Friday, August 21, 2015

SeaPort Airlines will grant Shoals' request to withdraw air service

MUSCLE SHOALS — SeaPort Airlines will grant requests from airport authorities in the Shoals and in Tupelo, Mississippi, to withdraw its federally subsidized commercial air service from those markets.

The airline operates in the two communities under the Essential Air Service Program.

SeaPort, which began service in the Shoals on Jan. 12, provided four daily flights to Nashville International Airport until earlier this summer when the Portland, Oregan-based airline cut flights to one per day.

A nationwide shortage of qualified airline pilots has been blamed for the reduction.

On Aug. 11, the Tupelo Airport Authority voted to ask SeaPort to withdraw its service, and on Tuesday, the Northwest Alabama Regional Airport Authority did the same thing.

Tim Sieber, SeaPort’s vice president for strategy and corporate development, said the airline will honor those requests.

“Absolutely,” Sieber said. “The reality is, we go in trying to be a partner with the community. We’re going to respect their wishes. It’s really an unfortunate situation. We really had high hopes for both Tupelo and Muscle Shoals.”

Sieber said SeaPort has trained about 60 pilots in the past four months, but as soon as new ones are trained, more leave the regional airline for the larger carriers. He said SeaPort is working on partnerships with universities to help provide a stream of new pilots, but those programs are six to nine months from showing results.

In a letter to Sieber, Northwest Alabama Regional Airport Director Barry Griffith wrote the situation is not good for the airport, or the Shoals, or the airline.

“Consequently, we feel the best course of action is for SeaPort to file an immediate 90-day notice of service termination,” Griffith said. “That will trigger a rebid process with the (U.S.) Department of Transportation.”
Sieber said the airline will be required to remain in the Shoals until the Transportation Department releases it, or a new carrier can begin service.

“We’re looking at probably a 90- to 100-day process,” Sieber said. “We’ll request the department move as quickly as they can.”

He said that will give airlines interested in the Shoals time to research the market and craft proposals to present to the Transportation Department.

Griffith and Airport board of director Chairman Rick Elliott said there are airlines interested in the Shoals.

“There are several carriers out there that are very interested in the Muscle Shoals market,” Elliott said. “I think there’s a light at the end of the tunnel.”

Griffith said the community will have to show the Department of Transportation why it could not meet the requirements of its Essential Air Service contract.

“They will scrutinize our performance,” Griffith said. “We’ll find ourselves out of compliance.”

SeaPort was awarded a $1.7 million contract to provide air service to the Shoals, but it does not receive money if it’s not completing flights. The contract required at least 10 passengers fly out of the airport daily. Only 37 passengers flew out of Muscle Shoals the entire month of July.

The contract also required per passenger subsidies not exceed $200. Griffith said the Shoals is out of compliance in that area as well, but could not say by how much.

Griffith said he’s confident there is sufficient evidence to convince the Transportation Department to allow the Shoals to remain in the EAS program. Sieber said he will help the Shoals plead its case.

“We are going to voice an opinion on that as well, and we think you guys deserve a waiver,” Sieber said.

Source: http://www.timesdaily.com

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