Latest news with #EssentialAirService
Yahoo
30-05-2025
- Business
- Yahoo
Federal money is essential to North Country airports; Trump wants to cut it in half
If you live in the North Country, you know flights can be expensive. Air travel often involves hours of driving, expensive airport parking, and even pricier tickets. But if you're looking to travel to a few cities around the eastern U.S. and your schedule is flexible, you might be able to find far cheaper tickets for direct flights from one of five North Country airports. That's because of the Essential Air Service, a federally funded program aimed at providing affordable air travel to rural regions. Now, President Donald Trump is proposing to cut EAS funding by $308 million or more than 50%, as outlined in the discretionary funding requests the White House published in early May, which argued, 'The EAS program funnels taxpayer dollars to airlines to subsidize half-empty flights from airports that are within easy commuting distance from each other, while also failing to effectively provide assistance to most rural air travelers.' Empty seats and idle airports There are five EAS airports in the North Country: Plattsburgh, Lake Clear, Massena, Ogdensburg, and Watertown. In mid-May, a direct flight from Plattsburgh to Dulles near Washington DC. had just 12 passengers on the 30-seater plane operated by Contour Airlines. The round-trip flight cost $158. The availability and affordability of direct flights from rural regions like the North Country to larger cities dates back to the 1970s when the federal government was deregulating the airline industry. Some lawmakers worried that rural populations would be left without any service at all. So Congress created what would later become the Essential Air Service. The goal was to serve places like the North Country, where people regularly drive hours to larger hubs like Syracuse, Albany or Burlington. 'Anytime I travel, it saves me four hours, at least- two hours one direction, two hours another direction,' explained Andre Dauphin, who lives in Ausable and spends about 50% of his time traveling for work. 'Rather than doing the commute and the traveling and dropping off a car at a rental place, I don't have to do all that,' said Dauphin. 'It saves me a lot of time and money, and it saves my company a lot of time and money.' Trump's budget says EAS spending is 'out of control' When President Donald Trump proposed a 50% cut to EAS funding, some lawmakers including Senator Chuck Schumer raised the alarm. 'That would devastate North Country airports and hurt places or smaller airports- Watertown, Ogdensburg, Plattsburgh, Massena, Adirondack Regional airport,' said Schumer. Those five North Country airports got more than $31 million in 2024, more than double what they received five years ago. EAS funding nationwide has more than doubled since then, as well. Trump's proposed budget points that out, saying 'spending on programs is out of control.' Ray Mundy agrees. He's a retired college professor who taught about transportation issues and published a cost-benefit analysis of the Essential Air Service in 2015. 'Even though the intentions of the program were good, the politicians that arranged for them are good, the local people that want an airport are good, it's just a waste of money,' said Mundy. The subsidized price per passenger Last year, Plattsburgh got $6.8 million in EAS funding. According to federal data, it served about 93,000 passengers, equating to a $74 subsidy per person. For even smaller North Country airports, the subsidy is much higher. About 6,100 people boarded flights out of Ogdensburg airport in 2024 and the airport received $8.8 million in EAS funding, resulting in an average subsidy of $1,400 per passenger. Last fall, NCPR intern Zach Jaworski was one of just 13 passengers on an Airbus that can seat nearly 140. He spoke with flight attendant Li'i Issacs. 'The smallest flight that I've had was when we did this first trip two days ago. We only had two people on our plane,' said Issacs. 'I've never had a crew that outnumbered the passengers.' Ticket sales have gone up from Ogdensburg in recent months, but flights are still only about 30% full. Airport manager Charlie Garrelts says despite that fact, he believes EAS airports are vital to the North Country's economy. 'Residents in rural areas, a lot of them are depending on air service to travel for specialized medical care or higher education opportunities.' Garrelts says another big percentage of passengers are Canadian. While the Ottawa airport is just about an hour north, flights from Ogdensburg are cheap, and parking is free. Canadian travelers have their choice of airports near the border that are subsidized by American taxpayers, from Watertown, Ogdensburg, Massena, and Plattsburgh. Burlington resident David Rovinsky was flying from DC back to Plattsburgh due to air traffic control issues in Newark upending his travel plans to fly to Burlington. Rovinsky said it's difficult to weigh the costs and benefits of EAS funding, since some things are just hard to quantify. 'There's an element of public good here,' said Rovinsky. 'This is important to maintain communities and even if the airport doesn't completely pay for itself, it provides other social benefits that, in turn, justify making up that difference with government money.' Just how much government money will keep flowing is now up to Congress.
