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http://www.flyshd.com/ - Shenandoah Valley Regional Airport

Air Midwest, Inc. 

Air Midwest, Inc., a Mesa Air Group subsidiary, intends to discontinue scheduled non-subsidized Essential Air Service between Staunton Virginia, and Pittsburgh Pennsylvania, effective April 1, 2002. Air Midwest, Inc. is currently operating three daily round trips using Beech 1900D aircraft.

Although Air Midwest would prefer to continue providing scheduled air service to the Shenandoah Valley, the substantial cost increases resulting from increased federal regulations for regional carriers makes it impossible to continue without an EAS subsidy. The absence of any subsidy requires Air Midwest to advise the city of Staunton that scheduled air service will be discontinued. We are willing to discuss possible alternatives, but will need to hear from you as soon as possible.

By:  Air Midwest, William Kostel

Counsel:  Wharton Aldhizer, Chris Brown, 540.438.5350

Staunton's essential air service guarantee, as defined by Order 94-5-7, May 6, 1994, requires at least two nonstop round trips each weekday and weekend to Washington providing at least 66 seats in each direction. Although Pittsburgh is not Staunton's designated hub, the Department allowed Atlantic Coast Airlines to suspend its service as of December 12, 2001, concluding that Air Midwest's service to Pittsburgh would sufficiently meet Staunton's continuing need for a link to the national air transportation system. Moreover, the Department noted that as a code-share partner of US Airways, Inc., the major carrier at Pittsburgh, Air Midwest is able to offer Staunton travelers on-line connecting service throughout US Airways' system. In fact, the Department previously relied on service to Pittsburgh to meet Staunton's essential air service requirements for nearly four years, until ACA began service to Dulles in April 2000.

In calendar year 2000, Staunton generated a total of 40,684 O&D passengers, an average of 65.0 enplanements per day. This represents a significant increase over 1999, when there were 31,734 O&D passengers, or an average of 50.7 enplanements per day.

We request that any carriers interested in providing essential air service at Staunton file proposals within 20 days of the date of service date of this order. We ask that carriers submit proposals for three nonstop round trips a day, six days a week, to Washington or Pittsburgh, with 15-seat or larger, pressurized aircraft. We will also entertain proposals to serve other hubs that provide access to the national air transportation system in order to give the Department and the communities as broad an array of proposals as possible from which to choose. Of course, as always, we will formally solicit the community's views on any service options we receive before making a long-term carrier selection decision. In order to assist carriers in making their traffic and revenue forecasts, we have included historical traffic data in Appendix B.

By:  Read Van de Water

By:  Gus Carbonell

On January 23, 2002, Air Midwest, Inc., d/b/a US Airways Express, filed a 90­day notice of its intent to suspend its subsidy-free service at Staunton, effective April 23, 2002. By Order 2002-3-19, March 20, 2002, the Department prohibited Air Midwest from suspending service at Staunton for an initial 30-day period, through May 23, 2002, and stated that we would issue subsequent 30-day hold-in orders until we could secure replacement service. Although we have received proposals, this case will not be completed before the end of the current hold-in period, and as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30-day period.

By:  Randall Bennett

On January 23, 2002, Air Midwest, Inc., d/b/a US Airways Express (Air Midwest), filed a 90-day notice of its intent to suspend its subsidy-free service at Staunton, effective April 23, 2002.¹ By Order 2002-3-19, March 20, 2002, the Department prohibited Air Midwest from suspending service at Staunton for an initial 30-day period, through May 23, 2002, and stated that we would issue subsequent 30-day hold-in orders until we could secure 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 June 24, 2002, by Order 2002-5-23. Although we have received proposals, this case will not be completed before the end of the current hold-in period, and as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30-day period.

