Sunday, April 29, 2012

Shoals eyes Silver Airways

By Russ Corey

Four Mississippi communities, the Shoals and an airport in West Virginia agree that Silver Airways is the airline they want to provide commuter air service under the Essential Air Service program.

The next step will be to convince the U.S. Department of Transportation that Silver Airways should be awarded the contract, even though its bid is significantly higher than the other airline seeking the contract.

Silver Airways, of Fort Lauderdale, Fla., is proposing non-stop flights from the Northwest Alabama Regional Airport to Hartsfield-Jackson Atlanta International Airport on a 34-seat Saab 340B-plus aircraft, an upgraded version of a twin-turboprop plane that flew out of the Shoals for years under the colors of Northwest Airlink and Delta Connection.

The proposal is an "all or nothing" deal that includes airports in Greenville, Tupelo, Hattiesburg/Laurel, all in Mississippi, and Greenbrier/White Sulphur Springs, W.Va.

The proposal has to be recommended by all five communities and be approved by the transportation department for all five communities.

The only other airline to submit a bid for Shoals air service was Air Choice One, of St. Louis, Mo., which is offering six proposals, including two all-inclusive proposals for the Shoals and three Mississippi communities.

Air Choice One proposals involve 24 weekly nonstop flights to the Memphis International Airport. The airline would utilize either an eight-seat, twin-engine Piper Navaho or a single-engine Cessna Caravan.

Three of the remaining four options involve the Shoals and Tupelo, Miss., including one that would provide service from the Northwest Alabama Regional Airport to Atlanta on an eight-seat Jetstream aircraft and an option for flights to Memphis on an 18-seat Jetstream.

The five communities appear to be solidly behind the Silver Airways bid despite it's costly price tag, which is more than double the price associated with Air Choice One even though several factors in each company's proposals are different. One of Silver's proposals involves a federal subsidy of more than $16 million.

Delta Airlines is currently providing air service at the airport in Muscle Shoals, but company officials are seeking to withdraw with the Essential Air Service program that subsidizes airlines that agree to provide service to mostly rural communities that are more than 50 miles from a larger airport.

Delta is receiving a subsidy of just under $1.8 million this year.

Northwest Alabama Regional Airport Director Barry Griffith said he does not expect any opposition to the bid from the local Air Services Committee.

Griffith said a local committee that reviews the EAS proposals and the airport's board of directors support the Silver Airways proposal.

In fact, there has been a coordinated effort among the Shoals, the Mississippi communities and the West Virginia community to support Silver Airways' bid.

"We're in the process of putting together our response as a coordinated response from all the airports in support of the Silver Airways bid as the best option and the one that has the best chance of being successful," Griffith said.

He said the Shoals and the other communities will send letters of recommendation to the U.S. Department of Transportation at the same time.

"It's safe to say that all three entities, as well as the mayor of Muscle Shoals, support it," he said.

A member of the local EAS committee, Shoals Chamber of Commerce President Steve Holt, said he prefers the Silver Airways proposal because of the Atlanta connection and the type of aircraft.

"Personally, that would be my first choice," Holt said.

Tupelo Regional Airport Director Joshua Abramson said the airport's website received numerous comments from community members who support the Silver Airways proposal.

"We definitely want Silver," Abramson said. "It's really the only option for us."

He said Tupelo travelers prefer to fly to the Atlanta airport because of the number of flights and available destinations.

"Memphis is not the airport it used to be," he said.

Delta Air Lines has cut 25 percent of its service to Memphis, which resulted in about 800,000 fewer passengers, Abramson said.

Abramson said he is concerned about the amount of the Silver Airways bid.

"That's what we're working on," he said.

Airport boardings were about 12,000 in Tupelo in 2011, Abramson said. Just more than 8,000 passengers used the Muscle Shoals airport in 2011.

He said the price may be more of a concern to the West Virginia community that's included in Silver Airways' bid.

Jerry O'Sullivan, manager of the Greenbrier Valley Airport in Lewisburg, W.Va., said Silver Airways was the only airline to submit a proposal to provide air service in his community.

"I'm all in on this bid," O'Sullivan said. "This is just what we want."

O'Sullivan said his community, like the others, needs the Atlanta route.

"I hope this bid goes through," O'Sullivan said. "We're going to try to work politically from our end. It would be the best thing for us, but there are some questions about the high price."

The deadline to submit comments to the U.S. Department of Transportation about the proposals is May 10.

Griffith said he expects transportation officials to act quickly to select a carrier to replace Delta.
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PROPOSALS

Proposals for providing commercial air service to and from Northwest Alabama Regional Airport in Muscle Shoals:

Silver Airways

(Both proposals for five communities)

    Option 1 (all inclusive):

34-seat Saab Turboprop

36 weekly flights to Atlanta

Subsidy: $16,757,974

    Option 2 (all inclusive):


34-seat Saab Turboprop

24 weekly flights to Atlanta

Subsidy: $14,773,473

Air Choice One

    Option 1 (all inclusive):

8-seat Piper Navajo

24 weekly flights to Memphis

Subsidy: $5,915,007

    Option 2 (all inclusive):

8-seat Cessna Caravan

24 weekly flights to Memphis

Subsidy: $6,567,977

    Option 3 (Greenville, Laurel/Hattiesburg, Miss.):

8-seat Jetstream

24 weekly flights to Memphis

Subsidy: $4,914,736 (24 weekly flights)

Subsidy: $4,251,210 (18 weekly flights)

    Option 4 (Muscle Shoals/Tupelo, Miss.):

8-seat Jetstream

24 weekly flights to Memphis

18 weekly flights to Memphis

Subsidy: $4,895,466 (24 weekly flights)

Subsidy: $4,204,285 (18 weekly flights)


    Option 5 (Muscle Shoals/Tupelo, Miss.):

8-seat Jetstream

24 weekly flights to Atlanta/Memphis:

$5,020,753

18 weekly flights to Atlanta/Memphis:

$4,227,729

Subsidy: $5,020,753 (24 weekly flights)

Subsidy: $4,227,729 (18 weekly flights)

    Option 6 (Muscle Shoals/Tupelo, Miss.):

8-seat Piper Navajo

24 weekly flights to Memphis

Subsidy: $3,480,367

18-seat Jetstream

18 weekly flights to Memphis

Subsidy: $4,102,115

Source:  http://www.timesdaily.com

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