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OST-2004-17617 - EAS at DuBois, PA
http://www.dujairport.com/ - DuBois Regional Airport
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Essential Air Service at DuBois, Pennsylvania April 23, 2004 Notice of Mesa Air Group to Terminate Scheduled Service Air Midwest is currently operating three weekday nonstop and one weekday one‑stop roundtrips, one nonstop and one one‑stop Saturday roundtrips, and two nonstop and one one‑stop Sunday roundtrips to Pittsburgh, using Beech 1900D aircraft. Though Air Midwest would prefer to continue providing scheduled air service in DuBois, Pennsylvania, the substantial costs resulting from increased federal regulations for regional carriers makes it impossible to continue without Essential Air Service subsidy. The absence of this subsidy requires Air Midwest to advise the Department that scheduled air service will be discontinued. At present, Air Midwest is the sole provider of certificate scheduled air service at DuBois, Pennsylvania. Air Midwest is hereby providing public notice of its intent to terminate scheduled air service with the expiration of the 90‑day notice as required. Any objections to this Notice to Terminate Service must be filed within twenty (20) days from the date of this filing, in accordance with 14 C.F.R. §323.10. By: Mesa, Scott Lyon, 602-685-4368
May 11, 2004 The Airport Authority has taken some extreme measures over the past five years in order to avoid the need for an action such as this. The Airport Authority has developed a unique relationship with our biggest customer, Mesa Airlines. Traveling to Mesa's headquarters annually and sharing the reasons we were able to document that were keeping travelers off the commuter we felt was our contribution to making the system better. However increased competition from discount carriers outside the Commonwealth of Pennsylvania, reliability issues, and some 'out of whack' schedules have driven passengers from the DuBois-Jefferson County Airport. These issues have all been addressed and to some degree corrected, but only after passengers have sought out other alternatives. The Airport Authority has recently, in the last year, brought onboard at their expense a marketing director to promote the airline service and the airport. This effort has proven to be successful by adding on the average of 200 passengers a month to the commuter. We believe these are customers that would never have looked at flying from the DuBois-Jefferson County Airport had it not been for our efforts. Recent pricing strategies by US Airways adds to the list of desirable reasons to fly from the DuBois-Jefferson County Airport, but again it should have been done sooner to keep the passengers on the planes instead of trying to get them to come back. By: Robert Shaffer May 13, 2004 By: Robert Shaffer
Order 04-05-14 Issued May 17, 2004 | Served May 20, 2004 Order Prohibiting Termination of Service and Requesting Proposals | Word By this order, the Department is (a) prohibiting Air Midwest, Inc., d/b/a US Airways Express, from terminating its unsubsidized service at DuBois, Pennsylvania; (b) requiring the carrier to maintain service between the community and Pittsburgh, Pennsylvania, for an initial 30-day period following the end of the notice period; and (c) requesting proposals from carriers interested in providing replacement service at DuBois. By: Karan Bhatia
June 21, 2004 Proposal of Mesa Airlines d/b/a Air Midwest Mesa proposes to fly pressurized turboprop Beech 1900b with 19 seats roundtrip from Pittsburgh (Options 1‑4), including two options with enhanced service to Dulles. Mesa currently operates service into Pittsburgh as US Airways Express, with whom we have an exclusive code‑sharing agreement for this market. DuBois is the official maintenance base for Air Midwest's entire Pittsburgh hub and also supports additional routes to the South. Mesa employs almost 50 local personnel and supports major operational facilities. The EAS program can help stabilize the economic outlook for this local employee base, and also insure that Mesa can continue to support reliable air service throughout the hub (including other EAS communities such as Massena, New York and Franklin, Pennsylvania). By: Mesa, Scott Lyon
June 30, 2004 I would like to update you on the essential air service situation at DuBois and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a service option for a prospective two-year period. We also sent an identical letter to Robert W. Shaffer, the manager of the Clearfield-Jefferson Counties Regional Airport. As you know, by Order 2004-5-14 (Docket 2004-17617), we solicited proposals from carriers interested in serving DuBois following the 90-day notice we received from Air Midwest, Inc. d/b/a US Airways Express, to suspend service there. In response to our request, we received a single proposal from Air Midwest consisting of four options. Since you should have received a copy of the proposal from Air Midwest, we will only briefly summarize the four options below. By: Dennis DeVany
June 30, 2004 I would like to update you on the essential air service situation at DuBois and give you an opportunity to submit any final comments if you wish before we issue a final order selecting a service option for a prospective two-year period. We also sent an identical letter to Mayor Suplizo. As you know, by Order 2004-5-14 (Docket 2004-17617), we solicited proposals from carriers interested in serving DuBois following the 90-day notice we received from Air Midwest, Inc., d/b/a US Airways Express, to suspend service there. In response to our request, we received a single proposal from Air Midwest consisting of four options. Since you should have received a copy of the proposal from Air Midwest, we will only briefly summarize the four options below. By: Dennis DeVany
