SkyWest Awarded Federal Contract for Sioux Gateway Flights to Chicago, Starting April 1

Mar. 2—SIOUX CITY — Sioux Gateway Airport will have a new carrier offering direct flights to and from Chicago beginning on April 1.

The U.S. Department of Transportation on Monday awarded SkyWest Airlines, a regional carrier for United Airlines, a three-year contract to provide subsidized service between Sioux Gateway and Chicago's O'Hare International. SkyWest will operate 50-seat CRJ-200 regional jets for the flights, which will be typically be twice daily.

SkyWest, which currently operates one daily flight to and from Denver, beat out the incumbent carrier American Airlines for the contract under the Essential Air Service program, which was created in 1978 to ensure that smaller communities maintained at least a minimal level of air service.

"We are pleased the DOT released the order today aligning with our prior recommendation to select SkyWest and United to serve Chicago," Sioux Gateway Board of Trustees President Dave Bernstein said. "We are anxious to get back to at least two flights daily to Chicago as it's our biggest market.

"United presently is offering a larger number of connecting flights from Chicago so we look at this as very positive as SkyWest has been a great partner to date."

In August, American Airlines announced it would stop flying to several smaller cities, including Sioux City, due to the catastrophic impact of COVID-19 on the airline industry. The airline backtracked a few days later, delaying its plan to suspend its unsubsidized flights to Chicago and Dallas-Fort Worth.

By the end of August, American filed for subsidies for the Sioux City to Chicago flights, under the EAS program. That triggered a new round of federal bidding for the routes.

"We thank American Airlines for their prior service to our community," Bernstein said.

Under the EAS agreement, SkyWest will be required to offer at least 12 flights per week, for a subsidy of $2,045 per flight, or nearly $1.47 million for the first year. In the second year, the subsidy drops to $880,418, and in the third and final year, it's reduced to $533,437, according to documents posted on regulations.gov.

In its bid, American had asked for a subsidy of nearly $2.53 million in the first year.

The city, which owns the airport, and the Sioux Gateway Board of Trustees, had recommended the DOT accept SkyWest's bid.

In October, SkyWest started unsubsidized flights at Sioux Gateway to and from Denver. It marked the first direct flights to the Mile High City in six years.

SkyWest's once-daily flight to Denver will continue under the airline's separate agreement with the airport.

The last time United Airlines offered direct service between Sioux City and Chicago was in the 1990s. United is the dominant carrier at O'Hare.

Sioux Gateway was designated an EAS community after its lone carrier, Delta Air Lines, pulled out of the market several years ago. The first federal contract was awarded to American. The airline later switched to unsubsidized routes for its two daily flights to Chicago.

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