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OST-2006-23929 - Trans States Airlines d/b/a American Connection - Notice of Termination of Service at Decatur, Illinois
http://www.flydecatur.com/ - Decatur Airport
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Trans States Airlines, Inc. d/b/a American Connection OST-2006-23929 - Termination of Service February 9, 2006 Notice of Termination of Service at Decatur, Illinois The routing and schedule of the service that TS is terminating on or after May 9, 2006, is as follows:
No other carrier is currently serving Decatur, Illinois. After TS terminates service, Decatur will be left with no service. Counsel: Trans States, Hulas Kanodia, 314-222-4300
Order 2006-2-21 Issued February 28, 2006 | Served March 3, 2006 Order Prohibiting Suspension of Service and Requesting Proposals for Replacement Service On February 10, 2006, Trans States tiled a 90-day notice of intent to suspend its subsidized air service at Decatur as of May 11. Trans States is the only carrier providing scheduled service at Decatur. Under Order 2005-1-17, January 21, 2005, the Department had selected Trans States to operate 19 nonstop round trips a week between Decatur and St. Louis with 30-seat Jetstream 41 aircraft at a subsidy of $954,404 annually for the two-year period beginning April 1, 2005. Decatur’s essential air service determination, as last established by Order 1980-2-124, February 25, 1980, required at least two daily round trips to both St. Louis (nonstop) and Chicago (no more than one intermediate stop) providing a total of 67 inbound and outbound seats. In recent years, however, the Department has been subsidizing a higher level of service to St. Louis alone in lieu of the dual-hub service stipulated by Decatur’s determination. Trans States’ suspension of service would leave Decatur without any scheduled air service. In accordance with 40 U.S.C. 41734, we will therefore prohibit Trans States from suspending service at the community. In doing so, we will require Trans States to continue operating the level of service that we currently subsidize: 19 nonstop round trips a week to St. Louis. We will also seek proposals, with or without subsidy requests, from carriers interested in providing replacement service at Decatur. Carriers should file their proposals within 30 days of the date of service of this order. Regarding Decatur specifically, we expect proposals consisting of service, at a minimum, with two-pilot, twin-engine aircraft offering at least 15 passenger seats, and meeting the community’s essential air service determination, described earlier. As we noted there, in recent years Decatur has received service a single hub rather than two, but at a higher service level than either hub requires in a dual-hub scenario. Carriers interested in proposing single-hub service should therefore be mindful of the community’s overall seating requirement. For example, single-hub service with 30-scat aircraft would require at least three round trips a day, or 18 a week, and single-hub service with 19-seat aircraft would require at least four round trips a day, or 24 a week. Carriers are welcome to propose more than one service option, if they envision other, potentially more attractive service possibilities with subsidy requirements that remain competitive. By: Michael Reynolds
April 3, 2006 RegionsAir is proposing four daily nonstop round-trip flights for a total of 48 weekly departures between Decatur, Illinois and St. Louis, Missouri. The flights will be operated as American Connection using the British Aerospace Jetstream 32 equipment and will augment our existing service and provide seamless connections to American Airlines and partners from the popular St. Louis Hub.
By: RegionsAir
April 4, 2006 DOT Letter to Mayor Paul Osborne Requesting Comments As you know, by Order 2006-2-21, February 28, 2006, the Department requested proposals from carriers interested in providing scheduled service at Decatur, with or without subsidy. Our request was prompted by the 90-day notice filed by Trans States Airlines, Inc., d/b/a American Connection, to suspend its subsidized service. We will require Trans States to maintain service until the carrier replacement case is completed. In response to our request, we have received one proposal, from RegionsAir, Inc. RegionsAir proposes to operate 24 nonstop round trips a week to St. Louis with 19-seat Jetstream 32 aircraft, at a subsidy of $1,242,250 annually. We would appreciate receiving your views on RegionsAir’s proposal before we make our recommendation to the Assistant Secretary. We ask that you submit your comments within two weeks of receipt of this letter. By: Dennis DeVany
April 13, 2006 Decatur Park Board of Commissioners in Support of RegionsAir RegionsAir Inc. has submitted a request to fulfill Essential Air Service on the Decatur to St. Louis route. We understand the service will be based on four flights each weekday and a reduced weekend schedule. All flights will be scheduled on the 19-seat, Jetstream32 aircraft. We request that DOT encourage RegionsAir to make an early transition from 19-seat to 30-seat aircraft at the earliest opportunity. We are very concerned that if we take a step backward with the 19-seat aircraft, that we will lose bookings. More importantly, we will lose the customer loyalty that we. have taken many years to build. As you are well aware, this move has great potential for doing irreparable damage to Decatur air service. By: Chris Riley
April 21, 2006 We were pleased to hear that RegionsAir Inc. has submitted a request to fulfill Essential Air Service to and from Decatur. We do, however, have at least one concern. RegionsAir has proposed utilizing a 19 seat Jetstream aircraft for its flights, which we believe would represent a substantial downgrade from our current level of service. Over the years we have worked very hard to provide the best service possible in what has become a very competitive local market and reports indicate that customers were much happier with the 30-seat aircraft operated by Trans States. We would ask that you encourage RegionsAir to consider utilizing the larger planes if at all possible once they become our carrier. By: Mayor Paul Osborne
