21ST SENATORIAL DISTRICT SCOTT E. HUTCHINSON

HARRISBURG OFFICE

SENATE BOX 203021 HARRISBURG, PA 17t20·3021 (717) 787-9684 FAX (717) 787•6088 TTY (800) 364-1581 shutchlnson@posen.gov senotorscotthutchlnson.com



### The Honorable Anthony Foxx Secretary ofTransportation U.S. Department ofTransportation 1200 NewJersey Avenue, SE Washington, DC 20590

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## Jlruusylunuia July 18,2014 COMMITTEES

COMMUNICATIONS & TECHNOLOGY CHAIR
FINANCE VICE CHAIR

ENVIRONMENTAL RESOURCES & ENERGY
LOCAL GOVERNMENT
PUBLIC HEALTH & WELFARE
VETERANS AFFAIRS & EMERGENCY PREPAREDNESS

MAJORITY POLICY COMMITTEE

JOINT LEGISLATIVE AIR & WATER POLLUTION CONTROL & CONSERVATION COMMITTEE
PA HARDWOODS DEVELOPMENT COUNCIL



### Re: Support for Petition ofFranklin/Oil City 10 enplanement statute waiver, Docket No. 1997-2523

Dear Secretary Foxx:

The communities ofFranklin/Oil City and the Venango County Regional Airport were served, on June 24, with the DepartmentofTransportation Order 2014-6-6; Terminating EAS Eligibility and Establishing Waiver Procedures for possible continuation orreinstatement ofcommercial air service to the region.

I write today in support ofa waiver request submitted by the Airport Manager on behalfof Franklin/Oil City sothatthese communities and the Oil Heritage Region, served by the Venango Regional Airport, may have reliable commercial air servicethatis so vital to the area's economy.
The decline in the numbers ofcommercial passengers using the local air service began a freefall in 2005, when the flights were reduced to 12 weekly. Priorto that; we saw significant growth duringthe fourth quarter of2004 and were on tracktoboard 4,000 passengers as 2005 began with a strong showing through three quarters until the flight levels were reduced eliminating viable connections. During this period, the carrier, Mesa, Dba US Airways Express had significant struggles due to its financially strapped codeshare partner, the downsizing and ultimate elimination ofthatpartner's hub airport and spiking oil prices that dramatically impacted operatingcosts. Service was unreliable and many potential passengers made the long drives to Pittsburgh orClevelandratherthan riskmissed connections. The airline, burdened bythe then extraordinary fuel costs and pressures in the hub airport, filed a 90 day notice with theUSDOTon May 3 of2007to terminate its subsidized service to Franklin/Oil City and bids wererequested by DOT for a replacement carrierwhile the incumbent was held in. This delay was difficult for the community as the service that had deteriorated greatly from 2004 through 2006 became
even worse in 2007 while the incumbent airline grappled with few viable connections remaining and many flight cancellations due to maintenance and crew issues. The Airline actually werit out ofbusiness in May of2008 withtwo (2) weeks notice. The community was without air service for over three (3) months until Septemberof2008 when Gulfstream International, (now Silver Airways) began operations. This airline, based in Florida, had no experience operating in northern climates. Only two (2) oftheir B1900D aircraft had anti skid brakes, a condition that hampered the ahility to operate on Franklin's 5200 ft runway during winterconditions. Beginning in December of2008; the airline averaged 22.8 

### % cancellations during the winter months ofDecember, January and February. Hundreds ofpassengers were affected by the delays and cancellations during those months.

BUTLER OFFICE 110 EAST DIAMOND STR£ET, BUTLER, PA 16001 724-282- I 234 FAX 724-282-6852 OIL CITY OFFICE 302 SENECA STREET, OIL CITY, PA 16301 8 I 4-677-6345 FAX 814-677-633 I TOLL FREE 877-659-4483 WARREN OFFICE 22045 ROUTE 6, WARREN, PA 16365 814-728-2100 FAX 814-728-2102The cascading effectsrendered airport marketing and promotional expenditures virtually useless
as the unreliability stories spread. The results were evident as potentialpassengers avoided the uncertainty offlying from Franklin and enplanements declined further. Rebuilding the customerbase became the sole responsibility ofthe local Airport as the airline did not participate in orcooperate with marketing and promotional efforts. Indeed; the airline upper management would not allow a locally published phone number and, therefore, theAirportbecame the default local contactforthe airline. Additionally, the Airport has provided ground transportation for passengers affected by airline flight irregularities many times overthe past 5 years in an effortto maintain any possible degree ofcustomer goodwill for the future. We considered the expenditures averaging $7,000 anm.ially to be an investment in the future, looking forward to the anticipated restoration ofservice to Pittsburgh.

The negative press and headlines during the pastfew years about the possible loss offunding for the EAS program and, most recently the airline's notice to departthe market altogether has further exacerbated the problems faced by the Airport and the Community trying to attract customers backtothe local air service.
Seeking improvements, the Airport Manager at Venango Regional Airporthas represented this region on the PennsylvaniaAir Service Committee (PASC) since its inception in 2007 and has worked with airport colleagues, the Pennsylvania Department ofTransportation- Bureau ofAviation, (PennDOT) and representatives ofthe Pittsburgh International Airport (PIT) to restore service to PIT which is the preferred and natural connectorfor air passengers from this region. The PASC, PIT and PennDOT contracted the services ofa consulting firm in 2011 to conduct a multi-year study to determine the viability ofrestoring intrastate service to PIT from both EAS and Non EAS communities. There is an opportunity now to regain serviceto PIT with an air carrier committed tothis community operating a business model thathas proven successful in many small communities; relatively high frequency, 9 passenger aircraft, reasonable fares and viable connectivity to major airlines as we11 as low costcarriers, (LCCs). This is a different business model from whatwe've had and we are aware ofthe positive results experienced in many small markets.

I am**~ncouraged** thatthe (3) airlines that bid on Franklin/Oil City service to PIT all presented essentially that same business model asthe mostviable solution to improve passengertraffic and allow the communityto satisfY EAS minimum requirements ofnot onlythe 10 enplanements per daybut also to attain and maintain the $200 subsidyperpassengerrule. Our citizens look forward to reconnecting with Pittsburgh with the service to be providedby Sun AirInternational and look to the US DOTto allow Franklin/Oil City to start service to PITunder a waiver in orderto provide reliable, timely air service to the region through the restoration ofthe connection to PIT.
Sincerely,

Scott E. Hutchinson State Senator, 21st District
SEH/jnl