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OST-1997-2523 - EAS at Oil City/Franklin, PA


http://www.co.venango.pa.us/airport/ - Venango Regional Airport


EAS Docket


EAS at Oil City/Franklin, Pennsylvania

Order 97-5-12 | OST-1997-2523

Issued May 15, 1997 | Served May 21, 1997

Order to Show Cause

By this order the Department of Transportation is tentatively reselecting Mesa Airlines, Inc., d/b/a USAir Express, to provide basic essential air service for the period May 1, 1997, through April 30, 1999, at Oil City/Franklin, Pennsylvania, with 19-passenger Beech 1900 aircraft. For the first five months of the rate period, May 1, 1997, through September 30, 1997, we propose to select Mesa to provide ten round trips a week to Pittsburgh for an annual subsidy rate of $118,373. For the period beginning October 1, 1997, through April 30, 1999, we would subsidize 24 round trips a week to Pittsburgh for an annual rate of $243,923.

Appendix A | Appendix B | Appendix C | Appendix D | Appendix E

By: Charles Hunnicutt



Order 99-10-4
OST-97-2523
October 6, 1999 Order to Show Cause Essential Air Service at Oil City/Franklin, Pennsylvania
    Exhibit A:  Map  
    Exhibit B:  Historic Traffic  
    Exhibit C:  Note  
    Exhibit D:  Compensation Requirements  
    Exhibit E:  Air Carrier Service   

By:  Bradley Mims



Order 01-8-9
OST-00-7856
OST-00-7855
OST-00-7857
OST-96-1352
OST-96-1901
OST-97-2935
OST-99-6589
OST-99-6502
OST-97-2833
OST-97-2784
OST-00-7556
OST-97-2842
OST-97-2401
OST-97-2523
OST-99-6592
OST-99-5712
Issued August 7, 2001
Served August 10, 2001
Statement of Proposed Policy Regarding Program Deductions Essential Air Services At Muscle Shoals, AL; Owensboro Davies County Regional Airport; Jackson, TN; Topeka, Kansas; Alamogordo/Hollman AFB, New Mexico; Hot Springs and Jonesboro, Arkansas; Pueblo, Colorado; Hana, Hawaii; Kamuela, Hawaii; Augusta/Waterville; Oneida County Airport; Massena, New York; Enid, OK; Oil City/Franklin, Pennsylvania; Ponce, Puerto Rico; Oshkosh, Wisconsin

Because a $50 million budget can no longer cover the program's current commitments, the Administration's budget proposal also includes a proposal to revise some of the standards under which communities are ineligible for subsidy-supported scheduled air service. Under the proposed revisions, communities would not be eligible if they are:

The statutory prohibition against continuing to subsidize communities requiring subsidy of more than $200 per passenger, except for exceptionally isolated points, would remain unchanged.  The proposed revisions would allow the Department to continue to meet its core obligation of ensuring that truly isolated communities continue to receive at least a minimum level of scheduled air service and thereby remain connected to the national air transportation system. At the same time, it would curtail spending for local service at communities that are within reasonable driving distances of service at other airports.

In light of the program's current spending rate and the Administration's budget proposal, we have decided to issue this statement of proposed policy now, to give the communities and carriers ample notice of the program reductions that we will implement in the event that Congress enacts them into law. Those reductions will result in the termination of subsidy at the 17 communities listed below as of October 1, 2001 -- the first day of fiscal year 2002 -- and will allow the carriers providing subsidized service at those communities to discontinue service on the same date, if they choose, without the need to provide individual notice. Implementation of the reductions at the very outset of the next fiscal year is necessary for program spending to remain within the proposed $50 million budget. Waiting to initiate the process until Congress has already acted could delay implementation of the reductions and require us to make even deeper program cuts, affecting more communities, in order to remain within our budgetary constraints.

