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Home My WebLink AboutAgenda Report - March 16, 1983 (45)11 040 BOARD OF SUPERVISORS aat CAST wags* AVCNUC. ROOM 701 STOCKTON. CALIFORNIA 90102 T9LCPHON9 4200) 044.7113 March 8, 1983 Dear Friend: J099 L. ALVA. CHAIRMAN TNlwo O/STwICT 060009 L. 6A009*. V1CUCNAIRMAN ►OURTN 01ST*1CT OICNA*D S. •OSNIIfAWA ►/*ST DISTRICT DOUSLAS• W. WILMOIT SSCONO DIRT*ICT 9VtLTN L. COSTA ►1►TN DISTRICT On behalf of the Board of Supervisors, I am writing to ask for your support regarding the Metropolitan Airport jet ser- vice provided by Pacific Express. Recently Pacific Express submitted.a notice of intent to stop providing service from Stockton to Los Angeles as the designated carrier by the Civil Aeronautics Board. This again places us in a situation of trying to develop a reliable air carrier that will provide service to Los Angeles. We need a carrier that will provide us with a schedule of early morning and late night flights -- specifically, for our business community. 1 believe that to a great degree the airlines have used the entire issue of subsidy to, in essence, use and pit Stanislaus County and San Joaquin County communities against one another in competition for air service. Now is the time when the communities within Stanislaus County and San Joaquin County must work together to ensure that we both have a viable and positive air carrier. We must bring our combined resources together and begin working on the development of a regional airport for all communities within the two counties. This facility should be one that identifies and meets the needs of everyone to be served. Such a facility could be named the Modesto -Stockton Regional Airport. Time is of the essence, therefore, I am soliciting your help. Please send immediately telegrams or letters to the Civil Aeronautics Board at the address listed below expressing your concern regarding the continual turnover of air service at the Metropolitan Airport, and that you believe a regional facility is in the best interest of both communities. I am also asking that you call upon your business associates and colleagues in Stanislaus, Calaveras, Amador and Tuolumne counties to express a similar interest by sending their communiques to the Civil Aeronautics Board and to their respective elected officials indicating their support of a regional facility. 0 Mr. William Boyd Chief, Essential Air Service Section, B69 -A Civil Aeronautics Board 1825 Connecticut Avenue, N.W. Washington, D.C. 20428 Again, this request for your support is in light of the fact that it is not economical to have two airports 30 miles apart and that it is not in the best interest of both communities to be on the competitive edge because no one will receive reliable air service. Thanking you in advance for your support, I remain, Since ly, JOSE L. ALVA Chairman Board of Supervisors JLA: jgs cc: Board of Supervisors County Administrator County Counsel Jeff Condrey, Airport Manager By this answer San Joaquin County, representing the ter Stockton, California community, objects to the ninety (90) day notice of intent to suspend service filed by Pacific Express, Inc. (Pacific Express). Attached is a certified copy of a Resolution of the San Joaquin County Board of Supervisors authorizing this answer. I. Introduction By letter dated March 3, 1983, San Joaquin County requested an extension to the March 10, 1983 deadline for filing this objection. The purpose of such an extension was to discuss with the Modesto parties the merits of creating a regional airport to serve the greater Stockton/Modesto area. On March 7, 1983, a meeting of certain elected officials from the City of Modesto, Stanislaus County and San Joaquin County, was held in Modesto. A second meeting is scheduled for March 25, 1983 to finalize the position of each entity relative to a regional airport. During the interim (March 7 - March 25) a survey of air travellers within the greater Stockton/Modesto area will be conducted to determine the advantages and disadvantages of a regional airport. San Joaquin County would have preferred to determine the final position of affected parties before filing this objection. How- ever, the Civil Aeronautics Board denied our request for extension of time to file this objection. Therefore, the following position is that of San Joaquin County and may or may not be supported by the City of Modesto and Stanislaus County. San Joaquin County reserves the right to amend this position. II. Background Congress directed the Civil Aeronautics Board to develop a ten (10) year program to transition