Payments for Essential Air Services

 

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

General information about this opportunity
Last Known Status
Active
Program Number
20.901
Federal Agency/Office
Office of The Secretary, Department of Transportation
Type(s) of Assistance Offered
B - Project Grants; C - Direct Payments For Specified Use
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 are 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). 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 Issued subsidy orders for 83 communities to ensure air service: Akutan, AK Alamosa, CO Alpena, MI Altoona, PA Angoon, AK Atka, AK Augusta/Waterville, ME Bar Harbor, ME Beckley, WV Bradford, PA Brainerd, MN Cape Girardeau, MO Chignik Lake, AK Chignik, AK Chisana, AK Chisholm/Hibbing, MN Clovis, NM Cortez, CO Crescent City, CA Devils Lake, ND Dickinson, ND DuBois, PA Egegik, AK El Centro, CA Elfin Cove, AK Escanaba, MI Excursion Inlet, AK Fort Leonard Wood, MO Fort Leonard Wood, MO Franklin/Oil City, PA Garden City, KS Hagerstown/Martinsburg WV, MD Hays, KS Healy Lake, AK International Falls, MN Iron Mountain/Kingsford, MI Jamestown, ND Johnstown, PA Kake, AK Kamuela, HI Koliganek, AK Lake Minchumina, AK Lancaster, PA Laramie, WY Laurel/Hattiesburg, MS Lebanon/White River Jct VT, NH Levelock, AK Manistee/Ludington, MI Manley Hot Springs, AK Manokotak, AK McCook, NE McGrath, AK McGrath, AK Meridian, MS Minto, AK Morgantown, WV New Stuyahok, AK Nikolski, AK Paducah, KY Page, AZ Parkersburg/Marietta OH, WV Pelican, AK Pendleton, OR Pierre, SD Plattsburgh, NY Port Heiden, AK Prescott, AZ Presque Isle/Houlton, ME Rhinelander, WI Rockland, ME Saranac Lake/Lake Placid, NY Sault Ste. Marie, MI Show Low, AZ Silver City/Hurley/Deming, NM St. George, AK St. George, AK St. George, AK Tenakee, AK Thief River Falls, MN Tupelo, MS Victoria, TX Waterloo, IA Watertown, SD
Authorization
Airline Deregulation Act of 1978, 49 U.S.C. 41731-41748
Who is eligible to apply/benefit from this assistance?
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 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.
Approval/Disapproval Decision Time
From 2 to 4 months.
Appeals
In accordance with 14 CFR, Part 302.14.
Renewals
Application procedures are repeated.
How are proposals selected?
Established by statute and by precedent in individual docketed cases.
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
Reporting
Not applicable.
Auditing
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.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
In accordance with Department evaluation and determination of demonstrated need. Method of awarding/releasing assistance: Quarterly.
Who do I contact about this opportunity?
Regional or Local Office
None/Not specified.
Headquarters Office
Kevin Schlemmer
Office of Aviation Analysis, X-50, Department of Transportation, 1200 New Jersey Ave S.E.
Washington, DC 20590 US
kevin.schlemmer@dot.gov
Phone: (202) 366-3176
Website Address
http://www.dot.gov/policy/aviation-policy/small-community-rural-air-service/essential-air-service
Financial Information
Account Identification
69-8304-0-7-402
Obligations
(Direct Payments for Specified Use) FY 18$325,000,000.00; FY 19 est $330,000,000.00; FY 20 est $334,000,000.00; FY 17$275,000,000.00; FY 16$288,172,731.00; -
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.
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). 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.

 



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