The announcement from Big Sky Airlines that it would cease operations in Cape Girardeau and throughout the eastern part of the United States stunned local officials, who took some solace Thursday from a U.S. Department of Transportation order to the carrier to keep flying past a planned Jan. 7 ending date.

The agency said in a prepared statement that it expects Big Sky to keep flying until replacement carriers can be awarded contracts. The federal agency subsidizes service from Cape Girardeau and other airports under the Essential Air Services program.

The search for replacement carriers will be done through an emergency process. Jan. 11 is the deadline for submitting bids.

Despite the order, Big Sky will stop flying Jan. 7, airline president Fred de Leeuw said.

"No one can force a company to stay in business if they are losing money," de Leeuw said.

The statement issued Thursday, despite de Leeuw's interpretation, seemed to indicate the department expects service to continue.

"The U.S. Department of Transportation just issued an emergency RFP (request for proposal) for bids for service to the affected communities and will use our statutory authority to require the carrier to keep operating until that replacement service begins," spokesman Bill Adams said in a prepared release. "Nevertheless, if Big Sky involuntarily ceases operations -- for example, because its aircraft are repossessed, or its pilots or mechanics leave their jobs -- then we will do everything in our power to speed up the process of getting replacement service."

Adams, who works in Washington, could not be reached for further comment on de Leeuw's remarks.

Big Sky cited high fuel costs, bad weather and disappointing revenue for stopping service, de Leeuw said in a news release. "We have great people who have worked extraordinarily hard, but that factor could not overcome the challenges we faced, and we no longer believe that we can reach sustained profitability," de Leeuw said.

Before the airline stops flying, however, it will increase service in Cape Girardeau. A third daily flight to Cincinnati is scheduled to begin today, and airport manager Bruce Loy said he has not been told that those plans have changed.

Overall, Big Sky was doing well in attracting passengers here, Loy said, especially considering that the airport had been without service since March after RegionsAir was grounded by the Federal Aviation Administration. Despite several delays and cancellations in November, the airport was averaging more than seven passengers on each of the two 19-passenger flights each day.

"I thought, wow, this is starting to really bloom into something we think is fantastic, but then the bottom fell out suddenly," he said.

City officials had chosen Big Sky as the preferred carrier after considering several bids in February. The contract was awarded by the Department of Transportation. "It is obviously very disappointing," Mayor Jay Knudtson said.

Through the evaluation process, the city felt it had found a strong partner that could contribute to the growth of the airport and the community, Knudtson said. "We were literally shocked to see the fax of their decision to pull out of the eastern cities."

John Mehner, president and CEO of the Cape Girardeau Chamber of Commerce, said he was encouraged by the department's order to Big Sky to continue service. The city should look for reliable service rather than be focused on any particular destination for flights, Mehner said. "The overall city is interested in a reliable service whether it is to Memphis, St. Louis, Cincinnati or Atlanta," he said.

Big Sky will go out of business altogether as a result of its decision to shut down service to eastern cities, de Leeuw said.

"We could be out of business in 60 days," he said. "This is a very sad day for Big Sky Airlines."

rkeller@semissourian.com

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