# CITYOF MUSCLE SHOALS POST OFFICE BOX 2624
. MUSCLE SHOALS, ALABAMA 35662 -------------256.383.5675
.Fax 256.386.9201------------ DAVID H. BRADFORD

MayDe RICKYWILLIAMS ety a.ekITeeasueee
July 1,2014

Mr. Michael Martin United States Department ofTransportation Office ofAviation Analysis 1200New Jersey Avenue SE Room W86-472 Washington D.C. 20590 -.9

Reference: Northwest Alabama Regional Airport (MSL)

DOT-OST-2000-7856
Dear Mr. Martin:
OnMonday June 2nd
, multiple airlines submitted proposals toprovide essential air service (EAS) attheNorthwest Alabama Regional Airport (MSL). TheAirport 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 inthe Shoals MSA. This letter constitutes the combined comments ofthe communities the Airport serves regarding thevarious air service proposals received. First, wewish to thank allthree carriers fortheir interest inour 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 of the carriers and reviewed their proposals very carefully. After this review we would like to endorse theproposal ofSeaPort Airlines toprovide EAS atourAirport. 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 isbetween $300,000 and $600,000 lower than any other carrier proposal.

Council Membecs ----- JAMES HOLLAND • MIKE LOCKHART' ALLEN NOLES • JOE PAMPINTO • NEAL WILLISSeaPort 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 toNashville atthis modest subsidy level will generate traffic well inexcess ofthe 10enplanement per day requirements and also at subsidy levels well below $200 perpassenger. We do, again, appreciate the interest inour market byAirChoiceOne 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 18round trip flights perweek. Traffic levels would have to greatly exceed the carrier's forecast inmost years tokeep subsidy levels below $200 perpassenger. SunAirInternational proposed service toMemphis. Nashville iscloser 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 andthis is avery important consideration given that allthree airlines will rely on a sum oftwo 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 forEAS 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 10enplanements 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 toNashville. 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 Department terminate the SilverAirways service atMSL on September 30, 2014. This avoids the Airport and our new carrier having to ovcrcome one or more months of Silver service in October orNovember, 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 ourpart saves the Department subsidy funds and gives our new air service partner aclean slate from which to grow ourtraffic levels. Wehope the Department can expedite the termination notice and waiver application process as well as the awarding of a new EAS contract forMuscle Shoals to SeaPort Airlines. Ideally we would like Seaport to be able to begin service on October I, 2014, but we will understand ifthat date slips by a few weeks or one or twomonths. We would not want our dormancy to extend more than 60 days.WelIgainexpress our thanks to the three airlines that offered service proposals and we thankthe

Department in advance for working with us as we navigate the challenges of preserving and growing our air service to meet thetransportation needs ofourregion.

Bestregards,

David H. Bmdford Mayor
Cc: SenatorRichard Shelby, State ofAlabama Senator Jeff Sessions, State ofAlabama Congressman Robert B. Alderholt, StateofAlabama Congressman Mo Brooks, State ofAlabama Governor Robert J. Bentley, State ofAlabama Mayor Mickey Haddock, City ofFlorence Mayor Ian Sanford, City ofSheffield Mayor Bill S. Shoemaker, City ofTuscumbia Northwest Alabama Regional Airport Authority