Payments for Essential Air Services

 

The program provides subsidies to air carriers to serve eligible communities as designated by Congress .

Active 20.901 Office of The Secretary, Department of Transportation B - Project Grants; C - Direct Payments For Specified Use Fiscal Year 2016 The Department issued a show cause order to terminate 30 EAS communities located within the 48 contiguous States receiving per passenger subsidy amounts exceeding $200., Unless the communities are located more than 210 miles from the nearest large or medium hub airport, the subsidy per passenger cannot exceed $200, absent a waiver from the Secretary. Several of these communities are did not meet the 10-enplanement per day threshold, as established by Congress. Three communities were terminated because their subsidy per passenger exceeded the $1,000 per passenger subsidy cap for any community, regardless of distance to a large or medium hub airport (Alaska and Hawaii are exempt from the $1,000 cap). The Department issued a show cause order to terminate 30 EAS communities located within the 48 contiguous States receiving per passenger subsidy amounts exceeding $200., Unless the communities are located more than 210 miles from the nearest large or medium hub airport, the subsidy per passenger cannot exceed $200, absent a waiver from the Secretary. Several of these communities did not meet the 10-enplanement per day threshold, as established by Congress. Three communities were terminated because their subsidy per passenger exceeded the $1,000 per passenger subsidy cap for any community, regardless of distance to a large or medium hub airport (Alaska and Hawaii are exempt from the $1,000 cap).
Fiscal Year 2017 In FY 2016, The Department issued a show cause order to terminate 30 EAS communities located within the 48 contiguous States receiving per passenger subsidy amounts exceeding $200., Unless the communities are located more than 210 miles from the nearest large or medium hub airport, the subsidy per passenger cannot exceed $200, absent a waiver from the Secretary. Several of these communities did not meet the 10-enplanement per day threshold, as established by Congress. Three communities were terminated because their subsidy per passenger exceeded the $1,000 per passenger subsidy cap for any community, regardless of distance to a large or medium hub airport (Alaska and Hawaii are exempt from the $1,000 cap). In FY 2017, the Department issued an order granting waivers from termination to Alamosa, CO; Altoona, PA; Clarksburg, WV; DuBois, PA; El Centro, CA; Hagerstown, MD; Jackson, TN, Jamestown, NY; Johnstown, PA; Kearney, NE; Lancaster, PA; Owensboro, KY; Parkersburg, WV; Marietta, OH; Pendleton, OR; Prescott, AZ; Salina, KS; Scottsbluff, NE; Show Low, AZ; Tupelo, MS; Victoria, TX; Visalia, CA; and Watertown, SD.
Fiscal Year 2018 Issued subsidy orders for 83 communities to ensure air service: Akutan, AK Alamosa, CO Alpena, MI Altoona, PA Angoon, AK Atka, AK Augusta/Waterville, ME Bar Harbor, ME Beckley, WV Bradford, PA Brainerd, MN Cape Girardeau, MO Chignik Lake, AK Chignik, AK Chisana, AK Chisholm/Hibbing, MN Clovis, NM Cortez, CO Crescent City, CA Devils Lake, ND Dickinson, ND DuBois, PA Egegik, AK El Centro, CA Elfin Cove, AK Escanaba, MI Excursion Inlet, AK Fort Leonard Wood, MO Fort Leonard Wood, MO Franklin/Oil City, PA Garden City, KS Hagerstown/Martinsburg WV, MD Hays, KS Healy Lake, AK International Falls, MN Iron Mountain/Kingsford, MI Jamestown, ND Johnstown, PA Kake, AK Kamuela, HI Koliganek, AK Lake Minchumina, AK Lancaster, PA Laramie, WY Laurel/Hattiesburg, MS Lebanon/White River Jct VT, NH Levelock, AK Manistee/Ludington, MI Manley Hot Springs, AK Manokotak, AK McCook, NE McGrath, AK McGrath, AK Meridian, MS Minto, AK Morgantown, WV New Stuyahok, AK Nikolski, AK Paducah, KY Page, AZ Parkersburg/Marietta OH, WV Pelican, AK Pendleton, OR Pierre, SD Plattsburgh, NY Port Heiden, AK Prescott, AZ Presque Isle/Houlton, ME Rhinelander, WI Rockland, ME Saranac Lake/Lake Placid, NY Sault Ste. Marie, MI Show Low, AZ Silver City/Hurley/Deming, NM St. George, AK St. George, AK St. George, AK Tenakee, AK Thief River Falls, MN Tupelo, MS Victoria, TX Waterloo, IA Watertown, SD
Fiscal Year 2021 Continued administration of essential air service subsidy for 172 communities. Awarded approximately $345 million dollars in multi-year contracts for 24 U.S. states. Assisted participating air carriers to continue serving eligible communities, during periods of low passenger traffic caused by the COVID-19 pandemic.
