Essential Air Service At Thief River Falls MN OST-2001-10642 February 4, 2014 At the request ofthe Thief River Falls Regional Airport, TransportAzumah has prepared a draft schedule and cost for an emergency interim bus service between Thief River Falls and Fargo ND. We will designate this option to be "Thief River Falls Option 3". Fargo was requested because it provides westbound access as well as eastbound access from its location. The following markets would receive emergency interim bus service: TransportAzumah Emergency Interim Bus Service Market 

## I Hub 

## I Round Trips PerDay 

## I 3 Month Subsidy Thief River Falls MN 

## I FAR 14 1$364,544 Sample bus schedules are provided below. They are subject to change: 

### Thief River Falls MN - FAR Thief River Falls MN >Fargo ND (Daily) Thief River Falls MN 

## I 715a 

## I 1115a 

## I 315p 

## I 715p Fargo ND 

## I 930a 

## I 130p 

## I 530p 

## I 930p Fargo ND >Thief River Falls MN (Daily) Fargo ND 

## I 1030a 

## I 200p 

## I 600p 

## I 1000p Thief River Falls MN 

## I 1245p 

## I 415p 

## I 815p 

## I 1215a StatutoryAuthority: The Department has the authorityto issue a contract forthis service underthe Alternate Essential Air Service Pilot Program. Underthe AEAS, a community may waive its eligibility for standard essential air service for a particulartime period to implement asolution of its choosing, including scheduled orondemand ground transportation. The community is issued a block grant in orderto implementthe service that it requests. The Department has issued one block grant underthis program to Manistee Ml in March 2012 for $4.1M overtwo years. The Department has the authorityto issue an initial block grant to Thief River Falls forthree months. During thistime, a new RFP cim be issued for air service to this community and an airline can be found to operate the service. IfGreat Lakes is able to restart service, then the community would re-enterthe traditional EAS program on that date. Otherwise, the community would re-enterthe traditional EAS program on the date when the new airline begins service. It is importantthatthe Department notes thatthis community has not chosen to enterthe Alternative Essential Air Service Pilot Program ofits own volition. The service required to be provided underthe traditional EAS program is not being provided. Ifthe Department considers service to Thief River Falls essential, then itwill approve this proposal in a rapid manner. The typical start up time for a new carrier is four months and that does not include the time allocated to bid the contract.

Contact: Joel Anabilah-Azumah, jazumah@transportazumah.com, 347-927-0750

# Essential Air Service & 

# Buses Multimodal Solutions To Air Service Deficiencies Can the Essential Air Service program fund surface transportation? Yes! Underthe Alternative Essential Air Service Pilot Program (AEASL your airport can applyfor a block grantto meetyour air service needs in away thatyou may not be able to do underthe traditional Essential Air Service program. Have any communities donethis before? Manistee Ml obtained an AEAS grant in 2012 for charter air service to meet its EAS needs. A press release from Carl Levin's office highlighting the Manistee grant is attached. Howdoes one access the Alternative Essential Air Service Pilot Program? A community would have to opt out ofthetraditional EAS program for the period oftime they wish to pursue this program. The USDOT would have to approve the use offunds in the new program. The opt out period is not permanent. Our goal is to maintain air service. What can buses dofor us? Most communities receive decent air service and wish to retain those links. However, some communities are having trouble with their air service or have none at all. Ifyour air service is irregular, your passenger base will shrink rapidly. Ifyour air service is interrupted, replacing itwith nothingwill cause your passenger base to evaporate because once new habits are established, they are hard to break. A bus service designed to access alternative air service can bridge the gap between carriers or it can fill in for weak air service. Whywouldn't a customer driveto a nearby airport instead oftaking a bus? They could do this. However, most EAS airports offerfree parking. Most EAS airports are 90 minutes or more from the nearest airport. No one wants to start or end a long trip with a long drive. Finally, ifyou live somewhere nice, you are likely attracting out oftown visitors that are notfamiliar with your area and it is easier forthem to be picked up at your airport than somewhere else.

### Are there anyexamples ofa bus being betterthan a plane? Continental Airlines (now United) used to fly a Beech 19000 between Allentown PA and Newark NJ, a 65 mile trip. This flight was cancelled and delayed often, so the decision was made to cancel it and replace itwith a bus. This service has been in place for almost 20 years. 3 buses are operated in each direction with a United flight number. Furthermore, those customers are able to bookthat leg oftravel right on United's website and receive frequentflyer miles for doing so. This may be a community's fastest way onto a carrier's global flight timetable.

