Essential Air Service:
Frequently Asked Questions
Rachel Tang
Analyst in Transportation Policy
March 3, 2011
Congressional Research Service
7-5700
www.crs.gov
R41666
CRS Report for Congress
P
repared for Members and Committees of Congress
Essential Air Service: Frequently Asked Questions
Contents
Introduction ................................................................................................................................ 1
What is Essential Air Service?..................................................................................................... 1
How Is EAS Funded?.................................................................................................................. 2
What Are the Eligibility Requirements? ...................................................................................... 2
How Many Communities Are Receiving EAS Subsidies? ............................................................ 2
How Does DOT Select EAS Carriers?......................................................................................... 2
What Are the Current Legislative Issues? .................................................................................... 3
Appendixes
Appendix A. List of Subsidized EAS outside of Alaska ............................................................... 4
Appendix B. List of Subsidized EAS in Alaska ........................................................................... 8
Contacts
Author Contact Information ........................................................................................................ 9
Congressional Research Service
Essential Air Service: Frequently Asked Questions
Introduction
The 112th Congress continues to work on reauthorizing the Federal Aviation Administration
(FAA). Essential Air Service (EAS) is one of the major issues being debated in the process. A
pending House reauthorization bill (H.R. 658) and the reauthorization bill recently approved by
the Senate (S. 223) include different provisions affecting the EAS program, and the issue is also
addressed in H.R. 408, the Spending Reduction Act of 2011.
This report provides an overview of the EAS program and the legislative issues.1
What is Essential Air Service?
The Airline Deregulation Act of 1978 (P.L. 95-504) gave airlines almost total freedom to
determine which domestic markets to serve and what airfares to charge. This raised the concern
that communities with relatively low passenger levels would lose service as carriers shifted their
operations to serve larger and often more-profitable markets.
To address this concern, Congress added section 419 to the Federal Aviation Act,2 which
established the Essential Air Service (EAS) program to ensure that smaller communities would
retain a link to the national air transportation system. The purpose of the EAS program is to
provide a continuation of service to those small communities that were served by certified air
carriers before deregulation, with subsidies if necessary.
The EAS program is now administered by the Department of Transportation (DOT), which
determines the minimum level of service required at each eligible community by specifying
• a hub through which the community is linked to the national network,
• a minimum number of round trips and available seats that must be provided to
that hub,
• certain characteristics of the aircraft to be used, and
• the maximum permissible number of intermediate stops to the hub.
Where necessary, DOT provides federal subsidies to a carrier to ensure that the specified level of
service is provided.
1 The major source used for this report is information and data of the Essential Air Service Program provided by the
U.S. Department of Transportation (DOT), Office of Aviation Analysis, http://ostpxweb.dot.gov/aviation/X-
50%20Role_files/essentialairservice.htm.
2 Effective June 1994, the Federal Aviation Act was recodified as subtitles II, III, and V-X of 49 U.S.C.,
“Transportation.” The former section 419 of the Federal Aviation Act is now 49 U.S.C 41731-41742.
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Essential Air Service: Frequently Asked Questions
How Is EAS Funded?
The EAS program is funded through annual transfers of FAA overflight fees, supplemented by
annual appropriations of varying size.
In FY2010, the total EAS authorization was $200 million. This amount includes $50 million in
annual mandatory funding from FAA overflight fees, along with a discretionary appropriation of
$150 million.
What Are the Eligibility Requirements?
According to the Airline Deregulation Act of 1978 (P.L. 95-504), communities receiving
scheduled air service from a certified carrier on October 24, 1978, are eligible for EAS benefits.
At that time, there were 746 eligible communities, including approximately 200 in Alaska.
Over the years, Congress and DOT have worked to streamline the program and make it more
efficient, mostly by eliminating subsidy support from communities within a reasonable driving
distance from a major hub airport. Communities are excluded from eligibility for subsidies if
• they are located fewer than 70 miles from the nearest large or medium hub
airport; or
• they require a rate of subsidy per passenger in excess of $200, unless the
community is more than 210 miles from the nearest hub airport.
