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Updated: Thursday, May 15, 2008 10:05 AM

OST-2003-15553 - EAS at Greenbrier/White Sulphur Springs, WV

http://www.lewisburg-wv.com/ - Greenbrier Valley Airport


EAS Docket


Essential Air Service at Greenbrier/White Sulphur Springs, West Virginia

OST-2003-15553 - EAS at Greenbrier/White Sulphur Springs/Lewisburg, WV

June 30, 2003

Notice of Air Midwest to Terminate Scheduled Air Service

Though Air Midwest would prefer to continue providing scheduled air service in Greenbrier/White Sulphur Springs, 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. Air Midwest is currently providing the following scheduled service to Greenbrier/White Sulphur Springs, West Virginia using Beech 1900D aircraft

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



Order 03-8-12
OST-03-15553 - EAS at Greenbrier/White Sulphur Springs/Lewisburg, WV

Issued August 13, 2003 | Served August 18, 2003

Order Allowing Suspesion of Service | Word

Order 2003-8-12, the Department (1) allows Air Midwest, Inc. d/b/a US Airways Express, to suspend service at Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, as of September 28, 2003; and, (2) relys on the scheduled air services of Atlantic Southeast Airlines, Inc., d/b/a Delta Connection, and Trans States Airlines, Inc., d/b/a US Airways Express, as alternate service patterns meeting the essential air service requirements of Greenbrier/White Sulphur Springs/Lewisburg, West Virginia.

We will allow Air Midwest to suspend service at Greenbrier/ White Sulphur Springs/Lewisburg as of September 28, as it intends. As a practical matter, the remaining service operated by ASA and Trans States will continue to provide the community with an adequate link to the national air transportation network. As noted earlier, ASA and Trans States operate 50-seat regional jets to two other large hubs, offering a total capacity of 100 inbound and outbound seats a day. The remaining capacity easily exceeds the level of service that the essential air service program was designed to maintain, and we will therefore rely on ASA's and Trans States' services to meet the community's ongoing essential air service needs.

By: Michael Reynolds



September 3, 2003

Correspondence of US Airways Express

I would like to go on record stating the publics concern over the suspension of service is very alarming to say the least. This small community needs the Essential Air Service funding to improve and preserve existing service for our public. I feel with an increase in funding our airport would get a huge boost economically that would create more opportunities for our travelers, and businesses in our area.

There are tremendous problems facing aviation in our nation, but especially in the small communities such as Lewisburg, WV. I believe air service in the rural communities are the hardest hit, and it is critical that we continue to build up and strengthen existing programs like the Essential Air Service program so that small communities have access to the air transportation links across the nation.

Counsel: US Airways Express, Robert Vass



Order 03-9-21
OST-03-15553 - EAS at Greenbrier/White Sulpher Springs/Lewisburg, WV
OST-03-16172 - Trans State - Intent to Terminate Service

Issued September 26, 2003 | Served October 1, 2003

Order

The Department vacates its decision in Order 2003-8-12 to allow Air Midwest to suspend service at Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, as of September 28, and is instead (a) prohibits Air Midwest from suspending its service, (b) requests proposals, with or without subsidy requests, from carriers interested in providing replacement service, and (c) allows ASA and Trans States to suspend service at the community as of November 9, under the seasonal-service arrangement that those two carriers have with the community.

With Mesa's cooperation, we will vacate our decision in Order 2003-8-12 to allow Air Midwest to suspend service at Greenbrier/White Sulphur Springs/Lewisburg as of September 28. Instead, in accordance with 49 U.S.C. 41734(b), we will require Air Midwest to maintain service at the community by operating 14 nonstop round trips a week to Charlotte with 19-seat Beech 1900 aircraft. By virtue of our hold-in action here, Air Midwest's service will become eligible for subsidy as of September 28, the beginning of the hold-in period. We will also grant exemptions to ASA and Trans States to the extent necessary to allow them to suspend their services at Greenbrier/White Sulphur Springs/Lewisburg as of November 9, as originally planned.

By: Michael Reynolds



October 7, 2003

Correspondence to The Honorable Robert C. Byrd from Michael W. Reynolds

By: Michael Reynolds



October 31, 2003

Re: Request of Colgan Air for an Extension of Deadline

Colgan Air, Inc. dba US Airways Express is interested in submitting a proposal for Essential Air Service to Greenbrier, White Sulphur Springs and Lewisburg, West Virginia. We are working with our aircraft supplier to ensure aircraft availability for this route. We expect an answer from our supplier within the next two weeks. Therefore, we respectively request a two week extension, until November 14, 2003, to submit our proposal.

By: Colgan, Michael Colgan


October 31, 2003

Grant of Request for Extension of Deadline

By Order 2003-9-21, September 26, 2003, the Department requested proposals for essential air service at Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, no later than October 31. In a letter dated October 31, Colgan Air, Inc., requested a two--week extension of the due date for proposals until November 14. We are hereby granting that request and extending the due date for proposals from all interested carriers until November 14.

By: Dennis DeVany



Order 03-10-27
OST-03-15553
OST-03-16172

Issued October 27, 2003 | Served October 30, 2003

Order Extending Service Obligation

By: Randall Bennett



November 19, 2003

Re: Request to Debra Foguse for Final Comments

In response to our request, we have received a proposal from one carrier: Mesa Air Group, Inc., on behalf of its subsidiary and the incumbent, Air Midwest. A copy of Mesa's proposal, which contains five options, is enclosed. Below is a summary of Mesa's five options, based on our review of Mesa's proposed schedules and subsidy calculations. Please note that Mesa's own descriptions of its options, as presented on the first two pages of its proposal, are not always accurate. Under any of the options, Air Midwest would continue operating Beech 1900 aircraft.

