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Five carriers bid for Cape Girardeau air service

Wednesday, August 19, 2009

(Photo)
A Great Lakes Airlines passenger plane lands at Cape Girardeau Regional Airport in Cape Girardeau, Mo., in this photo taken, Wednesday, March 25, 2009. Bids for air service at the airport were made public Tuesday, and Great Lakes wasn't among the airlines that submitted bids.
(AP Photo/Jeff Roberson)
[Click to enlarge]
The companies vying for Cape Girardeau's subsidized commercial passenger service believe there is a large untapped market here.

On Tuesday, the bids from five companies seeking a U.S. Department of Transportation contract to provide service in Cape Girardeau were unveiled.

The proposals, which were due Monday, include three carriers offering flights to St. Louis, two offering flights to Memphis, Tenn., and a fifth carrier proposing a variety of destinations that include Branson, Mo., Kansas City, Nashville, Tenn., Little Rock, Ark., and Cincinnati.

One-way fares under the proposals would range from as little as $50 to St. Louis up to $150 to Memphis.

The Southeast Missourian contacted four of the five companies submitting bids. All said they were eager to prove they can provide viable service at low fares. They pointed to 2006, the last year Cape Girardeau Regional Airport had reliable service for a full year, as evidence there are customers who would prefer to fly rather than drive to a major metropolitan airport. Nearly 8,000 passengers boarded RegionsAir flights in 2006. Through July 31, 404 passengers have boarded at the airport this year.

The proposals all seek subsidies under the Essential Air Service Program, a federally funded effort to support passenger service for smaller communities. Cape Girardeau's service was offered in a package with Fort Leonard Wood, Mo., Decatur, Ill., Marion-Herrin, Ill., Quincy, Ill., and Burlington, Iowa. Airlines were allowed to bid on one, some or all of the contracts.

Shane Storz, vice president of Air Choice One of Farmington, Mo., which is offering an option that includes two flights daily to St. Louis and two to Memphis, said his company has the flexibility to meet passenger demands. Air Choice One was the only other bidder besides Great Lakes Airlines during an emergency contract offering in early 2008 after Big Sky Airlines closed operations.

The city chose Great Lakes over Air Choice One because it had a lengthy history of operations, while Air Choice One was a startup with no passenger contracts. Since then, Air Choice One has begun serving Kirksville, Mo., while Great Lakes Airlines has generated complaints from airport manager Bruce Loy that its two daily flights don't provide the connections passengers want.

Loy said the bids will be closely reviewed and that he will set a date for meeting of the airport's advisory board.

Great Lakes did not seek to renew its contract in Cape Girardeau. That contract expires Nov. 1.

Low prices -- Air Choice One envisions ticket prices of $50 to $85 one-way -- will help bring passengers back, Storz said. "What the community needs to know, no matter who comes in, is that it is going to take some time to get those passengers back off the highway," he said.

Along with Air Choice One, the companies vying to provide the service, and receive subsidies of $1.25 million to $2.2 million a year, include Locair, a Fort Lauderdale, Fla., carrier; Alaska Juneau Aeronautics Inc. of Portland, Ore., doing business as SeaPort Airlines; Hyannis Air Service Inc. of Hyannis, Mass., doing business as Cape Air; and Gulfstream International Airlines of Fort Lauderdale.

One of the most ambitious proposals was offered by Locair, which bid on the contracts for Cape Girardeau, Quincy and Decatur. Locair wants to offer customers the choice of nonstop flights to Kansas City, Branson, Paducah, Ky., Nashville and Bowling Green, Ky. Locair would provide one-stop service to Little Rock, Wichita, Kan., Atlanta and Cincinnati.

The first route would be flights to Kansas City, said Nathan Vallier, general manager of Locair. "I need to find out where you want to go," he said. "If none of these work out, then I'll try Dallas, Chicago and Memphis. We could change fairly easily."

An online poll at semissourian.com received almost 1,000 votes, and 62 percent of those responding said they wanted flights to St. Louis. The second choice, at 21.2 percent, was Chicago.

