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Ogdensburg Airport switching subsidy programs, soliciting bids for air service

Posted 2/20/24

OGDENSBURG -- Ogdensburg Bridge and Port Authority officials say they are in the process of switching federal subsidy programs for air service out of the Ogdensburg International Airport.

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Ogdensburg Airport switching subsidy programs, soliciting bids for air service

Posted

Story updated 2/20/24 at 2:48 p.m.

OGDENSBURG -- Ogdensburg Bridge and Port Authority officials say they are in the process of switching federal subsidy programs for air service out of the Ogdensburg International Airport.

The move to switch back to the Essential Air Service (EAS) Program provided by the U.S. Department of Transportation will mean that subsidies will again be sent directly to the contracted airline as opposed to passing through the OBPA, who would then remit payment to the airlines.

That process should be done by May or June, according to Airport Manager Charlie Garrelts.

In a Feb. 8 meeting of the OBPA, Garrelts informed OBPA board members that they were in the midst of the bidding process with the U.S. DOT for upcoming EAS bids.

The Essential Air Service (EAS) is a program through the U.S. DOT that subsidizes flights from smaller regional airports to larger national and international airports, making air travel more affordable for regions like the north country.

Under the current Alternative Essential Air Service (AEAS) program, Contour Air offers flights from Ogdensburg to Philadelphia and Altoona, Pennsylvania.

OBPA officials say the current contract with Contour Air is set to expire this fall, leading to the new bidding process. Though the airport is shifting back to an EAS contract, Contour is still eligible to bid as well.

According to Garrelts, the OBPA will next issue a request for proposals from airlines. The timeline for solicitation could begin anywhere from the beginning of March to the beginning of April, he said.

Once bidding concludes, Garrelts said it will be another month or so for U.S. DOT officials to review the bids, followed by final review, community comments and then final approval. The winning airline should be announced in May or June, he said.

Under the previous EAS contract, SkyWest offered flights from Ogdensburg to Washington Dulles Airport and Chicago O'Hare.

Citing a subsidy rate that was not sustainable for the airline, SkyWest ended their contract in Jan. 2022, forcing the OBPA to reevaluate and eventually switch to the AEAS program.

SkyWest also pulled out of their EAS contract with Plattsburgh Airport at the same time.

Solicitation of bids went out soon after, with only Boutique Air originally submitting a bid to offer services at Ogdensburg.

Officials rejected the bid, saying it failed to meet minimum seat requirements and would significantly reduce the number of seats and flights available to the community.

OBPA officials then pivoted to the AEAS and rebid the route, eventually awarding the contract to Contour Air for nonstop service to Philadelphia.

The contract officially began July 1, 2022 and will run until Sept. 30, 2024 at a cost not to exceed $4,931,190 for the first year, $5,029,814 for the second year and  $1,257,453 for the prorated portion of $5,029,814 for the remaining three months of the contract from July to Sept. 2024.