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The proposals to provide subsidized commercial passenger service at Cape Girardeau Regional Airport provide a good variety of aircraft, destinations and schedules, Airport Advisory Board member Rick Hetzel said Tuesday.
Speaking after hearing a sales pitch from Gulfstream International Airlines, Hetzel said reviews of the five companies vying for the local contract will give the board the ability to ask for changes from airlines eager to obtain a recommendation.
"Anytime we get five companies competing, it gives the city some leverage to get what is best," Hetzel said.
The meeting with Mickey Bowman, vice president of corporate development for Gulfstream, is the first of several to discuss individual proposals with airline representatives. There will be at least two more meetings, preferably next week, airport manager Bruce Loy said, followed by a board meeting to make a recommendation.
Cape Girardeau's service is being offered along with routes from Decatur, Ill., Marion/Herrin, Ill., Quincy, Ill., Burlington, Iowa, and Fort Leonard Wood, Mo. Gulfstream would take all passengers to St. Louis.
Gulfstream International Airlines, based in Fort Lauderdale, Fla., wants to be the provider for all six cities, Bowman told the advisory board. The carrier's proposal, he said, meets the transportation department standards for aircraft size -- each airplane has room for 19 passengers, four more than the minimum. And the $12.14 million subsidy being sought is similar to what taxpayers would pay if the contracts are split among several carriers.
"To have sufficient mass to make this work for us, we have to have all six cities," Bowman said.
Of the other four carriers vying for the Cape Girardeau contract, only Locair, also of Fort Lauderdale, is planning to use 19-seat aircraft. Cape Air of Hyannis, Mass., SeaPort Airlines of Portland, Ore., and Air Choice One of Farmington, Mo., all have asked to use nine-seat aircraft. The city would have to approve a waiver if it selects one of those carriers.
Due to service interruptions, Cape Girardeau hasn't had reliable air service for a full year since 2006. In that year, almost 8,000 people boarded flights. So far this year, with carrier Great Lakes Airlines operating two flights daily, 404 passengers boarded through July 31.
'A trust issue'
Hetzel and other members of the board questioned Bowman about his company's commitment to providing good service. "We've got a community that is skeptical," Hetzel said. "There is a trust issue."
Gulfstream began as a charter airline in 1988. Today, Bowman said, it serves 25 cities in five states as well as the Bahamas and Cuba. Since it began serving five cities in Pennsylvania, New York and West Virginia in 2008 under an Essential Air Service contract, it has completed 96 percent of its scheduled flights, including flights grounded due to weather, Bowman said.
Bowman said Gulfstream will be ready when the contract starts by assigning three airplanes from its Florida operations and purchasing a fourth airplane to serve as a spare when one of the main three airplanes are out of service.
"We see this as a two-year commitment to make it work," he said.
The assurances about available aircraft allay some concerns, Loy said. But he wasn't pleased with the proposed Cape Girardeau schedule -- the first flight would leave at 8:05 a.m. and arrive in St. Louis at 8:55 a.m. By 9 a.m., Loy noted, 22 of American Airlines' daily flights from St. Louis have already departed.
"I had aircraft as a major issue," Loy said. "Now it is a minor issue. But I still don't like the schedule."
Other board members had issues with the timing of the last returning flight, which would leave St. Louis at 7:35 p.m. That's too early to help passengers who arrive on evening flights, board members noted.
Gulfstream plans to charge $50 each way for tickets. It also wants to establish "code-share" arrangements with at least one major airline so passengers can purchase a ticket to their ultimate destination through a single booking service.
The board's choice must be confirmed by the Cape Girardeau City Council as the city's selection. The final decision is up to the U.S. Department of Transportation, which administers the Essential Air Service program that provides subsidies to support passenger service in smaller communities.
The Department of Transportation last week set a Sept. 16 deadline for recommendations from Cape Girardeau and five other cities included in the same bid package.
388-3642
Pertinent address:
Cape Girardeau Regional Airport, Cape Girardeau, MO
Comments
Please insist that the airline code share with the main airlines at their destination. IE: St Louis = American, Memphis = Continental.
