Hot Springs backs flights to Atlanta, Dallas

The Hot Springs Board of Directors adopted a resolution Tuesday supporting a proposal that would provide daily flights to Atlanta and Dallas from Hot Springs Memorial Field.

Boutique Air has proposed six-day-a-week round-trip service to Dallas and Atlanta. It would need a $3.98 million annual U.S. Department of Transportation subsidy for the routes, giving the airline what airport director Glen Barentine said would be the largest Transportation Department subsidy ever for commercial air passenger service in Hot Springs.

According to the Transportation Department, SeaPort Airlines received a $1.63 million annual Essential Air Service subsidy for its twice-a-day service to Houston and Memphis from Hot Springs. The airline filed Chapter 7 bankruptcy last month, immediately ending all of its operations.

Barentine said Boutique Air's larger subsidy is for the proposed Atlanta route and the larger aircraft it would fly out of Hot Springs. Single-engine Cessna Caravans served the Houston and Memphis routes for SeaPort. Boutique Air's proposal calls for twin-turboprop King Air 350s to fly to Dallas and Atlanta.

The nine-passenger plane carries the same number of people as the Caravan, but provides additional room, Barentine said.

The proposal calls for two round trips to Dallas and one round trip to Atlanta six days a week. Boutique Air would fly into executive terminals at the Atlanta and Dallas airports and shuttle passengers to the ticket and rental-car counters.

Boutique Air was one of the six airlines that responded to the emergency request for proposals the Transportation Department issued Sept. 21. Barentine said the department will have the final say on which airline will serve Hot Springs, which is part of the Essential Air Service program that subsidizes airlines that connect small airfields to larger or medium-hub airports.

Boutique's proposal projects its Hot Springs service would generate $976,592 in annual revenue against expenses of $4,737,930. The $3.98 million subsidy allows for a 5 percent profit.

Barentine told the board that about two passengers per flight typically fly out of Hot Springs.

Barentine said the Transportation Department will select a carrier within 60 to 90 days, putting the airport on schedule to have commercial air service by February.

Business on 10/27/2016

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