Report Prepared by: Frank Quintero, Deputy City Manager and Director of Economic Development
Title
SUBJECT: Appoint Three Members from the Merced Regional Airport Authority to Form an Ad Hoc Subcommittee for the Purpose of Reviewing and Providing Recommendations Regarding Essential Air Service Proposals Received by United States Department of Transportation
REPORT IN BRIEF: Staff is requesting the Merced Regional Airport Authority appoint three Authority members to be joined with City staff to review Essential Air Service proposals.
RECOMMENDATION
Regional Airport Authority - Adopt a Motion:
1) Nominating Three (3) Members from the Regional Airport Authority to serve on the Essential Air Service Proposal Review Ad Hoc Subcommittee; and,
2) Confirming the Nominations; and,
3) Authorizing the three Airport Authority Members and City staff to proceed with Essential Air Service proposal evaluation process.
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DISCUSSION
The US Department of Transportation’s (USDOT) Essential Air Service (EAS) program was created in response to passing of the Airline Deregulation Act of 1978 to address concerns for continued air carrier service to rural areas of the United States (Attachment A). The City of Merced has participated in the EAS program since 1982. The EAS program provides an operating subsidy to the air carrier serving the Merced market through a contract between the US Department of Transportation and the selected air carrier. The EAS contract period is usually two to four years with the current contract expiring during 4Q 2025.
Essential Air Service carriers from the past include Scenic Air, Great Lakes Airlines, and Boutique Air. Hawthorne-based Advanced Air currently serves the Merced Yosemite Regional Airport as the Essential Air Service carrier under contract with the US Department of Transportation.
New Proposals Requested: On May 10, 2025, the United States Department of Transportation (DOT) issued an “Order Requesting Proposals” requesting proposals from air carriers interested in providing EAS for the Merced Yosemite Regional Airport starting January 1, 2026. By July 11, 2025, the DOT received four proposals which were forwarded to City staff.
Evaluation Process: Upon selection of the three Regional Airport Authority members to serve with City staff on the EAS Proposal Ad Hoc Subcommittee, the process to review the evaluation will include the following:
A) Review of the EAS proposals by the Ad Hoc Subcommittee
B) Subcommittee panel interviews with the EAS proposers
C) Subcommittee recommendation presented to the Regional Airport Authority
D) Regional Airport Authority provides a recommendation to the City Council
E) City Council provides a recommendation to the US Department of Transportation
Subcommittee meeting dates and subsequent actions will be scheduled by staff upon selection of the three Airport Authority members. The US Department of Transportation will make the final selection and award of the EAS air carrier and is requesting that the City of Merced provide comment regarding the proposals by August 12, 2025.
RAA Consideration: Staff recommends the Merced Regional Airport Authority nominate three members to serve with staff on the EAS Proposal Review Ad Hoc Subcommittee and confirm the nominees by vote.
ATTACHMENTS
A. Essential Air Service Overview