These limitations apply only to the contiguous 48 states. However, these eligibility requirements
may change depending on the final text of which legislation, if any, is adopted by Congress.
How Many Communities Are Receiving
EAS Subsidies?
DOT currently subsidizes air service to serve approximately 150 rural communities across the
country that otherwise would not receive any scheduled air service. As of May 1, 2010, DOT was
subsidizing service at 109 communities in the contiguous 48 states, Hawaii, and Puerto Rico, and
44 communities in Alaska. Appendix A and Appendix B provide lists of the subsidized EAS
communities and their annual subsidy rates (as of May 1, 2010). In general, DOT subsidizes two
to four round trips with small aircraft a day from an EAS community to a major hub airport.
How Does DOT Select EAS Carriers?
DOT issues a request for proposals (RPF) to all scheduled carriers and institutes a carrier
selection proceeding using a bid system. However, this is not a low-bid system because DOT is
required by the governing statutes to meet the following four criteria when selecting air carriers to
serve EAS communities: (1) service reliability, (2) contractual and marketing arrangements with a
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Essential Air Service: Frequently Asked Questions
larger carrier at the hub, (3) interline arrangements with a larger carrier at the hub, and (4)
community views.
These RFPs from DOT advise air carriers that their proposals for subsidy should be submitted on
a sealed bid, “best and final” basis, and set forth the level of service (frequency, aircraft size, and
hubs) that would be appropriate for the community given its location and traffic history. Once the
carrier proposals are received, DOT formally solicits the views of the communities as to which
carrier and option they prefer.
After receiving the communities’ input, DOT issues a decision designating the selected air carrier
and specifying the specific service pattern (routing, frequency, and type of aircraft), annual
subsidy rate, and effective period of the rate. DOT generally establishes a two-year EAS service
contract, which allows for the competitive bidding process to curb subsidy costs and gives
communities and DOT flexibility to switch carriers if appropriate.
What Are the Current Legislative Issues?
The 112th Congress continues to work on legislation reauthorizing the FAA. A pending House bill
and the recently approved Senate bill include different provisions with regard to EAS.
An FAA reauthorization bill (H.R. 658) would phase out the program over three years, ending
EAS in the contiguous states on September 30, 2013. Only Alaska and Hawaii would be eligible
for EAS subsidies afterwards. The current cost of EAS in Alaska is less than $13 million
annually. As of May 1, 2010, EAS flights in Hawaii were subsidy-free. H.R. 658 would reduce
the mandatory annual appropriation to the amount necessary to provide EAS in those two states.
H.R. 408 would prohibit the spending of any federal money for EAS.
The bill passed by the Senate on February 17, 2011 (S. 223), would extend the program but add
more restrictions. Specifically, it would limit EAS subsidies to airports that are 90 miles or more
from the nearest medium or large hub, an increase from the current limit of 70 miles. S. 223
would also limit EAS subsidies to locations that have 10 or more enplanements per day, except in
Alaska. However, the FAA administrator would be able to waive both the distance requirement
and the minimum enplanements requirement. An amendment to the bill offered by Senator
McCain (S.Amdt. 4) that proposed to repeal the EAS program altogether was tabled and not
included in the Senate-passed version of S. 223.
The FAA reauthorization language would eventually need to be incorporated into a House bill,
because the reauthorization includes an extension of excise taxes and is therefore a revenue
measure. Under Article I, Section 7 of the U.S. Constitution, all bills for raising revenue must
originate in the House of Representatives.
