Program Descriptions
Program Number
20.901
Title
Payments For Essential Air Services
Federal Agency
OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION
Authorization
49 U.S.C. 41731 - 41742.
Status
Active
Objectives
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.
Eligibility Requirements
Applicant Eligibility
Air carrier must be found fit and be selected by the Department to perform the subsidized service.
Beneficiary Eligibility
Air carriers and eligible local communities.
Credentials/Documentation
Financial statements and detailed operating statistics.
Application and Award Process
Preapplication Coordination
None. This program is excluded from coverage under E.O. 12372.
Application Procedure
In accordance with 14 CFR, Part 271, and specific Department requests in docketed cases.
Award Procedure
Evaluation of applications according to factors established in 49 U.S.C. 41731, et seq., and any Department-established factors.
Deadlines
None.
Range of Approval/Disapproval Time
From 2 to 4 months.
Appeals
In accordance with 14 CFR, Part 302.14.
Renewals
Assistance Considerations
Formula and Matching Requirements
None.
Length and Time Phasing of Assistance
In accordance with Department evaluation and determination of demonstrated need.
Post Assistance Requirements
Reports
None.
Audits
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.
Records
Air carriers must retain all books, records and other source and summary documentation for 7 years to support subsidy claims.
Financial Information
Account Identification
69-8304-0-7-402.
Obligations
(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.
Program Accomplishments
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.
Information Contacts
Regional or Local Office
None.
Headquarters 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
http://ostpxweb.dot.gov/aviation/index.html
Related Programs
None.
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.
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