Report Prepared by: Martin Pehl, Airport Manager
Title
SUBJECT: Consideration of the Merced Regional Airport Authority Recommendation for the Advanced Air-Option 2 (1st Choice), Advanced Air-Option 3 (2nd Choice) and Southern Airlines (3rd Choice) as the Airline Carrier to Serve the Merced Yosemite Regional Airport Under the Essential Air Service and Make a Recommendation to the Department of Transportation
REPORT IN BRIEF
Considers the Merced Regional Airport Authority’s recommendation for air carrier service to the U.S. Department of Transportation regarding a selection of an essential air service carrier provider for the Merced Yosemite Regional Airport.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Regional Airport Authority’s recommendation for air carrier service to the U.S. Department of Transportation concerning selection of an essential air service provider by priority as follows:
1. Advanced Air, Option 2 (KLAS/KHHR PC12); or,
2. Advanced Air, Option 3 (KLAS/KLAX PC 12); or,
3. Southern Airways, Option D; and,
B. Authorizing the City Manager or designee to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by the Merced Regional Airport Authority, or;
2. Approve a different recommendation to the Department of Transportation (specify in motion), or;
3. Take no action.
AUTHORITY
Charter of the City of Merced, Section 200; Merced Municipal Code Section 2.36.020.
CITY COUNCIL PRIORITIES
As provided for in the 2020-21 Adopted 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 (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 on July 31, 2021.
Essential Air Service carriers from the past include Scenic Air and Great Lakes Airlines. Boutique 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 March 4, 2021, 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 August 1, 2021. By April 6, 2021 DOT had received four proposals, which were forwarded to City staff. Proposers include Advanced Air (Attachment 2), Boutique Air (Attachment 3), Denver Air Connection (Attachment 4), and Southern Airways (Attachment 5).
It should be noted, the US Department of Transportation, who will make the actual and final selection of the air carrier, is requesting that the City of Merced provide comment regarding the proposals by May 24, 2021.
Airport Authority Subcommittee Review: On April 15th, an ad hoc subcommittee of the Merced Regional Airport Authority (RAA) interviewed officials from each of the four proposing air carriers. The subcommittee included Regional Airport Authority Chair Michael Bodine, Vice Chair Travis Colby, and Robert Scoble. Participating City staff included Frank Quintero, Karen Baker, and Martin Pehl.
The subcommittee met again on April 20th to further discuss the air carrier proposals and interviews. At the conclusion of the April 20th meeting, the subcommittee voted to recommend to the Regional Airport Authority that Advanced Air, Option 2 (KLAS/KHHR PC-12) be recommended to the Merced City Council as the preferred proposal.
Advanced Air, Option 2 (KLAS/KHHR PC-12) would include 28 round trips per week. 14 round trip flights would be between Merced (KMCE) and Las Vegas (KLAS) and 14 round trip flights would be between Merced (KMCE) and Los Angeles (KHHR). KHHR is the airport identifier for the Hawthorne Airport, which is located approximately 3 miles from Los Angeles International Airport (KLAX). Advanced Air operates “Jet Center Los Angeles” at KHHR, which serves as the home base for all Advanced Air flight operations and aircraft maintenance.
ADVANCE AIR - OPTION 2 SCHEDULE
O P T I O N 2 : 28 round trips per week 14 Round trip flights between KMCE and KLAS
14 round trip flights between KMCE and Los Angeles (KHHR and KLAX Options)
Proposed Schedule
WEEKLY ROUTES
ROUTE DEPART ARRIVE NOTES
HHR-MCE 5:00A 6:06A M -S
YART BUS 6:55A TO YOSEMITE VALLEY
MCE-LAS 6:36A 8:00A M -S
LAS-MCE 8:30A 10:00A M -S
YART BUS 10:30A TO YOSEMITE VALLEY
MCE-HHR 10:30A 11:36A M -S
HHR-MCE 12:06A 1:12P M -S
MCE-LAS 1:42P 3:06P M -S
LAS-MCE 3:36P 5:06P M -S
YART BUS 5:25P TO YOSEMITE VALLEY
MCE-HHR 5:45P 6:51P M -S
The subcommittee’s reasoning behind recommending Advanced Air included, in part, several factors. These factors include Advanced Air’s willingness to contractually obligate themselves to providing service to the Las Vegas International Airport, the level of community awareness shown in their proposal, and the level of financial commitment for marketing of the proposed air service.
Regional Airport Authority Special Meeting: On April 28th, the RAA held a special meeting to review and discuss the subcommittee recommendations. The RAA approved a motion, split vote, recommending to the Merced City Council that Advanced Air, Option 2 (KLAS/KHHR PC-12) be selected as the preferred proposal in response to the United States Department of Transportation’s “Order Requesting Proposals” for air carries interested in providing Essential Air Service for the Merced Yosemite Regional Airport starting August 1, 2021. One-member voting “NO” mentioned a preference for service to Sacramento.
After the RAA’s action, US Department of Transportation suggested the City’s recommendation include more than one option, should the USDOT have an issue with any one recommendation. Therefore, staff has added the RAA subcommittee’s second and third place recommendations, which are Advanced Air, Option 3 (KLAS/KLAX PC-12) and Southern Airways, Option D.
All three recommendations include service to the main terminal of McCarran International Airport (KLAS) and the Los Angeles area (KHHR or KLAX).
• Advanced Air, Option 3 (KLAS/KLAX PC-12) would include 24 round trips per week. 12 round trip flights would be between Merced (KMCE) and Las Vegas (KLAS) and 12 round trip flights would be between Merced (KMCE) and Los Angeles (KLAX).
ADVANCED AIR - OPTION 3 SCHEDULE
O P T I O N 3 : 24 round trips per week 12 Round trip flights between KMCE and KLAS
12 Round trip flights between KMCE and Los Angeles (KHHR and KLAX Options)
Proposed Schedule
WEEKLY ROUTES
ROUTE DEPART ARRIVE NOTES
HHR-MCE 5:00A 6:06A M -S
YART BUS 6:55A TO YOSEMITE VALLEY
MCE-LAS 6:36A 8:00A M -S
LAS-MCE 8:30A 10:00A M -S
YART BUS 10:30A TO YOSEMITE VALLEY
MCE-HHR 10:30A 11:36A M -S
HHR-MCE 12:06A 1:12P M -S
MCE-LAS 1:42P 3:06P M -S
LAS-MCE 3:36P 5:06P M -S
YART BUS 5:25P TO YOSEMITE VALLEY
MCE-HHR 5:45P 6:51P M -S
• Southern Airway, Option D, flying the Pilatus PC-12, would include 28 round trips per week. 7 round trip flights would be between Merced (KMCE) and Las Vegas (KLAS) and 21 round trip flights would be between Merced (KMCE) and Los Angeles (KLAX). No other proposals included air service to Las Vegas.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed.
ATTACHMENTS
1. Essential Air Service Overview
2. Advanced Air Merced EAS 2021 DOT-OST-1998-3521
3. Boutique Air Merced Bid Proposal
4. Denver Air Connection Proposal to provide EAS at Merced
5. Southern Airways Merced EAS 2021