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OST-2006-25228 - EAS at Hagerstown, MD - Notice of Air Midwest to Terminate Service
http://www.flyhagerstown.com/ - Hagerstown Regional Airport
OST-2005-20430 - EAS at Hagerstown
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Essential Air Service at Hagerstown, Maryland June 23, 2006 Notice of Air Midwest to Terminate Service Though Air Midwest would prefer to continue providing scheduled air service in the Hagerstown, Maryland market, the substantial increase in the cost of fuel has forced this action. With recent price escalations, Air Midwest fuel costs are running $166,000 more annually than what was forecast in our bid. The other major factor that has necessitated this termination filing is the effect of Independence Air during their 18 months of service. Hagerstown is only 55 air miles from Washington Dulles, and during the time that Independence Air operated, passenger levels in Hagerstown fell to levels substantially lower than Air Midwest had forecast. Air Midwest has stayed in the market sustaining substantial losses with the hopes that the passenger traffic would return to historic levels with the demise of Independence Air. In order to try and increase traffic, Air Midwest lowered its local fares to Pittsburgh, and they are now more than 44% cheaper than the local fares from either Dulles or Baltimore/Washington airports. While this provided a limited number of incremental passengers, it substantially diluted our local fare structure. It appears that the travel patterns of Hagerstown residents may have been permanently altered. At present, Air Midwest is the sole provider of certificated scheduled air service at Hagerstown, Maryland. By: Mesa, Mickey Bowman, 602-685-4130
Order 2006-7-24 Issued July , 2006 | Served August 1, 2006 Order Prohibiting Suspension of Service and Requesting Proposals By this order, the Department prohibits Mesa Air Group, Inc., d/b/a Air Midwest from suspending its service at Hagerstown, Maryland, and requests proposals from carriers interested in providing replacement essential air service through September 30, 2007, with or without subsidy . Since Air Midwest is the only carrier providing scheduled air service at Hagerstown, its proposed termination would eliminate all air service to the community. Thus, in accordance with 49 U.S.C. 41734, we must prohibit the carrier from suspending service as it intends for an initial 30 days beyond the end of the 90-day notice period and request proposals for replacement service. We will require Air Midwest to continue to provide its current level of service, consisting of three nonstop round trips a day to Pittsburgh, for an initial 30-day period, through October 23, 2006, or until suitable replacement service actually begins, whichever occurs first. We will extend Air Midwest's service obligation for successive 30-day periods, as necessary, until suitable replacement service actually begins. We would note that, before preparing their proposals, interested carriers should take into consideration that, under current law, Hagerstown’s subsidy eligibility terminates effective September 30, 2007. Therefore, carriers should prepare proposals with the expectation that subsidy will be terminated effective October 1, 2007. Specifically for Hagerstown, we request proposals for service consisting of two or three round trips a day to Pittsburgh, or any other suitable hub, with two-pilot, twin-engine aircraft with at least 15 passenger seats. By: Michael Reynolds
August 29, 2006 All Operations proposed would utilize our modern fleet of Raytheon/Beechraft B-1900D airliners. The service proposes to continue service as USAirways Express, allowing for convenient and cost-effective service not only to Pittsburgh, but to the entire country.
