# CityofTupelo Jason L.Shelton Mayor

COUNCIL January24, 2014 Mr. Travis Christ Chief Commercial Officer Silver Airways 1100 LeeWagener Blvd. Suite 212 Fort Lauderdale, FL33315 N N .~

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### MarkelWhittington WardOne LynnBryan WardTwo James (Jim) Newell WardThree Nettie Y.Davis WardFour Buddy Palmer WardFive MikeBryan WardSix WillieJennings WardSeven Dear Mr. Christ, This is ajoint 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. Foravariety of reasons, Silver service got off to avery 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 inJune 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 athree flight per day schedule and rarely operating three flights aday and often operating flights late. The result is afurther 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 EASOffice, 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 a24flights perweek 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 EastTroy51.. P.O.Box 1485. Tupelo. Mississippi 38802-1485.662-841.6513. Fax 662.840-2075

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~hiSwould save Silver almost five hours of airplane flight time per day and free up an airplane for roughly SIXhours aday. 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 isnot typical for any city to request areduction in its air service. Typically, ascity officials, we seekto recruit and retain asmuch asservice aswe can. However, we desperately need greater reliability in our air service. Air service isessential to the health our local economies. This isvery important to us.We are willing to work with Silver Airways and feel atwo flight aday schedule, flown reliably. isbetter than a three flight per day schedule subject to continuing delays and cancellations. Therefore we askSilver to reduce service from the current pattern of three trips aday to two trips aday along the lines of the above outline, on amutually agreeable date in the near future. We askSilver to do this with acommitment to operate the two flights per day schedule reliably in all circumstances except where weather or Atlanta congestion might causedelays or cancellations. Ifwe seethat we have aconsistently reliable two flight aday schedule we will commit resources to 

### promote that schedule locally.Wefurther strongly urge Silver,giventhe damaged reputation ofthe service in our cities, to reduce fares in amanner that will provide our residents with an attractive air service option. Atlanta isthe largest hub airport in the world. The Silver aircraft are beautiful and the in-flight service is very good. But air service isabout consistency and reliability. We appreciate the operational challenges FAArule changes have imposed on SilverAirways. let uswork 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 beour airservice provider with atwo trip aday pattern. Please let us know assoon aspossible jf SilverAirways would like to pursue this service reduction. The DOThasindicated to usthat they would permit such areduction. Silver Airways subsidy would continue to be paid at the same per flight rate asit isnow, meaning that total subsidy payments would be reduced. In turn, Silver would save asignificant amount of pilot and aircraft hours each day, to the benefit of the overall carrier operation. We believe that ifwe have more reliable service, both passenger traffic and passenger revenue will increase. Thank you for your prompt consideration of this proposal. Best regards, CITYOFTUPELO



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