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Essential Air Service: Frequently Asked Questions
Appendix A. List of Subsidized EAS outside
of Alaska
Number of
Annual EAS Subsidy
State EAS Communities
EAS Community
Hub(s)
as of May 1, 2010
AL 1
Muscle
Shoals
MEM $1,782,928
AR 4
El
Dorado/Camden
MEM $2,096,517
Harrison
MEM/MCI
$1,695,929
Hot
Springs
MEM
$1,419,102
Jonesboro
MEM
$836,241
AZ 4 Kingman
LAS $1,275,771
Page
PHX
$1,995,273
Prescott
ONT/DEN
$1,622,719
Show
Low
PHX
$1,407,255
CA 4 Crescent
City
SFO/SMF
$1,136,896
El
Centro
LAX $662,551
Merced
LAS
$1,541,365
Visalia
ONT
$1,494,319
CO 3 Alamosa
DEN $1,853,475
Cortez
DEN
$1,297,562
Pueblo
DEN
$1,299,821
GA 2 Athens
ATL $1,051,386
Macon
ATL
$1,386,306
IA 3
Burlington
STL/ORD
$2,171,241
Fort
Dodge
MSP
$1,112,607
Mason
City
MSP
$1,112,607
IL 3
Decatur
STL/ORD
$3,082,403
Marion/Herrin
STL
$2,053,783
Quincy
STL
$1,946,270
KS 6
Dodge
City
DEN/MCI
$1,842,749
Garden
City
DEN/MCI
$1,884,303
Great
Bend
MCI
$1,257,617
Hays
DEN
$1,954,327
Liberal/Guymon,
OK
DEN
$1,958,570
Salina
MCI
$1,489,435
KY 2
Owensboro
BNA $1,068,773
Paducah
ORD
$569,923
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Essential Air Service: Frequently Asked Questions
Number of
Annual EAS Subsidy
State EAS Communities
EAS Community
Hub(s)
as of May 1, 2010
MD 1 Hagerstown
BWI $1,203,167
ME 4
Augusta/Waterville BOS
$2,086,251
Bar
Harbor
BOS
$2,086,251
Presque
Isle/Houlton
BOS
$2,643,588
Rockland
BOS
$1,522,770
MI 6
Escanaba
DTW/MSP
$1,435,118
Hancock/Houghton
ORD
$1,404,714
Iron
Mountain/Kingsford
DTW/MSP
$1,435,118
Ironwood/Ashland,
WI
MKE
$1,492,865
Manistee
MKE
$1,799,395
Muskegon
ORD
$660,720
MN 2 Chisholm/Hibbing
MSP $2,938,878
Thief
River
Fal s
MSP
$1,230,322
MO 5 Cape
Girardeau
STL $1,573,818
Columbia/Jefferson
City
MEM
$2,186,590
Fort Leonard Wood
STL
$1,292,906
Joplin
MCI $997,680
Kirksville
STL $806,169
MS 3
Greenville MEM
$1,355,693
Laurel/Hattiesburg
MEM
$1,191,435
Meridian
ATL $686,489
MT 8 Glasgow
BIL $928,433
Glendive
BIL
$1,056,152
Havre
BIL
$1,036,616
Lewistown
DEN
$1,036,616
Miles
City
DEN
$1,056,152
Sidney
DEN
$2,159,591
West
Yel owstone
SLC $427,757
Wolf
Point
BIL $928,433
ND 3 Devils
Lake
MSP $1,459,493
Dickinson
DEN
$2,274,177
Jamestown
MSP
$1,963,220
NE 7
Alliance
DEN $977,609
Chadron
DEN $977,609
Grand
Island
DEN
$2,271,640
Kearney
DEN
$1,978,386
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Essential Air Service: Frequently Asked Questions
Number of
Annual EAS Subsidy
State EAS Communities
EAS Community
Hub(s)
as of May 1, 2010
McCook
DEN
$1,583,277
North
Platte
DEN
$1,860,229
Scottsbluff
DEN
$1,535,085
NH 1 Lebanon/White
River
Junction,VT
BOS/HPN
$2,245,669
NM 4 Alamogordo/Holloman
AFB
ABQ $1,169,337
Carlsbad
ABQ
$1,046,284
Clovis
ABQ
$1,517,277
Silver
City/Hurley/Deming
ABQ
$1,442,174
NV 1 Ely
DEN $1,864,717
NY 6 Jamestown
CLE $1,350,803
Massena
ALB
$1,297,613
Ogdensburg
ALB
$1,353,916