Flight: Continental: Airlines f1ight 3165 operated by

### JCO CONNECTION BUS 

### SERVICE on 

## a Sus 

### Depart: Allentown/Bethlehem, 

### PA (ABE)- Wed, Feb 02 6:00am Arrive: Newark, NJ (EWR)- Wed, Feb 027:30am Flight: ContinentalAirlines flight 1413 on 

### a Boeing

## 737-500 Jet 

### Depart: Newark, NJ (EWR)- Wed. Feb 02 8:55am Arrive: 

### DallaslFt Worth, TX 

### (DFW)- Wed, Feb 02 12:1:4pm FUght: Continental: Airlines flight 1758 on 

### a Boeing 

## 737-500 Jet ' 

### Depart: 

### DallaslFt 1North, TX 

### (DFW)- Wed, Feb 09 12:54pm Arrive: Newark, NJ (EWR)- Wed, Feb 09 5:31pm

Ftight: Continental Airlines flight. 3164 operated by**/CO~** 

### CONNECTION BUS 

### SERVICE on 

### a Sus 

### Depart: Newark, NJ (EWR)- Wed. Feb 09 8:00pm Arrive: Allentown/Bethlehem, 

### PA**(ABE)~-** 

### Wed. Feb 09 9:25pm

How does passenger and baggage screeningwork on United's ABE-EWR 11

### flight"? Customers check in as normal and their checked bags are screened by TSA. Customers are ticketed in ABE. The screened bags are loaded onto the bus and then the baggage compartment is sealed byTSA. Passengers are loaded unscreened and taken to EWR, where they are screened. Meanwhile, the baggage is taken into the baggage area directly by the bus, where the sealed

### compartments are opened. On the return, the passengers and baggage are loaded at a gate and taken directlyto ABE. Will these customers be counted towards the airport's enplanements? 

### We are not sure. For example, ABE excludes passengers on the ABE-EWR "flight" from their enplanement and deplanementtotals. However, when an aircraft is delayed or unavailable, airlines routinely bus those passengers to their destinations and they are counted. Our view is that it is only worth collecting air service taxes and fees ifthe passengers count towards your enplanements. Passengers will grumble about riding a bus. 

### Many markets have buses with free wi-fi and 

### llOV outlets available. Availability will depend on the length ofthe contract as well as your location, butthere are a sufficient number of high-quality buses in the marketthat will be able to provide a comfortable ride.

It sounds interesting, but I am still on the fence. 

### The average start-up time for a new airline is four months, which is whythe USDOT bids markets six months in advance. Ifyou 

## don't have air service today, contact us for an interim solution. Ifyour air service is unreliable, contact us so we have a bid ready at the end ofyour cycle.

Contact: Joel Anabilah-Azumah, jazumah@transportazumah.com, 347-927-0750

## Senator Levin Applauds Obama Administration Decision to Provide a First-of-Its-Kind Alternate Essential Air Service Grant to Manistee Friday, March 16, 2012 WASHINGTON-- Sen. Carl Levin, D-Mich., announced thatthe U.S. Department ofTransportation has awarded a first-of-its-kind Alternate Essential Air Service grant to Manistee County BlackerAirport. The grantwill enable Manistee, which lost its air service provider in March, to resume air service between the Manistee County Blacker Airport and Chicago Midway in May. The Essential Air Service (EAS) program was established by congress to provide smaller, more rural airports with consistent, dependable air service. Under the EAS program, the U.S. Department ofTransportation provides a subsidy directly to an airline which then provides service to a specific community. TheAlternative Essential Air Service (AEAS) program leaves that responsibilitywith the community itself. UnderAEAS, each community must determine its own transportation needs, and receives financial support in the form ofa grantfrom the federal government to meetthose needs. This can take the form of morefrequent servicewith smaller aircraft, ondemand air taxi service, scheduled or on-demand surfacetransportation, regionalized air service, and purchasing an aircraft. "This flexible funding will allow Manistee to take the lead in setting up servicefor the airport, making sure that the air service plan meets the community's needs," Levin said. "Commercial air service is vital to connecting Michigan communities to the U.S. and global economy, and preserving that connection is of major importance." FrontierAirlines, Manistee's former EAS carrier, stopped service on March 11, 2012. As a result oftheir successful AEAS application, Manistee plans to resume service on May 1, 2012 with Public Charters, Inc. The community preferred the AEAS option as the bids they received under EAS did not adequately meettheir transportation needs. On January 5, 2012, theAirport Manager ofthe Manistee County BlackerAirport, with support from the Airport Authority, Manistee County Board of Commissioners, ManisteeArea Chamber of Commerce, and the Manistee County Visitors Bureau and the office ofSenator Carl Levin, submitted an application forAEAS. TheAirport Authority proposed regularly scheduled charter service consisting ofat least 1,019 annual nonstop one-wayflights between the Manistee County BlackerAirport and Chicago Midway International Airport (MOW), for a two-year period utilizing two-pilot, twin-engine aircraft with 30 seats for the first six months ofservice and with 19 seats for the remaining 18 months. The granttotals $4.156 million overtwo years.2/3/2014 Airlines merger could halt bus flight- Morning Call

