Essential Air Service: Changes in Subsidy Levels, Air Carrier Costs, and Passenger Traffic.

摘要

Over two decades ago, the Congress deregulated the airline industry, phasing out the federal governments control over domestic fares and service and allowing market forces to determine the price, quantity, and quality of service. Concerned that air service to some small communities would suffer in a deregulated environment, the Congress established the Essential Air Service (EAS) program as part of the Airline Deregulation Act of 1978. The act guaranteed that communities served by air carriers before deregulation would continue to receive a certain level of scheduled air service. Special provisions were provided for guaranteeing service to Alaskan communities. In general, the act guaranteed continued service by authorizing the Civil Aeronautics Board, whose duties were later transferred to the Department of Transportation (DOT), to require carriers to continue providing service at these communities. At your request, we reviewed the program to determine whether all communities were receiving the subsidized service to which they were entitled and whether the increase in funding had been made available for rural air safety projects. As agreed with your office, we (1) determined how DOT applied criteria to establish which communities would receive subsidized air service, (2) described changes in the level of subsidies provided to EAS-eligible communities in fiscal year 1999 relative to that provided in 1995, (3) identified why the level of subsidies changed between 1995 and 1999, and (4) determined whether DOT applied any of the increase in program funding to rural air safety projects.