Payments for Essential Air Services

To assure that air transportation is provided to eligible communities by subsidizing air carriers when necessary to provide service.


Examples of Funded Projects

Fiscal Year 2016: In FY2016, new contracts (or extended contracts) were issued at: Alaska (Alitak, Amook Bay, Central, Chignik, Chignik Lake, Chisana, Circle, Clark's Point, Egegik, Ekwok, Elfin Cove, False Pass, Healy Lake, Hydaburg, Igiugig, King Cove, Kitoi Bay, Koliganek, Levelock, Manokotak, Moser Bay, New Stuyahok, Olga Bay, Pilot Point, Port Bailey, Port Heiden, Port Williams, Seal Bay, South Naknek, Uganik, Ugashik, West Point, Zachar Bay); Alabama (Muscle Shoals); Arkansas (Jonesboro), Colorado (Pueblo); Hawaii (Kalaupapa); Iowa (Burlington,Waterloo); Illinois (Decatur, Marion/Herrin, Quincy); Kansas (Salina); Kentucky (Owensboro, Paducah); Maryland (Hagerstown); Michigan (Hancock/Houghton, Muskegon, Pellston, Sault Ste.

Marie); Missouri (Cape Girardeau, Kirksville); Montana (Butte, Glasgow, Glendive, Havre, Wolf Point); Nebraska (Grand Island); New York (Watertown); Pennsylvania (Lancaster); South Dakota (Aberdeen); Utah (Cedar City, Moab, Vernal); Wisconsin (Eau Claire); Wyoming (Cody).

Fiscal Year 2017: In FY2017, new contracts (or extended contracts) were issued at: Diomede, AK; Merced, CA; Carlsbad, NM; Tatitlek, AK; Crescent City, CA; Twin Hills, AK; Perryville, AK; Chadron, NE; Alliance, NE;; Port Alexander, AK; Page, AZ; Page, AZ; Clark's Point, AK; South Naknek, AK; False Pass, AK; Jackson, TN; Meridian, MS; Laurel/Hattiesburg, MS; Prescott, AZ; Massena, NY; Joplin, MO; Gustavus, AK; Cordova, AK; Petersburg, AK; Wrangell, AK; Yakutat, AK; May Creek, AK; McCarthy, AK; Macon, GA; West Yellowstone, MT; Mason City, IA; Fort Dodge, IA; Mason City, IA; Brainerd, MN; International Falls, MN; Iron Mountain/Kingsford, MI; Rhinelander, WI; El Dorado/Camden, AR; Hot Springs, AR; Harrison, AR; Victoria, TX; Sault Ste.

Marie, MI; Dickinson, ND; Lake Minchumina, AK; Silver City/Hurley/Deming, NM; Akutan, AK; Staunton, VA; Visalia, CA; Beckley, WV; Clarksburg, WV, and Parkersburg, WV.

Fiscal Year 2018: No Current Data Available


Agency - Department of Transportation

The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.




Selected Recipients for this Program


RecipientAmount Start DateEnd Date
Great Lakes Aviation, Ltd. $ 1,329,477   2007-07-312009-07-31
Great Lakes Aviation, Ltd. $ 825,345   2007-07-312009-07-31
Great Lakes Aviation, Ltd. $ 1,329,477   2007-07-312009-07-31
Great Lakes Aviation, Ltd. $ 2,463,686   2007-06-042009-06-30
Great Lakes Aviation, Ltd. $ 2,463,686   2007-06-042009-06-30
Redemption, Inc $ 29,481   2007-05-312009-05-31
Redemption, Inc $ 13,867   2007-05-312009-05-31
Great Lakes Aviation, Ltd. $ 2,455,122   2007-04-132009-04-30
Great Lakes Aviation, Ltd. $ 1,532,774   2007-04-062009-04-30
Great Lakes Aviation, Ltd. $ 1,532,774   2007-04-062009-04-30



