Posts Tagged ‘EAS’

Congress Renews Essential Air Service Subsidy

The Essential Air Service subsidy, a relic of airline deregulation in the 1970’s, will apparently go on. Congressman McClintock tried to cut $155 million from the program with an amendment to H.R. 2577 (Transportation, Housing & Urban Development Appropriations Act). His amendment was defeated by a vote of 166 to 255, with 173 Democrats and 82 Republicans voting against.

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House GOP Transportation bill would slash $1.2 billion from housing subsidies for the poor, eliminate funding for high-speed rail, eliminate bike/ped funding, and cut $200 million for new transit projects.

On the other hand, the GOP has no problem with continuing $150 million in subsidies for the Essential Air Services program.

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Essential Air Service Program Survives In A Time Of Austerity

Congress has decided that high-speed rail spending bad, but airline subsidies are very, very good:

The House has rejected an attempt to cut off subsidized air travel to rural towns and cities where taxpayer costs exceed $250 per ticket.

The current permissible subsidy is $1,000 per ticket. That’s forced just a handful of communities to lose service. New reforms in a transportation funding bill being debated by the House cut those subsidies to $500 a ticket or $1,000 per round trip to airports subsidized by the $200 million-plus Essential Air Service program.

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