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OST-2003-14492

http://www.ci.quincy.il.us/transportation/regionalairport/ - Quincy Regional Airport



Essential Air Service at Quincy, Illinois

OST-2003-14492 January 14, 2003 45-Day Notice of Corporate Airlines d/b/a American Connection of Intent to Terminate Essential Air Service at Quincy, IL. Essential Air Service at Quincy, IL. 45-Day Notice to Terminate Service

At the time of the filing of this notice, only Corporate Airlines, Inc., flying as American Connection is providing scheduled air service at Quincy, Illinois. Traffic results have been significantly below the levels needed, and as a result the revenues generated from the flights have not covered the costs of providing the service.

By: Doug Caldwell, 615-223-5644



Order 2002-2-26
OST-2003-14492
Issued February 28, 2003
Served March 5, 2003
Order Prohibiting Suspension of Service and Requesting Proposals  EAS at Quincy, IL - St. Louis, MO by Corporate Airlines d/b/a American Connection
    Service List  

By this order, the Department is (a) prohibiting Corporate Airlines Inc., d/b/a American Connection from suspending its unsubsidized service from Quincy, IL to St. Louis, MO at the end of its 90-day notice period, and (b) requesting proposals, with or without subsidy requests, from carriers interested in providing replacement service.

By: Read C. Van de Water



OST-2003-14492 February 25, 2003 Letter from Norman Mineta to the Honorable Richard Dubin Notice of Intent to Terminate Service

Ex Parte Letter from Norman Y. Mineta, Secretary of Transportation, to The Honorable Richard J. Durbin, United States Senate, thanking him for his January 29 letter concerning Corporate Airlines' notice to the U.S. Department of Transportation to suspend its unsubsidized scheduled service between Quincy and St. Louis.

By: Norman Mineta



OST-2003-14492 March 20, 2003 Proposal of Corporate Airlines d/b/a American Connection to Provide Essential Air Service at Quincy, IL EAS at Quincy, IL - St. Louis, MO

By: Douglas Caldwell

OST-2003-14492 March 20, 2003 Response of Mesa Air Group EAS at Quincy, IL - St. Louis, MO

Response of Mesa Air Group on behalf of its wholly-owned subsidiary Air Midwest, Inc. to request for proposals 2003-2-26 for competitive proposals between Quincy, Illinois and Kansas City, Missouri.

By: Scott Lyon, 602-685-4368, scott.lyon@mesa-air.com


OST-2003-14492 - 45-Day Notice of Corporate Airlines to Terminate Service

March/April 2003

Civic Letters in Support of Corporate Airlnes

By: Quincy, IL Civic Parties



Order 2003-5-5
OST-2003-14492 - EAS at Quincy, IL - St. Louis, MO

Issued May 5, 2003 | Served May 8, 2003

Order Extending Service Obligation | Word

On January 15, 2003, Corporate Airlines filed a 90-day notice of its intent to suspend its unsubsidized service at Quincy effective April 15, 2003. By Order 2003-2-26, February 28, 2003, the Department prohibited Corporate from suspending service beyond the end of its 90-day notice period, through May 14, 2003, and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service.

Although we have received proposals, this case will not be completed before the end of the current 30-day hold-in period. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Corporate’s service obligation at Quincy for an additional 30 days, or until replacement service actually begins, whichever occurs first.