Hyannis Air Services, which is known as Cape Air because of its service to locations on the Massachusetts coast, said it will be ready to use methods that have made it profitable in the Northeast and the Caribbean, said Michelle Haynes, communications spokeswoman.

The employee-owned airline emphasizes service. And while it uses nine-seat aircraft, it adds flights to the schedule when demand requires it, Haynes said.

"We want to make our customers happy and have a good time doing it," Haynes said. "We have thousands of people we help, and you have to make sure you are there when they want you to be."

Gulfstream Airlines submitted a bid requesting the Transportation Department award it all six cities or none. While a code-sharing arrangement with a major carrier is important, said Mickey Bowman, vice president of corporate development, it isn't essential.

"We honestly believe that the traffic can be brought back," Bowman said. "You have to provide reliable service, and a code share is important. Lastly we feel that fares have been a bit skewed and we are proposing a very low add-on fare."

Gulfstream expects to charge $50 each way to St. Louis.

The Department of Transportation has set a deadline of Sept. 16 to receive community recommendations about the choice of carriers, department spokesman Bill Mosley said. Contracts will be awarded as soon as possible after the community comment period ends, he said.

rkeller@semissourian.com

388-3642

Air service bidders

Five air carriers are competing to provide subsidized commercial passenger service from the Cape Girardeau Regional Airport. Great Lakes Airlines, the current service provider, did not seek to renew its contract. The applicants are:

ApplicantDestinationFare estimateSubsidy requested
Gulfstream InternationalSt. Louis$50$1.88 million
SeaPort AirlinesMemphis$150$1.1 million
LocairVarious$72.50$1.25 million
CapeAirSt. Louis$48$1.7 million
AirChoiceOneSt. Louis/Memphis$50-$85$1.6-$2.2 million

Source: U.S. Department of Transportation

Pertinent address:

Cape Girardeau Regional Airport, Cape Girardeau, MO


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The transportation department has set a deadline of Sept. 16 to receive community recommendations about the choice of carriers, department spokesman Bill Mosley said.

Try this as a recommendation concerning the airport. SHUT IT DOWN!

One-way fares under the proposals would range from as little as $50 to St. Louis up to $150 to Memphis.

Wow $300.00 for a round trip to Memphis? Well if someone wanted to burn some money this would be one way to do it.

-- Posted by gman on Tue, Aug 18, 2009, at 4:18 PM

Well, all these options suck. Close it down. Next!

-- Posted by Ainamolagem on Tue, Aug 18, 2009, at 4:19 PM

this is ridiculous....have many companies have failed trying this already?? the high and mighty businessmen and women of Cape can't get it through their thick skulls that there is NO market for this. Stick to air traffic control keeping an eye on crop-dusters and let this go already....it's insane to think this would ever be profitable...it's unbelievable the amount of stupidity running this town...

-- Posted by olbaidinthehouse on Tue, Aug 18, 2009, at 4:44 PM

Where are the bids for freight companies wanting to use our airport for distribution? I have said before, that Lambert is looking into freight haulers instead of passenger haulers. . .why don't we wake up and try this? It seems that we never think of alternatives, but the same old tired planning.

-- Posted by vietnamvet on Tue, Aug 18, 2009, at 5:26 PM

How many more times will our elected leaders go thru this dog and pony show? The airport is a money pit and needs to be shut down. Stop wasting time and money trying to force the airport to run.

-- Posted by Airborne 95B on Tue, Aug 18, 2009, at 5:54 PM

$50 one way to St. Louis is cheaper than taking BART. It is also a lot quicker! I would take a $50 flight to the airport, especially if it was connected with a major airline.

Vietnamvet: I don't think they can take bids for a freight company. Essential Air Service is for passenger service. I bet if anyone wanted to fly through freight in to the airport, they wouldn't object.

Airborne: The city isn't wasting time and money on the airline. The city doesn't contribute a dime to it.

