# poT-osr

- n^iC,

- IST f CIT Y O FCAP E GIRARDEAU Offic e o f

th e Mayo r

an dCit y Counci l 40 1 Independenc e P . O . Bo x 61 7 Cap e Girardeau , M

O 63702-061 7 Telephon e (573 ) 339-632 0 Fa x (573 ) 339-630 2 Lette r No . 11-1 2 February 4 , 201 1

Mr . Kevi n Schlemme r

- ^

- •;'

—• - ~ Unite dState s Departmen t o f Transportatio n . •.---"-i ^ 120 0 Ne w Jerse y Av e S E \ , r-^o O Washington , D.C . 2059 0 "" ' '^:--^^"'" ' Dea r Mr . Schlemmer : O n Novembe r

12 , 2010 , th e Unite dState s Departmen t o f Transportatio n (U.S , DOT ) issue da n Orde r requestin g proposal s fromai r carrier s intereste di

n providing ai r

servic e for

atwo-year term , unde r

th e Essentia l Ai r

Service (EAS ) program , t o thre e communities , includin g Cap e Girardeau , Missouri , Marion , Illinois , an dQuincy , Illinois . A s yo u know , th e U.S . DO T receive dproposal s fromthre e carrier s intereste di n providing ai r servic e a t Cap e Girardeau an dth e othe r tw o communities . Thos e carrier s submittin g proposal s were :

• Hyanni s Ai r

Service , Inc. , d/b/ aCap e Air , proposin g schedule dai r servic e for : o Optio n One : Fou r

(4 ) dail y round-trip s t o St . Loui s Lambert Airport , with atw o (2 ) o r fou r (4 ) year contrac t term o Optio n Two : Si x (6 ) dail y round-trip s t o St . Loui s Lambert Airport , with atw o (2 ) yea r o r fou r (4 ) year contrac t ter m

• Multi-Aer o Inc . d/b/ aAi r Choic e One , proposin g schedule dai r servic e for : o Optio n One : Fou r

(4 ) dail y round-trip s t o St . Loui s Lambert Airport , o r o Optio n Two : Two (2 ) dail y round-trip s t o St . Loui s Lambert Airport an dTwo (2 ) dail y round-trip s t o Memphi s Internationa l Airport

• Planemaster s Je t

Charter , proposin g schedule d"triangular " ai r servic e fo

r si x (6 ) dail y round

tri p flight s fromSt . Loui s Lambert Airport t o Cap e Girardeau , Cap e Girardeau t o Marion , Mario n t o St . Louis , wit

h aretur n i

n th e opposit e direction . Th e Cap e Girardeau Regiona l Airport Advisor y Boar dan dth e Cap e Girardeau Regiona l Airport Administration , representin g th e City o f Cap e Girardeau , hav e thoroughl y reviewe dth e thre e ai r carrie r proposal s fo r

Essentia l Ai r

Ser^'ice , includin g interview s wit h tw o o f th e carriers . Th eMr . Kevi n Schlemme r

Pag e 2 February 4 , 201 1 Cap e Girardea u Cit y Counci l unanimousl y approve dth e findings o f thi s revie w an dth e recommendation s b y th e Airport Advisory Boar da

t thei r January 25 , 201 1 Counci l meeting . Summarie s o f

thos e findings ar e a s follows : Th e Planemaster s proposa l di dno t includ e Quincy , however , propose da"triangular " rout e from St . Louis , t o Cap e Girardeau , t o Marion , an dbac k t o St . Louis , utilizin g th e Kin g Ai r 20 0 aircraft . Whil e Planemaster s propose dsi x (6 ) dail y round-tri p flights, al l flights t o St . Loui s woul drequir e Cap e Girardeau passenger s t o sto p i n Mario n enrout e t o ST L an dth e revers e one sto p throug h Cap e Girardeau woul db e require dfor Mario n passenger s returnin g home . Becaus e th e Mario n Airpor t ha dalread y announce dthei r recommendatio n t o retai n Cap e Ai r a s thei r carrie r o f choice , Planemaster s electe dt o tur n dow n ou r invit e t o interview . Planemasters ' personne l acknowledge dthat th e Mario n announcemen t effectivel y nullifie dthei r proposal , leavin g Cap e Girardeau a s thei r onl y destination . A s aresult , th e Airport Boar ddi dno t

