RegionsAir cuts prices

RegionsAir, the AmericanConnection carrier operating out of the Cape Girardeau Regional Airport, is cutting prices across the five states it serves to try to put passengers back in the air.

Previously, the lowest one-way fare to St. Louis was $213 and the lowest roundtrip fare was $426. Now, after the price cuts, the lowest one-way fare is $101.50 and the lowest roundtrip is $114. All of the figures include taxes.

The fares, say RegionsAir representatives, make flying competitive with ground travel. The airline hopes to encourage people who travel to St. Louis for baseball games or even medical treatment to consider flying.

Nathan Vallier, the newly appointed director of sales and marketing, said he hopes the new fares will help put people's faith back in the airline, which he admits has not had a stellar performance in recent months.

"We've been running a very lousy operation. Our service has not been what it should be," Vallier said.

He was referring to RegionsAir's 2006 cancellation rate of 8 percent at the Cape Girardeau Regional Airport. Cancellation rates in the three previous years were never greater than 4 percent, according to airport and federal figures.

Regions president and CEO Douglas Caldwell said the airline was struck by a spate of mechanical problems since spring 2006 and had to take eight of its 16 planes out of service at various times.

Vallier said he has big goals with this price cut.

"We want to stimulate air traffic. There is no reason we can't board 10,000 people per year in Cape Girardeau. If I can get the reliability back, then more people will get off the highway and into the air," he said.

Any airport that surpasses 10,000 passengers annually is entitled to an automatic $1 million subsidy from the U.S. Department of Transportation.

Cape Girardeau has never passed that mark. It had 8,270 passengers in 2006.

RegionsAir has another reason to entice customers to fly. Its contract with the Department of Transportation under the federal Essential Air Service program to provide service to Cape Girardeau and other towns is up for renewal. Three other carriers have submitted bids to provide the service.

'A little bit of turbulence'

The spotty record and the fact that it does not have the lowest bid put the airline in jeopardy of losing the contract, which expires May 31.

"The way I like to put it is every flight has a little bit of turbulence, and unfortunately our turbulence came at the very end of the flight. So lately this has not been fun operations for anybody," Vallier said.

The lowest bid came from Great Lakes Airlines based in Cheyenne, Wyo., which is asking for a $949,956 federal subsidy for service between Cape Girardeau and St. Louis. That figure is about $200,000 less than the expiring two-year contract from RegionsAir.

tgreaney@semissourian.com

335-6611, extension 245