Merced City airport staff report terminal closeout milestones, FAA-funded radio upgrades and short DOT extension for Advanced Air

Airport staff told the Merced City Regional Airport Authority on Wednesday that the airport has moved into closeout on its new terminal replacement project and that several federally funded upgrades are scheduled through 2026.

The report, presented to Chairman Scoble and authority members by airport staff, said the FAA provided a terminal closeout letter on Nov. 7 and that contractors and consultants remain on a punch list to finish minor items such as tile and valley-gutter repairs. "We have been focusing on closing out the CARES Act grant for the new terminal replacement project," the presenter said.

Why it matters: finishing the closeout clears grant obligations and documentation with the FAA, allows final project reconciliation, and paves the way for related systems work the airport says is already funded.

Staff also described an FAA-funded radio and navigation communications project in its third phase, which the presentation said will install new radios and a remote transmitter/receiver and transition power to the MID feed. The project, staff said, is funded entirely by the FAA and is expected to complete in late spring 2026.

The authority discussed whether the radio work involved the air traffic control tower; staff clarified the project refers to radios and a transmitter site, not the air traffic control tower itself. Staff also explained that normal air-traffic control service at Merced is provided under a contract (referred to in discussion as "Castle") and Northern California ATC operations out of Maretta when needed.

The presenter reported that the U.S. Department of Transportation has extended the Essential Air Service (EAS) obligation for Advanced Air at Merced, saying the DOT’s order extends service from Jan. 1, 2026, through June 30, 2026, or until an air-carrier selection case concludes under DOT Order 2565 (May 10, 2025). "By DOT order, Advanced Air’s EAS obligation at Merced is extended through June 30, 2026," the presenter said.

Airport staff and members also discussed project timing and the risk that federal funding disruptions could cause additional delays. Staff noted a prior federal shutdown had pushed some schedules back and said a pending federal budget deadline (Jan. 30) could again affect timelines for federally dependent work.

Passenger and cargo figures were part of the report: staff said total enplanements and deplanements for the year were about 9,479 and cargo handled rose to roughly 399,600 pounds for the year, with a November peak of about 51,000 pounds.

Advanced Airlines marketing: staff summarized a quarterly marketing presentation for Advanced Airlines (Sean Fabian joined by phone and the presenter ran the slides). The presentation said Advanced has an internet-booking agreement with Alaska Airlines that allows direct booking on Alaska’s website, reported email open rates around 12.4% (one promotion recorded a 49% open rate) and click rates near 3–4%, and noted promotional fares as low as $52–$81 one-way during weekdays. The presenter said social and display ads had roughly one million impressions and cited a modest ad spend example of $2,500.

Ground access and parking: staff said airport parking is free but "park at your own risk"; long-term parking requires filling a card at the airport office. There is no rental-car desk at the terminal yet, and staff said improving connectivity (including YARTS scheduling links) is a continuing area for development.

The authority adjourned after a motion to do so, which members approved unanimously.

What’s next: staff said they will continue punch-list work on the terminal, proceed with FAA radio upgrades, and monitor the DOT carrier-selection process that will determine Advanced Air’s longer-term EAS status.