July 6, 2004 Comments of Clearfield-Jefferson Counties Regional Airport Authority - 2005/2006 Flight Delay Breakdowns By: Paul Sekula, 214-328-5311, duj@alltel.net
July 13, 2004 Re: Hawk Precision Components Letter in Support of Mesa By: Timothy Britton
July 19, 2004 Re: GKN Sinter Metals Letter in Support of Mesa
July 6, 2004 Re: Comments of Clearfield-Jefferson Counties Regional Airport Authority Thank you for the opportunity to provide comments on the Mesa Air Group proposal to provide Essential Air Services at the DuBois-Jefferson County Airport (DUJ), DuBois, PA. Our comments have been shared with Mesa Air Group and have also been reviewed by a broad range of community representatives. In addition, we have discussed our position on the proposal with the commissioners of both Jefferson and Clear-field counties as well as with our state and federal representatives. We are pleased to report unanimous support of our comments and our position regarding this Essential Air Service proposal. By: Paul Sekula
July 26, 2004 Re: Ex Parte Letter to the Honorable John Peterson By: Karan Bhatia
Letters in Support of Mesa's Service Proposal:
Order 04-08-13 Issued and Served August 13, 2004 Order Extending Service Obligation This case will not be completed by the end of the current hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at DuBois, for an additional 30 days, or until reliable replacement service actually begins, whichever occurs first. By: Randall Bennett
Order 04-08-18 Issued August 16, 2004 | Served August 19, 2004 Order Selecting Carrier and Establishing Subsidy Rates | Word By this order, the Department is selecting Mesa Air Group, Inc. subsidiary, Air Midwest, Inc., d/b/a US Airways Express, to provide essential air service at DuBois, Pennsylvania, for the period from July 23, 2004, through August 31, 2006, at an annual subsidy rate of $643,818. We carefully considered the community's request for a fourth round trip to Pittsburgh - Air Midwest's Option 2. While we understand the community's desire for a fourth round trip, the core objective of the EAS program is to ensure access to the Nation's air transportation system. We find that Air Midwest's three-round-trip-a-day option meets that objective. The EAS program typically provides subsidy to support two or three round trips a day to a major hub airport that provides access to the national air transportation system with a 19-seat aircraft, or two round trips a day with a 30-seat or larger aircraft. By: Karan Bhatia
July 16, 2004 Re: Representative Dan Surra Letter in Support of Mesa By: Dan Surra
August 20, 2004 Re: Ex Parte Correspondence to the Honorable Rick Santorum By: Dennis DeVany
August 26, 2004 Re: Ex Parte Correspondence to the Honorable Arlene Specter As you probably know, the Department issued Order 2004-8-18 on August 19, selecting Mesa's three-round-trip-a-day option at an annual subsidy rate of $643,818. That level of service will accommodate the community's historical Passenger demand at reasonable load factors and provides sufficient capacity for traffic levels to increase. As you probably also know, the core objective of the EAS program is to provide a safety-net level of service and to ensure that communities such as DuBois have access to the nation's air transportation system. The Department's long-standing practice is to provide subsidy to support two or three round trips a day to a major hub airport with 19-seat aircraft in order to meet that objective. We strongly encourage the community and the carrier to work together to increase passenger usage to the point it becomes in the carrier's best interest to add service. By: Dennis DeVany
Order 2006-4-10 Issued April 7, 2006 | Served April 12, 2006 By Order 2004-8-18, August 19,2004, the Department selected Air Midwest, Inc., a wholly owned subsidiary of Mesa Air Group, Inc. to provide subsidized EAS at DuBois through July 31,2006, at the annual rate of $643,818. Air Midwest’s service consists of 19 nonstop round trips a week to Pittsburgh with 19-seat Beech 1900D aircraft. As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at DuBois, with or without subsidy, for the two-year period beginning August 1, 2006. Carriers should file their proposals within 30 days of the date of service of this order. With specific respect to DuBois, we expect proposals to consist of service, at a minimum, with two-pilot, twin-engine aircraft having at least 15 passenger seats. Proposals should offer three nonstop round trips to Pittsburgh each weekday and three or four over the weekend (18 or 19 round trips a week) with 19-seat aircraft, or two round trips a day (12 a week) with 30-seat or larger aircraft. By: Todd Homan
May 12, 2006 Mesa Air Group, Inc d/b/a Air Midwest is pleased to submit two proposals to provide Essential Air Service at DuBois, Pennsylvania. Mesa's proposed options would continue its current service to Pittsburgh. All operations proposed would utilize our modern fleet of Raytheon/Beechcraft B-1900D airliners. These aircraft offer a very comfortable 19-seat, pressurized cabin with two turboprop engines. We intend to operate this service under our Codeshare agreement with US Airways, allowing for convenient connections in Pittsburgh.
