Report Prepared by: Rhett Williams, Airport Manager, Merced Yosemite Regional Airport
Title
SUBJECT: Update on Essential Air Service and Other Projects at the Merced Yosemite Regional Airport
Report in Brief
Presentation regarding updates on Essential Air Service, transition from Advanced Air to Contour Airlines, opening of the new terminal, and other tasks at the Merced Yosemite Regional Airport.
RECOMMENDATION
Information only-no action required.
Body
DISCUSSION
Airport Terminal Replacement Project
Executive Summary
The Airport is entering a pivotal phase for 2026. Staff has successfully closed out major federal grants and are nearing the completion of the new terminal. While federal budget shutdowns have created some administrative hurdles regarding leasing, we remain on track for a major facility upgrade this summer.
1. Air Service Updates - Essential Air Service (EAS)
• To provide seamless service, the Department of Transportation (DOT) extended the current Essential Air Service contract with Advanced Air through June 30, 2026.
• On March 24, 2026, the Department of Transportation (DOT) issued an order and notice to Contour Airlines stating that they will formally provide Essential Air Service for a four-year period starting on July 1, 2026, at the Merced Yosemite Regional Airport (Attachment 1).
2. New Terminal Project
• Status: Construction is in the final "punch-list" phase.
• Opening Date: We are targeting Summer 2026 for the grand opening.
• The Challenge: Recent federal government shutdowns have furloughed the primary contacts at the TSA and DOT. This has delayed the signing of necessary lease agreements. Airport staff are actively seeking alternate federal representatives to keep the project moving.
3. Infrastructure & FAA Projects
• Radio Tower: Phase 3 of the FAA Radio Tower project is on schedule for Summer 2026. This project is 100% FAA-funded and will modernize our communication and navigation equipment.
• Taxiway A Rehab: We have "shovel-ready" plans to repair and repaint Taxiway A. The project is estimated at $1.4 million and is currently pending FAA funding approval for the 2026-2027 fiscal year.
4. Upcoming 2026 Milestones
• Q2 (April-June): Finalize TSA leases and complete systems testing in the new terminal.
• Summer 2026: Grand opening of the new terminal and activation of new FAA radio equipment.
• Mid-Summer 2026: Transition to the newly selected airline carrier.
ATTACHMENTS
1. Order 2026-3-19 Merced 2026 Selection Order
2. Airport Update Presentation