By: Randall Bennett



Order 2003-5-12
OST-2001-8731
- Burlington, IA
OST-1996-1559 - Cape Girardeau / Ft. Leonard Wood, MO
OST-1996-1167 - Cape Girardeau / Ft. Leonard Wood, MO
OST-1997-2515 - Kirksville, MO
OST-2000-7857 - Jackson, TN
OST-2000-7881 - Marion, IL
OST-2000-7855 - Owensboro, KY
OST-2003-14492 - Quincy, IL

Issued May 9, 2003 | Served May 14, 2003

Order Setting Final Rates | Word

As discussed in Order 2002-2-13, the Department authorized emergency EAS payments to all subsidized carriers because of the losses suffered by them in the face of generally lower revenue and higher costs after the terrorist attacks of September 11, 2001, combined with the fact that the EAS carriers are paid on a pre-agreed, fixed rate per flight. Recently, Order 2003-5-7, issued May 6, 2003, set final rates for seven of the above communities (all except Quincy) from October 1, 2001, until the respective ends of the various contracts. This Order sets final rates that go into effect at the expiration of those contracts, and will remain in effect until further Department action while we process the various carrier selection proceedings for all the communities.

By: Read C. Van de Water



May 21, 2003

Correspondence of Dennis DeVany

Correspondence to the Honorable Charles W. Scholz from Dennis J. DeVany requesting comments on carrier's proposals within 2 weeks of receipt of this letter.

By: Dennis DeVany



May 22, 2003

Correspondence of Charles Scholz

By: Charles Scholz



Order 2003-5-32
OST-2003-14492 - Essential Air Service at Quincy, Illinois

Issued May 29, 2003 | Served June 3, 2003

Order Selecting Carrier and Establishing Final Subsidy Rate

The Department selects Corporate Airlines, Inc., d/b/a American Connection, to provide essential air service at Quincy, Illinois, for a two-year period through July 31, 2005, at a subsidy rate of $1,109,530 annually. After careful consideration of both carriers' proposals and the community's comments, we have decided to select Corporate's proposal, offering 26 nonstop round trips a week to St. Louis at an annual subsidy of $1,109,530. The proposed rate appears reasonable for the service to be provided, and Corporate's performance continues to be satisfactory.3 Corporate has indicated that it expects to be able to implement the proposed service in about 30 days.

By: Read C. Van de Water



Order 2003-6-9
OST-2003-14492 - EAS at Quincy, IL

Issued June 5, 2003 | Served June 10, 2003

Order Extending Service Obligation | Word

By Order 2003-5-32, May 29, 2003, the Department selected Corporate to provide subsidized essential air service at Quincy for a two-year period, through July 31, 2005. Corporate expects to be able to implement its proposed service by the end of June. Thus, in accordance with 49 U.S.C. 41734(c), we will extend Corporate's service obligation at Quincy for an additional 30 days, or until its proposed service actually begins, whichever occurs first.

The Department extends the service obligation of Corporate Airlines, Inc., d/b/a American Connection, at Quincy, Illinois, for an additional 30 days, through July 14, 2003.

By: Randall Bennett



Order 2004-11-13
OST-2002-11859 - EAS at Decatur, Illinois
OST-2003-14492 - EAS at Quincy, Illinois

Issued and Served November 16, 2004

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Decatur and/or Quincy, Illinois, for two-year periods beginning April 1 and August 1, 2005, respectively.

By: Karan Bhatia



December 15, 2004

Proposal of Corporate Airlines d/b/a American Connection

Corporate Airlines proposes to offer 4 weekday and 3 weekend roundtrips between Quincy and St. Louis operating British Aerospace Jetstream 32 aircraft. The flights will be operated as American Connection, using the American Airlines code. Corporate Airlines is currently providing air service at Quincy.

Corporate Airlines has entered into a long‑term lease of hangar space at Quincy and intends to begin performing a significant portion of its maintenance functions at that facility.

It should be noted that although operating costs for airlines have increased significantly over the past year, lead by drastic increases in fuel prices, Corporate Airlines has actually reduced its compensation requirement by $12,000 per year.

By: Corporate Airlines


December 16, 2004

Proposal of Mesa Air d/b/a Air Midwest for Provide Essential Air Service

A surprising characteristic of these markets, especially in Decatur, has been a much higher percentage of leisure traffic compared to business travel. Mesa believes that this has been driven primarily by the lack of service to the Chicago area, especially nonstop from either Decatur or Quincy. Mesa proposes offering service to Chicago Midway (MDW) as the primary hub, which enables business traffic to once again fly out of Decatur and Quincy instead of other local airports, but also allows connecting opportunities to Southwest, ATA, or any other carrier operating from Midway.