By:  Susan McDermott



 

OST-97-2523 August 27, 2001 Objection of the Venango County Essential Air Service at Oil City/Franklin, Pennsylvania

By:  Venango County, Malachy McMahon



OST-97-2523 August 27, 2001 Objections of the Regional Aviation Partners Essential Air Service at Oil City/Franklin, Pennsylvania

By:  Regional Aviation Partners, Maurice Parker



Order 01-8-9
OST-96-1352
OST-96-1901
OST-97-2842
OST-97-2523
August 28, 2001 Objections of the Mesa Air Group EAS at Alamogordo/Hollman AFB, New Mexico; Massena and Ogdensburg, New York; Oil City/Franklin, Pennsylvania

By:  Mesa Air Group, Jonathan Ornstein



Order 01-11-14
OST 97-2402
OST-97-2401
OST-97-2523
OST-97-2935

OST-98-4706
Issued November 28, 2001
Served December 3, 2001
Order Extending Subsidy Rates Essential Air Service at Brownwood, Texas; El Dorado/Camden, Jonesboro, Harrison, and Hot Springs, Arkansas, Enid and Ponca City, Oklahoma; Oil City/Franklin, Pennsylvania; Gallup, New Mexico; North Platte, Nebraska

By:  Randall Bennett



June 10, 2003

OST-97-2523 - EAs at Oil City/Franklin, PA

Correspondence of the City of Franklin

By: Robert Heller


June 11, 2003

Correspondence of Oil City

By: Thomas Rockovich, 814-678-3012



Issued June 25, 2003 | Served June 30, 2003

Order 03-6-32
OST-97-2523 - EAS at Franklin/Oil City, PA

Order to Show Cause | Word

Order 2003-6-32, the Department denies the objections filed by the Mayor of Franklin, Pennsylvania, and the City Manager of Oil City, Pennsylvania, in Docket OST-1997-2523; and, finalizes the tentative findings and conclusion set forth in Order 2003-5-24, May 28, 2003.

After full consideration of the community's objections, we have decided to deny those objections and finalize our tentative decision in Order 2003-5-24. Three round trips each weekday and weekend will meet Franklin/Oil City's requirements both under the statute and by any realistic practical standard, and our continuing to subsidize a higher level of service would represent an imprudent use of limited program resources. We appreciate the efforts undertaken by the community and carrier to promote ridership. Our contribution to those efforts is also substantial. Order 2003-5-24 authorized subsidy of $874,000 a year for Franklin/Oil City's service. Despite the reduction to 18 round trips a week, that amount represents an increase of more than 70 percent over the $510,000 a year that we were spending prior to the terrorist attacks of September 11, 2001. Continuing to subsidize 24 round trips a week would cost another $191,000 a year, or a total of $1,065,000 annually -- more than double the subsidy rate of just two years ago. Increases of that magnitude are occurring at subsidized communities throughout the program, while at the same time it has become necessary for us to subsidize service at more and more communities whose services had always been self-sufficient in the past. We hope that the Franklin/Oil City community's efforts to rebuild its traffic are fruitful. Under present circumstances, however, we simply cannot continue to spend limited program funds subsidizing service levels that are neither required by law nor commensurate with current usage.

By: Michael Reynolds



Order 04-12-14
OST-97-2523
- EAS at Franklin/Oil City, PA

Issued December 22, 2004 | Served December 28, 2004

Order Requesting Proposals | Word

By this order, the Department is requesting proposals from air carriers interested in providing essential air service at Franklin/Oil City, Pennsylvania, for a new two-year period, with or without subsidy.

During the year ended June 30, 2004, the most recent 12‑month period for which traffic data are available for the community, Franklin/Oil City averaged 9.3 enplanements a day. During 2000, the last calendar year not affected by the terrorist attacks, Franklin/Oil City averaged 18.8 enplanements per day.

