Business

Athens air service subsidy renewed; Macon still unclear

Oct 8, 2010

GeorgiaSkies, a small carrier operating flights from Atlanta to Athens and Macon with federal subsidies, has been approved to continue the Atlanta-Athens flights.

But Macon's federally subsidized airline service is still up in the air.

The U.S. Department of Transportation this week issued an order selecting GeorgiaSkies, a unit of Arizona-based Pacific Wings, to continue the Athens service for another two years with a $1 million subsidy.

Although the city had endorsed a different carrier, SeaPort Airlines, Athens Mayor Heidi Davison said she thought the DOT's decision "was obviously the right one because that company was able to meet the requirements that were laid out by the Department of Transportation."

"We need air service from Athens to Atlanta, and so we're pleased that we're going to have a carrier that will continue to provide that service," Davison said.

The Macon market, however, has become problematic because the annual subsidy for the GeorgiaSkies service amounted to $464 per passenger last year due to weak passenger traffic, and the DOT is prohibited from subsidizing at a level more than $200 per passenger unless the community is farther from a major airport.

The DOT in its order said it decided to reject the proposals it received earlier this year and solicit new ones that would satisfy Macon's Essential Air Service needs at subsidy levels that are competitive. But there's also a risk that Macon could lose its subsidy and airline service.

Macon had endorsed a proposal from Gulfstream International Airlines, while also voicing some support for GeorgiaSkies. However, Gulfstream requested a subsidy of $2.7 million, which would have resulted in a subsidy of more than $900 per passenger, according to the DOT.

Macon Mayor Robert Reichert said he thinks the rebid process could attract proposals from other carriers with more options for flights from Macon to cities other than Atlanta.

But others say a challenge for Macon is the option to drive just an hour to get to Hartsfield-Jackson International Airport.

"Atlanta, the world’s busiest airport, is right down the road from them, and it’s both a blessing and a curse," said Pacific Wings chief executive Greg Kahlstorf.

About the Author

As business team lead, Kelly Yamanouchi edits and writes business stories.

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