Order 2006-4-24 Issued April 26, 2006 | Served May 1, 2006 Order Selecting Carrier and Establishing Final Subsidy Rate RegionsAir is the only carrier that has shown an interest in providing service in this case; it is experienced in operating commuter service both as a general matter and within the essential air service program specifically; and it has a codeshare alliance with American Airlines, Inc., the major carrier at the St. Louis hub. The community raises no concern about RegionsAir's desirability other than the size of its aircraft. And in that regard, we must note that RegionsAir's proposal to operate 19-seat aircraft fully meets the program's statutory minimum of 15 seats. In fact, the use of 19-seat aircraft has typified carrier operations in the program for many years. Consequently, RegionsAir is entirely qualified for selection in this case. We nonetheless appreciate the community's concern. The success of RegionsAir's proposed service is in the interest of both the community and carrier, and we strongly encourage them to work together to ensure that success. Our remarks here should not be construed as opposition to the use of 30-seat aircraft in the Decatur market. In fact, our request for proposals in Order 2006-2-21 specifically anticipated that possibility, though we subsequently received no such proposals. We remain open to that possibility in the future. By: Michael Reynolds
Issued June 2, 2006 | Served June 7, 2006 Order Extending Service Obligation On February 10, 2006, Trans States filed a 90-day notice of its intent to suspend its subsidized service at Decatur as of May 11. By Order 2006-2-21, February 28, 2006, the Department prohibited Trans States from suspending service and requested proposals, with subsidy if necessary, from carriers interested in providing replacement service. By Order 2006-4-24, April 26, 2006, the Department selected RegionsAir to provide subsidized essential air service at Decatur for a new, two-year period, beginning when the carrier inaugurates service, which is tentatively scheduled for July 1. Because the carrier transition will not have taken place by the end of the current hold-in period, in accordance with 49 U.S.C. 41734(c), we will extend Trans States’ service obligation at Decatur for an additional 30 days, or until RegionsAir actually begins service, whichever occurs first. By this order, the Department of Transportation extends the service obligation of Trans States Airlines, Inc., d/b/a American Connection at Decatur, Illinois, for an additional 30 days, through July 12, 2006. By: Todd Homan
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 Decatur in the event that Great Lakes Aviation is selected in this proceeding. Counsel: American, Carl Nelson, 202-496-5647, carl.nelson@aa.com
Issued March 9, 2007 | Served March 14, 2007 On March 8, 2007, RegionsAir informed the Department that it was immediately suspending all operations indefinitely. RegionsAir’s suspension of service will leave Decatur without any scheduled service to St. Louis, one of its designated hubs. We will therefore seek proposals, with or without subsidy requests, from carriers interested in providing replacement service at Decatur. Carriers should file their proposals within 20 days of the date of service of this order. By: Todd Homan
April 3, 2007 Proposal of Great Lakes Aviation Our relationship with American Airlines, Inc. will enable continuity of the previous air service which has been offered to American's St. Louis hub. Due to traffic declines related to the current suspension of service, and the influence of new competitive service being offered to Chicago pursuant to the State of Illinois "I-Fly'' program; reduced revenues are reflected in the first year bid. In anticipation of the recommencement of service and passage of time needed to restore traffic levels, Great Lakes is hereby offering a reduced subsidy rate for the second year of service. All proposals contemplate the use of 19 seat Beechcraft 1900D airliner equipment.
By: Great Lakes, Michael Matthews, 307-432-7000
April 4, 2007 Request for Community Comments of: In response to our request, we have received one proposal, from Great Lakes Aviation, Ltd. Great Lakes proposes 24 nonstop round trips a week to St. Louis with 19-seat Beech 1900 aircraft at subsidies of $1,350,256 for the first year and $1,055,844 for the second year. In addition, American Airlines has submitted a statement that it has signed a letter of intent with Great Lakes to operate American Connection-branded service on the Decatur-St. Louis route if the Department selects Great Lakes’ proposal. We would appreciate receiving your views on Great Lakes’ proposal before we make our recommendation to the Assistant Secretary. We ask that you submit your comments as soon as possible, and in any case before April 20. By: Dennis DeVany
April 4, 2007 Comments of: We were pleased to hear that Great Lakes Aviation Ltd. has submitted a request to fulfill Essential Air Service to St. Louis from Decatur, IL. As you know, we are facing a very tenuous time both locally and nationally in the airline industry, and it is good to know that we will have an expeditious retum of service from Decatur to St. Louis. We understand the service will be based on four flights each weekday and a reduced weekend schedule. All flights will be scheduled on the 19-seat, Beech 1900 aircraft. However, we request that DOT encourage Great Lakes to make a transition from 19-seat to 30-seat aircraft at the earliest opportunity.
Order 2007-4-12 Issued April 10, 2007 | Served April 13, 2007 Order Selecting Carrier and Establishing Final Subsidy Rate By this order, the Department is selecting Great Lakes Aviation, Ltd.. to provide essential air service at Decatur, Illinois, for a two-year period at subsidies of $1,350,256 for the first year and $1,055,544 for the second year. The community supports the resumption of service to St. Louis, and Great Lakes’ proposed subsidy rates are reasonable for the service it intends to provide. Great Lakes is the only carrier that has shown an interest in providing service in this case; it is experienced in operating commuter service both as a general matter and within the essential air service program specifically; and it has a code-share alliance with American Airlines, the major carrier at the St. Louis hub. The community raises no concern about Great Lakes' desirability other than the size of its aircraft. And in that regard. we must note that Great Lakes' proposal to operate 19-seat aircraft fully meets the program's statutory minimum of 15 seats. In fact, the use of 19-seat aircraft has typified carrier operations in the program for many years. Consequently, Great Lakes is entirely qualified for selection in this case. Our remarks here should not be construed as opposition to the use of 30-seat aircraft in the Decatur market, and we remain open to that possibility, in the future, provided that such service can be operated with reasonable subsidy requirements. The success of Great Lakes' service is in the interest of both the community and carrier, and we strongly encourage them to work together to ensure that success. By: Andrew Steinberg
OST-2000-7881 - Marion 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 Issued and Served August 17, 2007 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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