SAN LUIS VALLEY REGIONAL AIRPORT
July 25, 2018
Mr. Kevin Schlemmer Chief, Essential Air Service & Domestic Analysis Division U.S. Department of Transportation 1200 New Jersey Avenue, S.E. Washington, DC 20590
RE: Airport Sponsor Recommendation for Essential Air Service Provider Docket DOT-OST-1997 2960/Order 2018-3-2
Dear Mr. Schlemmer,
The San Luis Valley Regional Airport (ALS) and Alamosa County were very pleased to have received three proposals for Essential Air Service to our community. We have discussed the proposals thoroughly internally, reached out to airports which are already served by these carriers and held an open public forum where each of the airlines presented an argument to serve the community. After careful consideration, we are pleased to unanimously recommend ADI/California Pacific Airlines to provide essential air service between Alamosa and Denver with the following considerations in mind:
Boutique Air provided two different aircraft options in their proposal, the eight passenger Pilatus PC-12, single engine aircraft and the King Air 350 twin turbo propeller aircraft. Firstly, we thank Boutique for the improvement for the predecessor, Great Lakes Airlines. Boutique's lack of on-time performance in the PC-12, especially during winter months has given concern to the community. Additionally, the community has not been satisfied with the lack of baggage capacity in the PC-12. At this time, the community declines to waive our right to twin engine Essential Air Service through a new contract period. Boutique's King Air proposal is more appealing than the PC-12 option. However, the King Air only offers one additional seat per flight, which is located on the lavatory of the aircraft. Since Boutique has altered its destinations from an Alamosa to Albuquerque (ABQ) to all dedicated flights travelling through Denver International Airport (DEN), they are at passenger capacity during peak summer travel. The alteration of this route followed a leakage study completed by Sixel Consulting Group. Selection of Boutique Air would leave a significant unmet demand for air service from our catchment area to DEN. Further, Boutique's proposal is contingent upon a 77% load factor (seven of nine seats full on every flight completed) is contingent upon a subsidy of $196 per passenger on year one, $200 year two, $204 and $208 for years three and four. This mathematical dilemma places the San Luis Valley at risk of exceeding the $200 per passenger subsidy cap which places our community at risk of losing its further funding of EAS. Given the lack of additional capacity and track record of unacceptable winter months, on-time performance, we feel it may be irresponsible to select Boutique Air at this time.
Page I 1 Denver Air Connection/Key Lime Air provided a proposal with a mixed fleet of a 30-passenger Dornier Jet and a nine passenger Metroliner twin-turbo propeller aircraft. While the projected load factors of 68% seem attainable, there was some concern regarding the business model being more focused on cargo carrying. Further, the Key Lime Air safety record in the Metroliner aircraft is cause for concern. We are thankful for Denver Air Connection's time in preparing and presenting their proposal.
ADI/California Pacific Airlines proposal provides the greatest potential for growth of the air service rnarket throughout our community. ADI has boasted a flawless safety record over 58 years of service. On-time performance and references through airports currently served prove excellent results. The benefits of service provided by ADI continue to include luggage capacity availability, a robust marketing budget and affordable fares. Most notably, ADI host the ability to serve more passengers who are currently driving to DEN with a responsible (and conservative) projection of 31% load factors.
In closing, the San Luis Valley Regional Airport request the support of the department in our recommendation of Aerodynamics Inc./California Pacific Airlines to serve our regional as the Essential Air Service Provider. We thank the DOT for its support of our request for extension in April 2018.
If you have further questions, please contact County Administrator Gigi Dennis 719-587-5169.
Thank you for your consideration,
Dustin Allinger, C.M., ACE Allen Airport Manager Chairman of the Board of Commissioners 2490 State Avenue 8900 Independence Way Alamosa, Colorado Alamosa, CO 81101 (719) 580-1986 M 719-589-4848 [email protected] gdennis@alamosacounty,org
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