By: Mesa, Mickey Bowman


December 16, 2004

Proposal of Multi-Aero d/b/a Air Choice One

By: Multi-Aero, Shane Storz, 800-795-7192


December 15, 2004

Proposal of Trans States Airlines to Provide Essential Air Service for Decatur, IL

By: TSA



December 17, 2004

Re: Request for Comments of The Honorable Charles Scholz, Mayor of Quincy

By: Dennis DeVany



January 3, 2005

Re: Comments of The City of Quincy

Thank you for your letter of December 17, 2004 and the opportunity to comment on the proposals submitted for air service at Quincy Regional Airport. As you know, Corporate Airlines currently serves our community with 26 non-stop roundtrips a week to St. Louis on a 19-passenger twin engine aircraft. We in Quincy are very satisfied with the level of service and excellent spirit of cooperation that exists between the City of Quincy and Corporate Airlines. Our hope is that the United States Department of Transportation will continue to support a subsidy to provide this essential service that has been such a vital part of the economic development of our community.

The proposal from Multi-Aero for a single engine 9-seat plane is not acceptable to the City of Quincy and we strongly urge the Department of Transportation to support the Corporate Airlines' proposal.

The Mesa proposal for 24 non‑stop roundtrips to Midway with a 19-seat Beech 1900 aircraft would be an important improvement for air service to our community in that we could then re-establish Chicago service. This would also be a boon to our local economy. However, our top priority remains continuation of the current service level to St. Louis with an adequate aircraft such as the 19-seat Jetstream 32. Thanks as always for your attention, consideration and cooperation. If I can provide further input please do not hesitate to contact me personally

By: Charles Scholz, Mayor



Order 2005-1-17
OST-2002-11859 - EAS at Decatur, Illinois
OST-2003-14492 - EAS at Quincy, Illinois

Issued January 21, 2005 | Served January 26, 2005

Order Selecting Carriers and Establishing Final Subsidy Rates

By this order, the Department is selecting Trans States Airlines, Inc., d/b/a American Connection, to provide essential air service at Decatur, Illinois, for a new two-year period beginning April 1, 2005, at a subsidy rate of $954,404 annually, and selecting Corporate Airlines, Inc., d/b/a American Connection, to provide essential air service at Quincy, Illinois, for a new two-year period beginning August 1, 2005, at a subsidy rate of $1,097,406 annually.

By: Karan Bhatia



Order 2007-2-2
OST-2003-14492

Issued February 1, 2007 | Served February 6, 2007

Order Requesting Proposals

By this order, the Department is requesting proposals from carriers interested in providing essential air service at Quincy, Illinois, for the two-year period beginning August 1, 2007.

With respect to Quincy specifically, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft with at least 15 passenger seats, and offering 24 round trips a week to St. Louis or some other suitable hub. This level of service represents what the Department has been willing to subsidize to St. Louis in the absence of any service to Chicago. As we have already noted, the Quincy community recently began to receive service to Chicago and Kansas City in addition to St. Louis. Nonetheless, we are willing, for the present, to continue to subsidize a high level of service to St. Louis or some other hub in recognition of the joint state-and-local effort to build Quincy’s air service, and in view of the fact that Air Midwest’s service has just begun. We will therefore defer our consideration of the new service’s implications with respect to Quincy’s needs under the Department’s essential air service program until we can assess the results of the new service.

