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. Place Cursor Here for Definition
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.
Pre-application 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: If selected air carrier is willing to
renew, renewal may be by show-cause procedures under Part 302 of the
Department's regulations; otherwise, application procedures are repeated.
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 01 $52,116,000;
FY 02 est $113,000,000; and FY 03 est $113,000,000.
Range and Average of Financial Assistance: For
continental United States: $106,006 to $1,325,289 annually per point; $701,365
annually per point average.
Essential air service has been maintained with subsidy support at
approximately 100 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) 366-1030. Use the same number for FTS.
Web Site Address: http://www.ost.dot.gov.
EXAMPLES OF FUNDED PROJECTS:
(1) Great Lakes Aviation-Essential Air Service to Alliance, Chadron, Kearney,
McCook, and Norfolk, 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.