By: Dennis DeVany


November 19, 2003

Re: Request to John Manchester for Final Comments

In response to our request, we have received a proposal from one carrier: Mesa Air Group, Inc., on behalf of its subsidiary and the incumbent, Air Midwest. A copy of Mesa's proposal, which contains five options, is enclosed. Below is a summary of Mesa's five options, based on our review of Mesa's proposed schedules and subsidy calculations. Please note that Mesa's own descriptions of its options, as presented on the first two pages of its proposal, are not always accurate. Under any of the options, Air Midwest would continue operating Beech 1900 aircraft.

By: Dennis DeVany


October 27, 2003

Ex-Parte Letter to Nick Rahnill

By: Michael Reynolds



Order 03-11-28
OST-03-15553 - EAS at Greenbrier/White Sulphur Springs/Lewisburg, WV

Issued November 26, 2003 | Served December 2, 2003

Order Extending Service Obligation | Word

Since this case will not be completed by the end of the current hold-in period, and in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest’s service obligation at Greenbrier/White Sulphur Springs/Lewisburg for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first.

By: Randall Bennett



December 2, 2003

Correspondence of the Greenbrier Valley Airport Authority

The five options, as presented by your office, were reviewed by the Airport Authority with input from community leaders and other citizens, considering community needs and requirements, previous passenger traffic patterns, and the possibility of greater flight frequency, in order to attract additional local passengers.

This is to advise that the two preferred options (in order of preference) of the Greenbrier Valley Airport Authority are as follows:

Option - 4: Providing for seven (7) round trips each week to Charlotte, -five (5) each week to Dulles International Airport in Washington, and two (2) each week to Pittsburgh at a subsidy of $540,579.00

Option ‑ 1 Providing for twelve (12) round trips each week to Charlotte, plus two (2) each week to Pittsburgh at an annual subsidy of $657,586.00.

By: Jesse Guills



December 6, 2003

Comments of the City of Lewisburg

By: John Manchester



December 11, 2003

Re: Response of City of White Sulphur Springs

After reviewing the options, I am submitting the two choices we feel are the best for the local communities. 

1. Option ‑ 4: Providing for seven (&) round trips each week to Charlotte, five (5) each week to DuIles International Airport in Washington, and two (2) each week to Pittsburgh at a subsidy of $540,579.00. 

2. Option ‑ 1 Providing for twelve (12) round trips each week to Charlotte, plus two (2) each week to Pittsburgh at an annual subsidy of $657,586.00.

By: Debra Fogus, Mayor



December 16, 2003

Re: Letter from the The Greenbrier

It would be our sincere hope that you would give serious consideration to Option #4 which consists of seven round trips each week to Charlotte, five each week to Washington's Dulles International Airport, and two each week to Pittsburgh. These three areas are our primary markets for our clientele, as well as the essential connecting cities for clients traveling from other destinations, both domestic and international. We have and will continue to invest significant marketing dollars in all of these markets to support this service.

By: Jack Damioli



Order 03-12-20
OST-03-15553

Issued December 23, 2003 | Served December 30, 2003

Order Extending Service Obligation

Since this case will not be completed by the end of the current hold-in period, and in
accordance with 49 U.S.C. 41734(c), we will extend Air Midwest’s service obligation at
Greenbrier/White Sulphur Springs/Lewisburg for an additional 30 days, or until suitable
replacement service actually begins, whichever occurs first.

By: Randall Bennett



January 12, 2004

Re: Comments of Greenbrier Valley Airport Authority

As a result of the aforesaid bids being submitted and now being invalid as a result of the Mesa announcement, on behalf of the Greenbrier Valley Airport Authority, I respectfully request that your office re-advertise for long-term service proposals for essential air service to the Greenbrier Valley Airport, Lewisburg, West Virginia.

Other options which were provided under the previous bidding process provided for service to Pittsburgh, however, service to Pittsburgh has already been provided for by subsidized service through The Greenbrier Hotel. Any selection of a subsidized service to Pittsburgh would be in conflict with that previous service provided through The Greenbrier and would seriously affect the benefit of that service.

By: Jesse Guills



Order 04-1-18
OST-03-15553

Issued January 23, 2004 | Served January 28, 2004

Order Extending Service Obligation

Since this case will not be completed by the end of the current hold‑in period, and in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at Greenbrier/White Sulphur Springs/Lewisburg for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first.

By: Randall Bennett



Order 04-2-13
OST-03-15553

Issued February 13, 2004 | Served February 19, 2004

Order Selecting Carrier and Establishing Subsidy Rates

By this order, the Department is (a) selecting Air Midwest, Inc., d/b/a US Airways Express, to provide essential air service at Greenbrier/White Sulphur SpringsfLewisburg, West Virginia, for a two‑year period at an annual subsidy rate of $540,579, and (b) setting final rates for Air Midwest's hold‑in service at the community, which ends with the beginning of the two‑year rate term.

