American wins Sioux City subsidy from DOT

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American Airlines beat United Airlines for an essential air service subsidy to serve Sioux City, Iowa, from the US Department of Transportation (DOT).

American’s subsidiary American Eagle will continue to offer 13-weekly flights from Chicago O’Hare International airport for an annual subsidy of $611,334, the regulator announced on 28 March. Service is operated on either 50-seat Bombardier CRJ200 or 44-seat Embraer ERJ-140 aircraft.

Chicago-based United had sought a $1.41 million annual subsidy to operate 13-weekly flights to Chicago O’Hare with the promise of additional service to Denver if the route was successful.

American’s lower subsidy request was the deciding factor, the DOT says.

Separately, American was reselected by the regulator to continue service to Waterloo, Iowa, with an annual subsidy of $945,546. Flights are operated on either CRJ200s or ERJ-140s.

The carrier was the only applicant for Waterloo.