Boutique Air Protests Carlsbad's Air Service Contract With New Mexico Airlines

May 24, 2013

May 23--A California-based company that hoped to land a federal contract for Carlsbad's subsidized air service is protesting the government's awarding of the contract to New Mexico Air.

Boutique Air of San Francisco says the Department of Transportation didn't consider factors such as flight comfort and trip frequencies when it gave the essential air service contract to New Mexico Airlines earlier this month.

New Mexico Airlines, operated by Mesa, Ariz.-based Pacific Wings, LLC, has been providing air service in Carlsbad since 2007 with unpressurized flights to Albuquerque.

"The current carrier regularly flies over 8,000 feet, and regulations entitle Carlsbad to a pressurized aircraft," said Boutique Air spokesman Daniel Helland. "The department failed to address that; it seems they thought we didn't have any proof. We have FAA data that shows, they fly at 11,800 feet and stay over 8,000 feet for a pretty good amount of the time. They're flying high enough that the city is entitled to a pressurized aircraft."

Helland said passengers may feel uncomfortable flying in an unpressurized aircraft at higher altitudes.

He said the air service contract also calls for the flight provider to offer 54 seats per day, which he says New Mexico Air has been unable to provide. Helland said company officials submitted their petition to the Department of Transportation Tuesday. The department must allow for 10 days of public comment before it makes a determination on May 31, according to DOT spokesman Bill Mosely.

Greg Kahlstorf, CEO of New Mexico Air, wasn't surprised by the petition.

"Reconsideration requests happen occasionally when upstart carriers lose EAS bids," he said in an email. "I don't see any indication from past USDOT dockets that it has ever resulted in a change to a contract award, though. I think the fed spends a lot of time doing analysis on this stuff, so I would be surprised if a new air carrier with no scheduled service or EAS experience knew more about the program and regulations than the federal office administering it for 35 years."

Kahlstorf said he was concerned about local efforts by city officials and members of the Carlsbad Department of Development to support Boutique Air's bid.

"This seems like a rather transparent attempt by a losing bidder and a heavy-handed lobbying group to resurrect a federal procurement process they tried -- and failed -- to influence and manipulate for months," he said.

Kahlstorf said his company would file an official response to the petition with the Department of Transportation."

Helland said Boutique Air views Carlsbad as a great opportunity.

"The city is booming and entitled to more service. This is a great opportunity to jump start our hub out of Dallas-Fort Worth." Boutique Air is asking Carlsbad residents to submit their comments to the Department of Transportation by going to boutiqueair.com/cnm before the May 31 deadline.

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