Changes proposed by the administration for Essential Air Service (EAS) eligibility would eliminate 60 of the current 150 EAS communities and require surviving communities to contribute to funding their service, according to Regional Aviation Partners in commenting on the recent hearings on rural air service. (RAN, October 2, p.1) RAP alerted members that proposed changes include redefining eligibility, which would not only consider proximity to a large/medium hub but also to a non-hub with jet service and small hub airport.

"Communities who were safe under the old criteria could find themselves facing elimination because of their distance from a non-hub with jet service or a small hub," said the organization in its report to members. RAP, instead, wants the distance of the most commonly used route to become standard in calculating mileage from an EAS community to the nearest large/medium hub airport.

DOT's Office of Inspector General reported that capacity reductions for small communities have been most severe in the Midwest and South and have affected the smallest (non- hub) airports the most. However, since 2000 the Midwest and Northeast were the most affected by cutbacks. Nationwide, scheduled seats on domestic flights in July 2006 were down nine percent from July 2000. In the Midwest, seats were 22 percent lower, primarily the result of network carriers restructuring route networks. In the Northeast, seats dropped by 13 percent. In the South, capacity dropped because of cutbacks by Delta (DALQ) at Atlanta and USAirways (LCC) at Charlotte. Capacity reductions have primarily affected the smallest (non-hub) communities, where scheduled flights and seats for July 2005 are 26 percent and 18 percent, respectively, below July 2000 levels. About 40 percent of the reductions occurred in the last year.

In its legislative update, RAP reported Senate Aviation Subcommittee Chair Conrad Burns (R-MT) and Ranking Member Jay Rockefeller (D-WV) were joined by Senators Byron Dorgan (D-ND), Trent Lott (R-MS), and Ben Nelson (D-NE) in supporting small community air service programs and criticizing the Administration's position on rural air service. The reoccurring theme of the hearing was the federal government is short changing small communities and must commit itself to improving those federal programs which benefit air service to rural communities, including EAS and the Small Community Air Service Development Program. Listed as priorities were increased funding of these programs and reforms aimed at increasing boardings at small airports.

EAS regionals are concerned about several trends besides DOT compensation, including fuel costs and aging aircraft. Speaking before a Pennsylvania aviation conference, RAP's Director-Legislative Affairs Todd Jorns indicated that more communities will enter the program, as legacy and regionals continue to abandon small communities for more profitable routes. He pointed to Columbia, Mo, which entered the program after the carrier providing unsubsidized service transitioned away from its turbo-prop fleet in favor of jets. Air Midwest was ultimately awarded the subsidy of $598,751, half of the $1.3 million hold-in rate provided to the previous carrier.

Jorns also noted that the Beech 1900, which provides most of the EAS service, is aging and will incur increased maintenance costs, which, in turn, will require increased subsidy rates. Fuel increases exert the same budgetary effect.

On the Ground: Impact Of Lost Service

Toledo Airport used to be a bustling airport served by all the major airlines. Today, it is totally empty, according to passenger Boris Sherman, who previously flew out of the airport regularly. The airport has become a poster child of how air service has deteriorated during the last six years.

Sherman was quoted in a recent Associated Press piece, which noted that airline cutbacks have meant higher fares, fewer flight options or longer drives to hubs and a "reversal of fortunes" for regional airports that, until this year were seeing a traffic surge.

"The demand is still there," said Phillip Johnson, deputy director of Gerald R. Ford International Airport in Grand Rapids, MI. "It's just that our folks are having to go elsewhere to fly." Grand Rapids lost six percent of passengers, while airports in Mississippi lost 15 to 20 percent and Toledo 16 percent. Takeoffs are down, by one-third over the last two years. Author John Seewar indicated that many airports, such as Tupelo's, have endured numerous schedule changes in just the last year, noting such actions destroy passenger confidence.

Seewar added that while U.S. airlines are investing in lucrative international routes, they are shrinking domestic routes. In addition to the loss of landing and other air-side fees, sales and airport concessions and parking are squeezing airport budgets. Manchester, NH, landing fees have dropped by $204,000 dollars alone in its last budget year.

Perhaps the biggest headache is the impact of weather delays, which increase travel expenses as passengers are forced to stay overnight if they miss the few flights to their home airport.

The situation is not all bad, according to Seewar, who noted Fort Wayne passengers numbers are up, as they take advantage of close-in parking, and shorter ticket and security lines. But this does not counterbalance the fare differential at local airports. Fares from Chicago average $126 compared to $175 out of Fort Wayne. Time was when code-sharing relationships meant the difference between the local airport and the connecting hub was only about $10.

Manchester is thinking of adding free bus service to Boston - about 50 miles south - to bring in travelers. Low cost carriers have meant record growth for the airport, but now capacity is down 16 percent and passengers down eight percent.