The United States Department of Transportation (DOT) has rejected petitions for reconsideration of an agreement awarded to Southern Airways Express (9X, Memphis International) for Essential Air Services (EAS) at the Arkansan towns of El Dorado Goodwin South Arkansas Regional and Harrison. The mayor of El Dorado had appealed for Contour Airlines to be selected for the routes instead.
The DOT awarded EAS contracts to Southern Airways Express in December 2016, following the liquidation of previous EAS provider SeaPort Airlines. A total of seven proposals were received with the remainder coming from ADI Aerodynamics, Air Choice One, Boutique Air, Corporate Flight Management (operating as Contour Airlines), Great Lakes Airlines, and Silver Airways.
Under the contract, Southern is to provide 18 weekly nonstop round trips from El Dorado to Dallas/Fort Worth for an annual subsidy of USD2,306,627. From Harrison, it is to provide 6x weekly nonstop round trips to Memphis International and 12x weekly nonstop round trips to Dallas, for an annual subsidy of USD2,397,188. All flights will be operated using Cessna (single turboprop)s, with the contract running from January 1, 2017, until February 28, 2019.
The decision was challenged by the Mayor of El Dorado, Frank Hash, who petitioned for Contour to be selected instead, preferring its proposed 12x weekly round trips to Dallas and 6x weekly round trips to Nashville International. Hash also highlighted the safety concerns of the community, saying that they are entitled to twin-engine, two-pilot aircraft. Finally, the petition said that Contour's pressurized aircraft were preferred, as the aircraft frequently fly above 8,000 feet. Contour similarly filed a petition, asking to be reconsidered for the Harrison contract.
In responding to the petition, Southern stated that it rarely flies above 7,000 feet, citing restrictions due to military airspace, and committed to always remain below 8,000 feet except when unsafe. It also confirmed that although it is approved for single-pilot operations, all its EAS services are provided with a captain and first officer. The Boone County Regional Airport, which manages Harrison, supported the DOT's selection of Southern.
In finding for Southern, the DOT rejected El Dorado's entitlement to twin-engine two-pilot aircraft, as it had been served for seven years by SeaPort's single engine aircraft. It also rejected the altitude concerns, as these had not previously been raised. The DOT reiterated that Contour's subsidy amount was almost twice that of Southern's and while it is not required to consider subsidies in its decision-making, it would be careless to not do so. For similar reasons, the DOT also rejected Contour's petition for the Harrison contract.