The cost of fuel has increased the total expenses for DuBois' 3 roundtrip option $151,000 annually. Mesa has been able to offset this increase thru higher passenger numbers, which has actually led to a decrease in annual subsidy needed of almost $50,000. By: Mesa, Mickey Bowman
May 12, 2006 RegionsAir is proposing two daily nonstop roundtrip flights for a total of 24 weekly departures between DuBois, Pennsylvania 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.
By: RegionsAir
May 16, 2006 Re: Comments Request for: I would like to update you on the EAS situation at DuBois and give you an opportunity to submit any final comments if you wish before we submit a recommendation to the Assistant Secretary for Aviation and International Affairs. As you know, Air Midwest’s current EAS contract expires on July 31, 2006. In anticipation of that, we issued Order 2006-4-10, April 12, 2006, which solicited proposals from air carriers interested in providing subsidized service at DuBois for the new two-year period beginning August 1. In response to our request, we received proposals from two carriers, Air Midwest and RegionsAir, Inc., d/b/a Continental Connection. We request that you review each proposal and submit any comments you may have as soon as possible, but in no case later than June 9. We will carefully consider your comments before we submit a recommendation to the Assistant Secretary for a decision. We appreciate that there may be significant issues for you to consider, so if you have any questions or if you find that you need additional time to draft your comments, please let us know. By: Dennis DeVany
Order 2006-6-31 Issued June 26, 2006 | Served June 20, 2006 Order Selecting Carrier and Establishing Subsidy Rate After carefully considering the various issues involved and the community's comments, we have decided to select Air Midwest (Option 1) to provide EAS at DuBois for a two‑year period. The carrier's proposed service and subsidy levels are reasonable, and the carrier's service at its other subsidized communities continues to be satisfactory. The case boils down to selecting a single proposal from among the three individual proposals offered, while considering a number of competing factors and alternatives, including the community's preference for a particular carrier and service option, the level and type of service offered by each carrier, the code-share arrangements each carrier has with its major-carrier partner, and the relative subsidy requirements of each proposal. Based on the letter from the Authority's Chairman, the community clearly prefers the re-selection of Air Midwest with its US Airways Express code-share service to the Pittsburgh hub. In fact, the letter from the Authority does not even mention the proposal offered by Regions. As the relative subsidy requirement of Regions' proposal is greater than Air Midwest's Option I, and it received no community support, we will not select Regions to provide EAS at DuBois. We are left then to choose either Air Midwest's Option 1 proposal (18 round trips per week) or its Option 2 proposal, which offers an additional Pittsburgh round trip each weekday (23 per week) for an additional annual subsidy of almost $300,000. We note that the number of passengers using Air Midwest's service at DuBois has increased steadily over the last three years. Specifically passenger traffic has increased from 15,183 total passengers in 2003, to 18,780 in 2004, and to 20,210 in 2005.
