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Petition of Jackson, Tennessee for waiver fromthe _'- .z '! • ~· 't ~ .... ~ f ~ ~, ~. r-,_ !\ 

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10-enplanement statute, Docket# DOT-OST-2000-7857 

The City of Jackson 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 a time when successes are 

rare in EAS". Tennessee Skies got off to 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 of Tennessee Skies or their 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 of Jackson 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 of Jackson. Seaport has found it difficult 

to meet all the schedules through no fault of their own. 

The City of Jackson 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 of the Essential Air Service (EAS) waiver request for McKellar Sipes Regional 

Airport (MKL) submitted by Jackson-Madison County, Tennessee. 

In FY 2013, MKL was served by SeaPort Airlines, chosen by the US Department of Transportation as our 

EAS carrier. SeaPort's service replaced Pacific Wingstrennessee Skies, our previous EAS carrier. 

Seaport's service initially attracted fewer passengers because of several factors including: I) a period of 

time is always needed to develop trust and community knowledge 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 of cancelled 

flights and stranded passengers we experienced on a routine basis with Pacific Wings' service. SeaPort's 

current nwnbers are a 246% increase over the 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, our region has not yet fully recovered from the economic downturn of 

the last decade. Economic development and job creation are important not only to Jackson and Madison 

County, but to our entire region. We are beginning the marketing phase of a certified industrial megasite 

in Haywood County, the next county to the west of Madison 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 

generate jobs 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, 

.I . ~-J0 - ~1~ ' ~~ · 1 ();mrny rris 

Mayor, City of Jackson Mayor, Madison County 

urgeon 

ent/CEO, Jackson Chamber 
RESOLUTION NO. 5Fl- 0~192014 

RESOLUTION FOR ESSENTIAL AIR SERVICE 

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 minimum level of service; 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 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 dally 

ridership of 10 passengers per day. McKellar is operating at 7.8 passengers 

per day. However, that is a 246% increase from its previous carrier; and 

WHEREAS, We believe that Seaport Airlines and the community deserve a continued. 

opportunity to 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 attract 

jobs, every advantage 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 of economic 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 

commercia] 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 throughout West 

Tennessee; and 

WHEREAS, The City of Jackson & Madison County supports the Airport Authority in their 

•·equest for a waiver to continue air service at McKellar-Sipes Regional Airport. 

A one-year extension would aJiow Seaport Airlines more time to increase their 

numbers tn Jackson to meet federal requirements. 
NOW, THBREFORB, BE IT RESOLVED that members ofthe Madison County Board of 

Commissioners do hereby express their strong support for 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 

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• 

RESOLUTION NO. d 0 I rf- (p 

RESOLUTION FOR ESSENTIAL AIR SERVICE 

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 minimum level of service; 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 

per day. However, that is a 246% increase from its previous carrier; and 

WHEREAS, We believe that Seaport Airlines and the community deserve a continued 

opportunity to 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 

attract jobs, every advantage 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 of economic 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 

throughout West Tennessee; and 

WHEREAS, The City of Jackson & Madison County supports the Airport Authority 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 meet fe(teral requirements. :\0-·· 
• 

NOW, THEREFORE, BE IT RESOLVED that members of the Jackson City Council do 

hereby express their strong support Essential Air Service in Jackson, Tennessee. 

This resolution shall be effective when passed by the city council. 

Motion made by: 

Seconded by: 

PASSED AND APPROVED THIS (,-+f.. DAY OF M.~ 2014. 

ATTEST:~ CI ORDER 

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