|
Title:
|
SUBJECT: Essential Air Service Proposal Recommendation from the EAS Subcommittee for Consideration by the Regional Airport Authority and Forwarding a Recommendation to the Merced City Council
REPORT IN BRIEF: The Essential Air Service Subcommittee will provide a recommendation to the Regional Airport Authority regarding the proposals submitted by the four airlines. The Regional Airport Authority will forward a recommendation to the Merced City Council
RECOMMENDATION
Regional Airport Authority - Adopt a motion:
The EAS RAA Subcommittee recommends that the Regional Airport Authority recommend to the Merced City Council the following two options:
Option 1) Recommend to the US Department of Transportation that Skywest
Charter with service to Los Angeles International Airport and Harry Reid International Airport (Las Vegas) serve the City of Merced as the Essential Air Service provider; and,
Option 2) Recommend to the US Department of Transportation that Contour
Airlines with Serv...
|
Report Prepared by: Rhett Williams, Airport Manager, Merced Yosemite Regional Airport and Frank Quintero, Deputy City Manager
Title
SUBJECT: Essential Air Service Proposal Recommendation from the EAS Subcommittee for Consideration by the Regional Airport Authority and Forwarding a Recommendation to the Merced City Council
REPORT IN BRIEF: The Essential Air Service Subcommittee will provide a recommendation to the Regional Airport Authority regarding the proposals submitted by the four airlines. The Regional Airport Authority will forward a recommendation to the Merced City Council
RECOMMENDATION
Regional Airport Authority - Adopt a motion:
The EAS RAA Subcommittee recommends that the Regional Airport Authority recommend to the Merced City Council the following two options:
Option 1) Recommend to the US Department of Transportation that Skywest
Charter with service to Los Angeles International Airport and Harry Reid International Airport (Las Vegas) serve the City of Merced as the Essential Air Service provider; and,
Option 2) Recommend to the US Department of Transportation that Contour
Airlines with Service to Los Angeles International Airport and Harry Reid International Airport (Las Vegas) serve the City of Merced as the Essential Air Service provider.
Body
ALTERNATIVES
1. Approve, providing the recommendation, dual options, to the City Council per the EAS Subcommittee; or,
2. Provide an alternative recommendation; or,
3. Refer to staff for reconsideration as requested by the Regional Airport Authority.
AUTHORITY
Charter of the City of Merced, Section 200, et. seq.
CITY COUNCIL PRIORITIES
As adopted in the Fiscal Year 2025-2026 Budget.
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. 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 (ATTACHMENT 1). By July 11, 2025, the DOT received four proposals which were forwarded to City staff. Proposals were received from Contour Airlines, Advanced Air, Skywest Airlines, and Boutique Air (ATTACHMENTS 2 - 6.)
EAS Proposal Review Subcommittee: On Tuesday, July 29, 2025, the Regional Airport Authority met and formed the Essential Air Service Review Subcommittee including Sabrina Abong, Shahid Sohail, and Dalvina Johnson. Also participating on the Subcommittee were Airport staff Rhett Williams and Karen Baker. Deputy City Manager Frank Quintero and Economic Development Associate Amanda Williams served in an advisory capacity.
The process to review the proposals includes the following steps:
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
The final decision (order) on which airlines is selected to provide EAS Service to the City of Merced is made by the US Department of Transportation.
The EAS Subcommittee met on August 5, 2025, to review the submitted EAS proposals. Subcommittee discussion focused on schedule, flights to major hubs, interlining, frequency, increasing enplanements, marketing, and reliability. Subsequently, the EAS Subcommittee spent the afternoon of August 12, 2025, virtually meeting and interviewing the proposers. All proposing airlines participated.
Proposed Service From:
Boutique Airlines
Skywest Airlines
Skywest Charter
Advanced Airlines
Contour Airlines
MCE-SFO
LAX
LAX
HHR/LAS
LAX
MCE-LAX
LAX/SFO
LAX/SFO
HHR/OAK
LAX/PHX
MCE-LAS
LAX/LAS
LAX/LAS
HHR/SFO
LAX/LAS
Types of planes and seating capacity:
Boutique Air
Skywest Airlines
Skywest Charter
Advanced Airlines
Contour Airlines
PC-12
CRJ200
CRJ200
B350/D328
ERJ135/145
8/9 seats
50 Seats
30 Seats
9 Seat/30 Seat
30 Seat
EAS Subcommittee Consideration: Upon interviewing the proposers, the EAS Subcommittee discussed the proposals, evaluating the benefits each provide serving the Merced residents and Merced Yosemite Regional Airport. The EAS Subcommittee unanimously recommends the following to the Regional Airport Authority:
RECOMMENDATIONS
1.Skywest Charter
2.Contour Airlines
3.Advanced Airlines
4.Skywest Airlines
5.Boutique Airlines
LAX/LAS
LAX/LAS
HHR/LAS
LAX
LAX/LAS
LAX/SFO
LAX/PHX
HHR/LAS
LAX/SFO
LAX
LAX
HHR/OAK
LAX
The EAS RAA Subcommittee recommends that the Regional Airport Authority recommend to the Merced City Council the following two options:
Option 1) Recommend to the US Department of Transportation that Skywest
Charter with service to Los Angeles International Airport and Harry Reid International Airport (Las Vegas) serve the City of Merced as the Essential Air Service provider; or,
Option 2) Recommend to the US Department of Transportation that Contour
Airlines with Service to Los Angeles International Airport and Harry Reid International Airport (Las Vegas) serve the City of Merced as the Essential Air Service provider.
IMPACT ON CITY RESOUCES
No appropriation of funds is needed at this time.
ATTACHMENTS
1. EAS RFP Issued by the DOT
2. Advanced Air EAS Proposal
3. Boutique EAS Proposal
4. Contour EAS Proposal
5. Skywest Airlines EAS Proposal
6. Skywest Charter EAS Proposal