-- Posted by SEMissouri70 on Tue, Aug 18, 2009, at 6:40 PM

Out of boredom:

Locair:

http://www.locair.net/index.htm

Alaska Juneau Aeronautics, Inc.:

No homepage found. Any help?

Seaport Airlines:

http://www.seaportair.com/

Hyannis Air Services Inc.:

No homepage found. Any help?

Cape Air:

http://www.flycapeair.com/common/index.p...

Multi-Aero Inc.:

http://www.multiaero.com/

Air Choice One:

http://www.airchoiceone.com/

Gulfstream International Airlines:

http://www.gulfstreamair.com/default.htm...

My vote is for Gulfstream Int'l... by a LONG SHOT.

Turn it into a race track/drag strip.

-- Posted by lurker on Tue, Aug 18, 2009, at 6:49 PM

Lurker: Curious. Why do you think Gulfstream International by a long shot?

I am still reading through the proposals and haven't decided on which one I would think would be better.

-- Posted by SEMissouri70 on Tue, Aug 18, 2009, at 9:24 PM

$50 is cheap to fly to St. Louis.

Factor in the subsidies and not so cheap.

Also, Lambert is not a major international hub anymore. Unless you have a freak accident, and actually find a connecting flight, prepare for a long, but fun filled exiting stay at Lambert. I mean, I like sitting in a comfy rubber chair watching CNN Headline News reading Sky Mall as much as anyone.

Actually, it may be worth it if I can bypass Lambert's Naziesque TSA employees.

-- Posted by lumpy on Tue, Aug 18, 2009, at 10:21 PM

In a recent Business Week there was an article about shuttle air service and subsidies. I would suggest everyone read the article and you will be more aware of the situation facing all small town airports such as Cape's. The shuttle's cannot survive without the subsidies and they typically use 6-seater planes. Even Lambert has seen a dramatic drop in flights and is no longer considered an international airport because it does not have direct overseas flights. The real question is why should the government continue to provide subsidies for air shuttles. It is a local issue and should be addressed locally. If the locals want shuttle service then figure out how to resolve the problem without federal subsidies.

-- Posted by colshotwell on Wed, Aug 19, 2009, at 5:32 AM

SEMissouri70,

Gulfstream Int'l is the only candidate that I've heard of! Also, considering that they offer charters to Cuba: fares might be reasonable for connecting flights out of Cape when the gov't finally allows us to legally go there again. [Yes, I know that Gulfstream will more than likely stop services in Cape long before the gov't finally realizes that the Cuban embargo should have been over with a long time ago.] Gulfstream also has alliances with Continental, Copa (a central american airline), and United.

lumpy and colshotwell are correct about Lambert. Besides the very few charters that go to, say, Cancun, there are no regularly scheduled international flights from Lambert anymore. In fact, the largest regularly scheduled passenger airliner to fly into/out of Lambert is a Boeing 757-200 operated by American. The only widebodied aircraft that use Lambert on a regular basis are DC-10s and MD-11s operated by UPS and FedEx. Lambert is more of a reliever airport for American's hubs in Chicago and Dallas/Ft. Worth than anything else. From my quick glance at Southwest's website, I don't think that they fly international.

-- Posted by lurker on Wed, Aug 19, 2009, at 7:24 AM

SEmissouri70,

If the city does not pay one dime toward the airport, who pays for the police and fire protection? Why has the city floated the idea of the county forming a commision and taking over the running of the airport? Thereby having everyone in the county pay for it not just the city.

-- Posted by Airborne 95B on Wed, Aug 19, 2009, at 7:53 AM

I agree. Those that voted for service to stl might not be aware that stl does not offer direct flights to most major cities. It is ridiculous to think an individual would fly out of CGI to STL then take ANOTHER indirect flight just to get to a place like Seattle. STL IS the regional airport that people from this area should be boarding first. Not Cape. The airstrip should do the right thing and NOT accept any more federal subsidies and focus on private airplanes. My vote would be to close it down; de-annex the airstrip from the town, quit providing police and fire protection to the airstrip, and sell the airstrip to a private company. The airstrip is located in Scott County - it should no longer be our problem (and never should have been to begin with). I am having great trouble seeing the difference between an enterprise securing federal funds for an unneeded losing venture (air service is not needed for Cape) for personal gain; versus the character from St. Louis named Rice acquiring a federal building to be used as an unneeded homeless shelter for his own personal gain.

