Li SHENANDOH! VALLEY REGIONAL AIRPORT COMMISSION duly 21, 2017, Mr. Scott Faulk US. Department of Transportation EAS & Domestic Analysis Division 13200 New Jersey Ave, SE Washington, DC 20580 Relerence DOT-OST-2002-11378 DearSeott, (On March 28, 2036, the Department issued a request for proposals to provide Essential Air Service (EAS) 3 Staunton, Virginia (sometimes aso referred to as Shenandoah Valley), with of without subsidy. The incumbent EAS carir at Staunton atthe time, Siver Arways, requested and was granted an extension tn the due date for such proposals and that date ended up Being May 20, 2016. ‘A total of six (6) ais submitted proposals in response to the RFP In June of 2016 the Shenandoah Valley Regional Airport Commission (the Commission), speaking for itscommunity partners and elected offal, endorsed the proposal of Aerodynamics, Inc. (AD!) to provide EAS service to Gatimore and Atlanta, with service paired with another Airport in West Virginia, with an annual subsidy need of $3.2 milion per year, After submiting its preference comments the Commission eiscovered thatthe other Airport in West Virginia was recommending anather airline for its EAS provider. That selection negated the ADI proposal thatthe Commission had endorsed. Based on that naw information, the Commission requested, in July of 2016, thatthe DOT put Staunton out fra eb. In August, by Order 2016-622 the Department isued a new RFP fo Stunton. In this bid cycle proposals were received from the sare sx (6 airlines. Unfortunatly, the proposal of ADI, now minus the pairing With the West Vignia market, was significantly higher than in the previous bid cyl. After careful review Of all the proposels and interviews with some cariers, the Commision decided to recommend the proposal of Via Air (Via) for twelve (12) round trips per week to Charlotte. Via was, at that time, the referred carier of four (2) nearby West Virginia communities and thecarier had performed reliably in Beckley, West Viinia since December of 2014 ‘The Commission recommended Via based on its reliablity track record at Beckley and based ona set of promises, commitments and agreements made with the carrer prior te submitting the recommendation tothe DOT. Those promises and agreements were as follows First and foremost, an annualized completion factor on fights to and from Charlotte of 98%. The DOT order called for no less than twelve (12) roundtrips per week tothe designated hub. POBox 125 77 Avion Give - Weyers Cave, gia 24486 USA 540.234.8908 - Fax 540 234.538 - fshdcom uNTior welsh orvarsauON CTV OFHANSELRG CTY NESBRO _COWTVOFRCKNEKA BELTAEDRECERaD SveNookH VALLEY REGAL ARPORT COMMISION + Interline ticket and bag (T&B) agreements with network caries, specifcally with American ‘Airlines, would bein place prior to beginning service in November 2016, This promise is alluded 1 in te Via bid document and was promised mare specifically in perton tothe Commission. Intetine capabiity was promised to be gained quickly thru a piggy back arrangement with an ‘existing legacy reglonalairtine. We were assured thre were no branding of technical issues with this arrangement. * One stop thr service to Orlando Sanford via Charlotte, with CLT ~ SB service being unsubsidaed and, at rik, for Via A + A schedule calling for 2 RON morning depertue, as afternoon inside out tur, and an evening arrival. The Commission was very specific on ths requirement because the Shenandoah Valley is first and foremost a business market, requiring a Schedule designed to serve business travelers ‘This schedule is outind inthe Via bid proposal wth southbound fights at 0900 and 1537 and ‘northbound fights at 1386 and 1736, Via started service at Shenandoah Valley on the last day of November 2036, On the fist day of service, sadly, two (2) of the four (2) scheduled fights were cancelled, Infect, 33 the DOT swell aware inthe fst ‘hee (3 full months of service at Shenandoah Vale, the mast etical months of any ar service startup, thece were repeated ard significant operational disruptions, cancaliations and combined flights with ‘other communities. Less than 50% al fights operated as scheduled during that period, with over SO% of fights operating late, canceled or combined with anether community and overall completion was significantly less than what was promised with 20-30% of all fights forthe three (2) month period ‘completely canceled ‘Within weeks of stating service Via informed the Commissic thatthe plgyback TRB agreement would not be implemented and thatthe cacter would instead get a direct TAB with the primary carrier in Charlotte, American Aiines. Implementation of this T&G agreement was represented to begin in early ‘April 2017. As of today's date, more than three (3} months ater, that agreement stil not operational or Implemented, In terms of other lia operational concerns, after receiving the contract, the cartier informed the ‘Commission thatthe schedule it included in its bid schedule would not be met, but instead would be a ‘very poor schedule for atracting and retaining our core business passenger market Following repeated efforts by Shenandoah Valley and the DOT to inform the carir ofthese deficiencies and seek better performance, the carter provided a period of improved performance forthe months of ‘March and Apri however, inthe past sity (60) days service has deteriorated to an unacceptable level ‘once again. Fight disruption and cancellation has been increased again and, az DOT is aware, with the ‘constraints oftwelve (12) round-trips per week, relalit of those linited light isimperative. In addition, 352 result of Vis flloe to perform, Shenandoah Valley ‘snow, on a month basi in vaation of the DOT §200 subsidy cap per 08D. 7080125 . 77 Avalon Gicle . Weyers Cave, Vina 24486 USA »$40.234 8904 «Fax S40.204.8598- Rysh.com can oreuTA —STvOFstuRnON—CIVOFMASOIR—CTYEMEsAEDCOUMYOERODON_BEOTAEDRECERLa ‘SHENANDOAH VALLEY REGIONAL AIRPORT COMMISSION ‘The inconsistent nature ofthe curent service has rendered it unreliable and unusable and the repeated failure to execute the published schedule has greatly inconvenienced and disappointed great number of our residents. This cannat continue. ‘We have never been inthis position and wish to remedy it as quickly as we can. We area responsible CAS ‘community that appreciates and understands the value of €AS fights and DOT's metrics regarding community eligi, Via is either uniting oF unable to provide consistent, reliable service as outlined inthe DOT order for service to our community. We have attempted to work with Vie for the past eight (8) months while our Feputation and, more importantly, our community sufers. We have, with assistance and participation from your agency, held numerous calls with Visto address their operational issues as well 8s what they were doing to cure those ssues and provide the service promised tothe communi. Just this week, We attempted to reach Via to gain understanding of recent poor performance, and steps being taken to remedy those and have not recelved a response. [AS Chairman of the Shenandoah Valley Regional Airport Commission representing ll five (5) kcal government member jrstictions ofthe Shenandoah Vale, including Staunton, and in coneutation with ‘Ur partners, we have determined that we ean no longer allow public rst in ir service to erode and we ‘must ask the DOT's asistance in remedying this unfortunate situation that we believe is damaging our local business community and causing hardship to our etzens We have been patient; we have tried to be helpful where we could, bt we have to advocate for our ‘ammrity. We respectfully request thatthe OOT move oan immediate reid of our EAS market Thank yu in advance for prompt consideration of this eter Best regards, Beal Ww. A~Le Gerala W. Garber Chairman POBox 125 77 Avan Gl - Weyers Cave, Via 24486 USA. 540.224.8904 - Fax 540.234.8598 - fshd.com COMA EF UGTA CIYOFSTUNTON —cTVoFuAmmLRE —CTVEENORD —COORVOEREKAN EETIEDREEER endiGobe Wiehe SaHB Bowne Ae MD ne Gago Cee