By: Karan Bhatia



January 27, 2005

Proposal of Mesa Airlines

By: Mickey Bowman


January 21, 2005

Re: Mr. and Mrs. Dale Beighley, Jr. Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Mr. and Mrs. Dale Beighley, Jr.


January 24, 2005

Re: BSI Financial Services Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Jill Johnson-Sheely


January 31, 2005

Re: Sibyl Cavell Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Sibyl Cavell


January 24, 2005

Re: Clarion/Venango Educational Resources Alliance Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Joann Wheeler


January 24, 2005

Re: DuBois Business College Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Kathryn Brown


January 24, 2005

Re: Franklin Industrial and Commercial Development Authority Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Joann Wheeler


January 24, 2005

Re: Galaxy Federal Credit Union Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Judith Saltzmann


January 21, 2005

Re: Kathleen Novak Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Kathleen Novak


January 24, 2005

Re: Wanda Thomas Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Wanda Thomas


January 24, 2005

Re: William and Dorothy Wesner Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: William and Dorothy Wesner


January 25, 2005

Re: State Senator Mary Jo White Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Mary Jo White



January 20, 2005

Re: Franklin Area Chamber of Commerce Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: William Liddle


January 12, 2005

Re: Franklin Industries Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: William Liddle



February 3, 2005

Re: Letter Requesting Comments of Rick Harner, Bureau Director of the Pennsylvania Department of Transportation

I would like to update you on the essential air service situation at Franklin/Oil City and to give you an opportunity to submit any comments if you wish. As you know, by Order 2004-12-14, December 28, 2004, the Department provided for all interested air carriers to submit proposals to provide essential air service at Franklin/Oil City. In response to that order, we received two proposal options from Mesa Air Group, Inc., d/b/a Air Midwest. I am attaching brief summaries of these proposals to this letter. Attachment A summarizes the subsidy calculations, while Attachment B summarizes the proposed schedules. I would also urge you to review the full proposal as submitted by the carrier.

By: Dennis DeVany


February 3, 2005

Re: Letter Requesting Comments of Otho Bell, Airport Manager

By: Dennis DeVany


February 3, 2005

Re: Letter Requesting Comments of Robert Heller, Mayor of Franklin

By: Dennis DeVany


February 3, 2005

Re: Letter Requesting Comments of Malachy McMahon, Mayor of Oil City

By: Dennis DeVany



February 7, 2005

Re: Action Auto Service Letter in Support of Essential Air Service at Oil City/Franklin, PA

By: Debbra Kapp



February 2, 2005

Re: Comments of The City of Oil City

The service options are the continuance of three round trips per day from the Venango County market to the Pittsburgh International Airport or a reduction in that service to two round trips per day. We believe that with the recent substantial increase in the number of enplanements from Franklin over the course of the last quarter of 2004, that the current level of service of three round trips/day should be continued. The local community recognizes the significance of local air service in retaining our existing businesses and its importance in attracting new industries to our area. Given the economic problems that the Venango County area has experienced over the past couple of decades, we need to create or maintain as many economic development attractions as we can in order to stay economically competitive. Dependable and frequent local air service is one of those important needs.

Less than two years ago, the number of daily round trips from Franklin was reduced from four trips to three. Any further reduction would have a significant impact on air service to and from our area, particularly to the business traveler. With the recent upswing in the daily enplanements, we believe that the current level is warranted, and we hope that your office will continue to provide subsidization at the level of three round trips daily. We appreciate your consideration of this request.

