MUSCLE SHOALS — The Northwest Alabama Regional Airport is sticking with Contour Airlines until the end of its Essential Air Service contract, which expires September 2024.
An issue of concern, however, is the reduction of frequency in Contour flights to Charlotte International Airport in Charlotte, North Carolina. Due to rising fuel costs, Contour reduced flights from 12 per week to seven on Nov. 1, 2022.
"In May 2022, fuel prices spiked causing economic hardship for Contour Airlines where the airline was losing money each month even with subsidized air service," Airport Director Barry Griffith said. "This schedule reduction has had an adverse effect on passenger enplanements at Muscle Shoals."
Airport authority members, local elected officials, and representatives of the Shoals Economic Development Authority, Northwest Alabama Council of Local Governments and the Shoals Chamber of Commerce went to Washington, D.C. twice to meet with U.S. Department of Transportation officials and the state's congressional delegation seeking additional funding, but were unsuccessful.
The additional money would have boosted the Alternate EAS subsidy the airport receives to compensate the airline.
In December, Griffith sent a letter to Kevin Schlemmer, the associate director of the Essential Air Service Progra, asking the U.S. Department of Transportation to terminate its Alternate EAS contract and allow it to return to the traditional EAS program, which it had been part of for years.
Griffith asked Schlemmer to allow the airport to terminate its agreement with Contour at the end of the 2023 fiscal year, which is Sept. 30.
If the release was granted, the airport would request an order soliciting proposals from airlines under the traditional EAS program with a new contract issued Oct. 1.
Rebidding air service, however, could result in the Transportation Department selecting an air carrier other than Contour, which utilizes a 30-seat Embraer ERJ-135 regional jet.
Griffith said he was surprised when the Transportation Department agreed to allow the airport to return to the traditional EAS program. He said the airport was only inquiring if the change was possible.
"Negotiations regarding the existing Alternate Essential Air Service were reviewed by the board, but the risks of losing the current jet service were too great to entertain these options at this time," Griffith said. "The airport board is pleased to continue with daily jet service from Muscle Shoals to Charlotte with Contour airlines through September 2024."
Once the existing contract with Contour expires, Griffith said new airline proposals and routes will be evaluated.
"It's been a real struggle to get consistent air service here," Airport Authority Chair Gil Melson said.
He said the board agreed the best track was to remain in the Alternate EAS program until Contour's contract expires.
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