The US Department of Transportation (DOT) has awarded a two-year USD5.9 million essential air service (EAS) contract to Cape Air (9K, Hyannis) covering flights from Decatur, IL, Illinois to each of Chicago O'Hare and St. Louis Lambert International despite objections from the local authority and the business community.
Under the terms of the contract, the carrier will offer twenty-four weekly return flights from Decatur to Chicago O'Hare and twelve weekly return flights to St. Louis Lambert using nine-seater Cessna (twin piston) 402, commencing on February 1, 2018, and running through to January 31, 2020. The airline will receive a USD2,915,273 subsidy in the first year of operations and USD3,002,731 in the second year.
Cape Air's bid was selected over a SkyWest Airlines proposal which included fourteen weekly flights to Chicago O'Hare using CRJ200 equipment. SkyWest Airlines' proposal was supported by the local authority and the business community, including the global food processing corporation Archer Daniels Midland (ADM) which has a plant in Decatur, but was considered too expensive by the DOT. The airline asked for a total subsidy of USD6.6 million for the two-year contract.
"The Department cannot reasonably justify such an increase in annual subsidy and Cape Air’s service will sufficiently meet Decatur’s EAS," the DOT said in a statement announcing its decision.
ADM would have pledged USD100,000 to the Decatur airport for improvements had SkyWest Airlines' bid been selected.
Cape Air's service will be covered by interline and marketing agreements with Alaska Airlines, American Airlines, Delta Air Lines, JetBlue Airways and United Airlines.
Decatur is currently served exclusively by Air Choice One which provides eighteen weekly return flights to each of Chicago O'Hare and St. Louis Lambert, using Cessna (single turboprop) Grand Caravan equipment. Under the current EAS contract, the airline receives a USD2,915,638 annual subsidy.
