Feds Save 45% on Pierre/Watertown Essential Air Subsidy; Noem Pitches Fit

[TexasTowelie]

Subsidy Queen Kristi Noem is complaining that the Biden Administration isn’t spending more money on infrastructure in South Dakota.

In April, the United States Department of Transportation chose Key Lime Air, doing business as Denver Air Connection, to replace SkyWest Airlines as Pierre and Watertown’s federally subsidized Essential Air Services passenger flight provider. Key Lime won the contract because it submitted the low bid:

The DOT acknowledged the communities’ preference for SkyWest but pointed out that a SkyWest contract would cost it USD7.7 million more than DAC’s combined Pierre and Watertown option (USD9.5 million for DAC versus USD17.3 million for SkyWest over two years).

“The Department cannot reasonably justify such a substantial increase in annual subsidy when DAC will connect the communities to the national air transportation system at a far lower cost,” it explained.

Boutique Air (4B, San Francisco, CA) also applied for the new contract but withdrew its unsubsidised proposals on February 1 [“Key Lime Air Takes EAS Contract at Pierre and Watertown, SD,” CH-Aviation, 2021.04.15].

Read more: https://dakotafreepress.com/2021/05/13/feds-save-45-on-pierre-watertown-essential-air-subsidy-noem-pitches-fit/