Sterling Airways has formally withdrawn its proposal for the Essential Air Service (EAS) program in St. Mary’s, Alaska, citing significant delays in the Department of Transportation’s award process.
The withdrawal was announced in a letter dated June 12, addressed to the Essential Air Service Division of the U.S. Department of Transportation.
Sterling Airways operates regional flights throughout Alaska with Saab 2000 aircraft.
In its communication, the carrier expressed that the “prolonged timeline has impacted our ability to effectively allocate resources and plan our operations in a responsible and strategic manner.”
The withdrawal comes amid growing concerns about the efficiency of the EAS award process, with DOT Secretary Sean Duffy saying in a recent hearing that the program may have to do “more with less.”
Wayne Heller, president and CEO of Sterling Airways, personally signed the withdrawal letter, stating: “We appreciate the opportunity to participate in the EAS program and remain committed to supporting regional air service in Alaska. We hope to continue working with the Department on future opportunities that align with our operational capabilities and timelines.”
Sterling has been a significant contributor to Alaska’s regional air transportation network, connecting remote communities to larger transportation hubs. Several of the state’s airports are subsidized under the EAS program.
St. Mary’s is also served by Grant Aviation, Ravn Alaska, and Ryan Air.
This withdrawal occurs as several other Alaska EAS contracts are pending renewal or reassignment. As part of its ‘Skinny Budget,’ the White House has proposed deep cuts to the EAS program across the country.