Why would you want Memphis' code share to be Continental? Northwest/Delta is the majoy carrier out of the airport. Memphis is one of Northwests major hubs.
I am platinum with American and would fly all of my flights out of cape if the new carrier had an agreement with American..
a whole lot of wasted taxpayers money being spent here. not for sure it is worth any of it. we are too close to st. louis for this to be a money making market. but as long as the taxpayers will pay the bill the powers to be will certainly spend all they can get. a lot easier to spend someone elses money.
what is the status of the airplane making company who is behind on their rent/payments???? is that a dead issue???? the end of august is fast approaching....
"Anytime we get five companies competing, it gives the city some leverage to get what is best," Hetzel said.
"We've got a community that is skeptical," Hetzel said. "There is a trust issue."
Was this done at a stand up comedy club?
Leverage would be having 8,000 paying customers using the service instead of 404. Oh and don't forget about that big fat subsidy as well.
Next Candidate for Mayor
Great point about Premier, I guess with all the pants wetting going on due to the excitement of having 5 companies biding on local air service. Someone forgot to ask about this deal that was suppose to be done this month. The back rent keeps adding up.
Multiple destinations is the only way to go.
Lets see, 50 minute flight to St.Louis 10 minutes to depart plane and arrive in terminal several more minutes to arrive at gate. I can drive to Lambert in 1 1/2 hours at a cost of around 14 dollars and allow plent of time for parking and shuttle. I think I will drive since I can be there in the same amount of time and cost less than half the fare. I am sure that 50 dollar one way does not include the other bullcrap charges like taxes and airport fees! We need an airline that is willing to offer flights to Midway or Ohare so that travelers can get the best rates to other destinantions. St Louis fares to other locations in the continental US are outrageous.
Otherwise close the darn thing and build a drag strip!
Am I the only one who finds it amusing that NONE of these five companies gave a rats behind about serving Cape until the latest subsidy report came out revealing Cape as one of the highest subsidized airports in the Nation?
Don't be fooled into thinking these companies care anything about service. They will do only what it takes to receive the "free money".
Lets see....full tank of gas to drive to and from St. Louis....time used to drive....parking for say seven days at at least 20.00 a day and not having to deal with St. Louis airport security. Sounds like a good deal to me
One, Cape is too close to St. Louis Lambert Regional (and other airports like Marion) to justify the terrible waste of taxpayer dollars; two, Cape is waaay too small to support an airport, and this was illustrated by the fact that the subsidy per passenger is $2000; three, we got along just fine when there was no air service and all 3 regular customers figured out they could rent a limo to St. Louis. Close the airstrip down, de-annex the land, and sell the airstrip to a private company. Enough already!
Cartman you said, "parking for say seven days at at least 20.00 a day.
My God Man, where in the hell do you park.
Geez, try parking in lot C first exit on I-70
going east from I 270. Its less than half the price your spending and the shuttle picks you up every 3 or 4 minutes! Have you ever flown or parked out of Lambert? I have to wonder.
Ok parking for seven dollars a day for seven days $49.00. And if you want to park in the ghetto that is fine, but some of us have nicer vehicles that we do not want to park in the hood.
Tank of gas to get to St. Louis and back. 3 hours total hour driving time. Check in at St. Louis 30 minutes, then security. You can get to the Cape airport and be on the plane in less than 10 minutes, including security and check in.
Some of us are not just traveling to St. Louis. I take a eight hour trip twice a year and do not want to sit in a car for another hour and half if I do not have too. Again, well worth the money.
You are right greywolf on parking but if you can get to Lambert in the morning in 1 1/2 hours then you must have a flying car. 270 is a parking lot at morning rush hour and evening. It's 1 3/4 ours with no traffic. I fly out of lambert 2 weeks out of the month and would much rather fly out of cape if feasible. I'm not holding my breath for this to happen.
If you have a 7am flight out of Lambert in the morning, it is AWFUL. They say you have to be at the airport 1 hour before your flight leaves. That means you be at the airport by 6am. That then means leaving Cape around 4:00-4:15am. I don't want to have to wake-up that early. Same thing if you get back in on an evening flight to St. Louis.
I can spend 15 minutes driving to the Cape airport and hop on the plane. Free parking. None of the security headaches/mess. Sign me up. Just keep the fare relatively inexpensive.
