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AUGUSTA

Airport in holding pattern

Reduction in federal subsidies could affect service

By Craig Crosby ccrosby@centralmaine.com
Staff Writer

AUGUSTA -- Airlines competing to provide service to the Augusta State Airport over the next two years are being told to count on a lot less money from the federal government.

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Federal subsides for the Augusta airport are being reduced, and services could suffer.

Staff photo by Joe Phelan

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The U.S. Department of Transportation, which oversess the government subsidies to the airline that services the airport, will scale back funding by nearly $1.4 million over the next two-year contract.

"It's going to be an interesting bid process," said John Guimond, manager of the Augusta State Airport.

The federal transportation department is now accepting bids to provide flight service to Augusta, Bar Harbor and Rockland over a two-year period beginning Nov. 1.

Bids are due July 22. Airport officials then have 30 days to consider the bids and find one to support.

Current providers to Maine's subsidized airports include Colgan Air, operating as US Airways Express, which currently provides daily nonstop trips over a route that includes Bar Harbor, Augusta and Boston; and Hyannis Air Service, operating as Cape Air, which provides daily service between Boston and Rockland.

The DOT's Essential Air Service subsidizes airlines and smaller airports in an effort to attract and maintain regular flight service to smaller communities nationally.

The government gives Colgan a total of $4.17 million per year under the current contract. The money is split evenly between Augusta and Bar Harbor, giving each airport $2.08 million to assist with operating costs.

Cape Air gets $1.5 million per year under the current contract to service Rockland.

But funding to Augusta currently exceeds the federal limit.

A total of 7,008 passengers flew in and out of Augusta between April 1, 2009, and March 31, 2010. The DOT subsidy currently is $2,086,251, which works out to $298 per passenger.

Federal law prohibits the DOT from exceeding $200 per passenger in subsidies, unless the airport is more than 210 miles from the nearest large or medium hub airport.

Augusta is 167 miles from the nearest hub -- Boston's Logan International Airport.

Based on last year's passenger totals, the next contact will pay approximately $1.4 million per year -- about $700,000 less per year than Colgan receives under the current contract.

"We're really going to be looking at this one very closely and looking at the numbers very closely," Guimond said. "We'll select the best proposal."

A representative of Colgan Air -- which has serviced Augusta for at least 20 years, according to Guimond -- did not return a call seeking comment.

Passenger totals have increased every month this year, Guimond said, but still fall short of federal guidelines.

Operating costs have increased since Colgan phased out its fleet of 19-passenger Beechcraft 1900s and introduced the 34-seat Saab 340.

The larger aircraft are appealing to passengers, but they are more expensive to operate, Guimond said.

The airport also is now federally mandated to have fire and rescue on scene when planes arrive.

"We need to increase the number of passengers or decrease the operating costs," Guimond said. "The only way to do that is decrease the size of the equipment."

Other companies, including Cape Air, which has a fleet that includes nine-passenger Cessna 402s, still fly smaller, more economical planes.

Guimond hopes Augusta will keep the larger aircraft, but he said it would take some creativity on Colgan's part.

Colgan can exceed the subsidy cap as long as they submit a realistic plan to fall below the cap within two years, Guimond said. Any plan would include a schedule and fee structure designed to attract new passengers, he said.

"Colgan's really going to have to sharpen their pencils to make these numbers work," Guimond said. "The reason our numbers aren't up is because the pricing is more than people want to pay. Right now, people are driving to Portland."

The public is invited to submit comments up until the July 22 deadline. Guimond said he has received five such letter thus far.

"All have been in support of the current provider," Guimond said. "People who are using the service now like it and want to see it continue."

One of those satisfied customers is Kevin McGinnis, of Hallowell, who said he flies in and out of the airport more than 100 times per year.

McGinnis says he can fly out of Augusta and, without leaving US Air service, fly to 230 locations around the world.

If Cape Air were to take over Augusta service, however, McGinnis said passengers would only be able to fly to Boston and, from there, contact another airline to fly to their final destination.

Jet Blue, which partners with Cape Air, claims 50 destinations, almost all within the continental US, McGinnis said.

He said he appreciates the comfort and safety and service afforded by the larger planes.

"Just picture the US Air and Cape Air planes side by side in a picture," McGinnis said. "Do we deserve this step backwards? Are Maine's capitol and central Maine region unworthy of a real airline connection to the rest of the world?"

Guimond sympathizes, but he said the airport must do whatever it takes to maintain regular service.

If there are no airlines that can meet the DOT's specifications the airport could lose the subsidy altogether, Guimond said. Without help from the government it is unlikely any airline would include Augusta in its regular route.

"The capital can't lose it's service," Guimond said. "I'd love to keep what we have, but I'm not going to jeopardize losing scheduled service."

Craig Crosby -- 621-5642

ccrosby@centralmaine.com