By: Mayor Edward Smith, Councilman Merrill Whitling, Councilwoman Sonja Hawkins, Councilwoman Sandra Montgomery, Councilman Neil McElwee



February 1, 2005

Re: DuBois Business College Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Jackie Skytich


January 24, 2005

Re: Northwest Pennsylvania Regional Planning and Development Commission Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Jack Allston


January 21, 2005

Re: Peach Basket Bed and Breakfast Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Maureen and Bill Hager


January 21, 2005

Re: Seneca Express Distribution Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Jeff Steigerwald


January 30, 2005

Re: Venango and Venango Regional Airport Letter in Support of the Continuation of Essential Air Service at Oil City/Franklin, PA

I'm writing you to express support for Mesa Airlines Subsidiary, Air Midwest's, renewal of the Essential Air Service subsidy to provide continued air service to Franklin/Oil City, Pennsylvania for, at least, the current level of eighteen weekly roundtrip flights to Pittsburgh from Venango Regional Airport. Commercial Air Service is vital to our region's economic re‑development as we are on the cusp of a recovery from the loss of several key businesses over the past ten years as companies were bought, merged, or closed. We are serious about our recovery and the absolute necessity of Commercial Air Service as a linchpin toward our future success. We have an Air Service Provider, Mesa/Air Midwest, who has worked hard to provide an improved schedule and dependability even in the face of serious problems with their code share partner, USAIRWAYS. The Airline's ability to improve the Franklin flight schedule this past October resulted in strong enplanement numbers for the Fourth quarter of 2004 and further approved adjustments this coming April will continue to drive that trend. The code share agreements that Mesa/Air Midwest is able to provide us are our most viable option for accessing the National Aviation Transportation System. Our goal is to become a "demand ‑ based" travel market and reduce or eliminate the need for subsidized air service. We know that strong demand will result in increased supply and we are focused on new and revitalized businesses in our area that will help produce the needed results.

By: Otho Bell



February 2, 2005

Re: Commonwealth of Pennsylvania, Department of Transportation, Aviation Deputy Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Sharon Daboin


February 14, 2005

Re: Jerry McWainey Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Jerry McWainey


January 24, 2005

Re: Venango County Board of County Commissioners Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Susan Smith, Larry Horn, and Gary Hutchinson


February 2, 2005

Re: State Senator Mary Jo White Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Mary Jo White



February 16, 2005

Re: Venango Real Estate Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Joyce Woodward



February 10, 2005

Re: Borough of Sugarcreek Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: William Valdesalice


February 9, 2005

Re: Roy and Mary Crouser Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Roy and Mary Crouser


February 9, 2005

Re: Damaris Hetrick Letter Supporting the Continuation of Essential Air Service at Oil City/Franklin, PA

By: Damaris Hetrick



February 22, 2005

Re: Comments of Clarion/Venango Educational Resources Alliance

Venango County is experiencing the beginning of a positive trend in business development thanks to our legislators and community leaders. County-owned property on a site east of the Rte. 8 airport frontage, for example, has been designated a Keystone Opportunity Zone (ten years property tax free) and a Foreign Trade Zone. Our lead economic development entity, the Oil Region Alliance for Business, Industry and Tourism, is aggressively marketing the Airport Business Park along with a nearby multi-tenant industrial site. This is evidence of a recovering business climate in the Franklin/Oil City area. Our rural area must be allowed to compete with the larger urban areas on a level playing field. Viable commercial air service helps level that playing field and is necessary for us to reinvent and sustain our economic growth.

By: Joann Wheeler


February 22, 2005

Re: Further Comments of Venango Regional Airport

Venango Regional Airport Is truly regional in that It i connected to a market population of 250,000 within a thirty (30) mile radius served by excellent, existing highway infrastructure. Our recently renovated primary instrument runway measures 5,200 ft. long and 150 ft wide and represents a sizeable Investment hi tax dollars. We are an FAR 139‑certificated Airport Intent upon growth. The Airport is the key economic development tool used to promote business In our region. Many business leaders attended an Air Service meeting recently with Mesa and Air Midwest representatives. These leaders have written and otherwise expressed their support for continued scheduled air service at a minimum of three (3) daily flights from Venango Regional Airport. They recognize the Importance of this level of service in promoting our economy.

