JOHN H. COX III

Mayor

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CITY COUNCIL

Tommy L. Benson, Ill, Ward 1

Lois Hawkins, Ward 2

Carolyn Weathers, Ward 3

Betty J. Watkins, Ward 4

Ann Hollowell, Ward 5

Errick D. Simmons, Ward 6

CITY OF GREENVILLE

p.o. BoxflJ)7 • 340 MainSt • Greenville, Mis;is;ippi 3870\ • Thlephone: 662-37&-1501 • Fac;imile:(1,2-37&-0276 • Email:johnoox@grrenvillems.org

December 29, 2013

Kevin Schlemmer, Director

EAS Program, U. S. Department of Transportation

West Building

1200 New Jersey Ave. SE .

Washington D.C.20590

Re: Greenville, .MSEssential Air Service / DOT-OST-2012-05-17

Dear Mr. Schlemmer,

(..... 1

The Greenville Mid-Delta Airport and the City of Greenville wish to express to the Department our concerns aboutthe

current air service being provided by Silver Airways to Greenville and other Mississippi airports.

Silver Airways assumed Greenville EASservice from Delta on October 1, 2012. We were disappointed to lose our

Delta service to Memphis but excited at the time to gain onestop flights to Atlanta, GA.

Unfortunately Silver's service has been very disappointing for a number of reasons.

Operational Reliability

The Silver service got off to a weak start in Greenville. Our records show the following on time performance and

cancellation rate for each month during the first 12 months.

Month

Oct 12

Nov

Dec

On Time %

75.3%

80.1 %

69.2%

Cancelled %

4.9%

7.1%

10.3% .

Completed %

95.1%

92.9%

89.7%

'-,' " ~:,.,'

-- .; :.•,", ..

" :..

Jan 13

Feb

Mar

April

May

J)Jn

Jul. '; Atig'"

.,Sep

44.4%

68.1%

76.3%

74.4%

80.9%

60.7% . '. ':~. .': ..-.; ..; ': .~-. -,'.". .

75.9%

92.5%

83.0% ",",' <•.;;.:.:." "".' ,:,.

16.0%

11.1%

3.2%

7.7%

5.6% .

9.3%

. 1.2%

1.3%

4.6%

84.0%

88:9%

96.8%

. 92.3%

94.4%

90.7%

",.

98.8%

98.7%

95.4%

The above chart shows that for the first three months, the carrier completed about 93% of its flights. The second three

months it completed just fewer than 900/0 of its flights. Our loyal users of the Greeiiville Mid- Delta Airport rapidly lost

faith in the airline during those six months. The on time performance during those months was less than 75% in total.

IIWW,grrenvillems.org
Service did not really improve too much in second quarter of 2013 with about 93% of flights completed and on time

performance at about 73%.

We finally got reliable and on time service starting in the third quarter of 2013, with 97% of our flights operating and

about an 84% on time rate. The reliable service continued into October,2013. But, as the data below indicates,

November was a very poor month. The bulk ofthe operational issues occurred the week of Thanksgiving and it was

very bad for our market in that we had above average passenger bookings due to the holiday and many of those

passengers were not able to use Silver service.

Month

Oct 2013

Nov 2013

Poor Traffic Results

On Time %

75.8%

64.0%

Cancelled %

1.9%

12.0%

Completed %

98.1%

88.0%

As you can imagine, the poor service performance I have outlined resulted in many of our loyal passengers using

other airports because they just could not trust Silver to operate its schedule.

In the last 12 months of Delta service to Memphis, our Airport handled about 13,500 passengers in and out total. In

the first 12 months of Silver service we handled about 6,500 passengers; a drop of 52%. We barely made the 10

enplanement per day requirement that the DOThas for EASsubsidy.

Poor Service

When the carrier made its service proposal to replace Delta it promised us that the service would display on

Delta.com. This display did not take effect until December, 2012, three months into the service and it has had

technical problems from time to time ever since.