By: Mickey Bowman
September 6, 2006 DOT Requesting Comments of City of Hagerstown As you know, by Order 2006-7-24, issued July 27, 2006, the Department prohibited Mesa Air Group, Inc., d/b/a Air Midwest, from suspending its service and requested proposals from carriers interested in providing replacement service. Air Midwest was the only carrier to submit a proposal. The carrier submitted two service options. Under both options, service would be provided nonstop to Pittsburgh, using 19-seat Raytheon/Beechcraft B-1900D aircraft and would be operated as USAirways Express. Option 1 proposes to provide two nonstop round trips a day at an annual subsidy rate of $854,452; Option 2 proposes to provide three nonstop round trips a day at an annual subsidy rate of $1,288,513. We request that you review this information as expeditiously as possible and submit any comments you may have on the carrier selection case at your earliest convenience, but in any case no later than September 20, 2006. By: Dennis DeVany
September 18, 2006 Comments of Hagerstown Regional Airport After reviewing the two Options received by your office in the Proposal from Mesa Air Group, Inc., doing business as Air Midwest (the Airline), we offer the following ranking of their submission:
In summary, we suggest that if the intention of the EAS program is to assist the beneficiary to achieve self sustainability through public/private collaboration, then some actions of the incumbent carrier since September, 2005 have run contrary to this objective. The Airline’s wholehearted participation and willingness to partner with the Airport and the community is critical to achieving such appropriate objectives. By: Airport Manager, Carolyn Motz
Order 2006-10-12 Issued October 20, 2006 | Served October 25, 2006 Order Selecting Carrier and Establishing Subsidy Rates After careful consideration, including the community's views, we have decided to select Air Midwest's two-round-trip-a-day option to Pittsburgh at the annual subsidy rate of $854,452 through September 30, 2007. The Department previously subsidized three-round-trip service at Hagerstown because it was necessary to accommodate the then-current level of traffic, but that is no longer necessary, due to declining traffic levels. When we last selected the three-round-trip option, enplanements at 1-iagcrstown averaged about 39 a clay, and they could not have been accommodated on just two round trips a day, which would have provided only 38 outbound seats for 39 passengers. In 2005, Air Midwest generated a total of 9,852 Origin & Destination passengers, or an average of 16 enplanements a day at Hagerstown based on a 313-day year to account for reduced weekend service. That level of passengers can be accommodated on Air Midwest's two round trips at a 42% load factor. We would also note that the subsidy requirement has increased significantly. For two-round-trip service, the carrier proposed an annual subsidy requirement of more than $200,000 above the amount the Department subsidized for three round trips in the current selection order. However, Air Midwest's service to Pittsburgh will provide the community with access to a major hub, and will meet the core objective of the program of maintaining access to the national air transportation system. Therefore, based on all of the above, we will select Air Midwest's Option 1, as proposed two nonstop round trips each weekday and each weekend to Pittsburgh, at the annual subsidy rate of $854,452. By: Andrew Steinberg
May 2, 2007 Re: Notice of Air Midwest to Terminate Scheduled Service at Hagerstown, MD 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 Hagerstown, Maryland 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 Hagerstown, Maryland. 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
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
OST-2002-11450 - Lancaster October 1, 2007 Comments of Regional Aviation Partners As you are aware, Vision 100 expired on September 30, 2007 and along with it the DOT’s order establishing the eligibility of these three communities. However, during debate on H.J. Res. 52, Senators John Rockefeller (D-WV), Chairman of the Senate Aviation Subcommittee, and Patty Murray (D-WA), Chairwoman of the Senate Transportation Appropriations Subcommittee, stated their intent that funds appropriated under H.J. Res. 52 to the EAS program be used to continue subsidized air service to Hagerstown, Lancaster, and Brookings. RAP requests that the DOT abide by Congress’ clear intent in this matter and continue to subsidize scheduled air service to these communities. Should the air carriers currently providing air service to these places discontinue air service during the interim, we would ask that the DOT issue an emergency order requesting proposals to provide air service. By: RAP, Maurice Parker, 602-685-4112, Exdir@regionalaviationpartners.org
OST-2002-11450 - Lancaster October 3, 2007 Comments of Regional Aviation Partners
