House Committee on Transportation and Infrastructure Subcommittee on Aviation

Transcription

1 Testimony of Daniel A. Wolf Chairman and Chief Executive Officer (CEO) Hyannis Air Service, Inc. dba Cape Air Before the House Committee on Transportation and Infrastructure Subcommittee on Aviation Hearing on: Air Service to Small and Rural Communities April 30, 2014

2 Chairman LoBiondo, Ranking member Larsen and members of the Subcommittee, thank you for considering my written testimony on the topic of Air Service to Small and Rural Communities. This is a small community air service success story: the Cape Air story. Despite air service challenges at many smaller communities across the United States, Cape Air s model of high- frequency, non- stop service with 9- seat airplanes is prospering. Now the nation s largest commuter airline, Cape Air safely, reliably and affordably serves 43 communities and 14 US states and territories. These include 20 communities for whom Cape Air provides Essential Air Service (EAS), the community s vital link with the national air transportation system. Cape Air currently operates seat aircraft in scheduled airline service, and two ATR- 42s with 46 seats. Cape Air s smaller aircraft on short- haul routes (typically less than 200 nautical miles) enable high- frequency service, which ensures a critical mass of flight frequency, convenient flight times, and non- stop service to a hub or destination. Since start- up in 1989 with just a single aircraft and one route, Boston Provincetown, Massachusetts, Cape Air has invested in the distribution technology and airline interline agreements that allow passengers from Cape Air s small communities to connect at hubs with the rest of the national air transportation system. While providing world- wide reach, 9- seat service is scalable in seasonal communities. The Boston Nantucket route supports six daily non- stop flights in winter, but upwards of 30 in summer.

3 In every case when Cape Air s 9- seat aircraft have taken over year- round EAS service at a community in the Continental US ridership increased (See Table 1). Combined ridership more than doubled. This is apparently paradoxical given that in most cases Cape Air s 9- seat aircraft replaced 19 or 30- passenger aircraft. However, Cape Air s model of high- frequency, non- stop, low- fare service in smaller aircraft consistently ends up attracting more passengers. Table 1 Cape Air EAS Passengers vs. Previous Carrier Continental US; At least one year of Cape Air subsidized EAS service City Previous Annual Aircraft Type Passengers 2013 Cape Air Passengers Change Percentage Quincy, IL Beech ,628 19,905 16, % Marion, IL Beech ,374 20,339 15, % Cape Girardeau, MO Beech ,196 11, % Kirksville, MO Piper Navajo 1,877 11,338 9, % Ft. Leonard Wood, MO Beech ,107 16,376 6,269 62% Rutland, VT Beech ,312 10,561 6, % Cessna Owensboro, KY Caravan 1,284 7,523 6, % Ogdensburg, NY Beech ,947 10,077 5, % Saranac Lake, NY Beech ,519 10,449 4,930 89% Massena, NY Beech ,309 9,256 2,947 47% Augusta, ME Saab 340 8,177 11,000 2,823 35% Rockland, ME Saab ,316 14,393 2,077 17% Lebanon, NH Saab ,229 19, % Total 82, ,322 90, % Outside the EAS program, Cape Air also provides year- round transportation infrastructure to a number of US island communities that otherwise would have limited air access: Nantucket, Martha s Vineyard, and Vieques. Cape Air operates a hub in San Juan, Puerto Rico, connecting 10 islands with San Juan and its 1,184 1 weekly connecting flights. Cape Air s piece of the patchwork quilt that is small community air service works well today. 1 Source: Official Airline Guide for April 2014

4 Present Challenges Aircraft Fleet Production of the Cessna 402, the mainstay of Cape Air s fleet, ended in The similar Piper Navajo ended production in Since then no comparable 9- seat, multi- engine aircraft have been produced anywhere in the world. Cape Air keeps its fleet airworthy by remanufacturing each plane in its own Part 145 Repair Station. While remanufacture ensures safety, the process is inherently inefficient and expensive, creating economic but not safety concern for the business. Due to the nature of routes served (overflying water, mountains, remote areas and cities, sometimes at night and in icing conditions) Cape Air insists on operating multi- engine aircraft, even though there are presently 9- seat single- engine aircraft in serial production marketed as airliners. Single- engine aircraft are not a prudent choice for Cape Air s operation. Since 2010 Cape Air has focused on finding a manufacturer to build a new multi- engine 9- passenger aircraft to replace its Cessna 402 fleet. Despite the full- time attention of Cape Air s senior executives and repeated pitches to and consistent cultivation of US aircraft manufacturers, no US manufacturer has yet stepped forward to offer to develop this needed product. However, one or more emerging aircraft options may be available in a post timeframe from a foreign company, possibly manufacturing the aircraft in a US factory. The ideal new aircraft will have the following characteristics: Certified for Scheduled Commuter airline operations under Part 135 Nine passenger seats Twin reciprocating engines, burning a fuel other than 100LL Payload of at least 9 X (190 lbs/pax + 50 lbs bags/pax) = 2,160 lbs at 250+ nm stage with IFR reserves Single pilot certified, but dual controls Glass panel At least 200 knots true airspeed in cruise at 6,000 MSL Certified for flight- into- known- icing option The smallest purpose- designed airliner in serial production anywhere in the world is the ATR- 42, which has 46 seats and a list price of $19,500,000. Qualified Pilot Availability Scheduled airline flights in multi- engine aircraft, regardless of the number of seats, are required to be piloted by an Air Transport- rated pilot with an FAA First Class Medical Certificate. This means that Cape Air s 9- seat aircraft must be flown by pilots with the same pilot rating and medical as United Airlines Boeing 747. Recent demographic and regulatory changes create a near- term shortage of qualified pilots for Cape Air and other regional airlines, which inhibits Cape Air s ability to extend its successful service model to additional communities.

5 In anticipation of the present pilot shortage, in 2008 JetBlue Airways and Cape Air partnered to create the JetBlue University Gateway Program, which creates a defined, metered and gated career path for students at an aviation college accredited by the Aviation Accreditation Board International. Students accepted into the program follow a defined path with rigorous testing for competency and disposition at each gateway: Earn a degree from the aviation college; intern at Cape Air or JetBlue while a student Teach flying for the college Fly as a captain for Cape Air Graduate to the cockpit of JetBlue Airways For an aspiring airline pilot this innovative program provides a structured, rigorous learning environment and career path clarity. For the colleges, Cape Air and JetBlue, the program provides a predictable cadre of the best- trained pilots in the industry. The Gateway Program is mitigating but not eliminating the impact of the present industry shortage of qualified airline pilots at Cape Air. While the Gateway Program provides a predictable path to a piloting career, it funds neither the college education nor the accumulation of flight experience. Most Gateway students accumulate flight experience upon college graduation by serving as a flight instructor at their alma mater, but progress can be slow because demand for flight instruction is limited. Opportunities As some regional airlines falter due to the pilot shortage, limited fleet options or for other reasons there is a significant opportunity for the Cape Air model to replace larger aircraft service with safe, reliable, professionally- operated 9- seat aircraft. And, since the Cape Air model has been successful in the US, despite the US having some of the world s best ground transportation alternatives to short- haul flights, Cape Air is exploring opportunities to operate or support small community air service around the world. The main constraints on both domestic and foreign opportunities for expansion of the successful Cape Air model of small community air service are the lack of a suitable new aircraft and qualified pilots. Summary Cape Air s model of high- frequency 9- seat scheduled airline service can be great air transportation for small communities in or out of the EAS program. This sector, however, is significantly challenged by a lack of suitable new aircraft and the burgeoning shortage of qualified pilots.