-- Posted by Beaker on Wed, Aug 19, 2009, at 11:15 AM

I'm self-employed (gainfully unemployed?) and working out of Northern New England. I'd love to move back to the Midwest and live near home. My apartment rent up here would cover a mortgage on a nice home somewhere like Cape Girardeau.

But right now my work precludes that. For my business I need two things: a high-speed internet connection and easy access to airports that give me cheap and plentiful connections around the country. If I could fly into Chicago O'Hare or Midway direct from Cape Girardeau at $100-150 roundtrip, flight access would be better than I'm getting in the Northeast. With a lot less aggravation and roughly the same cost, I'd work out of somewhere like Cape Girardeau in a heartbeat.

I work with a number of people who who can be based most anywhere. My travels run to both coasts and the upper Midwest. If flights out of Cape airport were priced reasonably and went to a major hub like Chicago or Dallas, you'd be amazed what kind of businesses and professionals Cape Girardeau could gain. Memphis has some good connections, but prices are too high for me to regularly fly out of there. And sadly, St. Louis has been passed by.

I'm watching this process with real interest. Because I'd much rather be living back home than running my business up here.

-- Posted by jrhmobile on Wed, Aug 19, 2009, at 11:38 AM

Between Marion and Cape there really should only be 1 EAS facility. There is no reason for two airports in that close proximity to be offering the same service.

Some might want to check out the stories about Gulfstream and their relationship with the Gulfstream pilots school. They have been in the news recently because of concerns about the pilot training, and most recently the Cont Express pilot that crashed in Buffalo was a Gulfstream trained pilot. Not saying that they are a bad company, but there are some issues out there about pilot experience.

As far as Lambert, when TWA went under, what did people expect? Everyone else had efficient hubs already established. STL's best bet would be for Jet Blue to expand west, and make STL a midwest Hub, or for Southwest to expand further. STL is lucky that American still flys to more places then Chicago and Dallas.

-- Posted by semoredhawk on Wed, Aug 19, 2009, at 12:02 PM

I flew Cape St. Louis and back atleast 300 times when it was American Connection. It was great, free parking, short waits and lines. After the loss I didn't take another flight to STL and drove back and forth. The reason was the price, times, and lack of code share service.

Needless to say I said F off Cape Retardo and moved to sunny West Palm Beach and love the commute to PBI, FLL, MIA, or even MCO. Thank you Cape for pressuring me to make the move and good riddance. Hey no property tax, state income tax, no food tax I even got a raise.

-- Posted by Guano on Wed, Aug 19, 2009, at 4:15 PM

Airborne: I never said the city doesn't pay a dime towards the airport. I said the city doesn't pay a dime towards the EAS commercial service. That is 100% paid for by the Department of Transportation.

-- Posted by SEMissouri70 on Wed, Aug 19, 2009, at 7:17 PM

I apologize SEMissouri I did not mean to take you out of context but, I would have to disagree with you the DOT gets their money from the fed. and they get it from the tax payers. So you see in the end the tax payers still end up fitting the bill for the service and the airport.

-- Posted by Airborne 95B on Thu, Aug 20, 2009, at 8:18 AM

Like jrhmobile, I think multiple destinations would be the best option. I would actually use it. Now it's not worth the time & trouble.

-- Posted by Just__Me on Thu, Aug 20, 2009, at 1:47 PM

Locair-

I don't know if you remember me from the Jackson Sun forum but what a sorry excuse of a pathetic airline you are for pulling out of Nashville. I hope you go out of business and with an ever changing junk shop of a business model and management like you have I bet that will happen.

-- Posted by reader5 on Mon, Aug 31, 2009, at 6:03 PM


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