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## .._ r:_f.**-~~.,:**..**~--.-f \~~-** **~·:.~** Petition ofJackson, Tennessee for waiver fromthe
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The City ofJackson and Madison County, Tennessee request a waiver from 49 U.S.C. 41713 (a)(1)(B), specifically the 10 passenger per day rule. Seaport Airlines, the current air service provider for Jackson, Tennessee has averaged 7.8 passengers per day during 2013. This number represents a 240% increase from the previous carrier.
The previous air service provider, Pacific Wings DBA Tennessee Skies, was highly recommended and referred to as "a success story

...at atime when successes are rare in EAS". Tennessee Skies got offto a great start but after a year of problems, unreliability, and poor customer service that quickly became the normal way of operations. Due to the lack of oversight, once a carrier starts service the community has no control over their carrier. Jackson had no control over the actions ofTennessee Skies ortheir management. An incident involving a departing flight resulted in the FAA fining Tennessee Skies ($10,000). The airline management was furious and blamed the airport for reporting the problem to the FAA. Once Tennessee Skies' contract with DOT ended, the company punished Jackson and specifically airport management by declaring the company would serve Jackson without a subsidy. One-way fares skyrocketed to over $400 one way to Nashville (they had been $35). Empty airplanes flew every day to Nashville, Tennessee Skies stopped paying their rent and enplanements went to "0". The Airport was left with over $12,000 in bad debt. These are some of the problems Seaport Airlines has had to overcome. Pairing our community with Seaport has been a very positive move in the right direction, however recovery time is essential! Seaport has proven themselves as a good match for Jackson by increasing their boarding's by 240% over the previous carrier which left us falling short with 7.8 passengers a day instead of the required 10 passengers. Seaport provides a reliable service to good destinations and is working very hard at establishing their name as an airline people can trust, unlike Tennessee Skies.The overall concept of EAS and Aviation Economics was changed when the air carrier size was downgraded from a 19 seat twin engine aircraft to a 9 seat single engine which makes reaching the 10 passengers a day requirement harder to obtain. As we all know, the airline industry is currently in turmoil and that in itself has in turn made the EAS program a challenge for small communities like Jackson. The market has changed and Jackson's economy has lagged behind other areas of the nation and recovery has been slow. All these things have contributed to the temporary decline in the enplanements in Jackson. The winter of 2014 was brutal in Jackson as with many cites in the south, however since the weather has improved people flying in and out ofJackson has shown steady growth once again.
An additional factor in the temporary decline in Jackson's numbers is the new rule for crew rest. Seaport does a good job of managing its workforce but markets like Jackson has and will always be a training ground for pilots wanting to transition to legacy carriers. This, along with a nationwide pilot shortage, has resulted in major interruptions in the schedules in and out ofJackson. Seaport has found it difficult to meet all the schedules through no fault oftheir own. The City ofJackson and Madison County Tennessee request a waiver from the 10 passenger rule. It is very clear the improvement shown during the past year will continue and enplanements will continue to improve.CAAMBER

June 16,2014 The Honorable Anthony Foxx U.S. Department ofTransportation 1200 New Jersey A venue, S.E. Washington, D.C. 20590 197 Auditorium Street P.O. Box 1904 Jackson, Tennessee 38302·1904 731.423.2200 p 731.424.4860 F ctlamber@jacksontn.com jacksontn.com

RE: McKellar-Sipes Regional Airport Essential Air Service Waiver Request
Dear Secretary Foxx:
We are writing in support ofthe Essential Air Service (EAS) waiverrequest for McKellar Sipes Regional Airport (MKL) submitted by Jackson-Madison County, Tennessee. InFY 2013, MKL was served by SeaPortAirlines, chosen by the US Department ofTransportation as our EAS carrier. SeaPort's service replaced Pacific Wingstrennessee Skies, ourprevious EAS carrier. Seaport's service initially attracted fewer passengers because ofseveral factors including: I) aperiod of time is always needed to develop trust and communityknowledge when major service providers are changed; 2) SeaPort did not initially have interline agreements in place to allow its passengers to connect seamlessly to other carriers; and 3) it has taken time for SeaPort to overcome the reputation ofcancelled flights and stranded passengers we experienced on aroutine basis with Pacific Wings' service. SeaPort's currentnwnbers are a 246% increase overthe enplanements we experienced by the time Pacific Wings service was discontinued, a significant upward trend. We believe that with a one year waiver, that time will allow us to increase to the 10 passengers per day required to continue EAS support. While our nwnbers are improving, ourregion has not yet fully recovered from the economic downturn of the last decade. Economic development andjobcreation are important not only to Jackson and Madison County, but to our entire region. We are beginning the marketing phase ofa certified industrial megasite in Haywood County, the next county to the west ofMadison County. Commercial air service is an important tool in our economic development efforts throughout the rural West Tennessee area. The EAS program, in this regard, plays an important role in our ability to attract new businesses in our drive to generatejobs and long-term economic development.

