Ely will lose all flight service to Las Vegas and Elko -- but add six flights a week to Salt Lake City -- after Scenic Airlines pulls out and the Mesa Air Group takes over, the U.S. Department of Transportation announced Wednesday.
The DOT provides its Essential Air Service subsidies to Ely and other rural areas with two-year contracts.
According to a DOT order, Scenic filed a 90-day notice of intent to end its government-subsidized flight services at Merced and Visalia, Calif., as well as Ely on May 16. Scenic said these flight services were no longer economically feasible due to increased fuel costs and decided to focus on sightseeing operations. The DOT denied Scenic's request with a June 13 order and requested proposals from other carriers -- with or without subsidy.
There is no date that Mesa Air Group expects to start service. The order says the two-year contract will begin “when the carrier inaugurates service.” Scenic Airline's local and Las Vegas offices, and Mesa Air Group's corporate office did not offer a date Thursday morning.
The DOT said Ely Mayor George Chachas, along with other community organizations including businesses, the hospital and the Elko City Manager all supported a different proposal by Big Sky that would continue providing flights to Las Vegas and Elko.
The order shows nine proposals that focused more service on Visalia and Merced. The DOT will subsidize about $1.59 million for the Mesa Air Group's selected proposal for Visalia and Merced flight services, and only about $647,709 for Ely's soon-to-be Salt Lake City flight services.
The DOT order says it was a “difficult case to analyze” because each community supported a different proposal. “Big Sky would require $2.52 million in annual subsidy and has the support of one community -- Ely.” The DOT expects Scenic and Air Midwest, a subsidiary of Mesa Air Group, to work together to make a smooth transition. Scenic must notify customers who hold reservations for after the suspension date and secure alternate air transportation or provide a refund.