Yahoo
22-05-2025
- Business
- Yahoo
Johnstown airport backing SkyWest's return, even with strong interest in contract
JOHNSTOWN, Pa. – A line of carriers, including air giant American Airlines, made bids for the John Murtha Johnstown-Cambria County Airport's next Essential Air Service contract. But airport officials want to stick with the United Express carrier that lifted their service to new heights over the past three years. In a vote Tuesday, the airport authority voted to send the U.S. Department of Transportation its formal recommendation that SkyWest's United service to Chicago O'Hare International and Washington-Dulles continue through fall 2029. 'No-brainer' Just five years ago, SkyWest was the only airline bidding to provide jet service from Johnstown – and for more than 20 years prior, the airport only attracted bidders with eight-seat propeller aircraft. This spring's round of bids attracted offers from American, Air Wisconsin – which has historically flown under the American Eagle moniker – and SkyWest, which provides regional service under the United Express banner. But even an offer from Texas- based American wasn't able to sway the authority from SkyWest. American and Air Wisconsin were also proposing flights on 50-seat jets and the same number of weekly EAS flights. 'Years ago, we would have taken any one of those jet proposals,' member Mike Parrish told airport authority colleagues, reflecting on how far the airport's success has come. 'But SkyWest remains the hands-down No. 1 choice,' Parrish said. 'It was a no-brainer.' Not only are SkyWest's Chicago and Washington destinations a major draw but the carrier also provides two extra weekly flights to Johnstown without subsidy. The United Express carrier's reliability and reputation has won over passengers year after year, with its 2025 totals through four months setting the airport up for a third straight year of record-breaking numbers. From Jan. 1 through April 30, a total of 11,413 people flew to or from Johnstown, figures show. 'SkyWest has been an amazing partner,' authority Chairman Tim McIlwain said, crediting the company's consistency and ongoing willingness to work with the authority. 'The community has embraced their jet service.' In Johnstown, SkyWest has also worked with the authority to modify flight schedules to cut down on O'Hare-originated delays. They've also been a partner in ongoing aviation-related economic development projects – including efforts that could bring additional SkyWest aircraft to Johnstown for overnight repairs, the authority wrote in its letter to the U.S. DOT. SkyWest's average subsidy request averages $5.9 million over the four-year span, making it the lowest qualified bidder, the board wrote. That's an important factor at a time the Trump administration has proposed reducing the Essential Air Service budget for 2026. Future funding Airport Manager Cory Cree said airport officials are confident it won't prevent them from receiving a new EAS contract for November. Trump's administration, which earlier this year expressed support for the EAS program, proposed a 50% cut to the $590 million annual U.S. program in early May. The program is funded by 'overflight fees' collected from international carriers who use U.S. air space but don't land locally. Airline officials across the U.S. are monitoring whether any EAS funds are cut – and how the program could be amended in the future. The Essential Air Service program, founded to provide air service to rural areas, has been a target of Project 2025, but it's historically had bipartisan support among the Congress and Senate in Washington, D.C. Among the more than 170 Essential Air Service communities across the U.S., 86% are in rural districts served by Republicans as of 2024. The Trump budget itself is still in the early committee phase, navigating scrutiny from members of both parties. Cree said Tuesday that Johnstown airport staff have spoken with all three of the region's federal lawmakers – U.S. Rep, John Joyce and U.S. Sens. Dave McCormick and John Fetterman – about their ongoing efforts to expand airport development and air travel in Cambria County. All three, he said, expressed support for their development efforts and 'understand the importance of EAS to our community.' Joyce, R-Blair, has two Essential Air Service airports in his district and has backed airport efforts in recent years. Varied proposals Skywest was one of several carriers who pitched continuing flights to Washington-Dulles or Chicago, proposals show. Air Wisconsin submitted offers for either 12 Chicago O'Hare International flights per week or a combination of O'Hare and Philadelphia International – at a nearly identical average subsidy request. Airport officials cited concerns about the carrier's limited baggage connection agreements, noting that travelers flying a combination of U.S. airlines would have to recheck bags before boarding Delta or United flights. That's not the case with SkyWest, which has agreements with United, Delta, American and Alaska Airlines. American Airlines offered service to Philadelphia at an average annual contract price of $6.1 million. It also proposed flights to a combination of Philadelphia and Charlotte Douglas International for a $7.2 million average annual subsidy – a cost $1.3 million a year above SkyWest's proposal, the board wrote in its recommendation letter. A onetime Johnstown carrier, Southern Airways, also submitted a proposal to offer flights to Pittsburgh International and Dulles airports. Commuter airline Southern Airways Express offers flights on eight-seat propeller aircraft. The airline served Johnstown nearly a decade ago before the airport chose a different carrier, citing poor reliability and low passenger numbers. In its letter, authority officials said they viewed the Southern proposal as 'unacceptable' because it falls short of the EAS program's demonstrated reliability requirement.
