More Flexible Eligibility Criteria Could Enhance the Small Communities Essential Air Service Subsidy Program
RCED-83-97
Published: May 18, 1983. Publicly Released: May 18, 1983.
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Highlights
Pursuant to a congressional request, GAO provided its views on: (1) whether the essential air service subsidy program's eligibility criteria contained in the Airline Deregulation Act of 1978 should be changed; and (2) alternatives available to administer the program after the Civil Aeronautics Board (CAB) ceases to exist in 1985.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should consider permitting CAB to allow communities with greater demonstrated air service needs to replace lower priority essential air service communities if states propose such replacement. |
Closed – Not Implemented
|
Testimony at oversight hearings indicated little support for adjusting the terms of the service guarantee as embodied in the Airline Deregulation Act of 1978. Congress is likely to consider the recommendation in 1986 when it considers whether to extend the service guarantee beyond the scheduled 1988 termination date. |
| Congress should consider changing the program's eligibility criteria to allow CAB greater flexibility to increase or decrease subsidies to selected communities. It should be recognized that discontinuing subsidies to these communities during the 10-year transition period would represent a change in the guarantee provided by the 1978 act. CAB should be given authority to: (1) temporarily increase some subsidies to improve flight scheduling, services, and promotion where this can help a community's air service market to where it will no longer require subsidies; and (2) discontinue subsidies to communities that are unlikely to be able to support air services after 1988 because they are close enough to larger airports offering better air service or are too small and isolated to generate enough traffic for self-sufficient service. |
Closed – Not Implemented
|
Testimony at oversight hearings indicated little support for adjusting the terms of the service guarantee as embodied in the Airline Deregulation Act of 1978. Congress is likely to consider the recommendations on 1986 when it considers whether to extend the service guarantee beyond the scheduled 1988 termination date. |
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Topics
Air transportationAirline regulationCommunity development programsEligibility criteriaProgram evaluationSubsidiesAirlinesAviationAirportsAircraft