Our members in Brookings, SD have informed us that the DOT does not intend to abide by the colloquy language for H.J. Res. 52 which: 1) expressed the strong intent of Congress that funds appropriated for the EAS program under the CR be used to continue subsidized air service to Brookings, SD; Hagerstown, MD; and Lancaster, PA, and 2) requested the DOT avoid making any major policy changes impacting the program during the period covered by the CR. Furthermore, as a result, we understand that the DOT has, as of October 1, 2007 declared Brookings, Hagerstown, and Lancaster ineligible for subsidy based on their proximity to the nearest large/medium hub airport. RAP is disappointed with the DOT's position in this matter and its reluctance to follow what is the clear intent of Congress to continue subsidized air service to these communities during this interim period. We would ask that the DOT re-evaluate its position given language addressing the eligibility of these 3 communities has been included in the Senate version of the 2007 FAA Reauthorization Act and it is only a matter of time until this bill is enacted. The disruption of service caused by your actions is clearly not in the best interest of the communities where you have a duty to follow both the letter and spirit of the law. As an organization, we fully expect our public servants to abide by the intent of legislators and policymakers. By: RAP, Maurice Parker, 602-685-4112, Exdir@regionalaviationpartners.org
October 22, 2007 Ex-Parte Letter to Maryland Senators Barbara Mikulski and Ben Cardin By: Michael Reynolds
Order 2008-2-37 Issued February 29, 2008 | Served March 5, 2008 Order Requesting Proposals | Word By this order, the Department is requesting proposals from carriers interested in providing essential air service at Brookings, Hagerstown and Lancaster through September 30, 2008, with or without subsidy. Proposals are due March 21. None of the three communities currently receive scheduled air service. All three communities had lost subsidy eligibility because they did not meet statutory eligibility criteria -- Hagerstown and Lancaster because they are within 70 driving miles of a large hub (Philadelphia International Airport), and Brookings because its subsidy per passenger exceeded $200 and the community is within 210 miles of a large hub airport (Minneapolis International Airport). At the time that the communities lost subsidy eligibility, September 2007, Air Midwest was serving Hagerstown and Lancaster, while Great Lakes Aviation was serving Brookings, service in each case being provided with 19-seat Beech 1900 aircraft. Air Midwest provided Lancaster with three nonstop round trips to Pittsburgh each weekday and weekend (18 a week) at an annual subsidy rate of $1,377,257 and Hagerstown with two round trips each weekday and weekend (12 a week) to Pittsburgh at an annual subsidy rate of $854,452.2 At Brookings, Great Lakes provided two one-stop round trips to Denver each weekday and weekend (12 a week) at an annual subsidy of $1,212,400. Before preparing their proposals, interested carriers should take into consideration that, under current law, all three communities’ subsidy eligibility terminates effective September 30, 2008. Therefore, carriers should prepare proposals with the expectation that subsidy will be terminated effective October 1, 2008. By: Todd Homan
Order 2008-4-16 Issued April 8, 2008 | Served April 11, 2008 Order Requesting Proposals | Word By this order, the Department is requesting proposals from carriers interested in providing essential air service at Brookings, Hagerstown and Lancaster through September 30, 2008, with or without subsidy. Proposals are due April 25. Proposals should generally provide service levels comparable to those in effect at the time that the communities lost subsidy eligibility, as described below. Service should be with two-pilot, twin-engine aircraft with at least 15 passenger seats, unless the communities agree to smaller aircraft. On February 28, 2008, the President signed into law the Airport and Airway Extension Act of 2008 (P.L. 110-190). Among other things, that Act reinstated the “most commonly used route” standard in measuring distance from EAS communities to hub airports. The practical effect of the legislation is once again to make Brookings, Hagerstown and Lancaster eligible for subsidized EAS, this time through September 30, 2008. By Order 2008-3-27, February 29, 2008, we requested proposals from carriers interested in providing EAS to these communities. We did not receive any responses to that request. As a result, we are here again soliciting proposals from carriers interested in providing these communities’ EAS. At the time that the communities lost subsidy eligibility, September 2007, Air Midwest was serving Hagerstown and Lancaster, while Great Lakes Aviation was serving Brookings, service in each case being provided with 19-seat Beech 1900 aircraft. Air Midwest provided Lancaster with three nonstop round trips to Pittsburgh each weekday and weekend (18 a week) at an annual subsidy rate of $1,377,257 and Hagerstown with two round trips each weekday and weekend (12 a week) to Pittsburgh at an annual subsidy rate of $854,452.2 At Brookings, Great Lakes provided two one-stop round trips to Denver each weekday and weekend (12 a week) at an annual subsidy of $1,212,400. By: Todd Homan |
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