Options to enhance the long-term viability of the Essential Air Service program
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Options to enhance the long-term viability of the Essential Air Service program

Filetype[PDF-610.35 KB]


  • English
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    Details:

    • Creators:
      Hecker, JayEtta Z.
    • Corporate Creators:
      United States. General Accounting Office
    • Subject/TRT Terms:
    • Publication/ Report Number:
      GAO-02-997R
    • Resource Type:
      Policy Statement
    • Corporate Publisher:
      United States. General Accounting Office
    • Abstract:
      Over two decades ago, the Congress deregulated the airline industry, phasing out the federal

      government’s control over domestic fares and routes served 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. If an air carrier

      could not continue that service without incurring a loss, DOT could then use EAS funds to award

      that carrier, or another carrier willing to provide service, a subsidy. These subsidies are intended

      to cover the difference between a carrier’s projected revenues and expenses and provide a

      minimum amount of profit.

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