The US Department of Transportation (DOT) has issued a request for proposals for the Essential Air Service (EAS) flights serving Pierre, SD and/or Watertown, SD as the current operator, California Pacific Airlines (San Diego McClellan Palomar), is struggling financially.
"To ascertain the interest of air carriers in providing service at these communities, the Department is requesting proposals for service, while concurrently continuing to engage with California Pacific as the carrier works to address its operational issues and other matters raised by the communities that affect the carrier’s ability to provide basic EAS," the DOT said.
The carrier has struggled operationally over the last few months and subsequently decided to suspend all its services from San Diego McClellan Palomar as of January 1, 2019, to focus on the EAS services in South Dakota. At that time, CPA blamed, in particular, a "nationwide pilot shortage".
Despite this amendment, the mayors of Pierre and Watertown complained to the DOT on January 10, 2019 that CPA's financial situation had worsened further. They requested an immediate action to safeguard air service to both communities in case CPA is no longer able to operate the flights.
The DOT is seeking proposals for 12 roundtrips weekly out of either Pierre or Watertown or both cities to a medium- or large-sized hub. Flights are expected to operate onboard a 50-seat aircraft, although the DOT is willing to negotiate with carriers providing smaller aircraft but higher frequency flights.
Currently, California Pacific Airlines operates 12x weekly from Watertown via Pierre to Denver International using E145 equipment. It is the only scheduled operator at both South Dakotan airports. The EAS contract was awarded to ADI Aerodynamics (Pontiac Oakland County International) in May 2018, which had been previously acquired by CPA.
Under the EAS terms, the carrier is due to operate the routes through July 31, 2020, for an annual subsidy of USD7.06 million.