further conside r th e Planemasters ' proposal . Th e Ai r Choic e On e (ACO ) proposa l offer s tw o option s for Cap e Girardeau passenger s utilizin g th e Cessn aCaravan , capabl e o f carryin g eigh t

(8 ) passenger s pe r

flight. Optio n On e propose s four (4 ) dail y round-trip s t o St . Loui s (STL ) an dOptio n Two propose s tw o (2 ) dail y round-trip s t o STL an dtw o (2 ) dail y round-trip s t o Memphi s (MEM) . Th e Optio n On e far e propose db y ACO , a t $37 , wa s th e leas t

expensiv e far

e offere dfo r

Cap e Girardeau passenger s travelin g t o St . Louis . Th e AC O proposa l offerin g servic e t o both , ST L an dME M propose dfare s o f $3 9 t o STL an d$6 9 t o MEM . Whil e th e Airport Boardha s alway s appreciate dan y attemp t t o offe r Cap e Girardeau passenger s tw o destinatio n options , the y feel tha t tw o (2 ) dail y flight s t o eithe r destinatio n i s simpl y no t

enoug h frequency , especiall y whe n considerin g th e us e o f th e smaller , te n seat , eigh t

passenge r

aircraft . Th e Cap e Ai r

proposa l provide s tw o specifi c difference s no t offere di n th e Ai r Choic e On e proposal . First , th e Cap e Ai r proposa l call s for

th e developmen t

o f aCity Ticke t

Office , whic h give s th e airlin e adistinc t "'store front " appearanc e withi n th e community , locate di n th e Cap e Girardeau downtow n area . Th e City Ticke t Offic e als o provide s avariet y o f option s fo

r marketin g endeavors , suc h a s local discoun t coupo n distributio n an dredemption . Second , th e Cap e Ai r proposa l include s aramp-sid e inter-termina l shuttle , facilitatin g seamles s connection s betwee n terminal s o r

concourse s a

t STL , withou t

havin g t o re-clear

security . Additionally , Cap e Ai r agai n offere da

n annua l marketin g budge t t o advertis e th e ai r

service . Th e Cap e Ai r

proposa l focuse s o n providing servic e t o ST L utilizin g th e Cessn a402 , capabl e o f carryin g eigh t

passenger s pe r

flight, an doffer s eithe r

fou r (4 ) dail y round-trip s o r

si x (6 ) dail y round-trips . Wit

h eithe r proposal . Cap e Ai r

als o offer s adiscounte dcontrac t ter mo f fou r (4 ) years , rathe r

tha n th e usua l tw o (2 ) year term . Cap e Ai r

continue s t o offer

Cap e Girardeau passenger s a$4 9 fare eac h way t o STL . Th e Airport

Boar di s ver

y appreciativ e o f

th e effort s propose db y Shan e Stor z an dJacquelin e Donoho o wit

h Ai r Choic e One . Althoug h AC O offere dCap e Girardeau ne w destinatio n optionsMr . Kevi n Schlemme r

