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# CITY OF MUSCLE SHOALS POST OFFICE BOX 2624 • MUSCLE SHOALS, ALABAMA 35662

------------ 256.383.5675 ·Fax 256.386.9201------------ DAVID H. BRADFORD Mayor:

Mr. Michael Martin July 1, 2014

United States Department ofTransportation Office ofAviationAnalysis 1200 NewJersey Avenue SE Room W86-472 Washington D.C. 20590
Reference: Northwest AlabamaRegional Airport (MSL) DOT-OST-2000-7856

DearMr. Martin: RICKY WILLIAMS City Ged:!Tr:easur:er:

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On Monday June 2nd, multiple airlines submittedproposals to

### pro·~-ide essential air service (EAS) at the Northwest AlabamaRegional Airport (MSL). The Airport serves Muscle Shoals, Florence, Sheffield and Tuscumbia, Alabama· and is a vital economic linlcfor the entire Northwest Alabama region. Historical Socioeconomic Population Statistics· show nearly 1'50,000 residents inthe Shoals MSA. This letter constitutes the combined comments ofthe communities the Airport serves regarding the various air serviceproposals received. First, we wish to thank all three carriers for their interest in our market. We feel this high level of interest confirms our belief that our Airport is capable of generating dramatic airline traffic increases, withthe appropriate carrier and service level. We have met with each ofthe carriers and reviewedtheir proposals very carefully. After this review we would like to endorsethe proposal ofSeaPortAirlines to provide EAS at·our Airport. SeaPort's proposal calls for 24 round trip flights·

### p~~**we~k** toNashville and requires an anriual subsidy level of $1,739,308. The service level is higher than that of any other carrier and the subsidy need is between $300,000 and $600,000 lower than any other carrierproposal.

__ .c......:__ CouncilMember:s JAMES HOLLAND • MIKE LOCKHART • ALLEN NOLES • JOE PAMPINTO • NEAL WILLIS" '

SeaPort is a well-established regional airline and already has facilities and operations at Nashville. We look forward to significant traffic growth with SeaPort service. We are also confidentthat frequent service to Nashville at this modest subsidy level will generate traffic well in excess ofthe 10 enplanementper day requirements and also at subsidy levels well below $200 perpassenger. We do, again, appreciate the interest inour marketby AirChoiceOne and SunAir International. We are very impressed with AirChoiceOne's success in other cities but are deeply concerned about the higher subsidy level required in the carrier's proposals, especially when most ofthose proposals only call for 18 roundtrip flights perweek. Traffic levels would have to greatly exceed the carrier's forecast in most years to keep subsidy levels below $200 perpassenger. Sun AirInternationalproposed service to Memphis. Nashville is closer to our market areaand air service levels are much higher at that airport than at Memphis. Furthermore, average fares at Nashville are much lower than at Memphis and this is a very important consideration given that all three airlines will rely on a sum oftwo locals pricing model. We understand that this EAS bid process is preceding under the cloud ofthe 10 enplanement termination notice the Department has advised us of. We will address the merits ofour market and why we should remain eligible for EAS flights in the appropriate venue. We will note here that MSL averaged about 12,170 annual passengers (16.7 enplanements per day) prior to our current air service. We believe that our failure to make 10 enplanements per day during FY 2013 was entirely temporary in nature and due only to the poor service Silver Airways offered in our market. Thus, we believe that we will be able to strongly justify a waiver from the 10 enplanementviolation with new SeaPort service to Nashville. On that note, and looking forward to successful SeaPort air service, we do not want to burden that carrier with having to overcome subsidy levels far in excess of $200 per passenger. The current Silver Airways service sees subsidy levels per passenger in excess of $600. Thus, we request thatthe Departmentterminate the Silver Airways service at MSL on September 30, 2014. This avoids the Airport and our new carrier having to overcome one or more months of Silver service in October orNovember, with each month seeing subsidy levels of$600 perpassenger. We will instead go dormant in terms ofair service on October 1, 2014 until SeaPort can begin flights. This action on our part saves the Department subsidy funds and gives our new air service partner a clean slate from which to grow ourtraffic levels. We hope the Department can expedite the termination notice and waiver application process as well as the awarding of a new EAS contract for Muscle Shoals to SeaPortAirlines. Ideally we would like Seaportto be able to begin service on October 1, 2014, but we will understand ifthat date slips by a few weeks or one or two months. We wouldnot want our dormancyto extendmore than 60 days.' 

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We again express ourthanks to the three airlines that offered service proposals and we thankthe Department in advance for working with us as we navigate the challenges ofpreserving and growing our air service to meetthe transportation needs ofourregion.

Bestregards,

David H. Bradford Mayor
Cc: SenatorRichard Shelby, State ofAlabama Senator JeffSessions, State ofAlabama CongressmanRobert B. Alderholt, State ofAlabama CongressmanMo Brooks, State ofAlabama GovernorRobert J. Bentley, State ofAlabama Mayor Mickey Haddock, City ofFlorence Mayor Ian Sanford, City ofSheffield Mayor BillS. Shoemaker, City ofTuscumbia NorthwestAlabamaRegional Airport Authority