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Monday, April 4, 2005

First EAS Battle Yields A Win For Regional Industry

Regional aviation forces scored an early victory on Capitol Hill by convincing key congressional committees to fully fund Essential Air Service (EAS) and the Small Community Air Service Development programs.

As Congress moves toward the adoption of the federal budget for fiscal year 2006, the transportation committees in both the House and Senate have urged their respective budget committees to include full funding for these two programs even though President Bush wanted substantial cuts. Although a congressional conference committee will be needed to iron out the differences between the two proposed federal budgets, the aviation programs are not endangered at this point of time, said Todd Jorns, associate legislative affairs director for Regional Aviation Partners (RAP). The budget measure does not include line-item spending details, but is instead a broad spending outline for each federal department. Each department's appropriation measure includes the detailed spending instructions.

"I think it is a victory," Jorns said. The industry has convinced the transportation committees of the importance of EAS and the Small Community Air Service program to retain and develop of new schedule air service to small communities. The challenge will be to educate members of each chamber's appropriation committee so that the funding can be maintained as the transportation department's appropriation is crafted by Oct. 1, Jorns said. The key will be to get those congressmen and senators with EAS communities to continue to defend the programs, he added.

The administration had proposed cutting the EAS budget from $102 million to $50 million in the next fiscal year. In addition, the administration had proposed a new set of cost- sharing guidelines to force local communities to underwrite a portion of the EAS subsidy. Under the guidelines, about one-third of the 146 EAS communities would lose service. The House Transportation and Infrastructure Committee voted against the new guidelines.

Jorns noted while EAS may be authorized for $127 million it will most likely be funded at the same $102 million level as it is in the current budget. Few programs are funded at the authorized level. Likewise, he said, there is now hope that the community air service program will again be funded at the $20 million mark.

The department is now seeking applications for grants in the program (RAN, Jan. 24). For the fourth year in a row, it has $20 million to hand out to about 40 different applicants.

Mesa To End W. Virginia Routes

Air Midwest, a unit of Mesa Air Group [MESA], has petitioned the U.S. Department of Transportation (DOT) to end air service between three West Virginia airports and Pittsburgh.

Citing higher fuel costs, the increased costs of federal regulations and the downward pressure on yields, Air Midwest said "it is impossible to continue without Essential Air Service subsidy." It seeks to end the service by June 20.

Air Midwest will be ending service from Clarksburg/Fairmont, Morgantown and Parkersburg. Air Midwest is servicing these routes with 19-seat Beech 1900Ds. In each case, Air Midwest is providing the only scheduled air service.

Air Midwest has been flying these routes for US Airways Express. 

FAA Docket: Parkersburg: OST-05-20734; Morgantown: OST-05-20735; Clarksburg/Fairmont: OST-05-20735.

Contact: Todd Jorns, RAP, (602) 685-4112.