Airline announces end of operations
Hot Springs’ only commercial air passenger service announced an immediate end to all operations Tuesday on its Facebook page.
Tim Sieber, president of SeaPort Airlines, said the Portland-based carrier that provided twice-a-day service to Memphis and Houston from Hot Springs Memorial Field filed a motion Tuesday to change the bankruptcy protection it filed for in February from Chapter 11 reorganization to Chapter 7 liquidation.
“This is a very sad day for our employees, shareholders and the communities we serve,” Sieber said. “I would like to extend my heartfelt appreciation to the employee team that I have been honored to lead and who delivered industry leading performance.
“While we made great strides, a successful financial reorganization did not appear possible, and we were forced to make the difficult decision to cease operations.”
The Facebook post said cus-
tomers who purchased tickets with credit cards may apply for a refund through their credit card company.
Airport Director Glen Barentine said the news came as a surprise in light of the news release the airline issued earlier this month on its performance. The release said SeaPort completed 99 percent of its scheduled flights in July and August and went 111 days without a controllable cancellation.
It flew the nine-passenger, single-engine Cessna Caravan turboprop out of Hot Springs. Barentine said he didn’t have information on how many passengers the airline served on its Memphis and Houston routes from Memorial Field.
“That’s why it’s shocking to us,” he said, referring to the Sept. 8 news release. “They put out something saying how great they were, and we agreed. They seemed to be doing a really good job. They were well established in the Northwest. It felt like they’d be long term.”
Barentine said reliability will be the airport’s primary criteria when selecting a new carrier from the list provided by the Department of Transportation. Like many cities SeaPort served, Hot Springs is part of the Essential Air Service program that subsidizes airlines that connect small airfields to larger or medium-hub airports.
While touring Triumph Fabrications Wednesday, Gov. Asa Hutchinson said SeaPort’s dissolution is indicative of an ever-shifting economic landscape.
“That just illustrates how we have a change in the economy,” he said. “It’s dynamic. You are going to have some facilities that close, so we have to constantly be creating new jobs.”
According to the Department of Transportation, SeaPort received a $1.63 million annual subsidy for its routes linking Hot Springs to Memphis and Houston. The airline received $2.2 million for its Harrison to Memphis route and $1.97 million for routes connecting El Dorado to Memphis and Houston.
Barentine said it took about six months for SeaPort to start serving Hot Springs in 2009 when Mesa Airlines, the airport’s former passenger service, ceased its Hot Springs operation after filing for bankruptcy.
“It will take a little while for DOT to get its ducks in a row,” he said. “They’ll put out a request for proposals. The airlines will look at the routes and see how they want to run them. DOT will gather the proposals and send them to the affected cities.”
Barentine said SeaPort had recently agreed to purchase more aviation fuel from the airport, upping its consumption from 1,200 gallons a month to 4,000. He estimated that the airline’s monthly fuel tab had grown to $10,000. SeaPort also paid the airport landing fees and rent for a small office.
Barentine said the airport is working to find a new tenant for the 55,000 square feet of hangar and office space AAR Corp. vacated last year. The commercial aircraft maintenance, repair and overhaul company closed its Hot Springs facility as part of a consolidation plan.
“We’re in the process of showing it, and there’s been some interest,” he said.
Current airport tenants include emergency medical service Air Methods Corp., aircraft maintenance company Pro Turbine Inc., Airborne Air Ambulance Service Inc. and the Western Pilots Service the state contracts to fight wildfires.