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6.2 SAA Air Service UpdateCITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/9/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: 6 BY: ITEM City Manager's Office FINAL APPROVAL: NO: 2 Page 1 BY: Mike Schrage, City Manager BY: ITEM: Salina Airport Authority Air Service Update BACKGROUND: Skywest is currently the air service provider for the Salina community based on designation and funding through Essential Air Service Program of the Federal Aviation Administration. Recently, Skywest announced their intention to terminate service in 29 communities including Salina. The FAA has initiated a Request for Proposal process to solicit proposals from alternate air service providers and that process is underway. Tim Rogers, Salina Airport Authority Executive Director, initially provided an update to the City Commission regarding Skywest's termination. Additionally, the SAA has issued the attached press releases as on-going updates. This agenda item is intended to be an opportunity for Mr. Rogers to update the City Commission on the current status of conversations about air service in Salina as well as the FAA RFP process. FISCAL NOTE: There is no cost associated with this item. COMMISSION ACTION OR RECOMMENDED ACTION: This item is intended to be an informational report with no action to be taken by the Governing Body. SA LINA A irport SkyWest Airlines to Terminate United Express Service at Twenty -Nine Locations United Express Service at Salina, KS to End Salina, (March SkyWeast 11, AW A I R U N E S 2022)— SkyWest 022)— SkyWest Airlines has notified the U.S. Department of Transportation (USDOT) that the airline intends to terminate United Express service at Salina, KS and twenty- eight other United Express communities. The SkyWest decision also impacts essential air service at the Kansas communities of Hays, Dodge City, and Liberal. The decision is not driven by any failure in the USDOT's Essential Air Service Program (EAS) or the communities. The ongoing national pilot shortage has resulted in service cuts by all U.S. airlines. SkyWest lacks the pilots needed to meet demand and is reducing flying across its network. USDOT Hold -in Order The USDOT will issue a Hold -In Order prohibiting SkyWest from terminating service at the Salina Regional Airport until a replacement airline is selected and begins operations. During the Hold -In period SkyWest is expected to maintain the current daily schedule for regional jet service to Denver and Chicago. Salina will work with the USDOT to have a replacement airline selected by Summer 2022. A suspension of scheduled air service at Salina is not expected to occur. Salina Airport Authority operates the SALINA Airport Salina Regional Airport and Airport Industrial Center. Over 100 Airport and Airport Industrial Center businesses and organizations generate 7,005 total jobs and account for nearly $1.3 billion in total economic activity. Docking Institute Economic Impact Study. The Salina Regional Airport offers daily United jet flights operated by SkyWest Airlines to the Denver International Airport and Chicago O'Hare International Airport. Book a flight online at www.united.com. Passenger information is available at www.flysalina.com. FOLLOW US 000 SA LINA A irport Air service update encouraging at SLN Salina, KS, (April 8, /$14za 2"md 2022) -Region l Airport RNAirport Regional Airport leaders and advisers are hard at work securing a future for scheduled air service in north - central Kansas. Aware of vital steps necessary in coming days and weeks, Salina Airport Authority board members gathered in a special meeting Thursday morning. They mulled relatively few options in the wake of actions last month that threaten commercial service to Salina and 28 other Essential Air Service communities in this region. "We do have a line of sight for a decent outcome," said Gary Foss, the airport's air service consultant, through a remote video connection. If timing works in Salina's favor, there is a chance for a "somewhat seamless" transition, he said. At least one promising replacement airline — Key Lime Air, doing business as Denver Air Connection — indicates that they plan to submit a proposal to the U.S. Department of Transportation on or before the Monday deadline to provide subsidized air service for Salina and North Central Kansas. SkyWest Airlines filed a 90 -day notice of intent to terminate its Essential Air Service contract at Salina on March 10. The major reason for the shutdown is a nationwide shortage of pilots. The U.S. Department of Transportation responded with a hold -in order, requiring SkyWest to continue operations until a replacement air carrier "begins full Essential Air Service." A