By: Otho Bell, Airport Manager



February 9, 2005

Re: New York Life Insurance Company Letter in Support of Mesa Air

By: Harold Beers



February 25, 2005

Re: Oil City Area Chamber of Commerce Letter in Support of Continued Essential Air Service at Franklin/Oil City, PA

By: Ronald Shoup


March 7, 2005

Re: Clarion University-Venango Campus Letter in Support of Mesa Air Group d/b/a Air Midwest

By: Christopher Reber



March 8, 2005

Re: Ex Parte Correspondence with The Honorable Arlen Specter

Venango Regional Airport is truly regional in that it is connected to a market population of 250,000 within a 30‑mile radius and is served by excellent highway infrastructure. I am aware that the recently renovated primary instrument runway measures 5,200 ft long and 150 ft wide and represents a sizeable investment in tax dollars. It is my understanding that the Airport has realized improved enpianements in the fourth quarter of 2004 and anticipates that this trend will continue with planned April flight schedule improvements. I am advised that 2005 enpianements will significantly exceed those of 2003 and 2004 and that the Mesa Air Group proposal connecting Franklin/Oil City with Pittsburgh is the best option for providing this rural area with access to the nation's air transport system.

By: Dennis DeVany



March 23, 2005

Re: Comments of Venango County

We are writing you in support of the Mesa Air Group dba Air Midwest proposal to provide scheduled air service to FrankinlOil city under the Essential Air Service subsidy. We specifically support their plan to renew at the current service level of three (3) roundtrip flights daily, Monday through Friday and three (3) on the weekends for a total of eighteen (18) weekly roundtrip flights to Pittsburgh.

By: Board of County Commissioners



Order 2005-4-5
OST-1997-2523

Issued April 6, 2005 | Served April 11, 2005

Order Selecting Carrier

By this order, we are selecting Mesa Air Group, Inc., d/b/a Air Midwest to provide essential air service at Franklin/Oil City, Pennsylvania, consisting of two round trips each weekday and each weekend to Pittsburgh with 19-passenger Fairchild Metro III/23 aircraft, for two years for an annual subsidy rate of $683,636. We are also setting a subsidy rate of $969,136 on an annual basis, for Mesa/Air Midwest's provision of three-round-trip service at Franklin/Oil City from January 1, 2005, until the carrier inaugurates two-round-trip service, or 60 days from the date of service of this order, whichever occurs first.

The community unanimously supports Mesa/Air Midwest and has expressed a strong preference for the three-round-trip-a-day option. Because Mesa/Air Midwest is the only applicant, the choice is between our subsidizing two or three round trips a day.

For the most recent 12‑month period for which we have reliable traffic data reported by Air Midwest (the 12 months ended September 30, 2004), Franklin/Oil City generated 5,783 passengers, or an average of 9.2 passenger enplanements each service day. Two round trips a service day with a 19‑passenger aircraft provide 38 outbound seats a day, resulting in load factors in the 24‑25 percent range. (In other words, on the average flight, at least 14 of 19 total seats are being flown empty.) In addition, it is important to note that the Essential Air Service program provides a safety net level of service, and not necessarily all of the service that communities might prefer.

By: Karan Bhatia



April 11, 2005

Re: Comments of Miller Fall Protection Products

I am writing to you to express support for Mesa Airlines Subsidiary, Air Midwest's, renewal of the Essential Air Service subsidy to provide continued air service to Franklin/Oil City, Pennsylvania for at least the current three daily roundtrip flights to Pittsburgh from Venango Regional Airport.

Bacou‑Dalloz is the No. I safety company in the world with a $4M expansion project breaking ground in Franklin May 2005. We feel that the continued Commercial Air Service at the Venango Regional Airport is crucial to our present and future business.

By: Miller Fall Protection Products, Steven Spotts



Order 2007-1-11
OST-1997-2523

Issued January 22, 2007 | Served January 25, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Franklin/Oil City, Pennsylvania for the two-year period beginning April 1, 2007, with or without subsidy.