We urge you to issue a waiver for McKellar-Sipes Regional Airport so that it may continue to participate in the Essential Air Service program. Sincerely, 

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Mayor, City ofJackson Mayor, Madison County urgeon ent/CEO, Jackson ChamberRESOLUTION NO. 5Fl-**0~192014** RESOLUTION FORESSENTIALAIRSERVICE


### WHEREAS, Essential Air Service is a program put in place by the DOT following airline deregulation in 1978

### to ensure that small communities served by air carriers could maintain a minimumlevel ofservice; and WHEREAS, The 

### EAS Program Is funded by fees paid by foreign air carriers for the use of air traffic control servJces and a trust fund that captures tax revenue from airline ticket andfuel sales; and WHEREAS, Under regulations passed in 2012 

### certain Essential Air Service airports that 

### are within 175 

### miles of a large hub airport were required to have dally ridership of 10

### passengers per day. McKellaris operating at 7.8 

### passengers per day. However, thatis 

### a 246% 

### increasefrom its

### previous carrier; and WHEREAS, We believe that Seaport Airlines and the community deserve a continued. opportunityto grow; and WHEREAS, Based on the numbers reported, the growth of passenger traffic is 

### a good indicator that commercial air service is 

### important to our area of West Tennessee. Whenlocal economic developmentofficials are workingto attract jobs,

### everyadvantagetheycanaddto reasonstolocateInourarea is

### important and commercial air service Is avaluable item to

### keep on the list; and WHEREAS, Having a

### commercialairserviceis 

### ofthe utmostImportanceto ourcommunity in the areas ofeconomic developmentand industrial recruitmentand is much more to acommunitythanjusthow many peoplegeton an airplane each day. Business and pleasure travelers benefit from the convenience of local commercia] air service and use the service every day. However. economic developmentandjobcreationareequallyImportant. The improvingeconomy means companies are moving and expanding and will factor travel convenience into their consideration of where to locate throughout West Tennessee; and WHEREAS, The City ofJackson &

### Madison County supportstheAirportAuthority in their •·equestforawaiverto continueairserviceatMcKellar-Sipes RegionalAirport. Aone-yearextensionwould aJiow SeaportAirlines moretime toincreasetheir numbers tn Jackson to meetfederal requirements.

### NOW,THBREFORB, BE 

### IT RESOLVED thatmembers oftheMadison CountyBoard of Commissioners do hereby express their strong supportfor Bssential Air Service in Jackson, Tennessee. ·

This resolution shall be effective when passed by the Madison County Board of Commissioners. Motion made by: Legislative Caumittee Reccmnendation
Seconded by: PASSEDANDAPPROVEDTHIS_!LDAYOF May 2014.



### Jl

2

### •

RESOLUTION NO. 

## d 0 I

## rf- (p 

### RESOLUTION FORESSENTIALAIR SERVICE
WHEREAS, Essential Air Service is a program put in place by the DOT following airline deregulation in 1978 to ensure thatsmall communities served by air carriers could maintain a minimum level ofservice; and 

### WHEREAS, The EAS Program is funded by fees paid by foreign air carriers for the use of air traffic control services and a trust fund that captures tax revenue from airline ticket and fuel sales; and 

### WHEREAS, Under regulations passed in 2012 certain Essential Air Service airports that are within 175 miles of a large hub airport were required to have daily ridership of 10 passengers per day. McKellar is operating at 7.8 passengers perday. However, thatis a 246% increase from its previous carrier; and 

### WHEREAS, We believe that Seaport Airlines and the community deserve a continued opportunityto grow; and 

### WHEREAS, Based on the numbers reported, the growth of passenger traffic is a good indicator that commercial air service is important to our area of West Tennessee. When local economic development officials are working to attractjobs, everyadvantage they can add to reasons to locate in our area is important and commercial air service is a valuable item to keep on the list; and 

### WHEREAS, Having a commercial air service is of the utmost importance to our community in the areas ofeconomic development and industrial recruitment and is much more to a community than just how many people get on an airplane each day. Business and pleasure travelers benefit from the convenience of local commercial air service and use the service every day. However, economic development and job creation are equally important. The improving economy means companies are moving and expanding and will factor travel convenience into their consideration of where to locate throughoutWest Tennessee; and 

### WHEREAS, The City ofJackson & Madison County supports theAirportAuthority in their request for a Waiver to continue air service at McKellar-Sipes Regional Airport. A one-year extension would allovv: Seaport Airlines more time to increase their numbers in Jackson to meetfe(teral requirements. :\0-··

### •

NOW, THEREFORE, BE IT RESOLVED thatmembers oftheJackson City Council do herebyexpress their strong support Essential Air Service in Jackson, Tennessee.

This resolution shall be effectivewhen passed by thecity council.
Motionmade by:
Seconded by:
PASSED AND APPROVED THIS (,-+f.. DAY OF

### M.~ 2014.

# ATTEST:~ CI ORDER

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