Colgan Air Inc. Will Re-Bid Essential Air Service Routes
Posted on: Friday, 28 March 2008, 18:00 CDT
Faced with rising fuel costs, Colgan Air Inc. announced today that it will re-bid the majority of its Essential Air Service (EAS) routes. Because EAS does not have a mechanism to provide for unforeseeable cost increases, Colgan must file to exit the market, followed by a re-bid at a higher rate. This is a procedural process and there will be no change to service.
The Essential Air Service statute provides subsidies for airlines to serve smaller communities that otherwise would not have air service. The statute does not include a way for those airlines to seek relief from changes in expenses, like dramatic increases in fuel costs, unless the airline files to vacate a community and re-bid a new contract.
"Let me emphasize our intent," said George A. Casey, President of Colgan Air Inc. "This is a procedural process and not indicative of any change in providing service to these excellent markets. This will be transparent to our customers."
Colgan filed today to terminate service at Altoona and Johnstown, Pa.; Clarksburg, Morgantown and Parkersburg, W. Va.; and Presque Isle, Maine. Colgan intends to respond to the subsequent request for proposal when the Department of Transportation issues a request for Essential Air Service.
Colgan Air Inc. serves the EAS communities under the US Airways Express and United Express banners.
About Pinnacle Airlines Corp.
Pinnacle Airlines Corp. (NASDAQ: PNCL), an airline holding company, is the parent company of Pinnacle Airlines Inc. and Colgan Air Inc. Pinnacle Airlines Inc. operates a fleet of 139 regional jets in the United States and Canada as Northwest Airlink and Delta Connection. Colgan Air Inc. operates a fleet of 48 regional turboprops as Continental Connection, United Express and US Airways Express. Pinnacle Airlines Corp. operating units fly over 1,000 daily flights and transport more than 10 million passengers a year to 140 cities and towns in North America. Visit www.pncl.com for more information.
Contact: Joe Williams 901-346-6162
SOURCE: Pinnacle Airlines
Source: MARKET WIRE
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