TWE AGAIN APPLIES FOR FEDERAL AID

Blaming continuing losses at the Cape Girardeau Municipal Airport, Trans World Express airlines announced Tuesday it has applied for a federal subsidy to continue operations between Cape Girardeau and St. Louis.

William Mishk, TWE's director of marketing, said the subsidy would "cover financial losses we have incurred while trying to serve this city."

In applying for the federal Department of Transportation subsidy, TWE has given the city 90 days notice that it will withdraw air service unless the subsidy is granted.

It's not the first time the city has been faced with the threat; in September 1991, TWE also announced its application for the federal subsidy.

But after nine months of effort in which the city attempted to bring a Dallas, Texas, carrier Lone Star Airlines to Cape Girardeau, TWE withdrew its application and nixed any plans to switch airlines.

Lone Star had proposed subsidized air service between St. Louis, Cape Girardeau and Memphis.

With TWE's most recent subsidy application, the DOT will open the door for the city to again seek other airlines that might be interested in serving Cape Girardeau.

But it's not likely such a proposition will surface given TWE's action of 19 months ago.

Mishk made the announcement at Tuesday's Airport Board meeting, where board members indicated the city has few options in the matter.

"I think we have to take the attitude that TWE is what we've got to work with, and they're the only game in town as far as air service in Cape Girardeau," said Doug Leslie, Cape Girardeau's public works director.

"We need to make the best of the situation and do our best to work out an agreeable resolution that will be as beneficial as possible."

Due to the city's Essential Air Service (EAS) designation, airline service to the city is mandated. But if the airline providing that service is unable to operate profitably, the company is entitled to apply for a federal subsidy.

If no other carriers bid for the service within 90 days, then the DOT must provide the subsidy to ensure the EAS.

The EAS program started in 1978 the same time airline deregulation began to ensure small communities still would have such service.

When TWE previously applied for the subsidy, they proposed two options for service one with a $206,000 subsidy, and an expanded version with $346,000 in federal help.

At Tuesday's airport board meeting, Mishk also said TWE would change some of its flight schedules in May to coincide with heavier traffic times at Lambert Airport in St. Louis.

He said the move should improve poor load factors for flights to and from Cape Girardeau.

From February 1992 through last month the average load factor percentage of passenger capacity on TWE flights to and from Cape Girardeau was only about 30 percent.

Mishk also reported that from November through March TWE's reliability in and out of Cape Girardeau averaged 93 percent. He said that figure didn't include weather-related cancellations.

"Generally, controllable cancellations are about half of the total cancellations," Mishk said. "So, if you have nine controllable cancellations, there are probably nine more that are weather related."

Mishk also said the company has been meeting with area travel agents to try to promote TWE connection flights to St. Louis.

Airport Board Chairman Jerry McClanahan said monthly visits with travel agents would boost flights out of Cape Girardeau. "That's the best way to pump these numbers up," he said.

But board member Steve Robertson complained that TWE, which spent $5,920 in 1992 for outdoor billboards and radio spots, hasn't spent nearly enough advertising in this area.

Mishk said the company simply hasn't had the cash to fund a substantial advertising campaign.