New Carrier Wants to Fly to Lake Charles, but Will It Be Ready in Time

March 13, 2007
While it wants to grow beyond the Lake Charles routes, Gardner says the company will not be establishing any other routes prior to its certification.

After nearly a year's hiatus, Small Community Airlines is again actively pursuing certification by federal regulators.

The company anticipates flying its first route in about six months.

Based at Dallas Love Field, the carrier seeks to fly to small Texas and Louisiana communities with its BAe Jetstream 3100.

Small Community is trying a different business model, says General Manager Kenneth Gardner. "We are interested only in public/private partnerships."

It is looking for direct investments by airports to underwrite the costs of the service and to actively market the service.

Gardner will not be competing for Essential Air Service contracts as they are limiting for both carrier and the airport.

The carrier has lined up its first public partner, Lake Charles Regional Airport, in southwest Louisiana. According to its pro forma financial statements filed with DOT, Small Community anticipates receiving $100,000 from Lake Charles. The company has obtained a $650,000 loan from One World Bank, of Dallas, and Lewis McPherson, its president and sole stockholder, has provided $50,000 in start-up capital. The company is carrying eight to 10 employees on its payroll as it awaits final certification. (Click here to review the DOT docket for Small Community Airlines.)

While it wants to grow beyond the Lake Charles routes, Gardner says the company will not be establishing any other routes prior to its certification.

In an interview with AirportBusiness.com, Gardner admits that two sides do not have signed contacts. Each side has a contract that will be signed once the carrier has obtained its federal certificates.

Small Community may be overstating its relationship with Lake Charles, says Heath Allen, the airport's deputy director. At one-time the two had a signed agreement until the airport realized that Small Community was not certified.

The package on the table for Small Community, Allen says, is the same available to the first carrier to fly directly to Dallas. It is a no-cash, or in-kind incentive, with the airport waiving landing fees, lease payments and other charges for the first 18 months of commercial service. Some local money will also be spent to promote the service.

However, Gardner explains the unsigned agreement with Lake Charles is similar to those struck by other carriers with local communities. Lake Charles will only be required to pay Small Community if the number of paying passengers falls below Gardner's undisclosed threshold. The contract will also give Small Community the flexibility of cancelling a flight if the demand is too low.

Small Community would make a profit on the Lake Charles route with its 19-seater Jetstream with 600 to 700 passengers a month, Gardner says.

Dallas is the community's first choice for new destinations, Allen says. He wouldn't provide estimated passenger counts because these projections vary by airline.

Small Community may not be certified in time to win the Lake Charles route.

Lake Charles is currently talking with another carrier to provide the service. The airport is "optimistic" that a deal with be struck with this undisclosed carrier, he adds.

The 19-seat Jetstream would be a disadvantage for Small Community in marketing the Dallas route. The 75-minute trip to Dallas would be at the edge of the passenger comfort zone for the aircraft, he adds. However, the direct service might be able to overcome the aircraft's drawbacks.

Lake Charles is currently served by Continental Express with six daily roundtrips to Houston. Four regional jet departures are provided by ExpressJet Airlines and two turboprop flights are flown by Colgan Air's Saab 340Bs.

Up until two years ago, Lake Charles had Delta flights to Atlanta. "They had quite a bit of people that were flying into Dallas and Continental does too. They go through their main hubs. You can't get any business done if you are on an airplane all day," Gardner notes.

Small Community wants to fly to Dallas Love to enable its passengers to make connections onto Southwest Airlines, American Airlines and Continental. Gardner adds that Love field is more convenient for those doing business in downtown Dallas.

DOT has almost completed its certification, Gardner says, and the FAA only has to review its flight manuals and the aircraft itself.