Courtesy Photo

ALPENA — The United States Department of Transportation received a pair of bids seeking to provide commercial air service at the Alpena County Regional Airport.

SkyWest, which has offered flights in Alpena for years, and Boutique Air, a California company, submitted proposals to be the sole air service provider at the airport.

Officials in Alpena will comb through the two proposals and make a recommendation to the USDOT with their preferred choice before the end of the month, but the federal government has the final say on the selection.

Airlines are eligible for government funding for Alpena because it is considered an essential air service airport.

The new contract will begin Oct.1.

SKYWEST

SkyWest’s proposal is for a three-year contract and a smaller subsidy of the two bids. SkyWest is seeking about $6.7 million for the first year and bumped up to about $7.7 million in the final year.

SkyWest proposes a dozen round-trip flights a week to Detroit Metropolitan Wayne County Airport using its CRJ550/700/900 jets that are branded as Delta Connection. Each jet can carry up to 50-76 passengers, which far exceeds what its competitor is offering.

The airline, which had contemplated increasing its menu options in Alpena and hinted at a possible return of flights to and from Minneapolis, did not include that route in its proposal.

Daniel Belmont, director of market development for SkyWest, said the airline wants to continue to work with the Alpena community to provide top-notch service and help grow the airport.

“Our combination of safe and reliable aircraft, well-timed schedules, and access to one of the world’s largest airline networks will continue to provide passengers with quality air service and further stimulate economic growth in the region,” Belmont said in the proposal. “SkyWest will actively partner with the community to market the service with a variety of promotions including print, digital, radio, and online.”

BOUTIQUE AIR

The smaller airline seeking a four-year contract is asking for $9.6 million in subsidy in the first year and escalated to about $11.1 million in the fourth year. Boutique Air has also bid for service for Manistee and Muskegon airports and says it will lower the subsidy amount by $100,000 a year if it is awarded all three contracts.

Boutique Air will utilize a Twin-Engine Piaggio P180 Avanti aircraft that only has room for eight or nine passengers.

If selected, Boutique Air will fly passengers from Alpena to Chicago O’Hare International Airport. Boutique Air says in its proposal, that it would offer 28 weekly round trips to Chicago for the first three months or so at the beginning of each calendar year and push that total up to 42 flights to Chicago during July and August, which is considered peak travel times.

The proposal also says, in order to boost passenger enplanements and better serve the community, Boutique Air will reserve the right to shift a limited number of round trips from Chicago to either Detroit or Milwaukee. During the offseason and shoulder seasons, Boutique Air may move up to 14 round trips to either Detroit or Milwaukee. During the peak season, Boutique Air may move up to 21 round trips from the Chicago route to either Detroit or Milwaukee.

The airline said it will invest to boost awareness about the airline and work with local leaders to market it.

“In order to increase brand recognition in the communities, Boutique Air will spend at least $30,000 per year in each market if it is selected for advertising and marketing to help ensure that air service for the community is a success,” CEO Shawn Simpson said. “We will utilize a combination of radio, print, billboard, television, GDS’s, and internet advertising.

The airline added it also has an interline agreement with American Airlines so passengers are able to book through United and American Airlines and connect with any of their flights.

NEXT STEPS

Although Alpena County owns the airport, the USDOT considers the mayor of the nearest largest city to be the spokesperson for the area and airport.

Currently, that is Alpena Mayor Cindy Johnson. Johnson said she will work with the board of commissioners and airport manager Steve Smigelski to decide which proposal best fits the community and then submit a letter to the USDOT naming the preferred carrier.

The USDOT has the final say on who the contract is awarded to, however, and it could be several months before it makes its selection.

Johnson said having safe and dependable air service in Alpena is important and hopes one day, people in Northeast Michigan will have more options to choose from.

“The addition of safe and dependable air service in Alpena is an asset to our area and the convenience of flying locally allows options when booking trips and makes it easier for tourists to make Alpena a destination point,” she said. “At some point, it would be great to add a few more options for departures from Alpena. But we are grateful for the federal subsidy that supports essential air service in Alpena.”