Boutique Air will continue to serve Massena airport

Bob Beckstead, Watertown Daily Times, N.Y.
Updated ·4 min read

Feb. 6—MASSENA — Boutique Air will continue to serve as Massena International Airport's Essential Air Service provider for the next two years. Flights to Baltimore, as proposed in one of the carrier's options, will not be part of the schedule.

The U.S. Department of Transportation announced Friday that Boutique Air will continue to provide service from April 1 this year to March 31, 2025. The airline will provide 21 round-trip flights per week from Massena International Airport to Boston Logan International Airport, using a Pilatus PC-12 aircraft, at a annual subsidy rate of $5,322,161 for the first year and $5,535,047 for the second year.

"Boutique Air has served the Massena market for over five years, in addition to having been selected at other communities to provide EAS. Boutique Air has interline agreements with American Airlines and United Airlines, which will provide Massena passengers access to each air carrier's extensive domestic and international networks at the BOS hub. The community supports Boutique Air's proposal, and the air carrier proposes at least $20,000 to market its air service at Massena," Department of Transportation officials said in their order announcing Boutique Air's selection as EAS provider.

Town Supervisor Susan J. Bellor said the town board is pleased with the selection.

"This announcement helps the residents to further their travel plans, and helps our employees to continue work with this knowledge. All are happy with this selection," she said.

The DOT had initially selected Boutique Air to provide EAS service in Massena from April 1, 2019, through March 31, providing 21 non-stop round trips per week to Boston Logan International Airport for a first-year annual subsidy of $3,074,254 and a second-year annual subsidy of $3,166,481.

An order issued on Dec. 18, 2020, announced the approval of Boutique Air, with the concurrence of the community, to operate up to seven of the 21 weekly round trips to Baltimore/Washington International Thurgood Marshall Airport in lieu of service to Boston. There was no change in the annual subsidy or contract end date.

Most recently, the DOT announced in March 2021 that Boutique Air had officially been selected to continue as the EAS provider at Massena International Airport. That two-year contract runs until March 31, at a first-year annual subsidy rate of $3,411,097 and a second-year annual subsidy rate of $3,479,318.

However, Boutique Air announced in September that it wanted to terminate its EAS contract with the town so it could rebid at a higher rate. Boutique officials at the time said their cost of doing business had increased, and the current subsidy didn't cover that.

In the company's notice of termination of service, CEO Shawn Simpson noted that they were giving 90 days' notice to terminate the current EAS contract "with the intention to rebid at a subsidy that will support ongoing operations."

Mr. Simpson wrote, "Although Boutique Air Inc., would prefer to continue providing scheduled air service at the awarded subsidy, cost increases in the areas of staff, fuel, parts, and services induced by the coronavirus pandemic now hinder Boutique Air's ability to operate under the original budget."

At that point, the DOT requested proposals from air carriers to provide replacement Essential Air Service in Massena. They received two proposals from Boutique Air, as well as proposals from Contour Airlines and Southern Airways Express.

Boutique Air's second proposal for 21 round-trip flights weekly to Boston and Baltimore/Washington International Thurgood Marshall Airport was seeking a first-year annual subsidy of $5,949,097 and a second-year annual subsidy of $6,187,060.

Contour Airlines proposed 12 round-trip flights weekly to Philadelphia and Baltimore/Washington International Thurgood Marshall Airport at a first-year annual subsidy of $5,793,629, a second-year annual subsidy of $6,199,183, and a third-year annual subsidy of $6,633,126.

Southern Airways Express proposed 21 round-trip flights weekly to Boston at a first-year annual subsidy of $4,799,639, a second-year annual subsidy of $4,919,630, a third-year annual subsidy of $5,042,621, and a fourth-year annual subsidy of $5,168,687.

The town board supported Boutique Air to continue providing service. Although they requested flights continue to both Boston and Baltimore, DOT officials explained in their order their reasoning for not selecting an option with flights to Baltimore.

"As between Boutique Air's Option 1 or Option 2, the Department considered its fiduciary responsibilities. While the community's letter to the Department did not state specifically which option they supported, they did express that having service to BOS and BWI was a factor in their decision to support Boutique Air. However, Boutique Air's Option 2 would cost the Department $1,278,949 more than Boutique Air's Option 1. Boutique Air's Option 1 will fully connect Massena to the national air transportation network through the BOS hub and will provide the Department some savings," they said.