By:  Randall Bennett

Colgan is a regional airline operating a fleet of Beech 19000 and D model aircraft and SAAB 340B aircraft. Colgan operates scheduled regional service as US Airways Express under a services agreement with US Airways. Colgan's proposed service will operate as US Airways Express and will provide seamless online connecting service to US Airways' national and international route system via the Pittsburgh hub. Colgan proposes to use 19-seat Beech 1900 aircraft to serve the market with a minimum of 3 weekday roundtrips and 2 daily weekend roundtrips. Colgan requests annual subsidy for service at Staunton in the amount of $656,781.

By:  Colgan Air, Michael Colgan, 703.331.3101

By:  Randall Bennett

.

On January 23, 2002, Air Midwest, Inc., d/b/a US Airways Express (Air Midwest), filed a 90­day notice of its intent to suspend its subsidy-free service at Staunton, effective April 23, 2002. By Order 2002-3-19, March 20, 2002, the Department prohibited Air Midwest from suspending service at Staunton for an initial 30-day period, through May 23, 2002, and stated that we would issue subsequent 30-day hold-in orders until we could secure 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 August 23, 2002, by Order 2002-7-11.

By:  Randall Bennett

Order 2002-9-11, the Department extends Air Midwest's service obligation at Staunton, Virginia, for an additional 30 days, through October 23, 2002.  Although we have received proposals, this case will not be completed before the end of the current hold-in period, and, as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30-day period.

By: Randall Bennett  

Although we have received proposals, this case will not be completed before the end of the current hold-in period, and, as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30-day period.

By: Read Van de Water

Correspondence from the Commonwealth of Virginia, Department of Aviation, endorsing the proposal of Colgan Airways to provide essential air service at the Shenandoah Valley Regional Airport.

By: Keith McCrea

As you know, by Order 2002-3-19, March 20, 2002, the Department requested proposals from carriers interested in providing scheduled service, with or without subsidy, at Shenandoah Valley Regional Airport. Our request was prompted by Air Midwest's filing of a 90-day notice to suspend its unsubsidized service as of April 23, and we have been requiring Air Midwest to maintain its service while we process the carrier replacement case.  We have received two proposals in response to our request: from Mesa Air Group on behalf of its subsidiary and the incumbent, Air Midwest, and from Colgan Air, Inc. Both carriers propose to operate 19 nonstop round trips a week to Pittsburgh with 19-seat Beech 1900 aircraft, and both have code-share relationships with US Airways, Inc. Air Midwest's proposal contains a subsidy request of $514,211 a year, whereas Colgan's proposal contains a subsidy request of $623,667 a year.

By:  Aviation Analysis, Dennis DeVany

Order 2002-11-7, the Department extends Air Midwest's service obligation at Staunton, Virginia, for an additional 30 days, through December 23, 2002.

By: Randall Bennett

Community representatives have performed extensive research and analysis on both proposals submitted. The results of that research and analysis are contained in the attachment titled, Community Analysis. Based on the comparison and merits of the two proposals, it is our community's opinion that the Colgan Air proposal is clearly superior in meeting the objective of our community, which is development of the market and potential for future independence from the program.

By: Gerald Garber

Order 2003-1-4, the Department extends Air Midwest's service obligation at Staunton, Virginia, for an additional 30 days, through January 22, 2003.

By: Randall Bennett

After careful consideration of the carriers' proposals and the community's views, we have decided to select Colgan to provide essential air service at Staunton for a one-year period at its proposed annual subsidy rate of $623,667, with an extension for an additional year subject to the mutual agreement of the carrier and the Department. 

Reaching a decision in this case was difficult, particularly in view of the continued strain on program resources. In some respects, Colgan's and Air Midwest's proposals are identical: both carriers propose 19 nonstop round trips a week to Pittsburgh with 19-seat Beech 1900 aircraft, and both have code-share alliances with US Airways, Inc., the dominant carrier at Pittsburgh. The choice therefore lies between Air Midwest's lower subsidy requirement versus the community's strong preference for Colgan, which it believes is more likely to return Staunton''s service to self-sufficiency in the long term. Given Staunton's history of nearly always being self­sufficient, we believe that the community's return to self-sufficiency is a realistic prospect, and we will not gainsay the community's opinion as to which carrier is more likely to achieve that objective. The difference in subsidy between the two proposals -- about $109,000 -- is not substantial in comparison with the long-term program savings that self-sufficiency would realize. We have therefore decided to give Colgan an opportunity to work with the Staunton community to rebuild the market.

