PROGRESS: United adds service at Sioux Gateway

In October, SkyWest, a regional carrier for United, started offering daily service between Sioux City and Denver. It marked Sioux Gateway's first direct flights to the Mile High City in six years.

And, on April 1, Skywest will start two daily flights to and from Chicago's O'Hare International Airport. 

The last time United, the dominant carrier at O'Hare, offered direct service from Sioux City to Chicago or Denver was in the 1990s.

The U.S. Department of Transportation on Monday awarded SkyWest a three-year contract to provide subsidized service to Chicago. SkyWest will operate 50-seat CRJ-200 regional jets for the flights.

SkyWest beat out the incumbent carrier American Airlines for the contract under the federal Essential Air Service program, which was created in 1978 to ensure that smaller communities maintained at least a minimal level of air service.

“We are pleased the DOT released the order today aligning with our prior recommendation to select SkyWest and United to serve Chicago," Sioux Gateway Board of Trustees President Dave Bernstein said. "We are anxious to get back to at least two flights daily to Chicago as it’s our biggest market.

"United presently is offering a larger number of connecting flights from Chicago so we look at this as very positive as SkyWest has been a great partner to date."

In August, American Airlines announced it would stop flying to several smaller cities, including Sioux City, due to the catastrophic impact of COVID-19 on the airline industry. The airline backtracked a few days later, delaying its plan to suspend its unsubsidized flights to Chicago and Dallas-Fort Worth.

By the end of August, American filed for subsidies for the Sioux City to Chicago flights, under the EAS program. That triggered a new round of federal bidding for the routes.  

Under the EAS agreement, SkyWest will be required to offer at least 12 flights per week, for a subsidy of $2,045 per flight, or nearly $1.47 million for the first year. In the second year, the subsidy drops to $880,418, and in the third and final year, it's reduced to $533,437, according to documents posted on regulations.gov.

In its bid, American had asked for a subsidy of nearly $2.53 million in the first year.

Skywest's Denver flights at Sioux Gateway are not subsidized by the federal government but the regional carrier signed an agreement with the city of Sioux City that includes some assistance. 

The airline's first direct flight from Denver  arrived at Sioux Gateway around 4:47 p.m. Oct. 14. 

Prior to the arrival of flight 5146, Sioux Gateway was down to once-a-day flights, as the COVID-19 pandemic wreaked havoc on the airline industry. 

Mayor Bob Scott didn't mince words on the importance of residents booking flights locally, rather than driving to other airports. 

"I would encourage our citizens -- this is one of those deals, we either use it or we lose it, guys," Scott said during a ceremony at the airport on Oct. 14. "And it's important that we fly out of Sioux City, it's important that we use this airline when we're going west or anywhere, that they fly. Because it's critical that we keep good air service in this community."