Program Accomplishments

Fiscal Year 2016: The Department issued a show cause order to terminate 30 EAS communities located within the 48 contiguous States receiving per passenger subsidy amounts exceeding $200., Unless the communities are located more than 210 miles from the nearest large or medium hub airport, the subsidy per passenger cannot exceed $200, absent a waiver from the Secretary. Several of these communities did not meet the 10-enplanement per day threshold, as established by Congress. Three communities were terminated because their subsidy per passenger exceeded the $1,000 per passenger subsidy cap for any community, regardless of distance to a large or medium hub airport (Alaska and Hawaii are exempt from the $1,000 cap). Fiscal Year 2017: In FY 2016, The Department issued a show cause order to terminate 30 EAS communities located within the 48 contiguous States receiving per passenger subsidy amounts exceeding $200., Unless the communities are located more than 210 miles from the nearest large or medium hub airport, the subsidy per passenger cannot exceed $200, absent a waiver from the Secretary. Several of these communities did not meet the 10-enplanement per day threshold, as established by Congress. Three communities were terminated because their subsidy per passenger exceeded the $1,000 per passenger subsidy cap for any community, regardless of distance to a large or medium hub airport (Alaska and Hawaii are exempt from the $1,000 cap). In FY 2017, the Department issued an order granting waivers from termination to Alamosa, CO; Altoona, PA; Clarksburg, WV; DuBois, PA; El Centro, CA; Hagerstown, MD; Jackson, TN, Jamestown, NY; Johnstown, PA; Kearney, NE; Lancaster, PA; Owensboro, KY; Parkersburg, WV; Marietta, OH; Pendleton, OR; Prescott, AZ; Salina, KS; Scottsbluff, NE; Show Low, AZ; Tupelo, MS; Victoria, TX; Visalia, CA; and Watertown, SD. Fiscal Year 2018: No Current Data Available

Uses and Use Restrictions

When necessary subsidy payments are made to air carriers providing air services at certain points.

Subsidy is paid to cover the carrier's prospective operating loss, plus a profit element.

Eligibility Requirements

Applicant Eligibility

Air carrier must be found fit and be selected by the Department to perform the subsidized service.

Beneficiary Eligibility

Air carriers and eligible local communities.

Credentials/Documentation

Financial statements and detailed operating statistics. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. In accordance with 14 CFR, Part 271, and specific Department requests in docketed cases.

Award Procedures

Evaluation of applications according to factors established in 49 U.S.C. 41731, et seq., and any Department-established factors.

Deadlines

Not Applicable.

Authorization

Airline Deregulation Act of 1978, 49 U.S.C 41731-41748.

Range of Approval/Disapproval Time

From 2 to 4 months.

Appeals

In accordance with 14 CFR, Part 302.14.

Renewals

Application procedures are repeated.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. This program has no matching requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

In accordance with Department evaluation and determination of demonstrated need. Method of awarding/releasing assistance: quarterly.

Post Assistance Requirements

Reports

No reports are required.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Air carriers are subject to audits of financial and operational fitness, of major contested claims of compensation for continued service, and of monthly billings to the Department for subsidy.

Records

We direct all subsidized air carriers to retain all books, records, and other source and summary documentation to support claims for payment, and to preserve and maintain such documentation in a manner that readily permits its audit and examination by representatives of the Department. Such documentation shall be retained for seven years from the service date of the Order establishing subsidy rates or until the Department indicates that the records may be destroyed, whichever comes first. Copies of flight logs for aircraft sold or disposed of must be retained. The air carrier may forfeit its compensation for any claim that is not supported under the terms of the Department?s Orders.

Financial Information

Account Identification

69-8304-0-7-402.

Obigations

(Direct Payments for Specified Use) FY 16 $288,172,731; FY 17 est $307,532,761; and FY 18 est $0

Range and Average of Financial Assistance

For continental United States: range from $491,205 to $4,710,683 annually; an average of $2,189,355 annually per community per year.

Regulations, Guidelines, and Literature

49 U.S.C. 41731, et seq.; 14 CFR, Parts 204, 271, 323, 325, 398.

Information Contacts

Regional or Local Office

None.

Headquarters Office

Kevin Schlemmer Office of Aviation Analysis, X-50, Department of Transportation, 1200 New Jersey Ave S.E., Washington, District of Columbia 20590 Phone: (202) 366-3176

Criteria for Selecting Proposals

Established by statute and by precedent in individual docketed cases.



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