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## Airlines merger could halt bus flight • 0 

### • Lehigh Valley International Airport-Newark shuttle for Continental passengers is quirky but profitable Tweet 8+1 May 04, 2010 I By Gregory Karp IOF THE MORNING CALL Forthe past 15 years, some Continental Airlines passengers at Lehigh Valley International Airport began theirflight in a most unusual way, a bus ride to Newark, N.J. The quirky"bus-fiight" service that began in 1995 could end up a casualtyofthe proposed $3 billion-plus merger between Continental and United Airlines, said George Doughty, executive director ofthe Lehigh-Northampton Airport Authority, which operates LVIA 

## Flights from NewYork united.com Great Rates are Still Available from United. Book Now

"United could look atthat (bus service) and say, 'V\illat is this?'" Doughtysaid. "It's an oddity. If Iwere to saysomething would come into question, it's that bus service." free Wi-R • fully equipped kitchent Continental passengers can check in and check bags at LVIA, butthose bags are loaded with passengers onto a bus free grab-and-go breakfast that drives them to Newark Liberty International Airport, where theycatch their Continental flight.

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FINDMORE STORIESABOUT BusService Continental Airlines The service was born after Continental had logistical problems with its Allentown-to-Newarkflights being late halfthe time orcanceled because ofair-traffic control issues in Newark. Itfound busing passengers to Newark, a 75-minutetrip, was far more reliable. Doughtysaid the bus service always befuddles newexecutives at Continental. "Theysay, 'V\illat's this stupid thing with this bus?' And they look atthe numbers, and theyfind out it's extremely profitable forthem. So, they keep running it." United and Continental haven't announced any canceled services as a resultofthe merger,which isn't expected to close until the end ofthis year. The airlines said theywill continue service to "all communities currentlyserved byeitherairline, including morethan 140 small metropolitan areas and communities." As for other changes at LVIA resulting from the merger, there mightnot be any, Doughtysaid. "I don't knowthatthere would be a significant impactfor us," he said. He said he doubts the combination would affect LVIA's competitive position relative to Philadelphia International Airport and Newark Liberty. At Philadelphia International, United and Continental are relativelysmall players, combining for less than 10 percentof the traffic atthe airport, which is dominated by US Airways. They have no overlap in routes from Philadelphia. At Newark, Continental alreadyhas a hub, and that's likelyto stayin place to serve the lucrative NewYork Citymarket, Doughtysaid. Nationwide, United and Continental don't have manyoverlapping routes. At LVIA, United is onlythe No.4 airline bytraffic. The airport has long-running service on United to its hub in Chicago's http://articles.rncall.com/201Q..05-04/nem/all-a1_5airlines.7261946may04 _1_continental-flight-continental-passengers-bus-senAce 1/32/3/2014 Airlines merger could halt bus flight- Morning Call O'Hare International Airport, where passengers can getconnections to the western United States and Asia, Doughty said. United also flies to Washington-Dulles International Airport in Virginia,which gives passengers connecting access to the South, Westand Europe. Doughtysaid he doesn'tforesee changes to those United routes. "It's an importantairline for us because it goes to two very important cities. We certainlywantto retain that sel"\lice. Idon't see this having an impact, butyou never really know." 

## Flights from NewYork united.com Great Rates are Still Available from United. Book Now
Besides its bus flights to Newark, Continental currentlyhas no flights from LViA It ended airsel"\lice to Cleveland in Februarybecause oflow demand. In the nearterm, little will change. Because the merger needs regulatoryapprovals and is notexpected to close until the end ofthe year, consumers will continue booking flights on each airline separately. In the long term, the resultforconsumers is likelyto be predictable. Less competition means higher prices. "This is all about reducing the amount of capacity in the system,'' Doughtysaid. "Fewerseats and higherfares is what it means to everybody." United and Continental, however, contend theyare under strong competitive pressure from discountairlines to keep fares low. Theyalso saytheycan "achieve revenue synergies withoutanyincrease in fares." The airlines claim frequent fliers will have more opportunities to earn and redeem miles. Both airlines operate frequentflier programs, called OnePass and Mileage Plus, and are already members ofStarAlliance, a partnership of26 airlines that share frequent-flier perks. Consumers with airline-branded credit cards that earn miles with those programs can continue using them as usual. After previous airline mergers, discount airlines have thrived by picking up the slack-- adding back capacitythatthe legacy carriers squeezed from the system. That could happen as a resultofthe United-Continental mergertoo. At LVIA, low-cost carriers include Allegiant, the airport's No.2 airline nextto U.S. Airways, and AirTran. "We could see further increases bythe low-cost carriers ifwe come outofthe recession and fuel prices don'tspike again,'' Doughtysaid. Information from the airlines aboutthe merger is available online atwww.unitedcontinentalmerger.com. gregory.karp@mcall.com 61 0-820-66433 

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