Colgan Air Wins Contested EAS Job

Victoria, Texas, will continue to have Continental Express air service to Houston, but at reduced frequencies.

Colgan Air won the $510,185 Essential Air Service contract from the U.S. Department of Transportation (DOT) to provide at least two daily flights from Victoria to Houston.

Earlier this year, Colgan entered into a code-share partnership with Continental Airlines [CAL] to provide turboprop service to 11 communities in Texas, Louisiana and Arkansas (RAN, April 25). Colgan is replacing SkyWest [SKYW] on these routes because its Saab 340s can carry four more passengers than SkyWest's Brasilias.

Because Victoria's service is subsidized, DOT had to seek new bids for the route. SkyWest had been receiving a $464,869 annual subsidy for 18 weekly trips to Houston.

Colgan has also submitted a proposal to maintain 18 weekly trips for a $758,285 subsidy. DOT noted that if it continued to underwrite the third daily flight, it "would be entirely beyond Victoria's guaranteed level of service."

Mesa Air Group [MESA] has submitted two proposals to provide service to Dallas on a 19-seat Beechcraft 1900D. Mesa sought a $1.3 million subsidy for 18 weekly flights and $1.8 million for 24 weekly trips.

The Victoria County Regional Airport Commission and the Victoria County Commissioner's Court sent letters in support of the Colgan plan. The community preferred service to Houston over Mesa's Dallas option.

Before Continental switched local Texas service back to turboprops, Victoria had regional jet service.

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