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American Airlines Proposal to Provide Service to Watertown

American Airlines Proposal to Provide Service to Watertown

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American Airlines Proposal to Provide Service to Watertown
American Airlines Proposal to Provide Service to Watertown

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Published by: Newzjunky on Aug 05, 2013
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08/06/2013

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BEFORE
THE
DEPARTMENT
OF
TRANSPORTATIONWASHINGTON, DC
Essential
Air
Service at
WATERTOWN,
NEW YORK
Under 49 U.S.C §41731
et
seq.
DOT OST
1997-2842
!
b
,'.\
!:}:
ll
AMERICAN AIRLINES PROPOSAL
TO
PROVIDE ESSENTIAL
AIR SERVICE AT
Watertown,
New
York
American Airlines, a wholly owned subsidiary
of
AMR
Corporation, respectfully submits itsproposal to continue subsidized Essential Air Service to Watertown,
Y~
American Airlinesseeks to continue service from American's hub, Chicago
O'Hare
to the Watertown InternationalAirport with two daily roundtrips with the exception
of
Saturday for a total
of
thirteen weeklyroundtrips. The service would be conducted by American Airlines regional brand, AmericanEagle using 44 seat
jet
aircraft.American Airlines regional feed is operated under the American Eagle and American Connectionbrands. Flying for American Eagle is conducted by American Eagle Airlines, SkyWest Airlines,and ExpressJet. American Connection flying is operated solely
by
Chautauqua Airlines.American Airlines customers currently have access to more than 260 cities, 50 countries andmore than 3400 daily departures. Through our oneworld alliance, customers have access to morethan 700 destinations and 140 countries. These flights will continue to be operated with the
AA
code, pursuant to a code sharing agreement with American Airlines. Additional codes
of
theoneworld carriers are also applied to this route, and would continue to be.The service proposed
by
American Airlines continues existing service to American's hub,Chicago
O'Hare
("ORD").
At
ORD, American, American Connection, and American Eagleoffer more than 460 daily departures to 120 destinations, making it one
of
the largest hubs in thecountry. This direct access
on
such a large scale has helped stimulate traffic from Watertownwith significantly easier connecting options than what had been offered to travelers to and fromthe region prior to our award
of
the current Essential Air Service bid.Watertown has performed well under subsidized Essential Air Service since American's EASsubsidy award in November 2011, despite regional tendencies to favor SYR and its presence
of
low-cost carrier and network carriers. Passenger numbers have increased steadily over the course
of
our nearly two years operating in the market. We have made progress in developing airservice in Watertown, and see the influence
of
the current service geographically redefining the
 
local catchment area. The proposed EAS subsidy is higher than our previous agreement primarilydue to the proposed additional departure. The proposed subsidy also reflects the costs associatedwith the unique operational challenges that exist
in
Watertown which were unforeseen
in
ourfirst two years
of
operation. Our current bid should reflect our belief that the Essential AirService subsidy is vital, and on this trajectory the service may one day be able to exist profitablywithout Federal subsidy.American would like to also request that the DOT and Watertown allow us flexibility insubstituting an Embraer EMB 140 ( 44 seats), operated by Chautauqua under the American·Connection brand, when needed for the same rates. This will allow us to provide an additional.layer
of
schedule protection. American also requests that the DOT and Watertown waive theright to hold-in American Eagle service upon issuance
of
a 120 days-notice to terminate service.Although we do not foresee this to be an issue and plan to continue developing the Watertownmarket, we cannot be operationally constrained and kept in a market indefinitely, without abilityto adapt to changing circumstances.We believe that our to-date success in Watertown is demonstrative
of
the American Airlinesnetwork and marketing programs. American Airlines is the only airline with a dedicatedRegional Market Development team that will continue its promotion
of
the brand and service inthe communities. This is a testament
of
American's support and ability to provide
air
service tosmall communities unlike low cost carriers in the industry today.We look forward to serving the Watertown area for many years to come and appreciate thecommunities and the Department
of
Transportation consideration
of
continued AmericanAirlines service.Sincerely,Charles SchubertVice PresidentAmerican Airlines Network Planning

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