poT-osr- n^iC,- ISTf 

CITY OF CAPE GIRARDEAU 

Office of th e Mayor an d City Council 

401 Independence 

P. O. Box 617 

Cape Girardeau, MO 63702-0617 

Telephone (573) 339-6320 

Fax (573) 339-6302 

Letter No. 11-12 

February 4, 2011 

Mr. Kevin Schlemmer - ^- •;'— • -~ 

United States Department of Transportation . •.---"-i^ 

1200 New Jersey Ave SE \ , r-^o O 

Washington, D.C. 20590 ""' '^:--^^"'"' 

Dear Mr. Schlemmer: 

On November 12, 2010, the United States Department of Transportation (U.S, DOT) issued an 

Order requesting proposals from air carriers interested in providing air service for a two-year 

term, under the Essential Air Service (EAS) program, to three communities, including Cape 

Girardeau, Missouri, Marion, Illinois, and Quincy, Illinois. 

As you know, the U.S. DOT received proposals from three carriers interested in providing air 

service at Cape Girardeau and the other two communities. Those carriers submitting proposals 

were: 

• Hyannis Air Service, Inc., d/b/a Cape Air, proposing scheduled air service for: 

o Option One: Four (4) daily round-trips to St. Louis Lambert Airport, with a two (2) or 

four (4) year contract term 

o Option Two: Six (6) daily round-trips to St. Louis Lambert Airport, with a two (2) year 

or four (4) year contract term 

• Multi-Aero Inc. d/b/a Air Choice One, proposing scheduled air service for: 

o Option One: Four (4) daily round-trips to St. Louis Lambert Airport, or 

o Option Two: Two (2) daily round-trips to St. Louis Lambert Airport and Two (2) daily 

round-trips to Memphis International Airport 

• Planemasters Jet Charter, proposing scheduled "triangular" air service for six (6) daily roundtrip flights from St. Louis Lambert Airport to Cape Girardeau, Cape Girardeau to Marion, 

Marion to St. Louis, with a return in the opposite direction. 

The Cape Girardeau Regional Airport Advisory Board and the Cape Girardeau Regional Airport 

Administration, representing the City of Cape Girardeau, have thoroughly reviewed the three air 

carrier proposals for Essential Air Ser^'ice, including interviews with two of the carriers. The 
Mr. Kevin Schlemmer 

Page 2 

February 4, 2011 

Cape Girardeau City Council unanimously approved the findings of this review and the 

recommendations by the Airport Advisory Board at their January 25, 2011 Council meeting. 

Summaries of those findings are as follows: 

The Planemasters proposal did not include Quincy, however, proposed a "triangular" route from 

St. Louis, to Cape Girardeau, to Marion, and back to St. Louis, utilizing the King Air 200 

aircraft. While Planemasters proposed six (6) daily round-trip flights, all flights to St. Louis 

would require Cape Girardeau passengers to stop in Marion enroute to STL and the reverse onestop through Cape Girardeau would be required for Marion passengers returning home. 

Because the Marion Airport had already announced their recommendation to retain Cape Air as 

their carrier of choice, Planemasters elected to turn down our invite to interview. Planemasters' 

personnel acknowledged that the Marion announcement effectively nullified their proposal, 

leaving Cape Girardeau as their only destination. As a result, the Airport Board did not further 

consider the Planemasters' proposal. 

The Air Choice One (ACO) proposal offers two options for Cape Girardeau passengers utilizing 

the Cessna Caravan, capable of carrying eight (8) passengers per flight. Option One proposes 

four (4) daily round-trips to St. Louis (STL) and Option Two proposes two (2) daily round-trips 

to STL and two (2) daily round-trips to Memphis (MEM). The Option One fare proposed by 

ACO, at $37, was the least expensive fare offered for Cape Girardeau passengers traveling to St. 

Louis. The ACO proposal offering service to both, STL and MEM proposed fares of $39 to STL 

and $69 to MEM. While the Airport Board has always appreciated any attempt to offer Cape 

Girardeau passengers two destination options, they feel that two (2) daily flights to either 

destination is simply not enough frequency, especially when considering the use of the smaller, 

ten seat, eight passenger aircraft. 

