After its FOIA requests were rebuffed by the Department of Transportation, Regional Aviation Partners sought information related to the Department’s oversight of the Essential Air Service (EAS) program from public sources finding that DOT does, indeed, have the funding resources necessary to increase compensation to EAS carriers for fuel increases. The organization’s first request centered on DOT’s policy during the 1980s and 1990s of compensating air carriers for increased jet fuel costs while a second request sought information on how the DOT EAS Division manages and spends the program funds it receives.
“What we found shatters the DOT claim that it lacks funding necessary to implement these beneficial EAS programs and raises serious doubts as to the DOT’s ability to responsibly administer the interests of small communities and air carriers participating in the EAS program,” said RAP in its latest briefing, citing a document, Department of Transportation – Office of the Secretary, FY08 Congressional Budget Justifications. “Tucked away on page 150, line 24.40, the DOT provides that beginning FY06, it began to sit on $19.9 million in EAS funds under the Essential Air Service and Rural Airport Improvement Fund and further states the Department has continued to carry over this exact amount from one year to the next, from FY06 to FY08.”
RAP is calling on the DOT to stop playing brinkmanship with small communities and to apply these unused funds in a manner that is in the best interest of communities. The call comes after President Bush signed a continuing resolution covering the FAA budget through November 16.
Moreover, because it appears the Department cannot be counted on to do the right thing, RAP believes it is necessary that Congress require the DOT to look beyond its so called “statutory obligation” by directing these unused/unobligated funds to beneficial provisions of the EAS program, those provisions meant to improve boardings at non-hub airports and mitigate risks to participating air carriers.
“The unfortunate reality remains that while the minimum level of service guaranteed under the program ensures communities maintain access to the National Air Transportation System (NATS), it does little to move communities away from subsidized air service,” said RAP. “For those communities subject to the $200 per passenger subsidy cap, increased subsidy rates and stagnant boardings have caused per passenger subsidy rates to sharply escalate, putting many small airports at risk of elimination. It should be the ultimate goal of the program to move communities towards self-sufficiency and use of these un-obligated funds to implement beneficial programs would be a big step in this direction.”
RAP called on Congress to direct the DOT to use the $20 million in carry-over funds as well as other un-obligated program funds in FY08 to implement provisions of Vision 100. RAP further quoted the DOT as saying it is its statutory obligation to “provide subsidies to air carriers to maintain a minimum level of scheduled air service to eligible communities,” referring to all other provisions as discretionary. “Thus it maintains it does not have to implement them unless specifically directed to do so by Congress,” said RAP. “If implemented, many of these so called discretionary provisions could however provide what it takes to move communities away from subsidized air service and ensure carriers continue to participate in the program.
RAP is calling on members of Congress to adopt conference report language to accompany the FY08 Transportation Appropriations Act which would target the $20 million in available carryover funds to specific EAS programs, including but not limited to: subsidy adjustments to reflect increased jet fuel costs, the Marketing Incentive Program, the Enhanced EAS Program, and those important provisions established under the 2007 FAA Reauthorization Act.
RAP has researched the congressional record and we found that Congress took action in 1990 to direct the DOT to use any unused program funds from FY1990 to compensate carriers for jet fuel cost increases in FY1991.
If Congress does not include this language in the conference report, the DOT will simply continue to sit on these funds and the “cycle of dependence” will not only continue but will become worse in FY08 and beyond.
Having passed the House, the FY08 Transportation Appropriations Act is set to be discussed at the House and Senate Transportation Appropriation Subcommittees meet in conference committee to reconcile the differences between the two versions of the bill. Once a bill is agreed, the conferees submit a conference report back to the full House and Senate for a final vote. The precedent language cited above must be included in the conference report.

Overview of 2007 FAA Reauthorization Act
• Provides $15.8 billion in funding for the AIP program, $4 billion more then requested by the President;
• Increases PFC cap from $4.50 to $7.00 to combat inflation and to help airports meet increased capital needs.
• Provides significant increases in AIP funding for smaller airports that are particularly reliant on AIP for capital financing;
• Authorizes an increase in the general aviation jet fuel tax rate for inflation from 21.8 cents per gallon to 30.7 cents per gallon; and increases the aviation gasoline tax rate from 19.3 cents per gallon to 24.1 cents per gallon to provide the funding necessary to modernize the Air Traffic Control system, as well as to stabilize and strengthen the 24.1 cents per gallon to provide the funding necessary to modernize the Air Traffic Control system, as well as to stabilize and strengthen the Airport and Airway Trust Fund; and
• Requires the FAA to review the collection of over-flight fees to ensure the fees are reasonably related to the costs associated with the service rendered. The FAA shall adjust fees collected under the program by expedited rulemaking and begin collections under the adjusted fees by October 1, 2008. The EAS program derives $50 million annually via over-flight fee collections with any additional funds targeted to safety initiates at small airports.

The bill also:
• Stipulates that the FAA shall, not later then 180 days after the enactment of the bill, initiate a rulemaking proceeding for the purpose of issuing a proposed and final rule that revises the aircraft rescue and firefighting standards (`ARFF') under part 139 of title 14, Code of Federal Regulations, to improve the protection of the traveling public, other persons, aircraft, buildings, and the environment from fires and hazardous materials incidents;
• Increases the number of aviation safety inspectors; and
• Requires the FAA to contract with the National Academy of Sciences to conduct a study on pilot fatigue, and then to consider the findings to update, where appropriate, its regulations with regard to flight time limitations and rest requirements for pilots.
• Requires, within 5 years, all civil subsonic jet aircraft under 75,000 pounds to meet stage three noise levels within the 48 contiguous states, with limited exceptions for certain temporary operations;
• Authorizes the FAA to establish a pilot program at five public-use airports to design, develop, and test new air traffic flow management technologies to better manage the flow of aircraft on the ground and reduce ground holds and idling times for aircraft to decrease emissions and increase fuel savings;
• Allows pilots to fly until age 65 under certain conditions; and
• Requires airlines and airports to have emergency contingency plans in place to take care of passengers that are involved in long flight and tarmac delays. These plans must account for the provision of food, water, clean restrooms and medical care for passengers. The plans would need to be updated by the airlines every three years and every five years by airports.