By: Todd Homan



OST-2000-7881 - EAS at Marion/Herrin, IL
OST-2003-14492 - EAS at Quincy, IL
OST-2006-23929 - EAS at Decatur, IL

February 27, 2007

Re: Letter from Senator Richard Durbin - Regions Air Service Record

Regions has a code‑share relationship with American Airlines, which allows passengers to seamlessly book travel on flights to and through American's regional hub at Lambert International Airport in St. Louis. through American Connection. Regions receives over $3.5 million per year in EAS subsidies as part of the two‑year contracts with. the U.S. DOT.

In the last three months, Regions has failed to adequately fulfill its contracts to operate these flights. Flight cancellation figures for November, December, and January were 1.6 percent, 27 percent, and 15.5 percent, respectively. In contrast, according to the Bureau of Transportation Statistics, the average percentage of flights canceled in the domestic passenger market was 1.71 for all of 2006.

Regions' poor service record and large number of cancellations deter travelers from flying into or out of Quincy, Marion, Decatur, and Springfield which has a detrimental effect on the local economies. In addition, this deficient service is the primary factor for Quincy's inability to meet the important. 10,000 passenger threshold, which qualifies Quincy Regional Airport for a $1 million Federal Aviation Administration grant.

By: Senator Durbin



March 6, 2007

Sample Airport Facility Lease | Word

By: Interim Airport Director, Jeffrey Steinkamp, 217-228-4527



March 8, 2007

Proposal of Air Midwest

Option # Hub(s) Service Annual Subsidy
1 MCI 4 RT - 2 Nonstop & 2 One-Stop $1,192,033
2 MCI 4 RT - 3 Nonstop & 1 One-Stop $1,322,742
3 MCI 3 RT - 1 Nonstop & 2 One-Stop $895,069
4 MCI 3 RT - All Nonstop $1,182,459
5 MCI 3 RT - 2 Nonstop & 1 One-Stop $1,025,778
6 MCI 4 RT - All Nonstop $1,599,132
7 MCI 2 RT - All One-Stop $563,172

All operations proposed would utilize our modern fleet of Raytheon/Beechcraft B-1900D airlines.

By: Air Midwest, Jeffrey Hartz


March 8, 2007

Proposal of Great Lakes Airlines

Proposal Service Point(s) Hub(s) Round Trips Equipment Subsidy Requirement Passengers Forecast Average Fare
1 Quincy St. Louis 4 1900-D $1,532,891 15,000 $59.25
2 Quincy St. Louis 4 1900-D $1,421,614 17,750 $58.87

Great Lakes will offer service at this Essential Air Service point operating as a American Connection-branded service provider.

By: Great Lakes, Michael Matthews


March 8, 2007

Proposal of Regions Air

  1. Service at current levels (4 round trips per day), 52 flights per week.
  2. Service at the 4 round trips per day level, but at 48 trips per week as called for in the RFP.
  3. Service at the 3 round trips per day level (36 flights per week).
  4. Service at the 2 round trips per day level (24 flights per week).

All flights are bid as non-stop to St. Louis, MO as AmericanConnection, utilizing 19-seat British Aerospace Jetstream 32 aircraft.

By: RegionsAir, Douglas Caldwell

RegionsAir shuts down flights - Southeast Missourian, Friday, March 9th


March 9, 2007

Request for Community Comments of:



March 12, 2007

Statement of American Airlines

American Airlines hereby states that it has signed a letter of intent with Great Lakes Aviation to operate American Connection-branded service between St. Louis and Quincy in the event that Great Lakes Aviation is selected in this proceeding.

Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com


March 12, 2007

City of Quincy in Support of Great Lakes Airlines

I would respectfully recommend the proposal submitted by Great Lakes to provide 24 nonstop round trips a week to St. Louis with 19-seat Beech 1900 aicraft at subsidies of $1,532,891 for the first year and $1,421,614 for the second year.