With specific respect to Franklin/Oil City, we ask that carriers submit proposals for two round trips a day (12 round trips per week) to Pittsburgh, Cleveland, Detroit, or another suitable hub with 15-seat or larger, pressured aircraft. In order to give the Department and the communities as broad an array of proposals as possible from which to choose, carriers are also welcome to prepare more than one service option; they need not limit themselves to these requirements if they envision other, potentially more attractive service possibilities, different hubs, for example, with subsidy requirements that remain competitive. Such service is generally consistent with what the community currently receives. As always, we will formally solicit the communities’ views on any service options we receive before making a long-term carrier-selection decision.

By: Todd Homan



February 27, 2007

Re: Letter to Mayor of the City of Franklin - Request for Community Comments

Re: Letter to Mayor of Oil City - Request for Community Comments

Re: Letter to Venango Regional Airport - Request for Community Comments

Air Midwest proposes to offer two nonstop round trips each weekday and weekend to Pittsburgh, for an annual subsidy of $741,346, for the next two-year period. It also proposes to continue its third round trip that is shared with DuBois as long as it is economically viable. We are currently reviewing Air Midwest's compensation requirement..

By: EAS Division, Dennis DeVany



February 23, 2007

Proposal of Mesa Air Group d/b/a Air Midwest

Mesa is currently operating a wrapped flight with DuBois & Franklin, in essence giving a 3" trip for Franklin Monday thru Friday. Mesa plans on working with the community to keep this extra trip at no additional cost to the DOT as long as it is economically viable. Although the per passenger subsidy level for Franklin has risen during the past year, we have continued to work with the community to rationalize the local fares to help boost passenger levels. We will work with the community to boost the number of passengers in order to reduce the per passenger subsidy level. The latest 12 month period, from February 2006 thru January 2007 has a total of 3,713 passengers. Therefore the maximum subsidy allowed would be $742,600.

By: Mesa, Jeffrey Hartz



February 28, 2007

Re: Venango Regional Airport Support for Mesa Air Group d/b/a Air Midwest

The County of Venango and the Venango Regional Airport welcome the possibility of a continued relationship with our Air Carrier, Mesa Air Group Inc d/b/a Air Midwest operating as USAIRWAYS EXPRESS. Their connections through Pittsburgh Int'l Airport are the best option for Venango Regional Airport to provide the community with an acceptable level of access to the National air transportation system.

By: Otho Bell



March 5, 2007

City of Franklin in Support of Air Midwest | Word

The City of Franklin, PA, and the Venango Regional Airport welcome the possibility of a continued relationship with our Air Carrier, Mesa Air Group Inc d/b/a Air Midwest operating as US AIRWAYS EXPRESS. Their connections through Pittsburgh Int’l Airport are the best option for Venango Regional Airport to provide the community with an acceptable level of access to the National air transportation system. The carrier has worked with us to maintain reliable service and a competitive fare structure. The Airport will continue to promote the air service provided and assist the airline wherever possible. The schedule they’ve provided along with improving reliability will guarantee improved enplanements in the coming year.

By: Mayor, Robert Heller



March 5, 2007

City of Oil City in Support of Air Midwest

It is my understanding that Air Midwest is the current carrier for the airport and has done a credible job of servicing the Franklin and Oil City areas with local service to Pittsburgh. We would support their retention as the airport's carrier in the future and we trust that they will continue to furnish air passengers from our region with reliable service at competitive prices.

By: Mayor, Edward Sharp, Jr.



Order 2007-3-12
OST-1997-2523

Issued March 14, 2007 | Served March 19, 2007

Order Reselecting Carrier

In anticipation of the end of the rate term, the Department issued Order 2007-1-11 on January 22, 2007, soliciting proposals to provide efficient EAS, with subsidy support if necessary a Franklin/Oil City for a new, two-year period.