By: Read Van de Water

Although we have received proposals, this case will not be completed before the end of the current hold-in period, and, as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30-day period.

By: Randall Bennett

The Department recently issued Order 2003-1-14, January 17, 2003, selecting Colgan Air to provide replacement service at Staunton. Colgan expects to inaugurate its service in the very near future. Therefore, since this case will not be completed before the end of the current hold-in period, and, as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30-day period, or whenever Colgan begins replacement service, whichever occurs first.

By: Randall Bennett

Letter from Norman Y. Mineta, Secretary of Transportation, to the Honorable Bob Goodlatte, U.S. House of Representatives, thanking him for his letter of November 19, cosigned by Senator John Warner and Senator George Allen, concerning the proposals to seve the Shenandoah Valley Regional Airport under the Essential Air Service program administered by the U.S. Department of Transportation.

By: Norman Mineta

The Department recently issued Order 2003-1-14, January 17, 2003, selecting Colgan Air to provide replacement service at Staunton. Colgan expects to inaugurate its service on or about April 20, 2003. Therefore, since this case will not be completed before the end of the current hold-in period, and, as required by 49 U.S.C. 41734, we must continue to hold Air Midwest in at Staunton for an additional 30‑day period, or whenever Colgan begins replacement service, whichever occurs first.

By:  Randall Bennett

Order 2003-12-10
OST-2002-11378 - EAS at Salina, KS

Issued December 9, 2003 | Served December 12, 2003

Order Extending Service Obligation

This case will not be completed before the end of the current 30‑day hold‑in period. Therefore, in accordance with 49 U.S.C. 41734(c), we will extend Air Midwest's service obligation at Salina for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett

January 27, 2004

Re: Shenandoah Valley Airport Endorsement of Colgan

Since the initial award to Colgan in April of 2003, the Shenandoah Valley has continued to see substantial improvements in passenger enplanements. As we anticipated, shortly after the award, Colgan added a fourth unsubsidized frequency to the market and adjusted flight schedule to better meet the banks at the Pittsburgh hub. These service enhancements have been well received by the community, which is reflected in the increased passenger movements.

Colgan has also sucessfully partnered with the community in our promotional programs thereby creating a sense of loyalty and ownership of the service. They have taken an active role in our community, including participation in the Chambers of Commerce. economic development efforts, and local events. They have also provided invaluable marketing support to the Airport Commission The above, combined with Colgan's impressive performance record, has created the increased passenger traffic which continues to post increases in total passengers and load factors, It demonstrates what cast be accomplished when a carrier and community share the sante goal and commitment to building air service.

While there is still work to be done to return this community to a profitable level for Colgan, it is without hesitation that the Airport Commission on behalf of the community, endorse the Colgan Air proposal to provide commercial air service.

By: Gregory Campbell

Order 2004-2-8
OST-2002-11378

Issued February 9, 2004 | Served February 12, 2004

Order Selecting Carrier and Establishing Final Subsidy Rate

By this order, the Department is selecting Colgan Air, Inc., dlb/a US Airways Express, to provide essential air service at Staunton, Virginia, for an additional one-year period beginning May 1, 2004, at a subsidy rate of $615,578. After careful review of Colgan's proposal and the community's views, we have decided to select Colgan to continue providing essential air service at Staunton for an additional year, beginning May 1, at its proposed subsidy rate of $615,578. Colgan's proposed rate is reasonable for the service at issue, and its performance continues to be satisfactory.