The Cape Air proposal provides two specific differences not offered in the Air Choice One 

proposal. First, the Cape Air proposal calls for the development of a City Ticket Office, which 

gives the airline a distinct "'store front" appearance within the community, located in the Cape 

Girardeau downtown area. The City Ticket Office also provides a variety of options for 

marketing endeavors, such as local discount coupon distribution and redemption. Second, the 

Cape Air proposal includes a ramp-side inter-terminal shuttle, facilitating seamless connections 

between terminals or concourses at STL, without having to re-clear security. Additionally, Cape 

Air again offered an annual marketing budget to advertise the air service. 

The Cape Air proposal focuses on providing service to STL utilizing the Cessna 402, capable of 

carrying eight passengers per flight, and offers either four (4) daily round-trips or six (6) daily 

round-trips. With either proposal. Cape Air also offers a discounted contract term of four (4) 

years, rather than the usual two (2) year term. Cape Air continues to offer Cape Girardeau 

passengers a $49 fare each way to STL. 

The Airport Board is very appreciative of the efforts proposed by Shane Storz and Jacqueline 

Donohoo with Air Choice One. Although ACO offered Cape Girardeau new destination options 
Mr. Kevin Schlemmer 

Page 3 

February 4, 2011 

and low fares, the final decision of the Board was swayed by the simple fact that Cape Air has 

performed extremely well for Cape Girardeau since beginning service November 8, 2009. Our 

passenger boardings have grown on a monthly basis, with load factors averaging between 55 

and 60%. Cape Air's completion rate was over 99% for 2010, their on-time performance is near 

perfect, and their customer service has been second to none. Additionally, their marketing 

efforts and involvement within the community have been exceptional. 

When the Airport Board considered the additional offers of this latest Cape Air proposal, their 

decision to retain Cape Air as our air service provider became quite clear. The Board and City 

Council clearly prefer the six (6) daily round-trip option, as the two additional flights provide 

Cape Girardeau passengers additional frequency options, which they have been asking for. 

Passengers returning from the East Coast or West Coast have complained that the connection out 

of STL when returning home is very difficult, if not impossible, to make. The extra flights 

would allow a later return flight from STL. With the proposal to include a ramp-side interterminal shuttle in STL, we will definitely see more Southwest Airline business travelers. 

Additionally, with the recent announcement by the State of Missouri Gaming Commission that 

the Isle of Capri casino will be opening in Cape Girardeau by 2013, this new attraction will 

generate more passengers and assist in filling the two extra flights. According to the airline, it is 

very simply more efficient for Cape Air to provide six (6) daily round-trip service to all three 

communities, rather than six (6) round-trips to Quincy and Marion and only four (4) round-trips 

to Cape Girardeau. 

The Airport Board and City Council also prefer the four (4) year contract option. The additional 

two years allows Cape Air more time and opportunity to invest and it provides the Cape 

Girardeau community more consistent service expectations. 

In summary, after considering all of the pros and cons associated with each of the airline 

proposals, the City of Cape Girardeau's final recommendations are: 

1.) to recommend to the United States Department of Transportation to award the Essential 

Air Service four (4) year contract to Hyannis Air Service, Inc., d/b/a Cape Air, to provide 

scheduled air service between Cape Girardeau and St. Louis Lambert Airport, and 

2.) to recommend to the United States Department of Transportation to award such contract 

to Hyannis Air Service, Inc., d/b/a Cape air, utilizing the six (6) daily round-trip 

scheduled air service between Cape Girardeau and St. Louis Lambert Airport. 

We are very comfortable with the Airport Advisory Board's recommendations and the City 

Council's endorsement, and we feel strongly that they are in the best interest of the Cape 

Girardeau Regional Airport, as well as the City of Cape Girardeau and the community we serve. 

The City of Cape Girardeau would like to thank the United States Department of Transportation 

for the opportunity to voice this recommendation. Should you have any questions regarding 
Mr. Kevin Schlemmer 

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February 4, 2011 

these recommendations, please feel free to contact us or Bruce Loy, our Airport Manager. We 

look forward to your review and final determination of award. 

Respectively Submitted, 

Harry E. 

Mayor 

leyer 

City Manager 

HER/SAM:gc 

cc Cape Air