Although the Department received only one proposal from the incumbent carrier, by letters dated February 27, 2007, we notified community officials and airport manager and solicited any comments they wished to submit. The City of Franklin, The City of Oil City, and Venango County/Venango Regional Airport, submitted comments. All support the reselection of Air Midwest's service to Pittsburgh to continue to serve the community.

By this order, the Department is reselecting Air Midwest to provide subsidized EAS at Franklin/Oil city, PA at an annual subsidy rate of $741,346, for the two-year period of April 1, 2007 through March 31, 2009.

By: Andrew Steinberg



April 25, 2007

Re: Payout Clarification

In Order 2007-3-12, March 14, 2007, there was an error in the effective date of the new contract for Franklin/Oil City, Pennsylvania, in Appendix C. The effective date should read February 1, 2007, instead of April 1, 2007. The end date of March 31, 2009, remains as is.

By: EAS and Domestic Analysis



May 2, 2007

Re: Notice of Air Midwest to Terminate Scheduled Service at Franklin, 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 Franklin, 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 Franklin, Pennsylvania.

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 City of Franklin
Re: Letter to Mayor of City of Oil City
Re: Letter to Manager of Venango Regional Airport

I would like to update you on the essential air service situation at Franklin/Oil City 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 Franklin/Oil City, as well as at DuBois, 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 12 weekly nonstop round trip flights to Pittsburgh with 19-passenger Beechcraft 1900D aircraft at an annual subsidy of $763,741. The proposal also includes service at DuBois for $1,159,229, 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



June 28, 2007

Re: Comments of County of Venango and Venango Regional Airport

The County of Venango and the Venango Regional Airport enthusiastically endorse and support Gulfstream International Airline’s bid to provide air carrier service to Franklin / Oil City through the Essential Air Service subsidy program. We understand fully that the goal of the EAS program is to provide a “safety net” level of service to connect the community with the Nation’s air transport system. Our region is rebounding from economic losses suffered over the past decade and viable commercial air service is a critical infrastructure component of our recovery.

By: Otho Bell, 814-432-5333



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



OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin

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 11, 2008

Venango County and Venango Regional Airport in Support of Gulfstream International Airlines

I've viewed the proposal from Gulfstream Airlines to provide air service under the Essential Air Service program to the Franklin/Oil City area. They plan to operate as Continental Express through the Cleveland Hopkins International Airport hub. This would be the most ideal scenario we could hope for here in the Oil region as we seek to rebuild our air travel market with meaningful, reliable service through a large and growing hub airport such as CLE. The Venango Regional Airport and the County of Venango will wholeheartedly support this venture. Our goal is to outgrow the EAS subsidy. This proposal of Gulfstream's, if approved by your organization, will provide us the means to do so. You will be receiving support correspondence from many in our community in the coming days. We have barely survived a long ten (10) month period since our air carrier gave notice to the Department of Transportation that they intended to withdraw from the subsidized air service to several locations including Franklin/Oil City. We have suffered from that as well as the severe downsizing of our connecting hub airport with inordinately high "add on” air fares to our most popular destinations. I would like to commend the employees and crews of our Air Carrier on their efforts to continue to provide service during this time.

By: Otho Bell





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



OST-1997-2523 - Oil City/Franklin
OST-2004-17617 - DuBois


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
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 23, 2008

Re: Venango Regional Airpot in Support of Gulfstream Airlines

We are in receipt of the Gulfstream International Airlines' bid to provide air service to Franklin/Oil City under the Essential Air Service program. The past eleven months have taken a tremendous toll on our community and its air service as the current carrier has downsized its infrastructure in anticipation of leaving its East Coast EAS markets. We are very anxious to get Gulfstream started.

By: Otho Bell, 814-432-5333



April 23, 2008

Re: City of Franklin in Support of Gulfstream Airlines Option 2

We are in receipt of the Gulfstream International Airlines' bid to provide air service to Franklin/Oil City under the Essential Air Service program. The past eleven months have taken a tremendous toll on our community and its air service as the current carrier has downsized its infrastructure in anticipation of leaving its East Coast EAS markets. We are very anxious to get Gulfstream started.

