American Eagle offers Letter of Intent for Regional Jet Service between Dallas-Ft Worth and Roswell

ROSWELL, NM – Thursday, March 29, 2007

If The long sought-after regional jet service between Dallas-Ft Worth (DFW) and Roswell, NM is close to reality and could begin as early as September 5, 2007. “We have received a letter of intent from American Eagle stating that they will be providing daily non-stop flights from Dallas-Ft Worth to Roswell” according to Jon Hitchcock, Chair of the Chaves County Development Foundation’s air service committee..
“This is a great day for all of Southeastern New Mexico, and a great day for business in our state,” said Mayor Sam LaGrone. “We have pledges of financial support from Roswell, Carlsbad, and Artesia, as well as Chaves and Eddy counties, so this is truly a regional effort that made this happen,” he stated.
There will be twice-a-day service except for Saturdays when there will only be one flight. The service will be provided on a 44-or 50-passenger regional jet (probably an Embraer ERJ-145.) A key benefit of this service is the ability to book a flight and check luggage in Roswell to any connecting flight on American Airlines without having to re-check luggage at DFW. The fares will be approximately $250 (plus taxes and fees) round trip to Dallas.

According to Hitchcock, inauguration of the service is contingent upon satisfying four conditions”:
1. Upgrade the Roswell International Airport (RIAC) under Federal Aviation Administration (FAA) guidelines from a Class II to a Class I airport. A Class I designation is required to serve scheduled large (over 31 passenger seats) air carrier aircraft;
2. Arrange for passenger security screening by the Transportation Security Administration (TSA);
3. Execution of an Air Service Agreement satisfactory to American Eagle; and,
4. Posting of a $1.6 million Letter of Credit.

Community leaders have already begun the lengthy process of working with Transportation Security Administration officials to arrange for screening of both individuals and luggage at the RIAC as well as upgrading the airport to a Class I airport with the FAA. While each of these processes must be completed independently of one another, Airport Manager Dennis Ybarra believes the airport upgrade with the FAA can be accomplished in 30 days and the TSA screening can be ready within 3 to 4 months. During this time, the City will be working with American Eagle to remodel counter and office space at the terminal, and provide for screening and passenger holding areas to prepare for commencement of service.

Over the next 30 – 45 days, the City will work to finalize an Air Service Agreement with American Eagle and post a $1.6 million Letter of Credit before the service will appear on reservation systems and be available for purchase.

The funding for this service will come from City, County, Regional, State, and Private funding sources. The City of Roswell, as the fiscal agent, will sign a minimum revenue guarantee contract for $6.5 million with a $2.1 million annual cap. The agreement will be for a period of 2 years. This service will be made possible through a cooperative effort from Roswell, Carlsbad, and Artesia, as well as Chaves and Eddy counties which will provide approximately $700,000 of the required funding. $50,000 in private sector funding will also be sought to support this project.

The legislature agreed to support the Governors commitment of $1.2 million towards this project. This amount, when added to the $200,000 from the NM Dept of Transportation, equates to total support from the State of New Mexico of $1.4 million.
The expected jet for the service is the state-of-the-art Embraer jet. They set the standard for speed, customer comfort and reliability in air travel. Embraer jets offer rich leather seating and adjustable headrests, with a one-by-two seating arrangement.

Contact Shawn Hughes 505-317-1127 for more information or interviews.