By: Karan Bhatia

Order 2004-10-22
OST-2002-11378

Issued and Served October 29, 2004

Order Requesting Proposals

As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at Staunton, with or without subsidy, for the two-year period beginning May 1, 2005. Carriers should file their proposals within 30 days of the date of service of this order. At the end of that period, our staff will docket the proposals, thereby making them public, and direct each carrier to serve a copy of its proposal on the civic parties and other applicants. Shortly afterwards, we will provide a summary of the proposals to the community and ask it to submit its final comments. We will give full consideration to all proposals that are timely filed.

Staunton had rarely required subsidy to support its scheduled service prior to the 9/11 terrorist attacks. In fact, since the essential air program's inception in 1978, Staunton had required subsidy only from May 1994 until July 1996.7 Following 9/11, however, Atlantic Coast Airlines, Inc., d/b/a United Express, suspended its unsubsidized service to Washington's Dulles International Airport in December 2001. Three months later, in March 2002, Air Midwest, the sole remaining scheduled‑service carrier at Staunton, filed notice to suspend its unsubsidized service to Pittsburgh. As noted earlier, the Department ultimately selected Colgan to provide subsidized service to Pittsburgh as Air Midwest's replacement, and Colgan began service in April 2003.

Staunton averaged 60.5 enplanements a day during calendar year 2001, but traffic declined sharply after 9/11. During the year ended September 30, 2004, the most recent 12-month period for which data are available, Staunton averaged 25.9 enpianements a day, which represented a 22 percent improvement over the previous 12-month period, when the community averaged 21.2 enplanements a day.

By: Karan Bhatia

December 6, 2004

Proposals of Colgan Air

After consulting with the community, Colgan presents two proposed options intended to enhance air service. Option A offers 19 nonstop roundtrips per week on a B1900 aircraft from the community to Pittsburgh and requires a subsidy of $808,024. Option B offers 19 nonstop roundtrips per week on a B1900 aircraft from the community to Washington's Dulles International Airport and requires a subsidy of $650,123.

By: Michael Colgan, 703-331-3101

December 6, 2004

Re: Request for Comments from John Avoli, Mayor of Staunton, VA

Colgan’s proposal contains two options: Option A offers 19 nonstop round trips a week to Pittsburgh at an annual subsidy of $808,024, whereas Option B offers 19 nonstop round trips a week to Washington’s Dulles International Airport at an annual subsidy of $650,123. In either case, Colgan would continue operating its service with 19-seat Beech 1900 aircraft.

By: Dennis DeVany

December 17, 2004

Re: Shenandoah Valley Regional Airport Commission Letter in Support of Colgan Air

By: Gerald Garber

Order 2005-1-2
OST-2002-11378 - EAS at Staunton, VA

Issued January 7, 2005 | Served January 12, 2005

Order Selecting Carrier and Establishing Final Subsidy Rate

By this order, the Department is selecting Colgan Air, Inc., d/b/a US Airways Express, to provide essential air service at Staunton, Virginia, for the two-year period beginning May 1, 2005, at an annual subsidy rate of $650,123.

By: Karan Bhatia

Order 2006-11-18
OST-2002-11378

Issued November 20, 2006 | Served November 24, 2006

Order Requesting Proposals

As the end of the current rate term approaches, we are here requesting proposals from carriers interested in providing service at Staunton, with or without subsidy, for the two-year period beginning May 1, 2007.

With respect to Staunton specifically, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft containing at least 15 passenger seats, to Washington or some other suitable hub. Proposals should offer 18 round trips a week with 19-seat aircraft or 12 round trips a week with 30-seat or larger aircraft; such service levels are consistent with what the community currently receives, and generally satisfy its essential air service requirements.

Staunton’s essential air service determination, as last established by Order 1994-5-7, May 6, 1994, required at least two nonstop round trips to Washington each weekday and weekend providing a minimum of 66 inbound and outbound seats. The service levels we are requesting here will provide Staunton with slightly less than its 1994 guarantee of 66 seats. However, in view of Staunton’s traffic results since the 9/11 terrorist attacks, the requested levels should easily continue to accommodate local demand as a practical matter.

