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Airport's Approved to Begin Contour Flights

Contour to Begin Passenger Service in October

The U.S. Department of Transportation (DOT) has approved the Altoona-Blair County Airport’s entry into the Alternate Essential Air Service program (AEAS) and can begin daily passenger flights to Philadelphia through Contour Airlines.

The airport applied for entry into the AEAS, which differs from the Essential Air Service (EAS) by paying the subsidies directly to the eligible community. The EAS pays the subsidy to the air carrier to provide a minimal level of air service to a major hub airport with twin-engine aircraft.

The approval of Contour was expected after the airport’s current carrier, Boutique Air, asked to end its two-year contract early and rebid for the contract at a higher rate. When bidding was reopened, Boutique, which offered daily flights to Pittsburgh and Baltimore, lost to Contour.

The DOT approval came last week and provides $4.28 million for the two-year Contour contract beginning Oct. 1, 2022, and ending Sept. 30, 2024. Contour will provide 12 weekly trips to Philadelphia on a 30-seat passenger jet.

The DOT’s announcement shed some light on the process that brought the airport into the AEAS program and Contour’s emergence as the airport’s new passenger carrier.

When bidding was submitted, the airport notified the DOT that Boutique’s new bid was based on an “unrealistic” 99.9 percent load factor and that it would have to increase its passenger traffic by more than 2.5 times its 2021 total. The airport said that neither Pittsburgh or Baltimore’s airports is a major hub for either of the carriers that Boutique has a ticket and baggage agreement with. The airport is doubtful that Boutique could achieve the level of traffic it needs to meet its revenue targets.

Southern Airways, which served the airport before Boutique, submitted a proposal based on a 57 percent load factor. The airport said Southern Airway’s proposal may not reflect the increased costs of providing air service in the current environment and could put the airport at risk of Southern canceling its contract early like Boutique did. The airport also said the unpressurized Cessna Caravan would be a step down in terms of class service and would dissuade passengers from using the service.

The airport authority told the DOT that for these reasons, they could not support the bids of Boutique and Southern.

The DOT’s decision stated that Contour has a record of providing “reliable charter service” at several EAS communities and that passenger levels and reliability have increased at those airports since the airline began service. The DOT said it also believes the use of a 30-passenger jet will likely have a “positive impact” on passenger traffic at the Altoona-Blair County Airport.

The DOT said for the airport to remain in the AEAS program, it must produce at least 21,400 passengers. If it fails to do so, they could apply for a waiver for a limited time.

 

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