I enthusiastically endorse and support Gulfstream International Airline's bid, Option 2, to provide air carrier service to Franklin/Oil City through the Essential Air Service subsidy program.

By: Mayor, Robert Heller, 814-437-1670


April 24, 2008

Re: Oil Region Alliance in Support of Gulfstream Airlines Option 2

We are in support and endorse Gulfstream international Airline's bid, Option 2, to provide air carrier service to Franklin/Oil City through the Essential Air Service subsidy program. Option #2 provides a safety net level of service by enhancing our ability to regain our travel market and, thereby, minimizing future dependency upon the subsidy.

By: Randy Seitz


April 24, 2008

Email Message - Support Letter for Gulfstream Airlines

I am writing to you in hopes that DOT will approve the bid presented by Gulf Stream International. The Franklin/Oil City region deserves to have excess to reliable, affordable air transportation. Over the past few years our passenger numbers have decreased, but not due to demand. Individuals and business, both state the reasons for not using FKL have to do with the very poor job US Air has done. US Air, Air Midwest flying the Franklin route has one of the poorest records of any airline in the country. This airline is known for flight times that do not allow for connections. US Air is best known for cancelled and delayed flights. This unreliability has caused the large drop in passengers using FKL. Further investigation will show, other airports that received new airlines, replacing US Air have shown large increases in passenger loads.

Any half ways reliable airline could easily double and triple passenger loads, just by keeping on their schedule. It cannot be stated enough times that the entire problem in Franklin is an unreliable US Air. I hope you will see this problem for what it is, a poorly run company, acting irresponsibly.

By: Jeff Pedersen, 814-758-0940, jpedersen48@verizon.net



April 25, 2008

Re: City of Oil City in Support of Gulfstream International Airlines Option 2

During the past eleven months, reliable air service through the Venango County Regional Airport has suffered due to the downsizing of the airport's current carrier in anticipation of its leaving the East Coast EAS market. On behalf of the City of Oil City, I urge you to support Gulfstream International Airlines bid Option 2.

By: Mayor Sonja Hawkins



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 2, 2008

Re: Franklin Area Chamber of Commerce in Support of Gulfstream International Airlines' Bid

The past eleven months have taken a tremendous toll on the community and its air service as the current carrier has downsized its infrastructure in anticipation of leaving its East Coast EAS markets. We are very anxious to have Gulfstream service our region. 

We, The Franklin Area Chamber of Commerce enthusiastically endorse and support Gulfstream International Airline's bid, Option # 2 to provide are carrier to the Franklin/Oil City area through the Essential Air Service subsidy program. We understand fully that the goal of the EAS program is to provide a "safety net" level of service to connect the community with the Nation's air transport system. This bid and particularly option #2 would provide that safety net in a meaningful way by enhancing our ability to regain our travel market thereby minimizing future dependency upon the subsidy. Our region is continuing to attract businesses to the region that makes commercial air service an integral part of our economic development success. Viable air service is critical to this economic impact potential. Accordingly, Gulfstream International Airlines initiation of air service as soon as possible is critical to our economic development success, as well as attracting those individuals that travel extensively. Preferably under their Option # 2, Gulfstream International will provide the level of service we so desperately need. We appreciate your efforts and those of your department on behalf of the Franklin/Oil City, Venango County and the entire Oil Heritage Region served by the Venango Regional Airport, and recognize the additional workload that resulted from the present carrier's 90 day notification to discontinue service. Thank you for your persistent efforts on our behalf.

By: Franklin Area Chamber of Commerce



OST-2004-17617 - DuBois
OST-1997-2523 - Oil City/Franklin


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

Mesa Air to shut Air Midwest, cut small city stops


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