Stock Groups

U.S. bars SkyWest from ending service to 29 communities pending review -Breaking

[ad_1]

2/2
© Reuters. FILE PHOTO A view of the exterior of U.S. Department of Transportation Federal Aviation Administration, Aurora, Illinois. September 26, 2014. REUTERS/Jim Young

2/2

By David Shepardson

WASHINGTON, (Reuters) – The U.S. Transportation Department barred Monday a regional carrier SkyWest (NASDAQ:) Inc will cease service in 29 locations until new carriers are found through the government’s subsidy program for smaller communities.

SkyWest offers regional service to key airlines like United Airlines, Alaska Airlines and Delta Air Lines (NYSE :), as well as American Airlines (NASDAQ :). SkyWest provides regional service on behalf of United Airlines by operating the 29 routes listed under United Express.

SkyWest, which announced its intention to cease service to the 29 community members of the Essential Air Service subsidy program last week, stated that the pilot staffing issues in the industry “preclude” SkyWest’s continued service.

SkyWest could not terminate service until July 8, according to the Transportation Department. Federal officials can also request additional 30-day periods if necessary.

Some of the communities with United Express flights operated by SkyWest being cut include: Cape Girardeau, Joplin and Fort Leonard Wood, Missouri; Decatur, Illinois; Clarksburg and Greenbrier/Lewisburg, West Virginia; and Fort Dodge, Mason City and Sioux City, Iowa. Other destinations include Muskegon, Houghton/Hancock in Michigan, Hattiesburg/Laurel in Mississippi, Johnstown, Pennsylvania, Kearney and Scottsbluff, Nebraska, Salina, Liberal Hays, Dodge City, Kansas, Eau Claire and Victoria, Texas.

Each route usually has its own contract. These contracts are called separate contracts. Each contract receives approximately $3 million annually in government subsidies.

SkyWest stated that it was “eager” to collaborate with officials to find solutions to allow these communities to be connected to the National Air Transportation System. We are also committed to being flexible and adapting our plans to any changes in the circumstances.

According to the Transportation Department, other airlines are requested to submit proposals by April 11, in order to provide flights to replace the service that was canceled.

United Airlines Chief Executive Scott Kirby (NYSE;) said that nearly 100 regional planes were grounded by United Airlines because “there aren’t enough pilots to fly them”. … There will be thousands of pilots needed in this country.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from relying on data including charts, buy/sell signals, and quotes. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]