Payments for Essential Air Services (20.901)

 

Program

20.901 Payments for Essential Air Services

 

Federal Agency

Agency: Department of Transportation
Office: Office of the Secretary (OST) Administration Secretariate

 

Authorization

Airline Deregulation Act of 1978, 49 U.S.C 41731-41742.

 

Program Number

20.901

 

Last Known Status

Active

 

Objectives

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

 

Types of Assistance

DIRECT PAYMENTS FOR A SPECIFIED USE

 

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 OMB Circular No. A-87.

 

Application 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 Procedure

This program is excluded from coverage under OMB Circular No. A-102. OMB Circular No. A-110 applies to this program. In accordance with 14 CFR, Part 271, and specific Department requests in docketed cases.

Award Procedure

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

Deadlines

Not Applicable.

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

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. 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

Air carriers must retain all books, records and other source and summary documentation for 7 years to support subsidy claims.

 

Program Accomplishments

Fiscal Year 2008: Essential air service has been maintained with subsidy support at approximately 150 communities affected by airline deregulation. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

 

Financial Information

Account Identification

69-8304-0-7-402.

Obligations

(Salaries) FY 08 $50,000,000; FY 09 est $50,000,000; FY 10 est not reported.

Range and Average of Financial Assistance

For continental United States: range from $431,996 to $2,643,588 annually; an average of $1,420,000 annually per community per year.

 

Regulations, Guidelines and Literature

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

 

Related Programs

Not Applicable.

 

Information Contacts

Regional or Local Office

None.

Headquarters Office

Office of Aviation Analysis, X-50, Department of Transportation 1200 New Jersey Ave S.E., Washington, District of Columbia 20590 Phone: 202-366-5903

Web Site Address

http://ostpxweb.dot.gov/aviation/index.html

 

Examples of Funded Projects

Fiscal Year 2008: (1) Great Lakes Aviation-Essential Air Service to Alliance, Chadron, Kearney, and McCook, Nebraska. (2) Big Sky Airlines-Essential Air Service to Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney, and Wolf Point, Montana. (3) Alaska Airlines-Essential Air Service to Cordova, Gustavus, Petersburg, Wrangell, and Yakutat, Alaska. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

 

Criteria for Selecting Proposals

Established by statute and by precedent in individual docketed cases.