More than 60 communities could be eliminated from the Essential Air Service Program if the Bush administration's proposed budget of $50 million for FY 2007 is enacted, according to 30 congressional representatives. In a letter dated March 17, the representatives called for the transportation subcommittee as well as the full appropriations committee to provide the full $127 million that Congress has authorized, but never fully appropriated, for the program. Congress approved $110 million for the program for this year.

The Bush administration's budget proposal comes at a time when the program is getting more bang for its buck than ever before, according to Great Lakes Aviation [GLUX] President Doug Voss.

Voss, who frequently travels to Washington on behalf of the EAS program, said that with the inclusion of several larger points, such as Watertown, S.D., Fort Dodge, Iowa, and Mason City, Iowa, the per passenger subsidy is much less than it has been. These cities have five to 10 times the enplanements as the traditional EAS points, and have the potential for building traffic back up so they leave the program, he said.

"The EAS program is doing more than it has ever done," Voss said. "That alone is a justification for not only funding it at the current authorized level but for expanding it. The likelihood of success is much higher now than it has ever been. Ironically, the addition of these larger points has increased the political interest in the program."

Deborah McElroy, president of the Regional Airline Association, called the proposed cuts critical. "RAA has been working with Congress to support EAS," she said. "More than half of the communities would lose or see significant reductions in air service. If this happens, I don't know how DOT will implement the cuts. In the past, they have spread it out through the program, but that has significant consequences for ensuring frequency and reliability. This would clearly be devastating. Every year we fight for funding and people have wondered if this [constant underfunding] is just another way to kill the program."

McElroy noted that RAA also has been working hard on funding a provision in the Aviation Investment and Reform Act for the 21st Century (AIR 21), which allows carriers to cover unforeseen cost increases of over 10 percent, such as those experienced with the hike in fuel prices. "The provision was never funded, however," she said. "Currently, the process for recovering these increased costs means filing to leave a market, which unnecessarily traumatizes communities and passengers and triggers DOT action. It is not an efficient way to account for unforeseen cost increases. That is why Congress very wisely passed this provision. DOT has always viewed this as a voluntary program, but it is really important for keeping air service."

The bipartisan congressional group seeking full EAS funding noted in its letter that the number of communities that require EAS subsidy to support scheduled air service has grown from 106 in 2000 to 152 in 2006, this at a time when the airline industry lost $44 billion putting pressure on them to eliminate all unprofitable routes. They also cited the fact that the proposed funding level is less than half of the enacted level of funding that EAS received for the last five years, and $77 million less than what Congress authorized for the program. They also noted that if communities were required to provide a local contribution, as proposed by the Bush administration, more than 60 communities would be eliminated from the program.

The representatives who signed the letter include: James Oberstar (D-Minn.); Jerry Costello (D-Ill.); Nick Rahall (D-W.Va.); Ellen Tauscher (D-Calif.); Jim Matheson (D-Utah); John Salazar (D-Colo.); Michael Michaud (D-Maine); Tammy Baldwin (D-Wis.); Ed Case (D-Hawaii); John Barrow (D-Ga.); Stephanie Herseth (D-S.D.); Sherrod Brown (D-Ohio); Brian Higgins (D-N.Y.); Bernie Sanders (I-Vt.); Ron Paul (R-Texas); Lane Evans (D-Ill.); John McHugh (R-N.Y.); Ike Skelton (D-Mo.); Earl Pomeroy (D-N.D.); Collin Peterson (D-Minn.); Bart Stupak (D-Mich.); Ron Lewis (R-Ky.); Jerry Moran (R-Kan.); Barbara Cubin (R-Wyo.); Bill Shuster (R-Pa.); and Gene Taylor (D-Miss.); John Boozman (R-Ark.); Thomas Allen (D- Maine); Kenny Hulshof (R-Mo.); and Dennis Cardoza (D-Calif.).

>>Contacts: Doug Voss, Great Lakes, (307) 432-7000; Deborah McElroy, RAA, (202) 367-1170<<