[FONT=Arial Black,LB Helvetica Black][SIZE=+1]DOT grounds bid by Big Sky Airlines[/SIZE][/FONT][FONT=Verdana,Trebuchet MS,Arial,Helvetica,Geneva]Grand Island's new Essential Air Service carrier is Mesa Airlines of Phoenix, according to the Grand Island Independent.
The air carrier proposed to fly twice daily to Omaha -- departing at 5:55 a.m. and 2:45 p.m. and offer once daily departures at 2:35 p.m. to Kansas City. One-way fares are $59 to Kansas City and $49 to Omaha.
"I'm going to reserve comment until the board all gets together," said Central Nebraska Regional Airport Executive Director Mike Olson. "But I will tell you the community is probably going to be disappointed."
The Hall County Airport Authority board met Wednesday morning but didn't yet have news about the air service contract. Olson said he received a phone call from U.S. Sen. Chuck Hagel's office at 11:45 a.m. Wednesday giving him notice of the change in air carriers.
As of Wednesday afternoon, Olson had not yet received word from the federal Department of Transportation, which oversees the Essential Air Service (EAS) program. That program pays a subsidy to air carriers to fly in sparsely populated areas that typically would not have air service.
Currently, Grand Island has three-a-day EAS flights to Denver by Cheyenne, Wyo., air carrier Great Lakes Airlines.
The new contract with Mesa Airlines is to go into effect July 1, but that may be pushed back to give the airline time to mobilize.
Olson said there's a chance the Hall County Airport Authority may want to appeal the contract being awarded to Mesa.
"There is an appeal process in place that we are looking into," Olson said.
The airport authority is attempting to schedule a special meeting at 7:30 a.m. either Wednesday or Friday of next week, he said.
During the recent bidding process that airlines undergo to be awarded EAS contracts, there were 11 flight proposals submitted by four different airlines. The Hall County Airport Authority, City of Grand Island and Hall County unanimously supported a bid by Big Sky Airlines of Billings, Mont. that would have flown Grand Island passengers twice a day to Kansas City and once a day to Denver.
Olson said that proposal was apparently rejected by the federal Department of Transportation in order to save money. It appears that DOT combined Grand Island air service with McCook air service in order to save about $400,000 in EAS spending, he said.
Currently Grand Island receives $1.2 million a year and McCook gets $1.5 million. The combined total is $2.7 million, however Mesa bid to serve both communities for $2.29 million.
"At least we got there attention going east," said Grand Island Area Economic Development Corp. President Marlan Ferguson. "But the issue here may be sharing a plane with McCook."
The flights to Omaha originate in McCook, meaning the 19-seat planes could be partially or all full by when they stop in Grand Island, Olson said.
Olson is concerned about the sharing because Grand Island is trying to boost its total air passenger numbers to 10,000 or beyond. That passenger number is critical for Grand Island's airport to remain eligible for Airport Improvement Program funding -- unless that federal program is cut or its eligibility criteria altered.
Olson also is concerned about renting hangar space to Mesa. Hangar rentals are a revenue generator for the airport. Under the Mesa proposal, planes will be kept overnight in McCook and Kansas City.
Another revenue generator for the airport -- a share of fuel sales -- could be in jeopardy with Mesa, Olson said. Fuel sales may occur in McCook, Omaha or Kansas City instead of Grand Island.
Great Lakes has already quit buying the majority of its fuel locally, Olson said. The airport had budgeted to have $50,000 in revenue from its share of fuel sales and will be lucky to hit $30,000, he said.
Ferguson said there is some disappointment and he expects a mixed reaction from area business leaders -- many of whom lobbied mostly for Kansas City and Minneapolis service.
"And there was even some support for Omaha early on," Ferguson said. "But I don't think Omaha is what the majority of businesses want to see. This will have a lot of discussion."
Olson agreed that Omaha is not a highly desired place to fly into.
"Omaha is a dead-end street and we didn't get any support for that destination," Olson said.
Olson hadn't heard what other EAS contracts were awarded in Nebraska. He did not know if Great Lakes Airlines may still be flying westbound from nearby Kearney into Denver. A call to Great Lakes Airlines Chief Executive Officer Chuck Howell was not returned Wednesday.
[/FONT]Damn!!!!!! That is not going to help out with getting a class started.