July 3, 2006 DOT Letter to Senators Specter and Santorum and Congressman Peterson Thank you for your letter supporting Mesa Air Group's proposal to provide four flights a day between DuBois and Pittsburgh with subsidy. While we understand the community's desire for increased service, the current passenger levels do not justify the expense of an additional, i.e., fourth, round trip at this time. By: Michael Reynolds
May 2, 2007 Re: Notice of Air Midwest to Terminate Scheduled Service at DuBois, PA 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 DuBois, Pennsylvania and Pittsburgh, Pennsylvania 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 DuBois, Pennsylvania. By: Air Midwest, Tom Bacon
Order 2007-5-14 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 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 Clearfield-Jefferson Counties Regional Airport Authority I would like to update you on the essential air service situation at DuBois 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,DuBois, as well as at Franklin/Oil City, Pennsylvania, Greenbrier/White Sulphur Springs/Lewisburg, West Virginia, 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 18 weekly nonstop round trip flights to Pittsburgh with 19‑passenger Beechcraft 1900D aircraft at an annual subsidy of $1,159,229. The proposal also includes service at Franklin/Oil City for $763,741, for a total annual subsidy for both communities of $1,922,970. Its proposal is contingent upon Gulfstream finalizing its negotiations of a code agreement with US Airways. By: Dennis DeVany
July 16, 2007 Clearfiled-Jefferson Counties Regional Airport Authority in Support of Gulfstream International We have reviewed the proposal submitted by Gulfstream International Airlines and find that it is acceptable. We look forward to working with the new carrier. By: Paul Sekula, 814-328-5311, bob@dujairport.com
Order 2007-7-21 Issued July 26, 2007 | Served July 31, 2007 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 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 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 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 Issued and Served November 15, 2007 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 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 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 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 Issued and Served February 6, 2008 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 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
OST-2004-17617 - DuBois March 5, 2008 Proposal of Gulfstream International Airlines Gulfstream cordially submits its proposal to provide subsidized air service to DuBois and Franklin/Oil City, Pennsylvania from Cleveland, Ohio. The proposed service pattern would consist of two roundtrips between Franklin/Oil and Cleveland each weekday with two additional roundtrips over the course of the weekend. Additionally, Gulfstream proposes to operate two non-stop roundtrips and two one-stop roundtrips between DuBois and Cleveland, each weekday with two additional non-stop and two additional one-stop 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
March 10, 2008 Re: Clearfield-Jefferson Counties Regional Airport Authority in Support of Gulfstream International The Authority is eager to begin working with Gulfstream with a new destination and carrier affiliation. We believe with Gulfstream's record of performance along with the affiliation and new destination that passenger traffic at DUJ should increase immediately. By: Paul Sekula, 814-328-5311
OST-2004-17617 - DuBois 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
OST-1997-2523 - Oil City/Franklin
March 13, 2008 Oil Region Alliance in support of Gulfstream International Airlines Thank you for the opportunity to provide comments on the Essential Air Services proposal for the Venango County Regional Airport. Upon review of the proposal submitted by Gulfstream International Airlines to provide air carrier service to Franklin/Oil City we wholeheartedly endorse and support this proposal. By: Randy Seltz
March 19, 2008 Pennsylvania State Senator in Support of Gulfstream International Airlines I am writing to strongly support the proposal by Gulfstream International Airlines to provide subsidized air service at DuBois and Franklin/Oil City, Pennsylvania. The Venango Regional Airport is within my Senatorial District and I recognize what a valuable asset it is to the economic viability of our region. Unfortunately, as you know, ten months ago the present air carrier gave notice that they are withdrawing from subsidized air service to several locations, including Franklin/Oil City. By: Mary Jo White
March 20, 2008 City of Oil City in Support of Gulfstream International Airlines On behalf of the City of Oil City, I urge you to support Gulfstream's bid to provide reliable air service to the County, the communities that lie within it, and the region as a whole. By: Mayor, Sonja Hawkins
Order 2008-3-22 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.
By: Todd Homan
Order 2008-3-34 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 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 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:
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:
By: Gulfstream, Mickey Bowman, 270-689-2180, mbowman@gulfstreamair.com
April 23, 2008 Re: Clearfield-Jefferson Counties Regional Airport Authority in Support of Gulfstream Option 2 We have reviewed the proposal submitted by Gulfstream International Airlines and find that Option No. 2 is most acceptable. The Authority is eager to begin working with Gulfstream with a new destination and carrier affiliation. We believe with Gulfstream's record of performance along with the affiliation and new destination that passenger traffic at DUJ should increase immediately. By: Paul Sekula, 814-328-5311
Order 2008-4-43 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 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
OST-2004-17617 - DuBois
