Airport receives 3 bids for service with lower subsidies
WILLIAMSTOWN – Officials at the Mid-Ohio Valley Airport are reviewing three bids to provide Essential Air Service locally.
Incumbent provider Contour Airlines submitted a proposal that includes service to Charlotte and the option for another airport, as well as unsubsidized, seasonal flights to Myrtle Beach. SkyWest submitted two bids, one for service to Washington, D.C., or Chicago and one for service to Charlotte.
Both companies’ proposed subsidies were lower than the offers they made earlier this year, when they were among five companies that bid on the federally subsidized service. Air Wisconsin, which had the lowest proposed subsidy, was selected by the U.S. Department of Transportation to provide service to Charlotte-Douglas International Airport aboard 50-seat jet, despite concerns about the proposal from local officials. Air Wisconsin withdrew in early September, as the airline was being sold.
Airport Manager Ben Auville said he has passed the information on the bids to Wood County Airport Authority members for them to review and arrive at a consensus recommendation. He has talked with officials at the USDOT, asked some questions and shared the answers with authority members.
“I think it is good we got the three proposals,” Auville said.
Contour, which has agreed to continue providing service at the local airport until April 26 or until a new carrier is ready to take over, is offering 12 weekly flights to Charlotte, N.C. on 30-seat regional jets with the possibility of having additional flights to Washington, D.C., or Chicago for a first-year subsidy of $5,784,370, rising annually to $6,696,131 in the fourth.
“We have been a proud member of the (Parkersburg) community since launching service to the region in 2018,” said Contour President Ben Munson in the cover letter to their proposal.
Munson said they will “de-couple” the flights between Parkersburg and Beckley and introduce non-stop flights into Parkersburg.
“We are confident that Contour’s expanded service to Parkersburg will be advantageous for the airport, local community and the broader region’s economic development,” Munson said.
The subsidy numbers are lower than Contour’s initial bid. This offer also includes unsubsidized, seasonal flights to Myrtle Beach. The bid document said these will be in addition to the regular flights, and a similar arrangement boosted EAS usage at an airport in Mink Shoals, Alabama.
SkyWest made two bids, the first providing 12 flights to Washington Dulles International Airport and/or Chicago O’Hare International Airport aboard 50-seat CRJ200 aircraft under their United Airlines Codeshare Agreement at a starting subsidy of $5,469,217, increasing to $5,976,362 in the fourth year. The other would keep Charlotte Douglas International Airport as the destination with 12 flights on CRJ700/900 aircraft with 65 to 76 seats under their American Airlines Codeshare Agreement. That subsidy would start at $6,138,942 and increase to $6,708,188 in the fourth year. The destinations are the same, but the subsidy amounts are lower than SkyWest’s earlier bids.
“We are excited about the opportunity to offer reliable and efficient air service to the region,” Cody Thomas, managing director for market development for Contour, wrote in his cover letter with their proposal.
“Our regional jets are ideal for both business and leisure travelers, and we’ll provide a flight schedule designed for seamless connections to United Airlines’ or American Airlines’ extensive
networks at (Washington D.C.), (Chicago-O’Hare), or (Charlotte, N.C.), ensuring convenient travel options for all passengers,” Thomas wrote. “This service will not only improve air connectivity but also stimulate economic growth by enhancing business and tourism opportunities in Parkersburg.”
In May, the Mid-Ohio Valley Regional Airport Authority discussed pitches made by Air Wisconsin Airlines, Breeze Airways, Contour Airlines, Denver Air Connection and SkyWest.
During the initial bidding process earlier this year, Contour’s bid was excluded because it didn’t meet exactly what was in the original request for proposal and Breeze airlines did not resubmit their bid because of similar concerns, Auville said.
Two of the bids don’t meet the exact criteria of what was put out by the USDOT where Contour is not Essential Air Service qualified, but they are classified as “Alternate Air Service,” he said. The SkyWest bid with the American Airlines codeshare is proposing a larger aircraft than in the initial specifications from the USDOT.
“What we are proposing is we are asking for the waivers to make all three proposals eligible,” Auville said. “We want to make sure everyone can compete.”
He is waiting to see what priority the board will rank the three proposals.
Since these were three proposals they had before, there will not be as much fact finding work done in considering them.
“We don’t want anyone excluded,” Auville said. “We want everyone to be considered based on the service.
“We want everyone to have a shot.”
Contact Brett Dunlap at bdunlap@newsandsentinel.com