By: Mayor, John Spring



Order 2007-3-10
OST-2003-14492

Issued March 13, 2007 | Served March 16, 2007

Order Selecting Carrier and Establishing Final Subsidy Rates

With the end of the rate term approaching. the Department issued Order 2007-2-2. February 1, 2007. requesting proposals from carriers interested in providing essential air service at Quincy. with or without subsidy, for a new two-year period beginning August 1, 2007. On March 8. however, RegionsAir informed the Department that it was immediately suspending all operations indefinitely.

By this order, the Department is selecting Great Lakes Aviation, Ltd., to provide essential air service at Quincy, Illinois, for a two-year period at subsidies of $1,532,891 for the first year and $1,421,614 for the second.

The community fully supports Great Lakes' proposal, which would maintain nonstop American Connection service to St. Louis, and thus would provide more on-line connecting opportunities than Mesa can offer at Kansas City with US Airways and Midwest Airlines, its code-share partners there.

RegionsAir's current rate term is scheduled to expire on July 31, and it remains eligible for subsidy if it is able to restart service before that date. However, in view of RegionsAir's shutdown, we are here authorizing Great Lakes to begin service as soon as possible. We expect RegionsAir and Great Lakes to coordinate the transition in essential air service responsibilities. In particular, we expect RegionsAir to contact all travelers holding reservations for flights that it has suspended, to inform them of the suspension and of Great Lakes' replacement service, and to secure alternate air transportation fur such travelers or to provide them with a refund of their ticket price, without penalty, if requested.

By: Andrew Steinberg



OST-2000-7881 - Marion
OST-2006-23929 - Decatur
OST-2003-14492 - Quincy

July 24, 2007

Notice of Air Midwest to Terminate Scheduled Air Service

Air Midwest, Inc. 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 service between Decatur, Quincy & Marion, Illinois and Chicago, Illinois effective October 22, 2007.

The termination of service by Air Midwest will reduce air transportation at all three communities to a level below the essential air service determination set forth in the respective orders.

At present, Air Midwest is the sole provider of certificated scheduled air service at each community. Air Midwest is hereby providing public notice of its intent to terminate scheduled air service with the expiration of the 90-day notice as required. Any objections to this Notice to Terminate Service must be filed within twenty days from the date of this filing.

By: Mesa, Tom Bacon



Order 2007-8-15
OST-2000-7881 - Marion
OST-2006-23929 - Decatur
OST-2003-14492 - Quincy

Issued and Served August 17, 2007

Order

We will allow Air Midwest to suspend its services at the three communities at the end of its 90-day notice period. In doing so, we are deferring to an Air Service Development Agreement entered into by the carrier, the communities, and the State of Illinois in January 2007, under which Air Midwest undertook to provide the services now at issue. Section 4.A of that Agreement specifies that “any party may terminate this Agreement at any time upon ninety days prior written notice to the other parties.” In bargaining for this provision, Air Midwest stated a reasonable condition for undertaking the services, and in agreeing to it, the communities acknowledged and gave Air Midwest the right to cease providing service after providing such notice. We do not believe we should effectively rewrite the Agreement, negating Section 4.A, and creating an unbargained-for benefit for the communities and an unbargained-for burden for Air Midwest.

As noted earlier, Decatur’s and Quincy’s determinations stipulate service to two hubs, Chicago and St. Louis, whereas Great Lakes’ forthcoming services will be operated to St. Louis only. However, when we initiated the carrier-replacement cases that led to our selection of Great Lakes to provide service at Decatur and Quincy, we recognized that Air Midwest’s services to Chicago had just begun, and that their success was uncertain. We therefore explicitly requested -- and ultimately selected -- proposals for Decatur and Quincy that offered service levels to St. Louis high enough to compensate for the possible loss of Air Midwest’s services to Chicago. Great Lakes’ services will now do just that.

Before Air Midwest suspends service, however, we expect it to contact all travelers holding reservations for travel after its suspension date, to notify them of its suspension and Great Lakes’ incoming service, and to secure alternate air transportation for such travelers or to provide them with a refund of their ticket price, without penalty, if requested.

By: Michael Reynolds


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