reasonable expectation, according to the USDOT, would be to start full service by at least Dec. 31. "All air carriers are facing pilot retention and recruitment challenges. A replacement air carrier will need community support for finding pilot shortage solutions.," said Tim Rogers, executive director of the Salina Airport Authority. "The professional pilot training program at K -State Salina will play a role in meeting airline industry need for pilots," Rogers said. Exacerbating the problem is the number of affected communities, with only six or seven carriers available. "We've never had a situation where 29 cities have been dumped on the market," Foss said. What's worse is there are "very few options," he said, to fill those air service voids. "We have a market here that's unique, and we need to find the right match out of this field of contenders," Foss said. Salina sits in a good spot, however, having ranked 10th last December in traffic production, among 56 markets where SkyWest is the sole operator, according to information from the Transportation Security Administration. "We've been working to stand out in the crowd," Foss said. "We've got a lot of cities vying for very few operators." Like United Express that is currently serving Salina, Denver Air Connection sports 50 -seat jets, he said, and is expected to propose subsidized nonstop flights out of Salina to both Denver and Chicago. Key Lime/Denver Air Connection also interlines with United flights at both hubs, Rogers said. "We want to maintain an affiliation with United Airlines so the next carrier can make connections with United in Denver and Chicago," he said. As one of the two available airlines operating jets, Foss deemed Denver Air Connection, "a suitable replacement" to SkyWest. Salina City Manager Mike Schrage, who was listening by phone, agreed that sticking with the Monday deadline proposals, and public comment by April 22, was the right move. Airport authority board member Stephanie Carlin spoke in favor of the possibility of Denver Air Connection serving Salina. "This sounds like a very good, mutually beneficial relationship, especially when you consider the airport authority's plan for growth is highly contingent upon scheduled air service," she said. Salina City Commissioner Mike Hoppock thanked the group for sharing information. "it seems like we have pretty much one shot to keep air service," he said by phone. Airport Board Chairman Kent Buer thanked Foss, Rogers and the airport authority staff. "Your time and effort given to the community is second to none," he said. Did you Know? To submit comment to the U.S. Department of Transportation regarding scheduled air service at Salina Regional Airport, visit www.regulations.gov The USDOT would like to receive Salina's comments by April 22. Salina Airport Authority operates the SALINAAirport Salina Regional Airport and Airport Industrial Center. Over 100 Airport and Airport Industrial Duty Center businesses and organizations generate 7,005 total jobs and account for nearly $1.3 billion in total economic activity. Docking Institute Economic Impact Study. The Salina Regional Airport offers daily United jet flights operated by SkyWest Airlines to the Denver International Airport and Chicago O'Hare International Airport. Book a flight online at www.united.com. Passenger information is available at www.flysalina.com. FOLLOW US O©O SALINA Airport � Adi Deadline for Air Carrier Proposals Extended Salina, KS, (April 9, 2022) /sem Rel -On Friday, April 8, the U.S. SLNAirport Department of Transportation issued a notice extending the deadline for air carrier proposals to replace SkyWest Airlines at the Salina Regional Airport from April 11 to May 11. The 30 - day extension includes 27 other communities currently served by SkyWest and were previously notified of the airline's intent to terminate service at those airports due to a national pilot shortage. Air carriers interested in providing scheduled air service at Salina now have until Wednesday, May 11, 2022, to submit proposals to the U.S. Department of Transportation. The agency will post proposals received at www.regulations.gov. Salina Airport Authority operates the SALINAAirport Salina Regional Airport and Airport Industrial Center. Over 100 Airport and Airport Industrial 79MEM 4"44i — Center businesses and organizations generate 7,005 total jobs and account for nearly $1.3 billion in total economic activity. Docking Institute Economic Impact Studv. The Salina Regional Airport offers daily United jet flights operated by SkyWest Airlines to the Denver International Airport and Chicago O'Hare International Airport. Book a flight online at www.united.com. Passenger information is available at www.flysalina.com, FOLLOW US 000