Colgan Rebids EAS Routes, FA’s Reach Agreement

Facing rising fuel costs, Colgan Air Inc. 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. Colgan filed to terminate service at...

For immediate service; more information; and multi-user access (site license), non-profit organization, educational institute pricing, contact Karen Garner kgarner@accessintel.com at (301) 354-1612.

This story is only available to paid subscribers. Please login below with your username and password if you are a subscriber.

Username:
Password:
	What is my password?

Subscribe     Trial

Facing rising fuel costs, Colgan Air Inc. 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.
Colgan filed 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.
The Essential Air Service 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 President George A. Casey. "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 F.A.s, Airline Reach Agreement
Pinnacle Airlines Corp.'s wholly owned subsidiary, Colgan Air Inc reached a tentative agreement with the United Steel Workers (USW) as the legal representative of the Colgan Air Flight Attendant group. "The USW has a history of fair representation of employees, and understanding that the mutual interest of employees and companies is for both to grow and prosper," said Casey.
Colgan Air Inc., a wholly owned subsidiary of Pinnacle Airlines Corp., is a regional airline operating as Continental Connection, United Express and US Airways Express. Launched in 1991, today Colgan Air offers over 350 daily flights to 53 cities in 13 states. Colgan is recognized for the exceptional service levels it provides its Customers and is a leader in providing air service to small and medium-sized cities in the United States. Colgan operates 6 Q-400s, 40 Saab 340s and 5 Beech 1900 regional airliners, and has hub operations in Boston, Houston, New York, and Washington-Dulles. Colgan Air employs more than 1,200 People.