By: Karan Bhatia



April 5, 2004

Re: Ex Parte Letter to the Honorable John D. Rockefeller, IV

By: Norman Mineta



Order 2006-1-23
OST-2003-15553

Issued January 30, 2006 | Served February 2, 2006

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, for the two-year period beginning June 1, 2006.

With respect to Greenbrier/White Sulphur Springs/Lewisburg, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering a total of 12 round trips a week from the community to a suitable hub or hubs. The community's essential air service determination, as last established by Order 1985-8-77, August 26, 1985, required a minimum of two daily nonstop or one-stop round trips to both Charlotte and Washington/Baltimore, providing a total of at least 67 inbound and outbound seats. During the winter, service could be reduced to six days a week to each hub, providing a total of 45 inbound and outbound seats. However, as we more recently concluded in Order 2003-9-21, September 26, 2003, the minimum-service levels that we have specified at the start of this paragraph are sufficient, as a practical matter, to ensure that the community retains a year-round link to the national air transportation network, in view of the seasonal nature of the community's demand for local air service and its own arrangements with other carriers to provide additional services during the peak season, as noted below. Carriers are welcome to propose more than one service option, if they envision other, potentially more attractive service possibilities with subsidy requirements that remain competitive.

By: Todd Homan



March 6, 2006

Proposal of Air Midwest

Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit two proposals to provide Essential Air Service at Lewisburg, West Virginia. Mesa’s proposed options would contemplate service to Charlotte, Pittsburgh and/or Washington Dulles. Option 1 reflects the current status quo, while Option 2 focuses on the US Airways hubs of Charlotte and Pittsburgh.

All operations proposed would utilize our modem fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. Mesa has a long history of offering Essential Air Service throughout the country, from New Mexico to New York. We intend to operate this service under our Codeshare agreement with US Airways, allowing for convenient connections in their largest hub.

Option # Hub(s) Service Annual Subsidy
1 CLT
PIT
IAD
1 RT: LWB to CLT (Daily)
1 RT: LWB to PIT (xTue/Sat/Sun)
1 RT: LWB to IAD (xTue/Sat)
$999,479
2 CLT
PIT
1 RT: LWB to CLT (Daily)
1 RT: LWB to PIT (xSat)
$685,040

We feel that our proposal as US Airways Express will allow the passengers of Lewisburg to continue to have cost-effective and convenient connecting options in Charlotte, Pittsburgh and/or Dulles. As a note, Mesa has lowered its local fare in Pittsburgh and Dulles by more than half, in hopes of encouraging more local passengers and passengers connecting to other airlines.

Counsel: Air Midwest, Mickey Bowman


March 6, 2006

Proposal of RegionsAir

RegionsAir is proposing two daily nonstop roundtrip flights for a total of 24 weekly departures between Greenbrier/White Sulphur Springs/Lewisburg , West Virginia and Cleveland, Ohio. The service will be operated as Continental Connection, which will augment our other West Virginia service and provide seamless connections to 317 daily flights to 76 destinations on Continental Airlines and partners. The proposed aircraft is the 30-seat Saab 340A, which will introduce these communities to cabin-class service and most likely increase traffic in itself. In addition to larger aircraft, Continental Airlines has a large domestic and international network that will stimulate traffic substantially and possibly eliminate the reliance on subsidies in the future.

Routing Flight # Departs Arrives Frequency
LWB - CLE 5530 7:00 8:20 X7
CLE - LWB 5531 10:00 11:20 X7
LWB - CLE 5532 14:00 15:20 X6
CLE - LWB 5534 17:00 18:20 X6

By: RegionsAir


March 7, 2006

DOT Letters to:

Lewisburg Mayor John Manchester
White Sulphur Springs Mayor Debra Fogus

As you know, by Order 2006-1-23, January 30, 2006, the Department requested proposals from carriers interested in providing scheduled air service at Greenbrier/White Sulphur Springs/Lewisburg under the essential air service program for a new two-year period beginning June 1, 2006, with or without subsidy.

In response to our request, we have received a proposal from two carriers: from Mesa Air Group, Inc., on behalf of its subsidiary and the incumbent, Air Midwest, and from RegionsAir, Inc.

  • Mesa/Air Midwest’s proposal contains two options. Option 1 proposes 7 nonstop round trips a week to Charlotte, 5 to Dulles and 4 to Pittsburgh at an annual subsidy of $999,479. Option 2 proposes 7 nonstop round trips a week to Charlotte and 6 to Pittsburgh at an annual subsidy of $685,040. Under either option, Air Midwest would continue operating 19-seat Beech 1900 aircraft.
  • RegionsAir proposes 12 nonstop round trips a week to Cleveland with 30-seat Saab 340A aircraft at an annual subsidy of $1,362,375.

We would appreciate receiving your final comments on the carriers’ proposals before we make our recommendation to the Acting Assistant Secretary. In particular, we recommend that you list more than one choice, in order of preference.

By: Dennis DeVany



March 21, 2006

City of Lewisburg in Support of Air Midwest Option 1

In response to Order 2006-1-23 I would like to endorse option (1) of the Mesa/Air Midwest proposal. This one entails an annual subsidy of $999,479 for (7) round-trips a week to Charlotte, (5) to Dulles and (4) to Pittsburgh.