Plattsburgh
BOS
$1,379,257
Saranac
Lake/Lake
Placid
BOS
$1,366,538
Watertown
ALB
$1,228,334
OR 1 Pendleton
PDX $1,608,394
PA 6
Altoona
IAD $1,394,423
Bradford
CLE
$1,350,803
DuBois
CLE
$2,020,095
Johnstown
IAD
$1,394,423
Lancaster
BWI $1,372,474
Oil
City/Franklin
CLE
$1,226,773
PR 2
Mayaguez
SJU $980,980
Ponce
SJU $740,416
SD 2
Huron
DEN $1,781,159
Watertown
MSP
$1,338,321
TN 1 Jackson
BNA $1,225,628
TX 1 Victoria
IAH $1,593,922
UT 3 Cedar
City
SLC $1,477,125
Moab
DEN
$1,798,370
Vernal
DEN
$1,421,478
VA 1
Staunton
IAD $1,911,466
VT 1
Rutland
BOS $797,141
WI 1
Eau
Claire
ORD $1,732,372
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Essential Air Service: Frequently Asked Questions
Number of
Annual EAS Subsidy
State EAS Communities
EAS Community
Hub(s)
as of May 1, 2010
WV 5 Beckley
IAD $2,092,844
Clarksburg
IAD
$1,058,325
Greenbrier/White Sulphur Spr./Lewisburg
CLE
$2,330,725
Morgantown
IAD
$1,058,325
Parkersburg/Marietta
IAD
$2,190,281
WY 2 Laramie
DEN $1,215,603
Worland
DEN
$1,735,814
Total 109
$163,010,029
Source: U.S. Department of Transportation (DOT), Office of Aviation Analysis, U.S. Subsidized EAS Report,
May 1, 2010.
Note: Information provided in Appendix A is subject to change.
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Essential Air Service: Frequently Asked Questions
Appendix B. List of Subsidized EAS in Alaska
Alaskan EAS Community
Hub
EAS Subsidy Rate as of May 1, 2010
Adak ANC
$1,483,122
Akutan DUT
$654,964
Alitak ADQ
$15,219
Amook Bay
ADQ
$12,175
Angoon JNU
$101,359
Atka DUT
$513,803
Cape Yakataga
YAK
$39,000
Central FAI
$203,360
Chatham JNU
$8,640
Chisana TOK
$65,546
Circle FAI
$203,360
Cordova
ANC/JNU
$2,726,212
Elfin Cove
JNU
$92,886
Excursion Inlet
JNU
$34,659
Funter Bay
JNU
$8,640
Gulkana ANC
$251,300
Gustavus
JNU
$340,777
Healy Lake
FAI
$77,683
Hydaburg KTN
$86,755
Icy Bay
YAK
$39,000
Kake JNU
$314,302
Karluk ADQ
$29,481
Kitoi Bay
ADQ
$12,175
Lake Minchumina
FAI
$42,560
Manley FAI
$42,085
May Creek
GKN
$86,676
McCarthy GKN
$86,676
Minto FAI
$42,085
Moser Bay
ADQ
$15,219
Nikolski DUT
$469,786
Olga Bay
ADQ
$15,219
Pelican JNU
$92,886
Petersburg JNU/KTN
$673,598
Port Alexander
SIT
$60,083
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Essential Air Service: Frequently Asked Questions
Alaskan EAS Community
Hub
EAS Subsidy Rate as of May 1, 2010
Port Bailey
ADQ
$12,175
Port Williams
ADQ
$12,175
Rampart FAI
$86,701
Seal Bay
ADQ
$12,175
Tenakee JNU
$63,748
Uganik ADQ
$12,175
West Point
ADQ
$12,175
Wrangel JNU/KTN
$673,598
Yakutat ANC/JNU
$2,726,212
Zachar Bay
ADQ
$12,175
Total
$12,564,599
Source: U.S. Department of Transportation (DOT), Office of Aviation Analysis, Alaska Subsidized EAS Report,
May 1, 2010.
Note: Information provided in Appendix B is subject to change.
Author Contact Information
Rachel Tang
Analyst in Transportation Policy
rtang@crs.loc.gov, 7-7875
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