Fiscal Year 2023 Continued administration of essential air service subsidy for 172 communities that have been awarded approximately $477 million, to-date for fiscal year 2023, in multi-year contracts for 35 U.S. states. Ensuring eligible communities secure continued air service in an environment where air carriers are continue to face rising costs and labor challenges. Airline Deregulation Act of 1978, 49 U.S.C. 41731-41748 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. Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 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. Not applicable. From 2 to 4 months. In accordance with 14 CFR, Part 302.14. Application procedures are repeated. Established by statute and by precedent in individual docketed cases. 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. Not applicable. 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. We direct all subsidized air carriers to retain all books, records, and other source and summary documentation to support claims for payment, and to preserve and maintain such documentation in a manner that readily permits its audit and examination by representatives of the Department. Such documentation shall be retained for seven years from the service date of the Order establishing subsidy rates or until the Department indicates that the records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or disposed of must be retained. The air carrier may forfeit its compensation for any claim that is not supported under the terms of the Department's Orders. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. In accordance with Department evaluation and determination of demonstrated need. Method of awarding/releasing assistance: Quarterly. None/Not specified. Kevin Schlemmer
Office of Aviation Analysis, X-50, Department of Transportation, 1200 New Jersey Ave S.E.
Washington, DC 20590 US
kevin.schlemmer@dot.gov
Phone: (202) 366-3176 http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service 69-8304-0-7-402 (Direct Payments for Specified Use) FY 22$388,593,089.00; FY 23 est $406,785,157.00; FY 24 est $513,869,226.00; FY 21$346,826,428.00; FY 20$334,000,000.00; FY 19$310,709,492.00; FY 18$325,000,000.00; FY 17$275,000,000.00; FY 16$288,172,731.00; - For continental United States: range from $996,968 to $10,874,142 annually; an average of $4,042,262 annually per community per year. 49 U.S.C. 41731, et seq.; 14 CFR, Parts 204, 271, 323, 325, 398. Fiscal Year 2016 In FY2016, new contracts (or extended contracts) were issued at: Alaska (Alitak, Amook Bay, Central, Chignik, Chignik Lake, Chisana, Circle, Clark's Point, Egegik, Ekwok, Elfin Cove, False Pass, Healy Lake, Hydaburg, Igiugig, King Cove, Kitoi Bay, Koliganek, Levelock, Manokotak, Moser Bay, New Stuyahok, Olga Bay, Pilot Point, Port Bailey, Port Heiden, Port Williams, Seal Bay, South Naknek, Uganik, Ugashik, West Point, Zachar Bay); Alabama (Muscle Shoals); Arkansas (Jonesboro), Colorado (Pueblo); Hawaii (Kalaupapa); Iowa (Burlington,Waterloo); Illinois (Decatur, Marion/Herrin, Quincy); Kansas (Salina); Kentucky (Owensboro, Paducah); Maryland (Hagerstown); Michigan (Hancock/Houghton, Muskegon, Pellston, Sault Ste. Marie); Missouri (Cape Girardeau, Kirksville); Montana (Butte, Glasgow, Glendive, Havre, Wolf Point); Nebraska (Grand Island); New York (Watertown); Pennsylvania (Lancaster); South Dakota (Aberdeen); Utah (Cedar City, Moab, Vernal); Wisconsin (Eau Claire); Wyoming (Cody). In FY2016, new contracts (or extended contracts) were issued at: Alaska (Alitak, Amook Bay, Central, Chignik, Chignik Lake, Chisana, Circle, Clark's Point, Egegik, Ekwok, Elfin Cove, False Pass, Healy Lake, Hydaburg, Igiugig, King Cove, Kitoi Bay, Koliganek, Levelock, Manokotak, Moser Bay, New Stuyahok, Olga Bay, Pilot Point, Port Bailey, Port Heiden, Port Williams, Seal Bay, South Naknek, Uganik, Ugashik, West Point, Zachar Bay); Alabama (Muscle Shoals); Arkansas (Jonesboro), Colorado (Pueblo); Hawaii (Kalaupapa); Iowa (Burlington,Waterloo); Illinois (Decatur, Marion/Herrin, Quincy); Kansas (Salina); Kentucky (Owensboro, Paducah); Maryland (Hagerstown); Michigan (Hancock/Houghton, Muskegon, Pellston, Sault Ste. Marie); Missouri (Cape Girardeau, Kirksville); Montana (Butte, Glasgow, Glendive, Havre, Wolf Point); Nebraska (Grand Island); New York (Watertown); Pennsylvania (Lancaster); South Dakota (Aberdeen); Utah (Cedar City, Moab, Vernal); Wisconsin (Eau Claire); Wyoming (Cody).
Fiscal Year 2017 In FY2017, new contracts (or extended contracts) were issued at: Diomede, AK; Merced, CA; Carlsbad, NM; Tatitlek, AK; Crescent City, CA; Twin Hills, AK; Perryville, AK; Chadron, NE; Alliance, NE;; Port Alexander, AK; Page, AZ; Page, AZ; Clark's Point, AK; South Naknek, AK; False Pass, AK; Jackson, TN; Meridian, MS; Laurel/Hattiesburg, MS; Prescott, AZ; Massena, NY; Joplin, MO; Gustavus, AK; Cordova, AK; Petersburg, AK; Wrangell, AK; Yakutat, AK; May Creek, AK; McCarthy, AK; Macon, GA; West Yellowstone, MT; Mason City, IA; Fort Dodge, IA; Mason City, IA; Brainerd, MN; International Falls, MN; Iron Mountain/Kingsford, MI; Rhinelander, WI; El Dorado/Camden, AR; Hot Springs, AR; Harrison, AR; Victoria, TX; Sault Ste. Marie, MI; Dickinson, ND; Lake Minchumina, AK; Silver City/Hurley/Deming, NM; Akutan, AK; Staunton, VA; Visalia, CA; Beckley, WV; Clarksburg, WV, and Parkersburg, WV.
Fiscal Year 2023 As mentioned earlier, the program provides subsidies to air carriers to serve eligible communities. For example, on January 17, 2023, the Department selected Southern Airways Express, LLC to provide Essential Air Service El Dorado, Arkansas, using 9-seat Cessna Caravan (C-208) for the two-year term from March 1, 2023, through February 28, 2025. Southern provides 14 weekly nonstop round trips to Dallas/Fort Worth International Airport (DFW) and four weekly nonstop round trips to Memphis International Airport (MEM), for a total of 18 weekly nonstop round trips, at a first-year annual subsidy of $3,455,216 and a second-year annual subsidy of $3,541,596.