DOT approves new airline service

IRONWOOD - The U.S. Department of Transportation has approved the new Essential Air Service provider for Gogebic-Iron County Airport, according to a Wednesday announcement from the agency.

Denver Air Connection was selected as the low-bid and community preferred EAS to replace Boutique Air Inc. with a two-year contract from Oct. 1, 2021 through Sept. 30, 2023, according to the announcement. The airline will fly six weekly nonstop flights to Chicago O'Hare International Airport using the 50-seat Embraer ERJ-145 regional jet, and six nonstop flights to Minneapolis-Saint Paul International Airport using the 30-seat Dornier 328 jet.

Patrick Hanson, airport board president, said he was still going over the information about the approval on Thursday morning. There did not appear to be anything out of the ordinary with the approval and more will be discussed at the September airport board meeting.

"I think it's a step for the future of the airport, I really do," Hanson said. "I don't see why our airport can't grow. We've just got to get the public informed on it."

The approval was posted Wednesday on the airport social media by Mike Harma, airport manager, who said Thursday the approval puts everything in motion for the transition to the new service starting on Oct. 1. The next step for the airport is to let the community know the new service will be available, he said.

"We are honored to have been selected to serve Iron and Gogebic counties and look forward to bringing jet service starting Oct. 1," said Jon Coleman, director of business development for Denver Air Connection, under parent company Key Lime Air Corp. "We appreciate the expedited review (by the DOT at the request of the airport board) and we expect a smooth transition."

The approval was anticipated and all the background work leading up to the transition has been completed to this point, he said. The fair structure and fee structures are in place and will be available online within days, he said.

"We had everything ready to go and were just waiting for the approval to press enter," Coleman said. 

Passengers who purchased Boutique Air tickets for flights after Oct. 1, should contact Denver Air for those tickets to be honored, he said. Also look for some grand opening type specials for the first few months, he said.

"The fares should be available in the next day or two," Coleman said.

Tickets may be purchased on any major travel site, he said. Look at the Denver Air site for deals but United Airlines and the third party travel sites are competitive and convenient when there are connections to be made with the major airlines, he said.

At the request of the airport board the non-fly day will be Saturday, he said. The late morning flight to Chicago and the early afternoon flight to Minneapolis are "very connectable" times for both airports, he said.

Coleman said he would like to be present for a ribbon cutting at some point. He looks forward to meeting with area officials and chambers of commerce.

The annual contract subsidy is $3,398,947 for the first year and $3,466,926 for the second year, according to the approval letter from Joel Szabat, deputy assistant secretary for Aviation and International Affairs with the DOT.

The current EAS provider Boutique Air Inc, started service on Aug. 1, 2020. The airline agreed to an early termination of the two-year contract after flight incidents with its Pilatus PC-12 propeller driven aircraft included a wing wheel falling on approach to Chicago on Jan. 21, and a cargo door opening on takeoff from Minneapolis on May 5.

After interviewing Denver Air, Air Choice One and Southern Airways for the EAS contract, the board acted to recommend Denver Air as the low-bid airline and the only applicant to offer jet service. The board comments were that jet service would restore confidence in Essential Air Service and increase regional passenger use.

In its letter, the DOT said that factors considered with community EAS selection include service reliability, a hub agreement and interline arrangement with a larger air carrier, airport board and community preference, and an EAS marketing plan.

The DOT approved Denver Air Connection as the community recommended service, the low bid applicant, and the schedule to provide 12 weekly nonstop round trip flights. The letter also noted that the service and subsidy levels were reasonable.