By: Mayor John Manchester



March 23, 2006

Re: Recommendation of Greenbrier Valley Airport and Industrial Park

After due consideration of the three options submitted by DOT, it is our belief that the air service market at Greenbrier Valley Airport would best be served by the continuation of the current service which is Option 1 of the Mesa/Air Midwest proposal. This has a subsidy of $999,479 for seven roundtrip flights per week to Charlotte, five round trips per week to Dulles and four roundtrips per week to Pittsburgh.

By: Jesse Guills



March 27, 2006

Re: Recommendation of City of White Sulphur Springs

After much consideration, I agree to endorse option (1) of the Mesa/Air Midwest proposal which has an annual subsidy of $999,479. This option allows for (7) roundtrips a week to Charlotte, (5) to Dulles and (4) to Pittsburgh which I feel best serve the Greenbrier Valley Airport.

By: Mayor Debra Fogus



Order 2006-4-8
OST-2003-15553

Issued April 6, 2006 | Served April 11, 2006

Order Selecting Carrier and Establishing Subsidy Rate

By Order 2004-2-13, February 13, 2004, the Department selected Air Midwest to provide essential air service at Greenbrier/White Sulphur Springs/Lewisburg for the two-year period ending May 31, 2006, by operating 7 nonstop round trips a week to Charlotte, 5 a week to Washington's Dulles International Airport, and 2 a week to Pittsburgh with 19-seat Beech 1900 aircraft, at a subsidy of $540,579 annually.1 As the end of the rate term approached, the Department issued Order 2006-1-23, January 30, 2006, requesting proposals from carriers interested in providing essential air service at Greenbrier/White Sulphur Springs/Lewisburg, with or without subsidy, for a new two-year rate term beginning June 1.

In response to our request, we have received proposals from Mesa Air Group, Inc., on behalf of its subsidiary, Air Midwest, and from RegionsAir, Inc.

After a thorough review of the carriers' proposals and the community's comments, we have decided to select Mesa/Air Midwest's Option 2. The carrier's proposed subsidy rate appears reasonable for the service at issue, and its performance continues to be satisfactory.

In this case, the choice quickly narrows to Mesa/Air Midwest's two options, since RegionsAir's proposal does not have community support and is the most expensive. And between Mesa/Air Midwest's two options, the choice is essentially one of weighing the community's preference for Option I against the lower subsidy requirement of Option 2.

By: Michael Reynolds



May 2, 2007

Re: Notice of Air Midwest to Terminate Scheduled Service at Lewisburg, WV

Respectfully serves notice upon the Department of Transportation, in accordance with 14 C.F.R. §323.3 and 14 C.F.R. §323.4, of its intent to discontinue scheduled subsidized Essential Air Service between Lewisburg, West Virginia and Pittsburgh, Pennsylvania and between Lewisburg and Charlotte, North Carolina effective August 1, 2007.

Air Midwest has decided to re-concentrate its assets and expertise to other hubs of operations in order to improve its level of service to its other EAS communities. At present, Air Midwest is the sole provider of certificated scheduled air service at Lewisburg, West Virginia.

By: Air Midwest, Tom Bacon



Order 2007-5-14
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2002-11450 - Lancaster
OST-2006-25228 - Hagerstown
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued May 21, 2007 | Served May 24, 2007

Order Prohibiting Termination of Service and Requesting Proposals - Bookmarked

By this order, the Department is (a) prohibiting Air Midwest from terminating its subsidized service at DuBois, Franklin/Oil City, and Lancaster, Pennsylvania, Hagerstown, Maryland, Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, and Athens, Georgia, at the end of its 90-day notice period, and (b) requesting long-term proposals from carriers interested in providing essential air service at all the communities, except Hagerstown and Lancaster, with or without subsidy.

Because Air Midwest’s termination of service at DuBois, Franklin/Oil City, Lancaster, Hagerstown, Greenbrier/White Sulphur Springs/Lewisburg, and Athens would leave the communities without any scheduled air service, we must prohibit the carrier from terminating such service at the end of its 90-day notice period, and require it to maintain service at the communities, for an initial 30-day period, consisting of the service patterns outlined above. Furthermore, we will require Air Midwest to continue to maintain service at DuBois, Franklin/Oil City, Greenbrier/White Sulphur Springs/Lewisburg, and Athens for successive 30-day periods until we have completed processing the carrier replacement case and the new carrier(s) has actually started service. At Hagerstown and Lancaster, we will require Air Midwest to continue to serve through September 30, 2007, at which time it may suspend service.

With specific respect to DuBois, Franklin/Oil City, Greenbrier/White Sulphur Springs/Lewisburg and for Athens, we expect proposals consisting of service with 15-seat or larger aircraft offering three (DuBois) or two (Franklin/Oil City, Greenbrier/White Sulphur Springs/Lewisburg, and Athens) nonstop round trips each weekday (12 to 19 weekly round trips) to Pittsburgh, Cleveland, Cincinnati, Charlotte, Detroit, Washington, D.C., or another suitable hub with airline connections to the national air transportation system. Such service is generally consistent with what the communities currently receive.

For Franklin/Oil City, based on the latest traffic data that are available, there were 3,833 enplanements and deplanements for the 12 months ended December 31, 2006. The Department is prohibited from paying subsidy for essential air service at any community in the 48 contiguous states where such subsidy amounts to more than $200 per passenger, unless that community is located more than 210 miles from the nearest large- or medium-hub airport. Franklin/Oil City is located less than 210 miles from several large- and medium-hub airports (Pittsburgh, 97 miles; Cleveland, 133 miles; and Buffalo, 150 miles), so the $200 cap applies. Therefore, subsidy levels cannot exceed $766,600 per year.

