EAS Would Get $113M Per Year, While Pilot Program Would Get $27.5M

The Senate Commerce, Science and Transportation Committee haspassed a comprehensive three-year aviation authorization bill to fund the Federal Aviation Administration (FAA) through 2006. Among other things, the bill would authorize $113 million per year for the Essential Air Service (EAS) program for small communities. It also authorizes $27.5 million per year for the small community air service development pilot program.

The bipartisan bill, S-824, was introduced by Sens. John McCain (R-Ariz.) and Trent Lott (R-Miss.) and co-sponsored by Sens. Ernest Hollings (D-S.C.) and Jay Rockefeller (D-W. Va.). It is expected to get to the Senate floor by mid-May.

The committee attached numerous amendments to the bill. Those impacting regional airline operations included authorization of new EAS pilot programs to increase ridership and reduce costs associated with the program, establishment of the position of National Small Community Air Service Development Ombudsman and creation of a National Commission on Small Community Air Service.

The reauthorization bill has been labeled "AIR-Vision," or "AIR-V" for "Aviation Investment and Revitalization Vision Act." In introducing the bill, Sen. Lott said, "My top aviation policy goal is a full FAA reauthorization - money plus policies - not just a quick extension of this important agency. That's why we have decided to call this legislation 'AIR-Vision'."

Along with the three-year authorization of EAS funding, provisions of the AIR-Vision legislation include: strengthening FAA management through a committee of outside experts to oversee the operation and modernization of the air traffic control (ATC) system; authorizing $8.9 billion to upgrade that system; providing $10.5 billion for the Airport Improvement Program (AIP) to improve capacity and safety at the country's airports; establishing a funding mechanism to pay for security capital costs at airport; streamlining the process for approving and constructing airport capacity projects; and making policy changes to a number of the FAA's and Department of Transportation's (DOT) aviation programs.

Maurice Parker, executive director of Regional Aviation Partners (RAP), said that RAP had worked with Sens. McCain and Lott on the small communities programs, outlining the needs of the communities and providing recommendations. Parker also brought to Sen. McCain's attention that the major hub and spoke carriers are now in serious trouble, and small communities are limited by code-sharing agreements in their access to low-fare carriers. Sen. McCain included in the bill language that would direct the DOT to study the competition and access problems at large and medium hub airports. The bill says that "the [DOT] Secretary will explore the competition and airline access problems at hub airports, gate usage and availability and the effects of the pricing of gates and other facilities on competition and access." It also states that a report on that study must be submitted to Congress within six months of enactment of the bill.

RAP also proposed that Congress aid small community air service providers and airports in implementing new aviation security mandates. The FAA should fund all security mandates issued by the agency, "not the small communities," Parker said.

Sen. McCain included a provision to the reauthorization bill that would prohibit the DOT secretary or the secretary of homeland security from requiring airports to provide facilities to either the FAA or the Transportation Security Administration unless these agencies cover the costs.

The bill also includes a RAP recommendation that an Aviation Security Capital Fund be established with $500 million for fiscal years 2004-2007, derived from security fees and allocated to provide financial assistance to airports to defray capital investments in transportation security.

Bill Would Force DOT To Recompute Distances

Another piece of legislation would challenge the DOT's method for determining which communities are eligible for EAS subsidies. Companion bills were introduced last week by Sen. Arlen Specter (R-Pa.) and Rep. Joseph R. Pitts (R-Pa.) aimed at returning EAS subsidies to Lancaster, Pa., and redefining how DOT determines which communities are eligible for the EAS program.

In March, DOT struck Lancaster from the list of cities eligible to receive EAS subsidies because it was within 65.3 driving miles from the Philadelphia International Airport. Current law requires that a community be 70 miles or farther from a major airport to get subsidies. The route chosen by DOT was Route 30, a tortuous, and somewhat dangerous, route going through a number of small towns and villages. Travel time is roughly three hours.

Current law requires DOT to use "the most commonly used route" rather than just the shortest route in determining eligibility for EAS service. In the case of Lancaster, that route is a combination of Route 222 and the Pennsylvania Turnpike, a trip that is roughly 85 miles but takes only about an hour and a half to drive. Rand McNally's road atlas, in computing its distance between Lancaster and Philadelphia, also uses the longer distance.

The legislation, being introduced under the title of "The Essential Air Service Eligibility Fairness Act of 2003," would require the DOT to defer to a Metropolitan Planning Organization (MPO) or an organization designated by the state governor as the final authority to certify the distance between a community and the nearest airport served by a commercial carrier.

RAP's Parker said that the DOT's ambiguous interpretation of the mileage requirement "has eliminated more than a handful of communities from the EAS program." Parker said that RAP has been working on research for this legislation over the past year and dedicated its resources "to making this bill a reality. We will work diligently to ensure that it passes."

Parker also said that RAP has met with congressional staff to recommend rejection of the Bush administration's proposal, commonly known as "Flight 100," that would make ineligible for EAS subsidies any community that is within 100 highway miles of a major hub airport, 75 miles from a small hub airport or 50 miles from a non-hub that has jet service. It would also require mandatory community contributions. That proposal "has the potential to be extremely damaging to small community air service," Parker said.

"There is no question that [EAS] is in need of some restructuring," Parker said. "But Flight 100 is not the answer."

DOT has now issued an invitation for small communities to apply for grants under the small community air service development pilot program. The invitation resulted from a supplemental appropriations bill recently signed by President Bush that increases flexibility in the award of grants and allows requests from communities who are not currently in the program. A total of $20 million will be awarded for 40 programs in 38 states. Parker, who has been following the bill, said that it allows communities to develop their own innovative solutions to their air service problems and demonstrates how the federal funds would help to address their problems.

>>Contact: Maurice Parkers, Tele: (602) 685-4112; e-mail: rap.exdir@mindspring.com<<