Here's the other thing. Keep the price at $50 and you beat BART and can get there much quicker.
Why are all the flights just going to St. Louis? Would it not be feasible if they do get an air carrier in place, to also offer occasional trips to say, Branson or Springfield, and other intermediate tourist destinations? I drive the hour and a half to St. Louis because it's not worth the cost to fly, but the 5-hour drive to Branson and Springfield would be worth paying for an airline ticket.
People scream and holler about welfare yet think it's OK to pay $50 for a ticket and let the taxpayers pay an additional $2000 per. What's the difference? Why should I have to pay for your ticket? If an airport can't support itself, shut it down.
Since when did it cost $2000 per passenger? Check your numbers. It is $200 per passenger.
Just because there is government money coming in to the airport doesn't mean it doesn't support itself. This is just for commercial service. There are lots of private aircraft coming in and out of the airport. I drove by there today and saw several private jets sitting there. I am assuming they were corporate jets. There were also several airplanes sitting there too.
bassnnailer,
My bid actually includes 4 nonstops a week to Branson - fare would vary between $59 to $150 each way. From Branson, the idea is you can then connect to Oklahoma City, Little Rock, or New Orleans (if you needed to get there).
We're also proposing flights to Cincinnati, Kansas City, Nashville, and Atlanta.
I'm boarding more passengers out of a tiny airport in Kentucky than Cape did all year - so I think our proposal is the best fit - let us experiment w/ you to determine the BEST traffic patterns and get more people flying - which means bypassing St. Louis.
If you want to help, let the Airport Board know you support us!
btw, check out our Locair Policies page - we offer 25% childrens discount and don't charge bags based on number of bags, but total weight.
SEMissouri70,
$1,497,542 annual subsidy through mid 2010. You do the math.
nate@locair,
You could have easily answered the subsidy question yet chose not to. Avoiding the subject will not keep people from knowing that's the only reason you're here. It's OK to be in this race just for the subsidy (which all five are) but be big enough to say it.
locair,
Thank you for your response. I would certainly rather fly to Branson than drive. Your proposed fare would be comparable if not less than the cost to drive. I know several others who also would fly to Branson several times a year, and I will pass along to them to add their support of locair as well to the Airport Board.
Malan,
When you are in the airline business, your costs are triple, if not quadruple, the standard costs of normal businesses. If your tire on your car needs replaced, you'll pay $50. I'll be lucky to pay $900. And it has to be a trackable part, with numbers and serial numbers on everything - including some bolts. That adds to my expenses.
Certain markets we can come in and not require any assistance - such as some cities from Branson between March thru August, but others we have to have something to help get us started.
If I were to come in to Cape tomorrow and offer all of these flights, we'll be broke in a matter of weeks. We have to spend $10k - $20k to market them, pay $250k - $500k in deposits, money that's just not laying around. this is on top of ever increasing fuel prices (we burn 90 gallons an hour, at about $4.xx a gallon - adds up quickly). The cost of my aircraft insurance is about how much we pay a month in our aircraft lease... which is more than what most people make in a year...
The government has subsidized the bailout of banks, auto makers, health care, etc.. so whats wrong with subsidizing air service?
And if you look at my numbers compared to the others, I think we're using the tax dollars in a much better manner... we're offering to come in and experiment to see which markets actually work for Cape rather than just force you to chose between a $100 roundtrip ticket to St. Louis (how may families of 4 will do that) versus a drive up I-55? At least with my airline, you'll pay $150 to Branson, your kids will pay a little over $115/120 -- and I can get you to Atlanta or Cincinnati with a quick stop along the way to stretch your legs, check email/voicemail, or grab a bite.
nate@locair,
"The government has subsidized the bailout of banks, auto makers, health care, etc.. so whats wrong with subsidizing _ _ _ _ _ _ _ (insert business here)?
Pretty poor argument don't you think?
I don't have a problem with any of the companies seeking the subsidy. I do have a problem with the subsidy being there at all. Any company or industry that can't make it on it's own deserves to fail. For the life of me, I can't see any justification for a couple grand of taxpayer money being spent on every passenger setting foot on the plane. Let bassnailer and everyone else pay their own way.
