City of Tupelo

Jason L. Shelton

Mayor

COUNCIL

January 24, 2014

Mr. Travis Christ

Chief Commercial Officer

Silver Airways

1100 Lee Wagener Blvd.

Suite 212

Fort Lauderdale, FL33315

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Markel Whittington

Ward One

Lynn Bryan

Ward Two

James (Jim) Newell

Ward Three

Nettie Y. Davis

Ward Four

Buddy Palmer

Ward Five

Mike Bryan

Ward Six

Willie Jennings

Ward Seven

Dear Mr. Christ,

This is a joint letter from the Mayors of Greenville and Tupelo, Mississippi to Silver Airways requesting an

adjustment in the existing pattern of air service provided by Silver Airways to our two cities.

Silver Airways assumed the Essential Air Service (EAS) contract at both Tupelo and Greenville airports on

October 1, 2012. The Department of Transportation EASaward to Silver called for 18 round trips flights

per week on a routing of Greenville - Tupelo - Atlanta, using SF-340 turboprop equipment. The subsidy

level was set at $7,044,795 annually, based on the projected Silver operating statistics presented in the

carrier's EASbid.

For a variety of reasons, Silver service got off to a very uneven start in late 2012, with numerous canceled

and delayed flights and the delayed and then flawed introduction of booking display on the Delta.com

website. Also, Silver used the reservations system of Island Air for approximately the first eight months of

service, and then switched to its own identity and reservations system in June of 2013.

To the carrier's credit, operational performance did improve gradually during 2013 and was within

acceptable airline service norms during late summer and early fall of 2013.

However, since mid.November the operational performance of Silver Airways in our two cites has

declined significantly. Flight schedules are now unreliable and customer service, which is critical when

operations are unreliable, has declined to the point where both airports and city offices are flooded with

complaints about local air service.

We do not want this to continue and we assume Silver Airways feels the same way. We do appreciate that

changes in the FAA regulations regarding pilot qualification and duty and rest time have impacted Silver

Airways. We also appreciate that Silver is publishing a three flight per day schedule and rarely operating

three flights a day and often operating flights late. The result is a further decline in passenger traffic and

further damage to Silver's already damaged brand reputation in our cities.

This situation is not good for our two cities or for Silver Airways or for the tax payers regarding subsidy

expense.

After consultation with the DOT EAS Office, our two cities believe that one immediate step that would

help this situation would be an orderly reduction in Silver service from the current 36 flights per week on

the one stop routing to a 24 flights per week schedule.

This new schedule would retain the overnight flight pairing that starts in Greenville early in the morning

and returns to Greenville late in the evening. The new schedule would then just operate one midday

round trip on an ATl- TUP - GlH - TUP - ATl routing. Service would be twice a day on that schedule

Monday through Friday with one trip on that routing on each Saturday and each Sunday.

71 East Troy 51.. P.O. Box 1485. Tupelo. Mississippi 38802-1485.662-841.6513. Fax 662.840-2075
Page 2

~hiS would save Silver almost five hours of airplane flight time per day and free up an airplane for roughly

SIXhours a day. We assume this would help the carrier with pilot shortages and whatever else in the way

of operational challenges the carrier faces on its Atlanta operations.

It is not typical for any city to request a reduction in its air service. Typically, as city officials, we seek to

recruit and retain as much as service as we can. However, we desperately need greater reliability in our

air service. Air service is essential to the health our local economies. This is very important to us. We are

willing to work with Silver Airways and feel a two flight a day schedule, flown reliably. is better than a

three flight per day schedule subject to continuing delays and cancellations.

Therefore we ask Silver to reduce service from the current pattern of three trips a day to two trips a day

along the lines of the above outline, on a mutually agreeable date in the near future. We ask Silver to do

this with a commitment to operate the two flights per day schedule reliably in all circumstances except

where weather or Atlanta congestion might cause delays or cancellations.

If we see that we have a consistently reliable two flight a day schedule we will commit resources to

promote that schedule locally. We further strongly urge Silver, given the damaged reputation of the

service in our cities, to reduce fares in a manner that will provide our residents with an attractive air

service option.

Atlanta is the largest hub airport in the world. The Silver aircraft are beautiful and the in-flight service is

very good. But air service is about consistency and reliability. We appreciate the operational challenges

FAA rule changes have imposed on Silver Airways. let us work together to find solutions that permit Silver

Airways to be proud of the service they provide to Greenville and Tupelo, solutions that pave the way for

the carrier to re-bid later this year to continue to be our air service provider with a two trip a day pattern.

Please let us know as soon as possible jf Silver Airways would like to pursue this service reduction. The

DOT has indicated to us that they would permit such a reduction. Silver Airways subsidy would continue

to be paid at the same per flight rate as it is now, meaning that total subsidy payments would be reduced.

In turn, Silver would save a significant amount of pilot and aircraft hours each day, to the benefit of the

overall carrier operation. We believe that if we have more reliable service, both passenger traffic and

passenger revenue will increase.

Thank you for your prompt consideration of this proposal.

Best regards,

CITY OF TUPELO

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