May 9, 2008 Ex-Parte Letter to Senator Robert Casey Thank you for your letter of April 29 regarding the recent essential air service situation at Dubois and Franklin/Oil City. I am happy to inform you that the Department recently issued Order 2008-5-3, selecting the option favored by the community. Gulfstream, operating under its code-share agreement with Continental Airlines, will provide DuBois with 24 weekly round trips to Cleveland (12nonstop) and Franklin/Oil City with 18 round trips a week to Cleveland (12 nonstop). By: Dennis DeVany
May 9, 2008 Ex-Parte Letter to Congressman John Peterson Thank you for your letter of April 28 regarding the recent essential air service situation at Dubois and Franklin/Oil City. I am happy to inform you that the Department recently issued Order 2008-5-3, selecting the option favored by the community. Gulfstream, operating under its code-share agreement with Continental Airlines, will provide DuBois with 24 weekly round trips to Cleveland (12nonstop) and Franklin/Oil City with 18 round trips a week to Cleveland (12 nonstop). By: Dennis DeVany
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:
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
Essential Air Service at DuBois and Franklin/Oil City, Pennsylvania; Greenbrier/White Sulphur Springs/Lewisburg, West Virginia and Athens, Georgia Order 2008-5-29 Issued May 21, 2008 | Served May 27, 2008 Order Extending Service Obligation On May 3, 2007, Air Midwest filed 90-day notices of its intent to suspend its subsidized service at the four communities captioned above, effective August 1. 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 U.S.C. 41734, we have extended Air Midwest's service obligation for additional 30-day periods, the latest through May 30, 2008, by Order 2008-4-43. By Order 2007-7-21, July 26, 2007, the Department selected Gulfstream International Airlines, to provide replacement service at DuBois, Franklin/Oil City and Lewisburg. At Athens, we resolicited proposals by Order 2008-3-21. However, since replacement service will not have been inaugurated by May 30, 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 for an additional 30 days, or until suitable replacement service actually begins, whichever occurs first. Since June 29th is a Sunday, this hold-in period will end on Monday, June 30th. Mesa's notice in no way absolves Air Midwest from its statutory requirement to continue providing service at these communities. By: Todd Homan
Order 2008-6-1 Issued June 2, 2008 | Served June 5, 2008 Order Setting Final Rates for Air Midwest - Bookmarked On May 3, 2007, Air Midwest, Inc., filed 90-day notices to suspend its subsidized service at these four communities. By Order 2007-5-14, May 14, 2007, we prohibited Air Midwest, a wholly owned subsidiary of Mesa Air Group, from terminating its subsidized service. The two-year Essential Air Service contracts for these communities were not due to expire until well into 2008. However, under 49 U.S.C. §41734 (d), a carrier providing subsidized EAS at a community is entitled to renegotiate its level of compensation 180 days after it files notice to suspend service if a replacement carrier is not fully in place by then. Thus, Air Midwest was eligible to receive a higher level of compensation at these communities effective October 31, 2007. By Order 2007-11-9, we set final annual rates, not subject to retroactive adjustment, for these communities effective October 31. On April 9, 2008, Mesa filed in the dockets a document indicating that the rates that had been established effective October 31, 2007, by Order 2007-11-9 were no longer adequate, based on ever-increasing fuel costs and other increased costs. We have reached agreement with Air Midwest as to the appropriate level of subsidy. The only adjustment we are making to those rates set by Order 2007-11-9 are for higher unit costs for pilots, fuel, and maintenance, based on Air Midwest's internal financial statements for the quarter ended March 31, 2008. These new rates appear reasonable. We are making these rates final effective May 9, 2008, 30 days after Air Midwest requested further rate relief, through May 23, 2008, when Air Midwest terminated its service at these communities. By: Michael Reynolds
June 23, 2008 Email Message - Scheduling Clarification and Modification of Gulfstream International We are preparing to load the initial flight schedule for DUJ, FKL and LWB into the CO system. We received our first look at the CO Sep, 3, 2008 flight schedule this past Monday. As you may have read, CO is reducing its CLE schedule on that date. On inspection we found that they have gone to a Day of Week specific schedule and that much of the reduction occurs by the deletion of two midday banks on Tuesdays and Wednesdays. As a consequence we had to revisit the schedules we had prepared to load for these cities. We find that we needed to make a change, primarily to the DUJ schedule or we would be left with flights arriving and departing CLE without sufficient feed opportunities. As you know, the DUJ award was for 12 one-stop and 12 non-stop roundtrips each week between DUJ and CLE each week. In our offering, DUJ Weekday service was to consist of 2 non-stop and 2 one-stop trips while Saturday and Sunday received 1 non-stop and 1 one-stop roundtrip each. With the alteration CO made to their bank system we found that we needed to decrease the DUJ activity on Tuesdays and Wednesdays to 1 non-stop and 2 one-stop operations each of those days. We consulted with the folks in DUJ and have received their support in modifying their pattern to reschedule the 2 non-stop roundtrips, lifted from Tuesdays and Wednesdays. One non-stop CLE-DUJ leg would be rescheduled to the late arrival bank on Friday nights. The remaining 3 non-stop legs would be added to the Sunday flight schedule. Fridays and Sundays have historically been DUJ's strongest days of travel, and these changes would give 5 inbounds with 4 outbounds on Friday as well as 4 outbounds and 3 inbounds on Sundays. We request that any necessary notifications be made to the folks that pay the claims to assure we are compensated correctly. We understand that this situation will likely change next spring as the banks may be added back for peak travel periods. We intend to fall back to the conventional pattern should that occur. By: Gulfstream, Mickey Bowman, 270-689-2180 |
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