For Lancaster and Hagerstown, we are not requesting proposals for service after September 30, 2007, because the two communities will be no longer eligible for subsidized service under the EAS program, as explained above. However, even though it may be very unlikely that a carrier would be willing to serve these communities for a very short period, if there is a carrier that is interested in serving the communities through September 30, 2007, the Department would consider the proposal.

By: Andrew Steinberg



OST-2004-17617 - DuBois, PA
OST-1997-2523 - Franklin/Oil City, PA
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg, WV
OST-2002-11348 - Athens, GA

June 25, 2007

Proposals of Gulfstream International Airlines

The first option provides for three weekday roundtrips between Pittsburgh and DuBois, plus two weekday roundtrips between Franklin and Pittsburgh. Reduced service is available on the weekends. This service would require a combined subsidy of $1,922,970.

The second option calls for, in addition to providing the DuBois and Franklin service noted above, a daily roundtrip flight between Lewisburg and both Charlotte and Pittsburgh, as well as two weekday roundtrips between Athens and Charlotte, with reduced service on the weekends for both communities. This service, combined with the subsidy required in option one noted above, would require a combined subsidy of $4,077,792. (For purposes of clarity, please note that this second option is only applicable should the Department award Gulfstream the first option above).

Also, our Essential Air Service proposal here is contingent upon Gulfstream finalizing its' negotiations of a codeshare agreement with US Airways prior to beginning the services. The goal of providing service to other gateways is to enhance the connecting opportunities for both business and leisure travelers in these communities.

All operations proposed would utilize our fleet of Beech 1900D airliners which offer a comfortable 19 seat, pressurized cabin with two turboprop engines. Gulfstream has a long history of operating a safe, reliable airline.

By: Gulfstream, David Hackett



June 27, 2007

Re: Letter to Mayor of Lewisburg
Re: Letter to Mayor of White Sulphur Springs
Re: Letter to Chairman of Greenbrier County Airport Authority

I would like to update you on the essential air service situation at Greenbrier/White Sulphur Springs/Lewisburg and give you an opportunity to submit any comments if you wish. As you know, Air Midwest, the incumbent carrier, filed a 90-day notice of its intent to suspend service at your community. As a result, by Order 2007-5-14, May 21, 2007, the Department prohibited Air Midwest from suspending service and solicited proposals from all interested air carriers to provide service at Greenbrier/White Sulphur Springs/Lewisburg, as well as at DuBois and Franklin/Oil City, Pennsylvania, and Athens, Georgia. (We will continue to require Air Midwest to provide service so that there will be no hiatus in service.) At this stage, we would normally ask for your preferences for various carrier and service options. However, in response to that order, Gulfstream International Airlines, Inc. was the only carrier to submit a proposal. Nonetheless, we want to give you an opportunity to submit any final comments for the record that you may have.

Gulfstream proposes to offer 7 weekly nonstop round trip flights to Charlotte and 7 weekly nonstop round trips flights to Pittsburgh, each with 19-passenger Beechcraft 1900D aircraft at an annual subsidy of $1,329,477. The proposal also includes service at Athens, Georgia for $825, 345, for a total annual subsidy for both communities of $2,154,822. Its proposal is contingent upon Gulfstream finalizing its negotiations of a code agreement with US Airways.

By: Dennis DeVany



Order 2007-7-21
OST-2004-17617 - DuBois, PA
OST-1997-2523 - Franklin/Oil City, PA
OST-2002-11450 - Lancaster, PA
OST-2006-25228 - Hagerstown, MD
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg, WV
OST-2002-11348 - Athens, GA

Issued July 26, 2007 | Served July 31, 2007

Order Selecting Carrier

By this order, the Department is selecting Gulfstream International Airlines, Inc. to provide subsidized essential air service at DuBois and Franklin/Oil City, Pennsylvania, Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, and Athens, Georgia, at a total annual subsidy rate of $4,077,792 ($1,159,229 for DuBois, $763,741 for Franklin/Oil City, $1,329,477 for Greenbrier/White Sulphur Springs/Lewisburg, and $825,345 for Athens) for the two-year period beginning when Gulfstream inaugurates service through the end of the 24th month thereafter.

By: Michael Reynolds



Order 2007-8-29
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2002-11450 - Lancaster
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2006-25228 - Hagerstown
OST-2002-11348 - Athens

Issued August 28, 2007 | Served August 31, 2007

Order Extending Service Obligation

By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the six above-captioned communities, for an additional 30 days, through October 1, 2007 as described in Order 2007-5-14, or until suitable replacement service actually begins, whichever occurs first.

Since September 30th is a Sunday, this hold-in period will end on Monday, October 1st. In the case of Lancaster and Hagerstown, we will only require the carrier to provide EAS until September 30, the date which subsidy eligibility for both communities expires.

By: Todd Homan



Order 2007-9-26
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued September 24, 2007 | Served September 27, 2007

Order Extending Service Obligation

We require Air Midwest, Inc., to maintain its current level of essential air service at DuBois, and Franklin/Oil City, PA, Greenbrier/White Sulphur Springs/Lewisburg, WV, and Athens, GA for an additional 30 days, through October 31, 2007, or until Gulfstream actually begins service, whichever occurs first.

