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(10/31/08) In a surprising move yesterday, Piedmont Airlines (d/b/a US Air) filed notice with the US Department of Transportation of their intention to continue to provide service between Williamsport and Philadelphia.

In the notice Howard Kass, Managing Director and Associate General Counsel for Piedmont wrote:

“I am writing to inform you that Piedmont Airlines - d/b/a US Airways Express - has decided to withdraw its Ninety Day Notice of June 25, 2008, and maintain service of three daily weekday roundtrips between Williamsport, Pennsylvania, and Philadelphia, Pennsylvania, with a reduced weekend schedule.

When Piedmont initially notified the Department of its intent to cease service to Williamsport, oil prices were testing new record high prices on an almost daily basis. However, in light of the rapid decline in fuel prices - reduced by more than half since the summer peak and Williamsport's support of Piedmont/US Airways' service. Piedmont has decided to maintain its service.

We appreciate the Department's efforts in this matter, but given the rapid change in fuel prices. Piedmont was able to reevaluate the financial metrics of the route and maintain service.”

However, according to Thomas Hart, the final decision still remains with the US Department of Transportation as they have already awarded the routes to Mesaba. “They (DOT) can choose to pay millions of dollars to subsidize flights from Williamsport to Detroit or they can cancel their contract and allow Piedmont to continue to provide service to Philadelphia with no subsidy” explained Hart.

This latest development is yet another strange twist in this classic example of corporate and bureaucratic tug of war.

On June 25 of this year Piedmont/US Air filed with the Department of Transportation a notice of intent to discontinue service to the Williamsport area. On July 9th the DOT then exercised its authority and denied the suspension of services forcing Piedmont/US Air to continue service while bids were solicited to provide subsidized service under the Essential Air Service Act.

The first round of bidding netted three bids all of which the DOT deemed to be excessive in their subsidy requests. The second round of bidding resulted in only two submissions, one from Piedmont/U Air and the second from Mesaba/Northwest. Mesaba/Northwest requested just under $2 million subsidy and Piedmont/US Air just over $2 million. Mesaba offered two round trip flights per day all to Detroit while Piedmont offered 3 round trips daily to Philadelphia.

Despite the fact that 60% of all round trip flights from Williamsport are to destinations in the South and South East United States, the Department of Transportation selected Mesaba requiring all travelers from Williamsport to travel first through Detroit. The selection of Mesaba was made despite written support of the US Air bid from Senators, Arlan Specter and Robert Casey, Congressman Chris Carney, Williamsport Mayor Gabe Campana, the Williamsport Municipal Airport Authority, and thousands of concerned citizens.

See our Editor's Opinions page.

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