Pag e 3 February 4 , 201 1

an dlo w fares , th e final decisio n o f th e Boar dwa s swaye db y th e simpl e fac t tha t Cap e Ai r ha s performe dextremel y wel l for Cap e Girardea u sinc e beginnin g servic e Novembe r 8 , 2009 . Ou r passenge r boarding s hav e grown o n amonthl y basis , wit h loadfactor s averagin g betwee n 5 5 an d60% . Cap e Air' s completio n rat e wa s ove r 99 % for 2010 , thei r

on-tim e performanc e i s near perfect , an dthei r

custome r servic e ha s bee n secon dt o none . Additionally , thei r marketin g effort s an dinvolvemen t

withi n th e communit y hav e bee n exceptional . Whe n th e Airport

Boar dconsidere dth e additiona l offer s o f this lates t

Cap e Ai r proposal , thei r decisio n t o retai n Cap e Ai r a s ou r ai r servic e provide r

becam e quit e clear . Th e Boardan dCity Counci l clearl y prefer

th e si x (6 ) dail y round-tri p option , a s th e tw o additiona l flights provid e Cap e Girardeau passenger s additiona l frequenc y options , whic h the y hav e bee n askin g for . Passenger s returnin g fromth e Eas t Coas t o r Wes t Coas t hav e complaine dthat

th e connectio n ou t o f ST L whe n returnin g hom e i s very difficult , i f no t impossible , to make . Th e extr aflights woul dallo w alate r

retur n flight

fromSTL . Wit

h th e proposa l t o includ e aramp-sid e inter

termina l shuttl e i

n STL , w e wil l definitel y se e mor e Southwes t Airlin e busines s travelers . Additionally , wit

h th e recen t

announcemen t

b y th e Stat e o f

Missour i Gamin g Commissio n tha t th e Isl e o f Capri casin o wil l b e openin g i n Cap e Girardeau b y 2013 , thi s ne w attractio n wil l generat e mor e passenger s an dassis t i n filling th e tw o extr aflights. Accordin g t o th e airline , i t i s very simpl y mor e efficien t for Cap e Ai r t o provid e si x (6 ) dail y round-tri p servic e t o al l thre e communities , rathe r

tha n si x (6 ) round-trip s t o Quinc y an dMario n an donl y fou r (4 ) round-trip s t o Cap e Girardeau . Th e Airport

Boar dan dCity Counci l als o prefe r th e fou r (4 ) year contrac t option . Th e additiona l tw o year s allow s Cap e Ai r mor e tim e an dopportunit y t o inves t an di t provide s th e Cap e Girardeau communit y mor e consisten t servic e expectations . I n summary , after

considerin g al l o f

th e pro s an dcon s associate dwith eac h o f th e airlin e proposals , th e City o f

Cap e Girardeau' s final recommendation s are : 1. ) t o recommen dt o th e Unite dState s Departmen t o f Transportatio n t o awar dth e Essentia l Ai r Servic e four

(4 ) year contrac t t o Hyanni s Ai r

Service , Inc. , d/b/ aCap e Air , to provid e schedule dai r

servic e betwee n Cap e Girardeau an dSt . Loui s Lambert Airport , an d 2. ) t o recommen dt o th e Unite dState s Departmen t o f Transportatio n to awar dsuc h contrac t t o Hyanni s Ai r

Service , Inc. , d/b/ aCap e air , utilizin g th e si x (6 ) dail y round-tri p schedule dai r

servic e betwee n Cap e Girardea u an dSt . Loui s Lambert Airport . We ar e ver

y comfortabl e with th e Airport Advisor y Board' s recommendation s an dth e Cit y Council' s endorsement , an dw e fee l strongl y that

the y ar e i

n th e bes t interes t o f th e Cap e Girardeau Regiona l Airport , a s wel l a s th e City o f Cap e Girardeau an dth e communit y w e serve . Th e City o f

Cap e Girardea u woul dlik e t o than k th e Unite dState s Departmen t o f Transportatio n fo r th e opportunit y t o voic e thi s recommendation . Shoul dyou hav e an y question s regardin gMr . Kevi n Schlemme r

Pag e 4 Februar y 4 , 201 1 thes e recommendations , pleas e fee l fre e t o contac t u s o r Bruc e Loy , ou r

Airport Manager . W e loo k forwardt o you r

revie w an dfinal determinatio n o f award . Respectively Submitted , Harry E . Mayo r leye r City Manage r HER/SAM:g c c c Cap e Ai r