The Federal Essential Air Service Program by the numbers
The Federal Aviation Administration (FAA) is currently operating under a record 22nd authorization funding bill, which is set to expire March 31. The agency even had a partial shutdown back in July, forcing it to furlough 4,000 workers after Congress failed to pass another funding extension.
This CNN report on the FAA budget was broadcast in March 2011.
One of the big hold-ups in getting a permanent reauthorization bill passed is the Department of Transportation’s (PDF) Essential Air Service (EAS) program, budgeted at $200 million in fiscal year 2011.
EAS was created after the airline deregulation bill became law back in 1978 as a way to ensure that small communities would not lose their connection to the global aviation transportation system. It was felt that in a post-deregulation world, these communities would lose service as the airlines focused on more profitable routes, so Congress would offer financial subsidies to airlines to fly these routes. Among online resources are: FY 2010 financial numbers for U.S. and Alaska subsidized flying.
I have a unique view of EAS, having covered it as a journalist who covered the regional airline industry for almost 10 years and as an employee of an airline that pursued funding from the program. I feel — and I’m not alone – that EAS either needs a major revamp or should be replaced by a more effective program. But whenever a call goes out to redo the program — or even cut it altogether — members of Congress literally come out of the woodwork to keep the program in place, even though it makes no sense financially.
A July 2009 report from the Government Accountability Office says “The EAS program has changed relatively little in 30 years, but current conditions raise concerns about whether the program can continue to operate as it has.”
SMALL COMMUNITIES
Travelers just aren’t using the service. Even with the subsidies, the flights can be too expensive. Most people in EAS communities prefer to find other transportation to a larger airport with better service options. I saw this up close and personal when I worked for the airline. We were bidding on the EAS contract for Alamogordo, N.M. Instead of using the EAS flight, we did what most other travelers did — flew into El Paso, rented a car and drove the 80 miles to the city. Alamogordo currently receives $1.169 million a year in federal flight subsidies.
Airlines don’t want to operate the flights anymore, despite the subsidies, because rising fuel prices and other costs makes the flying unprofitable. In 1987, 34 carriers flew EAS flights. By 2009, only 10 were still flying them and the numbers continue to drop, according to GAO.
Prospects for small community air service would be better if the emphasis was on providing flights that travelers would actually use. DOT tried to do this by creating the Small Community Air Service Development Program, which provides $15 million a year in grants to help develop more effective service.