By: Todd Homan



Order 2007-10-28
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued October 25, 2007 | Served October 30, 2007

Order Extending Service Obligation

By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the four above-mentioned communities, for an additional 30 days, through November 30, 2007.

By Order 2007-7-21, July 26, 2007, the Department selected Gulfstream International Airlines to provide replacement service at the above-mentioned communities but the carrier transition has not yet taken place.

By: Todd Homan



Order 2007-11-9
OST-2004-17617
- DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued and Served November 15, 2007

Order Setting Final Rates

At Athens, Georgia 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 Charlotte by $804.50;

At Dubois, Pennsylvania 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 ceilings and shall be determined by multiplying the subsidy-eligible flights completed during the month to Pittsburgh by $611.28 in the first period and $711.43 in the second period;

At Franklin/Oil City, Pennsylvania 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 ceilings and shall be determined by multiplying the subsidy-eligible flights completed during the month to Pittsburgh by $728.73 in the first period and $771.09 in the second period; and

At Greenbrier/White Sulphur Springs/Lewisburg, West Virginia 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 ceilings and shall be determined by multiplying the subsidy-eligible flights completed during the month to Pittsburgh or Charlotte by $895.17 in the first period and $953.53 in the second period.

By: Michael Reynolds



Order 2007-11-20
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued November 26, 2007 | Served November 29, 2007

Order Extending Service Obligation | Word

By this order the DOT extends the service obligation of Air Midwest at the four above-captioned communities, for an additional 30 days, through December 31, 2007.

By: Todd Homan



Order 2007-12-16
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued December 19, 2007 | Served December 26, 2007

Order Extending Service Obligation | Word

By Order 2007-5-14, May 21, 2007, the Department prohibited the carrier from suspending service through August 31 at the communities and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. As required by 49 USC 41734, we have extended Air Midwest's service obligation for additional 30-day periods, the latest through December 31, 2007, by Order 2007-11-20.

By this order, the DOT extends the service obligation of Air Midwest at the four above-captioned communities, for an additional 30 days, through January 30, 2008.

By: Todd Homan



Order 2008-1-14
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued January 18, 2008 | Served January 24, 2008

Order Extending Service Obligation

By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the four above-captioned communities, for an additional 30 days, through February 29, 2008.

We have extended Air Midwest’s service obligation for additional 30-day periods, the latest through January 30, 2008, by Order 2007-12-16.

By: Michael Reynolds



Order 2009-2-11
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued and Served February 6, 2008

Order Requesting Proposals

On May 3, 2007, Air Midwest filed 90-day notices with the Department of its intent to terminate its subsidized service at the four above-captioned communities, effective August 1. In response, the Department issued Order 2007-5-14, May 21, 2007, requiring Air Midwest to continue to serve the communities and requesting proposals for replacement service. Gulfstream International Airlines, Inc. was the only applicant, and by Order 2007-7-21, July 31, 2007, we selected Gulfstream to provide DuBois, Franklin/Oil City, and Lewisburg's EAS to Pittsburgh and Lewisburg and Athens' service to Charlotte, for a combined annual subsidy of $4,077,792. From the time Gulfstream prepared its proposal, US Airways has reduced service at Pittsburgh and it is not nearly as attractive as a connecting hub as it once was. As a result, Gulfstream has been exploring other service options but, to date, none have fully materialized. Despite the fact that we selected Gulfstream in July 2007, 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. In the meantime, we have an obligation to relieve Air Midwest of its hold-in obligations as quickly as we can., As a result, we have decided to resolicit proposals.

With specific respect to DuBois, Franklin/Oil City, Greenbrier/ White Sulphur Springs/Lewisburg and Athens, we expect proposals consisting of service with 15‑seat or larger aircraft offering three (DuBois) or two (Franklin/Oil City, Green brier/ White Sulphur Springs/Lewisburg, and Athens) nonstop round trips each weekday to Pittsburgh, Cleveland, Cincinnati, Detroit, Charlotte, Atlanta, Washington, D.C., or another suitable hub with airline connections to the national air transportation system. Such service is generally consistent with what the communities currently receive. When preparing proposals, carriers should be aware that the Department is prohibited from subsidizing service at communities where the per‑passenger subsidy exceeds $200.

By: Todd Homan



Order 2008-2-27
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued February 21, 2008 | Served February 26, 2008

Order Extending Service Obligation

By this order, the DOT extends the service obligation of Air Midwest at the four above-captioned communities, for an additional 30 days, through March 31.

By: Todd Homan



March 5, 2008

Proposal of Gulfstream International Airlines

Gulfstream cordially submits its proposal to provide subsidized air service to Greenbrier/White Sulphur Springs/Lewisburg, West Virginia from Cleveland, Ohio. The proposed service pattern would consist of two roundtrips between Greenbrier/White Sulphur Springs/Lewisburg and Cleveland each weekday with two additional roundtrips over the course of the weekend. Gulfstream proposes to operate these flights using Beech 1900D turboprops that are pressurized and accommodate 19 passengers.

Gulfstream intends to operate these flights under its existing codeshare agreement with Continental Airlines. This bid is contingent upon the extension of our existing codeshare under mutually agreeable terms to include these market pairs.

