A brewing topic in aviation, government and public circles has been the government subsidized program known as Essential Air Service.
Established in 1978 under the Airline Deregulation Act, Essential Air Service was to ensure that small communities would continue to receive air service on the basis that they retained a link to the national air transportation system. These towns were eligible if they were already served by airlines prior to deregulation and had to be at least 70 miles from a major airport. This program was designed to last for only ten years. I guess the ten year time frame was to allow for people to adjust to the possibility of life without air service and for new airlines to pick up the slack under deregulation.
But, in 1987, Congress passed the Airport and Airway Safety and Capacity Expansion Act to ensure that these communities remained strong. In November, 2007 there were 102 towns in the lower 48 states that were subsidized at the annual tune of $110 million dollars. A drop in the bucket for the government? Yes. But, it proves that the government has been unable to grasp the continual changes in the free market. Some officials love this program because it serves their community.
With a national average of only three passengers per flight on the 19 seat Beech-1900 turboprop, escalating maintenance and fuel costs along with more stringent safety standards, I have to wonder whether these government officials and lobbyists will press for higher subsidies. The Bush administration wants to cut the program to $50 million while Congress wants to increase fiscal funding to $117 million.
I agree with some experts about the continued subsidies for Alaska and a few areas in the lower 48 states But, the rest should be eliminated.
One passenger deplanes from a flight between Denver and Pueblo. Nice for the passenger, bad for the tax payer.
What's your take on this matter?
