TWE WITHDRAWS SUBSIDY APPLICATION; WORK TO SECURE ADDITIONAL AIR SERVICE NULLIFIED

Nine months of effort to secure expanded service at the Cape Girardeau Municipal Airport apparently is for naught as Trans World Express this week withdrew its application for a federal subsidy to operate here.

That means the U.S. Department of Transportation isn't likely to consider the city's recommendation that Lone Star Airlines of Texas be awarded the subsidy instead.

TWE currently is the commercial airline, providing service between Cape Girardeau and St. Louis. The airline last September notified the DOT that unless its operations were subsidized they would pull out of the Cape Girardeau airport.

By filing notification that it was seeking the subsidy, the DOT opened the door for the city to seek other airlines that might be interested in serving Cape Girardeau.

Lone Star, the only other airline to submit a proposal to the DOT, intended to provide air service between Cape Girardeau, St. Louis and Memphis, Tenn. But now TWE has said it doesn't need the subsidy, thereby undermining the city's hopes to secure air service to a second market.

Airport Manager Mark Seesing said Tuesday he was surprised and disappointed at TWE's action, which essentially assures there will be little or no change in air service in Cape Girardeau.

"The whole process of trying to get Lone Star in here to service a second destination is basically a moot issue now," Seesing said.

"We're basically looking at the status quo, which means for the last nine months we've wasted our time and effort."

At a joint meeting last week of the City Council and the Airport Advisory Board, the council unanimously recommended Lone Star's proposal to serve the airport.

At the study session of Monday's council meeting, Councilman Al Spradling III urged the city staff to send a letter to the DOT asking that the agency still consider the city's recommendation of Lone Star.

"There's a question as to whether TWE has been truthful about statements they've made regarding their service," Spradling said. "If we're recommending Lone Star, I think we should respond to TWE's letter."

Mayor Gene Rhodes suggested a local delegation go to Washington, D.C., to meet with the DOT to plead the city's case for a second airport destination.

But Seesing said attempts to persuade the DOT to subsidize Lone Star when TWE has said it can provide service without the money are futile.

"The DOT has to deal with taxpayers' dollars like everyone else," he said. "If they see an opportunity where an airline doesn't want their subsidy, I can't see them spending that money anyway.

"I think they've looked favorably on us in the past, but it may all be for naught now I don't know."

Public Works Director Doug Leslie said the city would sent a "follow-up" letter to reaffirm the city's decision to recommend Lone Star for the EAS subsidy.

The letter will emphasize that without additional destinations, airport boardings won't rebound and the service will have to be subsidized anyway, Seesing said.

Because it's an EAS airport, some airline must provide service here even if it's subsidized.

"I feel the current situation would lead to continued subsidy support and a long-term battle for the EAS funding," Seesing said.

Despite TWE's projection of increased boardings, Seesing said he didn't know where the additional enplanements will come from.

"I don't know where they're coming up with their projections," he said. "If the situation stays the same, I see everything staying the same including boardings."

Airport Board Chairman Jerry McClanahan said Monday the city also should send TWE's withdrawal letter to Lone Star to see if the airline will challenge TWE's service claims.

"Maybe it should be challenged by somebody else who's put a proposal together," he said.

Phil Mishk, director of marketing for TWE, didn't return a reporter's telephone call Tuesday. But he has said that without the DOT's help the airline would cease service here.

At last week's meeting, Mishk said: "TWE will pull out if the DOT agrees with what the city's wishes are. We really have no other option but to vacate the market."

McClanahan said that apparently has changed. "They figured out some way to do it," he said. "Either they'll subsidize the airline themselves, or they've been making money all along."

Rhodes said, "It makes them look pretty stupid, doesn't it?"

He said the city should inform the DOT of TWE's failure to aid the city's efforts to market the airport.

"We should question why we spent $15,000 to $20,000 a couple of years ago promoting the airport and TWE did absolutely nothing and was canceling flights left and right," Rhodes said.

McClanahan said the city's promotional efforts haven't ceased. "We're promoting the airport right now," he said. "We're building a new terminal building, and we don't want to be without an airline down there."

City Manager J. Ronald Fischer said the withdrawal of TWE's subsidy application apparently is a "maneuver TWE is taking to keep this market."

Seesing said there's nothing to keep TWE from reapplying for the subsidy in a few months, something he fully expects to happen.

"I feel they're going to continue to do it until they get what they're after," he said. "They're looking to continue to operate here but with a subsidy."