By: Gulfstream, Mickey Bowman, 270-689-2180, mbowman@gulfstreamair.com



OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-1997-2842 - Watertown
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg

March 14, 2008

Re: Congressman John Peterson (PA) in Support of Gulfstream International Airlines

I have been informed that the bid submitted by Gulfstream for DuBois and Oil City/Franklin is contingent upon the award of contracts to four communities: DuBois PA, Oil City/Franklin PA, Watertown NY, and Greenbrier/White Sulfur Springs/Lewisburg WV. It is noteworthy that the Gulfstream International bid would feature service on 19-seat, pressurized airliner, servicing the growing, medium sized hub at Cleveland, Ohio. As many of these communities have outlined in their letters of support, Gulfstream's proposal commits the equipment necessary to provide timely, dependable service within the budgetary confines of the Subsidy rate.

Accordingly, I join with the communities in my district in supporting the four flight option as it appears to best meet the needs of the communities as well as provide greater opportunities to decrease the need for EAS subsidies in the future. I strongly encourage you to select this option and eagerly await your response.

By: John Peterson



Order 2008-3-22
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg

Issued and Served March 24, 2008

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 three communities identified above. 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 April 18, 2008.

With specific respect to DuBois, Franklin/Oil City, and Greenbrier/White Sulphur Springs/Lewisburg, we expect proposals consisting of service with 15-seat or larger aircraft offering three (DuBois) or two (Franklin/Oil City and Greenbrier/White Sulphur Springs/Lewisburg) nonstop round trips each weekday to Pittsburgh, Cleveland, Cincinnati, Detroit, Charlotte, Atlanta, Washington, D.C., or another suitable hub with airline connections to the national air transportation system. Such service is generally consistent with what the communities currently receive. When preparing proposals, carriers should be aware that the Department is prohibited from subsidizing service at communities where the per-passenger subsidy exceeds $200.

On May 3, 2007, Air Midwest filed 90-day notices with the Department of its intent to terminate its subsidized service at the three above-captioned communities, as well as Athens, Georgia, effective August 1. In response, the Department issued Order 2007-5-14, May 21, 2007, requiring Air Midwest to continue to serve the communities and requesting proposals for replacement service. Gulfstream International Airlines, Inc. was the only applicant, and by Order 2007-7-21, July 31, 2007, we selected Gulfstream to provide DuBois, Franklin/Oil City, and Lewisburg’s EAS to Pittsburgh and Lewisburg and Athens’ service to Charlotte, for a combined annual subsidy of $4,077,792. After Gulfstream prepared its proposal, US Airways reduced service at Pittsburgh, severely limiting the connection options available at the airport. As a result, Gulfstream explored other service options but none materialized. We have an obligation to relieve Air Midwest of its hold-in obligations as quickly as we can. As of February 2008, Gulfstream had not yet inaugurated service and could not provide the Department a date when it would do so. In response, the Department issued Order 2008-2-11, February 6, 2008, requesting another round of proposals for EAS. In response, we received only one proposal, from Gulfstream. Its proposal for these three communities was contingent upon its being selected at Watertown, New York, and on negotiating a code-share agreement with Continental Airlines to serve its Cleveland hub operation. Under Order 2008-3-15, the Department selected Hyannis Air Service, Inc. d/b/a Cape Air to serve Watertown, thus rendering the proposal to serve DuBois, Franklin/Oil City, and Lewisburg moot. To date, despite the fact that we selected Gulfstream in July 2007, the carrier did not commence EAS at any of the three communities and its subsequent proposal was not selectable. Therefore, we will issue a third round of request for proposals for these three communities.

By: Todd Homan



Order 2008-3-34
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued March 28, 2008 | Served April 2, 2008

Order Extending Service Obligation

By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the four above-captioned communities, for an additional 30 days, through April 30, 2008.

By: Todd Homan



OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

April 9, 2008

Re: Mesa Airlines Request for Increased Hold-In Rates

We continue to lose money in these markets. The higher rates reflect the higher fuel prices and other increased unit costs Air Midwest is incurring. We request these rates be made effective immediately.

By: Tom Bacon



OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg

April 18, 2008

Proposals of Gulfstream International Airlines | Word

The first proposed service pattern (Option 1) features 19 weekly non-stop roundtrips between Dubois and Cleveland, Ohio paired with 12 weekly non-stop roundtrips between Franklin/Oil City and Cleveland, Ohio.  Additionally, 13 weekly non-stop roundtrips would be operated between Greenbrier/White Sulphur Springs/Lewisburg and Cleveland, Ohio.

Option 1:

DuBois, PA

– Cleveland OH, Non-Stop

Three Roundtrips

Five Days per Week

 

– Cleveland OH, Non-Stop

Two Roundtrips

Two Days per Week

Franklin/Oil City, PA

– Cleveland OH, Non-Stop

Two Roundtrips

Six Days per Week

Greenbrier/White Sulphur Springs/ Lewisburg, WV

– Cleveland OH, Non-Stop

Two Roundtrips

Six Days per Week

Greenbrier/White Sulphur Springs/ Lewisburg, WV

– Cleveland OH, Non-Stop

One Roundtrip

One Day per Week

 

Total Subsidy Required

 

$5,695,910

The second proposed service pattern (Option 2) features 12 weekly non-stop roundtrips between Dubois and Cleveland, Ohio along with 12 weekly one-stop roundtrips between Dubois and Cleveland operating via Franklin/Oil City.  These flights would be paired with 12 weekly non-stop roundtrips between Franklin/Oil City and Cleveland, Ohio.  In this scenario Gulfstream intends to operate several of these flights in a “round robin” manner.  In this fashion DuBois will receive four weekday turns and Franklin/Oil City will benefit from a third weekday turn on a one-stop routing via DuBois.  Given the proximity of DuBois and Franklin we find that we can actually operate this Option with less required subsidy as we feel the additional frequency will generate increased ridership.  Additionally, 13 weekly non-stop roundtrips would be operated between Greenbrier/White Sulphur Springs/Lewisburg and Cleveland, Ohio.

