high costs of jet fuel. By: Governor Jennifer Granholm
OST-1999-5175 - Iron Mountain
July 9, 2008 Re: Subsidy Request of Mesaba Aviation For the purposes of comparison to the original Order approved in these markets, the schedule below and the attached subsidy request represents the 2x ESC-IMT-MSP flight pattern approved by the DOT's Order 2008-1-13 served January 23,2008. It is, however, Mesaba's intention, with continued support from the DOT and communities, to continue to serve these communities via both MSP and DTW as allowed under Order 2008-1-27 served on January 31, 2008 and currently operated today. All other remaining cost and revenue components and operational aspects of the service pattern, however, reflect those in the original request submitted on November 16, 2007 and approved under the Order 2008-1-13. By: Mesaba, John Spanjers
July 10, 2008 Re: Proposal of Great Lakes Aviation
Great Lakes will provide service in a similar fashion as is offered in Denver. Our interline agreements and the United Code Share product, will offer passengers connecting fares and baggage service through the Chicago-O'Hare hub. More importantly, with the removal of operational restrictions (SLOTS) at O"Hare by the FAA, in October of this year, the company believes it will be better able to offer the high quality schedule necessary to develop these markets. The opening of a new runway, in tandem with the scheduling reductions being made by both American and United, has fostered the company's belief that operational performance at the O'Hare hub will facilitate a successful re-entry. By: Great Lakes, Michael Matthews
OST-1999-5175 - Iron Mountain July 7, 2008 Re: Ex-Parte Letter to Michigan Governor Jennifer Granholm By: Dennis DeVany
July 15, 2008 Re: Delta County Airport in Support of Mesaba Aviation After review of the two bid offers for Essential Air Service the Delta County Airport Advisory Board supports Mesaba Airlines' bid offer. Considerations involved in this decision are the fact that Mesaba is established and presently serves the Delta County area. During the last year and a half local air service has gone through great upheavals including two months with no service. Stability is essential at this point. We believe Mesaba, Northwest Airlink, with service to Detroit and Minneapolis, provides this community the best opportunity for established access to fimctional hub airports and we expect Mesaba, Northwest, to continue careful analysis of scheduling to provide the best possible schedule and connections. By: Connie Ness
July 16, 2008 Re: Delta County Board of Commissioners in Support of Mesaba Aviation The Delta County Board of Commissioners at their regular meeting held July 15, 2008 reviewed the two bid offers for the Delta County Airport. The Board moved to support the bid from Mesaba Airlines. The Board feels through Mesaba Airlines Northwest Airlink services to Detroit and Minneapolis the residents of Delta County will enjoy an established air provider access. By: Thomas Elegeert
Order 2008-8-14 Issued August 14, 2008 | Served August 19, 2008 Order Reselecting Carrier and Setting Final Subsidy Rates By this order, the Department is reselecting Mesaba Aviation, Inc., d/b/a Mesaba Airlines, operating as Northwest Airlink, utilizing 34-seat Saab 340 aircraft to provide subsidized EAS at Iron Mountain/Kingsford and Escanaba Michigan, at a combined annual subsidy rate of $2,870,236, for a new two-year period, beginning August 15, 2008. By: Michael Reynolds |
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