But hey, if it's there for the taking, take it. Just please, don't try to blow smoke and make people think you're here to help Cape or for any reason other than the subsidy. It lessens you.
I think we can provide a service that none of the other bidders offer:
choices
and of course, customer friendly policies.
But the subsidy IS the main draw.. it allows us to charge lower ticket prices and offer service that otherwise wouldn't exist.
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.
Nate,
Regarding your comment, "The government has subsidized the bailout of banks, auto makers, health care, etc.. so whats wrong with subsidizing air service?"; That is a very sad statement you made. Where does it all end? Ok, my credit card is getting a little high, so maybe I should check with the sugar daddy government for some government money. You know as well as 99% of the townspeople here that we do not need any air service. Sure, some people would rather fly to branson than drive. But you know, the drive isn't that bad. For those that balk at the drive to Branson, there are plenty of airports nearby with service to Branson, and the drive to those airports is quite comfortable. I'm with Malan on this, this town becomes part of the problem when they sign up for this government money, when history has shown us that virtually nobody uses the airport based on the 400 boardings in a full year.
Reader5,
We pulled out of Nashville because we were only getting a few people a flight - I think that your airline will see the same results - when you couple a very short flight to a low-cost hub, most people will continue to drive. Even more so considering that you all will have to clear security in MKL, only to do the same thing again in Nashville if you are connecting to Southwest.
However I hope you were one of the few folks that did take advantage of our $39 fares. We couldn't continue Nashville because of the drain on the services: would your business continue something that isn't profitable when other products that ARE profitable are working?
Our business model hasn't changed since I took helm of the company in March.
Beaker - The EAS program is a drop in the bucket when you look at how government spends its money. If you don't agree with it, then don't support the local airport, don't fly from Cape, and please contact your Congressman to have the program dismantled... that's the best way for your voice to be heard, not to come on here and fire at those of us who are coming in wanting to do something better with the government money. As Reader5 pointed out, we stopped flying Nashville to Somerset because we were using up a lot of tax payer money on that route and used it more efficiently for a route that boarded 200 passengers last MONTH alone - and this town is 1/3rd the size of Cape.
I'm surprised Reader5 hasn't researched Pacific Wings more - who is getting close to $800 a flight for a 30 minute trip to Nashville - when the actual cost of a flight in a Caravan for that leg is maybe $480-$500.
You didn't do a drop of advertising in Nashville or let ANYONE know you were here nor were you in the Main Terminal where people could have stayed behind security. That's why it didn't work. Pacific Wings has a number of things going for it. For one, they have said already that they've never pulled out of an EAS route and some don't even need subsidies anymore. Owensboro also pulls from Evansville and is farther away. Jackson is bigger than Somerset and companies there also have offices in Nashville(being in the same state family ties also exist). The continuation to Atlanta will pull extra pax and also draw local Nashville traffic for that leg as well. They are also in the main terminal, flying everyday, doing advertising, and have a much longer and more successful track record than you guys do. Your history is just a spattering of the Air Azul flop and EAS service that is more like a charter than an actual commercial airline. I hope Gulfstream gets the contract as, like Pacific Wings with us, they are much more experienced and likely to succeed. Just compare them with Locair based on proven history, connections with major airlines, reliability, frequency of flights, etc. etc. and you'll see very easily who is the best choice. This Nate guy and his Locair is a fly-by-night operation. You don't want them. All one needs to do is look at Cape Air and their short hops to BWI to know that those type of short distance flights to a low cost hub can work.
While Mr. Vallier of Locair does bring up some valid points here, he completely undermines them with his pandering and de facto advertising on a public forum. Whatever the pluses and minuses of the other bidding carriers may be, at least their presidents don't try to lobby and get free advertising for their airline as "Nate" does here..in clear and blatant violation of the Terms of Use of this comment board, no less. For that alone, Locair should be escorted out of town, told not to return, and the other communities Locair has proposed starting service to should be advised of Mr, Vallier's shenanigans. Slick huckstering trying to hide behind the pretense of altruism might work in FL and the other areas you serve, but it won't sell in SeMo!