The carrier also indicated that it would have Delta SkyMiles credit for segments flown to and from Atlanta. This has

not happened. As best I understand it, Delta and Silver cannot reach a commercial agreement on the program. I have

signed two letters that are'also signed by,the mayors of the four other EAScities Silver serves, Hattiesburg, Meridian,

Muscle Shoals (Alabama) and Tupelo. One of these letters went to Delta and one to Silver, asking the carriers to reach

a commercial agreement on SkyMilesso our passengers can gain miles on flights to Atlanta.

Another challenge is that the carrier began operations in October, 2012 using the brand name of a carrier called

Island Air. This was apparently necessary to make interline connections and make use of that carrier's reservations

system. This confusing setup lasted until June, 2013, when the carrier's tickets began to reflect Silver Airways. This

was difficult to explain to our residents/customers.

Promoti on /Advertising /Pricing

We are very frustrated by the carrier's pricing strategy. Service got offto a very bad start as the performance

numbers show. Our passengers were discouraged by that and have been using other airports. The best way to get

those passengers back on the airplanes is to lower fares so we have something to advertise locally. As best we can tell

the carrier has a 9:5% load factor at Greenville. That is 3.4 passengers per flight on a 34 seat aircraft It is our

understanding that Tupelo, where the plane stops on the way to Atlanta, is having the same issues we are and it not

putting a lot of folks on the plane. Thus even into Atlanta the Silver flights are nearly empty. Sowhy not cut the fare

and get folks on the plane and then we can work to get the fares gradually up to where the carrier might want them? I

would think the carrier would also make more money carrying 15 or 20 folks at lower fares than 3 or 6 at higher

fares.

We did some marketing ofthe new service when it started. Butit became difficult to do that because the service was

so poor the first six to nine months. We remain prepared to market the service aggressively. But we need something

to market! We do not have attractive fares, we do not have SkyMiles and all too often we do not have reliability.
We do.have a SmallCommunity Air Service Grant award but the DOThas not yet issued us a contract so we cannot use

Grant funding yet. But again, we need something to market in order for that money (U.S.DOT's,City's and Mississippi

DOT's), to be spent wisely.

In the entire 14 months now that we have had Silver service, we have never had a Silver representative come to

Greenville and help us market the service. We need someone from the carrier to meet with our local companies and

shake hands and exchange business cards to do the job of selling the airline locally. We are ready to support them, to

arrange meetings and to ensure that post meeting follow-ups occur. But the carrier has not been able or willing to

send someone to visit. Silver is collecting $3.5 million dollars per year to provide us with air service which is so

inconsistent that the flights are largely empty. .

It frustrates me that Greenville barely made the necessary 6,300 or so annual p.assengers needed to make 10

enplanements per day per EASrules. The service area of our airport is capable of generating lots of air travel, it

always has. As I mentioned, our traffic is down 52% from when Delta was providing our air service. Our local air

travelers are simply not using Silver service because they do not trust it or see it as being a poor value. I am now

deeply concerned that in the second year of Silver service we will not meet the 10 enplanement per day requirements

because of Silver's inconsistent reliability and unwillingness to offer an air service product our residents will buy and

use.

Local air service is critical to our economic development efforts. Our residents are ready to support local air service.

We are ready to market.local air service. We just need a reliable and reasonable priced service to support.

I respectfully request a response from the Department to this letter so it can be shared with our local elected officials

and our U.S.Senators and Congressman. I would arso be willing to participate in a conference call at a time

convenient to all concerned to discuss this urgent matt;er.

Wi'"ki"'iJ.'V' wi,h~ f~'"'.N'w Yeo,

John . Cox III

Greenville, Mississippi

cc: Honorable Thad Cochran, Senator for Mississippi

Honorable Roger Wicker, Senator for Mississippi

Honorable Bennie G.Thompson, Congressman for Mississippi District 2

Honorable Dick Hall, Mississippi Transportation Commissioner

Honorable Carolyn Weathers, Airport Committee

Honorable Errick Simmons, Airport Committee

Mr.John Marshall, COOof Silver Airway

Mr.Tommy Booth, Director of Aeronautics at MDOT

Mr.Cary Karlson, Economic Development Center of Washington County

Mr. Frank Howell, Delta Council

Mr. Draylon Gant, Director at Greenville Mid-Delta Airport