CITY OF MUSCLE SHOALS

POST OFFICE BOX 2624. MUSCLE SHOALS, ALABAMA 35662

-------------256.383.5675 .Fax256.386.9201------------

DAVID H. BRADFORD

MayDe

RICKY WILLIAMS

ety a.ekITeeasueee

July 1,2014

Mr. Michael Martin

United States Department of Transportation

Office of Aviation Analysis

1200 New Jersey Avenue SE

Room W86-472

Washington D.C. 20590

-.9

Reference: Northwest Alabama Regional Airport (MSL)

DOT-OST-2000-7856

Dear Mr. Martin:

On Monday June 2

nd

, multiple airlines submitted proposals to provide essential air service (EAS)

at the Northwest Alabama Regional Airport (MSL). The Airport serves Muscle Shoals, Florence,

Sheffield and Tuscumbia, Alabama and is a vital economic link for the entire Northwest

Alabama region. Historical Socioeconomic Population Statistics show nearly 150,000 residents

in the Shoals MSA.

This letter constitutes the combined comments of the communities the Airport serves regarding

the various air service proposals 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, with the appropriate carrier and service level.

We have met with each of the carriers and reviewed their proposals very carefully. After this

review we would like to endorse the proposal of SeaPort Airlines to provide EAS at our Airport.

SeaPort's proposal calls for 24 round trip flights per week to Nashville and requires an annual

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 carrier proposal.

Council Membecs -----

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

confident that frequent service to Nashville at this modest subsidy level will generate traffic well

in excess of the 10 enplanement per day requirements and also at subsidy levels well below $200

per passenger.

We do, again, appreciate the interest in our market by AirChoiceOne and Sun Air 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 of those

proposals only call for 18 round trip flights per week. Traffic levels would have to greatly exceed

the carrier's forecast in most years to keep subsidy levels below $200 per passenger.

Sun Air International proposed service to Memphis. Nashville is closer to our market area and 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 of two locals pricing model.

We understand that this EAS bid process is preceding under the cloud of the 10 enplanement

termination notice the Department has advised us of. We will address the merits of our 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

enplanement violation 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 that the Department terminate the Silver Airways service at MSL on September 30, 2014.

This avoids the Airport and our new carrier having to ovcrcome one or more months of Silver

service in October or November, with each month seeing subsidy levels of $600 per passenger.

We will instead go dormant in terms of air service on October I, 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 our traffic 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 SeaPort Airlines. Ideally we would like Seaport to be able to begin

service on October I, 2014, but we will understand if that date slips by a few weeks or one or

two months. We would not want our dormancy to extend more than 60 days.
We lIgain express our thanks to the three airlines that offered service proposals and we thank the

Department in advance for working with us as we navigate the challenges of preserving and

growing our air service to meet the transportation needs of our region.

Best regards,

David H. Bmdford

Mayor

Cc: Senator Richard Shelby, State of Alabama

Senator Jeff Sessions, State of Alabama

Congressman Robert B. Alderholt, State of Alabama

Congressman Mo Brooks, State of Alabama

Governor Robert J. Bentley, State of Alabama

Mayor Mickey Haddock, City of Florence

Mayor Ian Sanford, City of Sheffield

Mayor Bill S. Shoemaker, City of Tuscumbia

Northwest Alabama Regional Airport Authority