By: Todd Homan

December 27, 2006

Proposal of Colgan Air to Provide EAS

Respectfully submits a proposal to continue providing subsidized service between the community of Staunton, Virginia and Washington's Dulles International Airport. Our proposal continues to utilize a Beech-1900D aircraft flying under the USAirways Express brand and would require an annual subsidy of $1,389,727.

The proposed service pattern for the community would be 18 non‑stop flights each week to Washington Dulles operated as USAirways Express with Beech‑1900D aircraft. Colgan also will reserve the right, subject to community and DOT approval, to upgrade service to Saab‑340A or Saab‑340B aircraft while decreasing the number of required weekly trips to 12 non‑stop flights.

The services offered by Colgan to Staunton, Virginia from Washington Dulles will be operated as USAirways Express, and will allow for connections to all United Airlines flights which carry the USAirways code. Colgan is the incumbent carrier, and as such, has consistently meet community air service needs and has demonstrated a commitment to outstanding passenger service.

By: Colgan, Michael Colgan

December 27, 2006

Re: Letter to Mayor of Staunton, VA - Request for Final Comments

In response to our request, we have received one proposal, from the incumbent, Colgan Air, Inc. Colgan proposes 18 nonstop round trips a week to Washington's Dulles International Airport with 19‑seat Beech 1900 aircraft at an annual subsidy of $1,389,727.

In reviewing the subsidy calculations, it is important to bear in mind that the projected passenger revenues are not simply based on the average local fares that passengers would actually pay. Rather, they are based on the carrier's expected revenue per passenger, and therefore largely reflect the prorated shares of ticket prices that the carrier expects to receive for providing the local segments of through trips ‑‑ for example, the Staunton-Dulles segment of a Staunton‑Dulles‑New York trip.

We would appreciate receiving your final comments on Colgan's proposal by January 19, before we make our recommendation to the Assistant Secretary.

By: EAS & Domestic Analysis, Dennis DeVany

January 2, 2007

Comments of Shenandoah Valley Regional Airport

As Chairman of the Shenandoah Valley Regional Airport Commission, I am responding on behalf of the City of Staunton and the other four local governments of the Central Shenandoah Valley Region which are represented by members of the Airport Commission.

Since 2002 Colgan Air has provided exemplary service to our community and have always worked closely with us whenever issues arise. While Colgan’s bid represents an increase in the subsidy required, it appears much of the increase is attributable to significant increases in cost of fuel and less total passenger revenue than was anticipated with the last bid. In their proposal submitted in 2004. Colgan had yet to provide service to Washington Dulles and therefore could only estimate the number of passengers and associated revenue from this hub.

It is without hesitation that we endorse the proposal submitted by Colgan Air and request that the DOT select Colgan to provide service to our community.

By: Gerald Garber

January 8, 2007

Comments of Virginia Department of Aviation

The Commonwealth of Virginia, Department of Aviation desires to support the application of Colgan Air to continue service, between Shenandoah Valley Regional and Washington Dulles International, under the Essential Air Service program.

Colgan Air is the incumbent for this city pair and has consistently met or exceeded community expectations for service to the Valley. We believe a continued expansion of capture of the existing local market will likely occur, and further that the natural process of increased enplanements will follow as the economies of the Valley continue to grow.

By: Keith McCrea, 804-236-3624

Order 2007-1-17
OST-2002-11378

Issued January 26, 2007 | Served January 31, 2007

Order Selecting Carrier and Establishing Final Subsidy Rate

By this order, the Department is selecting Colgan Air, Inc., d/b/a US Airways Express, to provide essential air service at Staunton, Virginia, for the two-year period beginning May 1, 2007, at an annual subsidy rate of $1,389,727.

By: Andrew Steinberg

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