Mainebiz

W W W. M A I N E B I Z . B I Z 9 J U N E 1 5 , 2 0 2 0 Member FDIC Now More Than Ever BANKING IS BELIEVING Through good times and bad, GSB has been supporting Maine businesses and communities for more than 150 years. We believe in the resiliency of Maine people and Maine businesses. Together, we can and will overcome this challenge. That's what 'Banking is Believing' is all about. Learn about our response to COVID-19. Visit GorhamSavings.Bank For one-carrier airport, the debate is over Newark vs. Boston B y W i l l i a m H a l l U nited Airlines, which has served Presque Isle International Airport for the past two years, will con- tinue to take off and touch down there for another two. But the process for awarding the contract — which is heavily subsidized and only serves one major air- port — was fraught with turbulence. Many local residents wanted a flight to Boston. But, as a rural airport served under the federally sub- sidized Essential Air Service program, there weren't many options. Under the U.S. Department of Transportation contract, United will continue to connect the city in Aroostook County with the airline's hub at Newark Liberty International Airport in New Jersey. Boston service was not an option. Even in acknowledging what residents wanted, the DOT said that the Presque Isle City Council and the city's Airport Advisory Committee both supported United's proposal. "The Department acknowledges the large num- ber of letters it received from concerned citizens in Presque Isle and other users of the service regard- ing this EAS carrier-selection case," the order read. "Many expressed the desire for the community to have service to the [Boston] hub. "While we reviewed each letter that was received and considered the citizens' concerns, the Department must afford substantial weight to the views of elected officials." Part of the issue gets back to the idea that car- riers don't make a profit on small markets, which is one reason it costs so much less to fly to a hub. To ensure a major carrier will take on the business, the DOT offers a subsidy. In this case, United will receive an annual sub- sidy of $6.8 million, a $2 million increase over the previous deal. The contract runs from July 1 to May 31, 2022. United will again operate 12 round trips per week in 50-seat, twin-engine regional jets. The carrier beat out four other bids for the con- tract — three from Southern Airways Express and one from Silver Airways. All of the competing proposals sought amounts significantly less than United's, and all would have provided service to and from Boston's Logan International Airport. Silver Airways, which also provides EAS flights at Hancock County-Bar Harbor Airport, withdrew from the Presque Isle contract competition before the award was made. The community resistance mirrors opinions voiced during United's bid for the 2018-20 contract. In that procurement, the airline beat out five competitors including the incumbent, PenAir. Once among the largest regional airlines in the Northeast and Alaska, PenAir had been shuttling between Presque Isle and Boston under the EAS program for six years. But United's bid over the life of the contract was $2.4 million cheaper than PenAir's — and was projected to carry about 2,300 more passengers a year. The order for the 2018 award noted that the DOT "received a substantial amount of correspondence from residents and users supporting PenAir's service, many indicating the need for continued service to [Boston] for a variety of travel reasons." P O L I T I C S & C O. P H O T O / C O U R T E S Y P Q I United Airlines United Airlines has won a second consecutive has won a second consecutive federal contract to provide service at federal contract to provide service at Presque Isle Presque Isle International Airport International Airport. The carrier will continue . The carrier will continue flying to and from Newark, N.J., in 50-seat jets, like flying to and from Newark, N.J., in 50-seat jets, like the one shown here touching down at PQI. the one shown here touching down at PQI.

• Cover