Payments For Essential Air Services
OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION
49 U.S.C. 41731 - 41742.
To assure that air transportation is provided to eligible communities by subsidizing air carriers when necessary to provide service.
Types of Assistance
Direct Payments for Specified Use.
Uses and Use Restrictions
When necessary subsidy payments are made to air carriers providing air services at certain points. Subsidy is paid to cover the carrier's prospective operating loss, plus a profit element.
Air carrier must be found fit and be selected by the Department to perform the subsidized service.
Air carriers and eligible local communities.
Financial statements and detailed operating statistics.
Application and Award Process
None. This program is excluded from coverage under E.O. 12372.
In accordance with 14 CFR, Part 271, and specific Department requests in docketed cases.
Evaluation of applications according to factors established in 49 U.S.C. 41731, et seq., and any Department-established factors.
Range of Approval/Disapproval Time
From 2 to 4 months.
In accordance with 14 CFR, Part 302.14.
Formula and Matching Requirements
Length and Time Phasing of Assistance
In accordance with Department evaluation and determination of demonstrated need.
Post Assistance Requirements
Air carriers are subject to audits of financial and operational fitness, of major contested claims of compensation for continued service, and of monthly billings to the Department for subsidy.
Air carriers must retain all books, records and other source and summary documentation for 7 years to support subsidy claims.
(Direct payments) FY 07 $50,000,000; FY 08 est not available; and FY 09 est not reported.
Range and Average of Financial Assistance
For continental United States: $247,122 to $1,733,997 annually per point; $636,161 annually per point average.
Essential air service has been maintained with subsidy support at approximately 154 communities affected by airline deregulation.
Regulations, Guidelines and Literature
49 U.S.C. 41731, et seq.; 14 CFR, Parts 204, 271, 323, 325, 398.
Regional or Local Office
Director, Office of Aviation Analysis, X-50, Department of Transportation, 400 Seventh Street, SW., Washington, DC 20590. Telephone: (202) 366-5903 Use the same number for FTS.
Web Site Address
Examples of Funded Projects
(1) Great Lakes Aviation-Essential Air Service to Alliance, Chadron, Kearney, and McCook, Nebraska. (2) Big Sky Airlines-Essential Air Service to Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney, and Wolf Point, Montana. (3) Alaska Airlines-Essential Air Service to Cordova, Gustavus, Petersburg, Wrangell, and Yakutat, Alaska.
Criteria for Selecting Proposals
Established by statute and by precedent in individual docketed cases.