Option 2:

DuBois, PA

– Cleveland OH, Non-Stop

Two Roundtrips

Six Days per Week

 

– Cleveland OH, One-Stop

Two Roundtrips

Six Days per Week

Franklin/Oil City, PA

– Cleveland OH, Non-Stop

Two Roundtrips

Six Days per Week

 

– Cleveland OH, One-Stop

One Roundtrip

Six Days per Week

Greenbrier/White Sulphur Springs/ Lewisburg, WV

– Cleveland OH, Non-Stop

Two Roundtrips

Six Days per Week

Greenbrier/White Sulphur Springs/ Lewisburg, WV

– Cleveland OH, Non-Stop

One Roundtrip

One Day per Week

 

Total Subsidy Required

 

$5,577,594

By: Gulfstream, Mickey Bowman, 270-689-2180, mbowman@gulfstreamair.com



April 25, 2008

Re: Greenbrier Valley Airport in Support of Gulfstream Airlines

The Greenbrier County Airport Authority has had concerns for a long time with the previous service provider--Mesa, that flew daily to Pittsburgh and Charlotte. Often the aircraft were several hours late and in some months the aircraft only flew about 80% of scheduled flights. It was very difficult to maintain passenger loyalty with such poor reliability and traffic counts declined substantially. After reviewing the proposal and discussions with Mr. Bowman, the Greenbrier County Airport Authority decided to strongly endorse the Gulfstream International Airline proposal with twice daily service to Cleveland.

By: Jerry O'Sullivan, 304-645-3961, jerryosull@aol.com



Order 2008-4-43
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg
OST-2002-11348 - Athens

Issued April 30, 2008 | Served May 5, 2008

Order Extending Service Obligation | Word

By this order, the Department of Transportation extends the service obligation of Air Midwest, Inc., at the four above-captioned communities, for an additional 30 days, through May 30, 2008.

By: Todd Homan



Order 2008-5-3
OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin
OST-2003-15553 - Greenbrier/White Sulphur Springs/Lewisburg

Issued and Served May 6, 2008

Order Selecting Carrier and Setting Subsidy Rates | Word

By this order, the Department is selecting Gulfstream International Airlines, Inc. to provide subsidized essential air service at DuBois and Franklin/Oil City, Pennsylvania, and Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, at a total annual subsidy rate of $5,577,594 ($2,020,095 for DuBois, $1,226,773 for Franklin/Oil City, and $2,330,725 for Lewisburg) for the two-year period beginning when Gulfstream inaugurates service through the end of the 24th month thereafter.

By: Michael Reynolds



May 14, 2008

Re: Service Termination of Air Midwest

Air Midwest reluctantly advises the Department that it has decided to discontinue all air carrier operations, liquidate its assets and surrender its FAA and DOT certificates. The service terminations will occur on the following schedule:

  • May 23 - Athens, Dubois, Franklin/Oil City, Greenbrier/White Sulphur Springs/Lewisburg
  • May 31 - Ely, Visalia, Merced, Kingman, Prescott
  • June 30 - Columbia, EI Dorado, Harrison, Hot Springs, Jonesboro, Grand Island, Kirksville, Joplin, and McCook

Air Midwest has no choice but to shutdown operations. Air Midwest has determined that it does not have the financial resources to continue air carrier operations. Air Midwest is in severe financial distress due to the fact that it has incurred significant and unrelenting losses over many years and has no prospect of future profitability, particular in light of current conditions, including record high fuel prices.

This decision should come as no surprise to the Department as Air Midwest previously advised the Department of its intention to withdraw its services beginning over a year ago with its first traunch of termination notices. In addition, representatives of Air Midwest met with Dennis DeVany on March 6, 2008 to advise that Air Midwest would shortly go out of business.

While the Department solicited proposals for subsidized replacement service at these points, to date replacement services have commenced at only six points-Cedar City, Moab, Vernal, Manhattan, Salina and Alamogordo. Over nine months ago the Department selected Great Lakes Aviation to provide subsidized essential air service at Merced, Visalia, and Ely, but inexplicably Great Lakes has not yet commenced its proposed service at those points.

Air Midwest's situation is similar to the situations involving Big Sky Airlines and Skyway Airlines, both of which terminated all of their air services earlier this year. On December 20, 2007, Big Sky announced its intent to terminate all service on January 7, 2008. Although the Department issued a hold-in Order and sought replacement carriers on an emergency basis, it recognized that Big Sky would not provide service during the hold-in period. See DOT Order 2007-12-20. Similarly, Skyway Airlines terminated all air service on April 5, 2008, after a long hold-in period and prior to the commencement of service by replacement carriers. As with Big Sky and Skyway, Air Midwest does not have the financial wherewithal to continue its air carrier operations.

Counsel: Hogan & Hartson, Robert Cohn, 202-637-4999, recohn@hhlaw.com

Mesa Air to shut Air Midwest, cut small city stops


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