small communities from a regulated air transportation system to a deregulated environ- ment. At the mid -point of the Essential Air Service (EAS) pro- gram, it is painfully obvious to the communities, and should be to the Civil Aeronautics Board, that the EAS program is not working in the Stockton/Modesto are,,�. Following a series of failed EAS carriers during the past fdur and one-half years, air travellers have no faith in local air service. Rather than wean communities from subsidy in order to face a deregulated environment, the Civil Aeronautics Board has actually weakened the ability of the greater Stockton/Modesto market to stand alone. San Joaquin County remains philosophically opposed to subsidized air service. However, we continue to believe that Pacific Express should be entitled to receive a short term subsidy to reconstruct this market which was destroyed by the placement of unfit carriers in the market by the Civil Aeronautics Board. III. Current Problem On May 4, 1982, Pacific Express initiated subsidy free jet service in the Stockton -Los Angeles market. Thirty (30) freeway miles to the south, the Civil Aeronautics Board has subsidized the competition (Aspen Airlines) at the outrageous rate of $212,000 per month. This distortion of the marketplace naturally :.,-,.: rx. wwr.�.-+wt_K�.u-y_':rSms:a�:�R :.sr.... -. .: ?w. rt; r,:.x-:'ttm:w•„wt:33i�t:"''--r.?'w?.a',s.--r*>,:Y.�z.rora��w .. - - . _ . - .. created unprofitable operating conditions for Pacific Express in Stockton. Incidentally, Pacific Express has reported that inflight surveys demonstrate that 3S% of their passengers originate from the Modes to/Stanislaus County area. Frontier Airlines estimates 40-45 percent originate from the same area. It is suspected that more passengers from Modesto/Stanislaus County are served from what is currently known as the Stockton Metropolitan Airport than from the Modesto City/County Airport. If Pacific Express fails in this market, and if the Civil Aeronautics Board responds as in the past, a commuter carrier operating propeller- driven 17-50 passenger aircraft, under subsidy, will probably replace Pacific Express on SCK -MOD -LAX routing. This type of "air service" has not and will not succeed in this market and subsidy will be required through 1988 when the EAS program expires. IV. Proposed Solution San Joaquin County believes the Stockton/Modesto - Los Angeles market is a marginally profitable jet route. As previously mentioned, no carrier has the resources to compete with the Federal Government and, unlike jet service, commuter operators will likely require perpetual subsidy. Therefore, San Joaquin County hereby petitions the Civil Aeronautics Board to redefine the Essential Air Service determinations for Stockton and Modesto, California, as follows: Designate Stockton -Modesto a single hyphenated point eligible to participate in the Essential Air Service program. Both major population centers shall then access the national air transportation system via the Stockton/Modesto Regional Airport. Revised EAS determination for Stockton/Modesto shall be dual hub (San Francisco and Los Angeles) with maximum eligible seats at 80 per day. Furthermore, it is requested that the Civil Aeronautics Board provide Pacific Express subsidy at one regional airport rather than two eligible EAS airports. Such subsidy, if necessary, shall be short term until the previously viable market is reconstructed. With respect to Los Angeles service, the hyphenated EAS eligible point of Stockton -Modesto should then remain subsidy free. Respectfully submitted, OSEL. ALVA Chairman JLA: j gs /San Joaquin County 3/8/83 Board of Supervisors CITY COUNCIL FRED AL REID. Mayne ROBERT C. MURPHY. Mayor Pro Tempore EVELYN M. OLSON . JAMES W. PINKERTON. Jr. JOHN R. (Randy) SNIDER 41tA I T Y OF I,O 1* CITY HAIL. 221 WEST PINE STREET POST OFFICE BOX 320 LODI. CALIFORNIA 95241 (209) 331-5634 March 18, 1983 Mr. Jose L. Alva Chairman San Joaquin Board of Supervisors 222 Fast Weber Avmue, room 701 Stockton, Ch 95202 Dear Mr. Alva: HENRY A. CIAL'ES, )t' City Manager ALICE M. RE tMCHE City Clerk RONALD M. STEIN City Attorney Please be advised that your March 8, 1983 letter regarding the Metropolitan Airport was presented to the Lodi City Council at its regular meeting of March 16, 1983. By motion action, Council indicated its support of the Metropolitan Airport jet service provided by Pacific bpm --ss and the concept of developing a regional airport for all omniunities within Stanislaus and San Joaquin Counties. City Council City of Lodi by AlLeyn✓ M. Reimche City Clerk AMR: jj