While sources indicate changes are promised to the draft Senate reauthorization bill which currently pegs EAS at $50 million, the proposed bill eliminates Section 402, which calls for the government to increase subsidies to cover dramatic cost increases beyond the airline’s control such as fuel, something EAS interests and the Regional Airline Association have been fighting for since the passage of Vision 100. EAS is now funded around $109 million, twice the administration and senate proposals.
The bill does call for increasing the length of EAS contracts beyond the current two years but vaguely describes it as providing “long-term” contracts. Longer term (five year) contracts were recommended by witnesses at the recent House Aviation Subcommittee hearing. Related Story  In addition, it requires code sharing for EAS flights as well as provisions for encouraging more participation in the EAS program by providing financial incentives in EAS contracts based on specified performance goals. The bill also imposes a $25 “modernization” charge on all segments for air traffic control costs to be deposited in a newly established Air Traffic Control Modernization Fund. Critics charge this would treat a 300-passenger 747 the same as a three-passenger general aviation aircraft, without consideration of their different footprints on the system usage. Sources indicate it would eliminate the passenger ticket tax. Regardless, it still significantly increases the costs of regional air services which already have expensive passenger facility charges imposed on them. For a complete analysis see the May 7 issue of Regional Aviation News.