Yahoo
21-05-2025
- Business
- Yahoo
Potential Trump cut to rural air service subsidy concerns Bridgeport Airport
FAIRMONT — President Donald Trump's proposed $300 million cut to the Essential Air Service could potentially impact North Central West Virginia Airport. The EAS program ensures communities with small populations, such as rural areas, have access to air carriers. Airport Director Rick Rock said there's about 160 airports that are part of the program, with about 100 in the lower 48 states and remaining amount in Alaska. The subject came up at the Benedum Airport Authority's meeting on Tuesday. 'We think that West Virginia is just as important as any major city in America,' Rock said. 'Through that program, we're able to have people connected directly to West Virginia. One of the biggest things we've had as we tried to promote economic development is how hard it is to get to West Virginia. Essential Air Service really improves it.' Trump's May 2 budget proposal for fiscal year 2026 discretionary spending includes a $308 million cut to the EAS. The document accuses the EAS of paying for half empty flights from airports which are within commuting distance of each other. It also claims it fails to provide effective assistance to most rural air travelers. The Trump Administration claims spending on the program is out of control. In 2019, EAS cost $175 million and in 2021, a COVID year, spending was $142 million. In 2025, EAS spending reached around $600 million. A cursory review of online materials did not reveal a reason for the increase. Rock said the airport authority wants all programs to be efficient, but that the North Central West Virginia Airport has shown itself to be a success story due to EAS. The airport has done work to bring major figures in the aviation industry to the airport. 'I think that's some people's spin on it and they're trying to say why it shouldn't be,' he said, referring to the explanation for the cut in Trump's budget proposal. 'To me, it's the fact that in rural America we deserve to have opportunities that they have in urban America. I think that's what it comes down to.' Fees collected from foreign air services that fly through U.S. airspace by the Federal Aviation Administration pay for EAS, as well as money from the Airport and Airways Trust Fund. The fund collects excise taxes from domestic passenger ticket sales and other groups who use the country's aviation system. Rock said it's a small percentage of the U.S. budget. Benedum Airport Authority President David Hinkle doesn't expect a cut to the EAS to be an issue. The only issue he sees is if there's an increase in ticket prices, because EAS subsidizes those prices. But, it wouldn't affect what carriers come to the airport. The airport is working on bringing more routes to the airport. 'Unless it only affects the carrier, but they don't think it's financially viable for them,' Hinkle said. Hinkle said the board wants to eventually return flight service between Bridgeport and Chicago. They also don't want to lose service to Charlotte, North Carolina. The airport is awaiting bids from different carriers, so Hinkle is in a wait and see mode. If there is a reduction to EAS, air carriers will have to reevaluate what they can charge passengers while considering what price would be acceptable to travelers as well. The board also approved a lease from Longview, an oil and gas company to access some of the mineral resources under the airport. Rock said it will be a little additional revenue for the airport. Hinkle hopes the deal provides royalties for 15 to 20 years. 'What they do now is drill horizontally, so we have one lease where they'll come from south of the airport going north, and this one's going to come from the north and go south, and they'll meet each other,' Hinkle said. 'So it'll be two different companies drilling underneath airport property.'
Yahoo
18-05-2025
- Business
- Yahoo
Trump administration's proposed $300M cut to Essential Air Service could ground Tupelo flights
TUPELO – Air service in Tupelo could be affected by a drastic cut in the Essential Air Service program, which provides subsidized air service in 177 smaller communities around the country. Besides the All-America City, the proposed cut would affect two other Mississippi cities: Greenville and Hattiesburg. The Trump administration's budget proposal released earlier this month seeks to slash federal spending and includes a $300 million reduction to EAS. At the end of 2024, the Department of Transportation provided EAS subsidies worth nearly $592 million to the 177 communities. "The EAS program funnels taxpayer dollars to airlines to subsidize half-empty flights from airports that are within easy commuting distance from each other, while also failing to effectively provide assistance to most rural air travelers," the administration says in its budget proposal. "Spending on programs is out of control, more than doubling between 2021 and 2025. The budget reins in EAS subsidies by proposing a mix of reforms to adjust eligibility and subsidy rates to help rural communities' air transportation needs in a more sustainable manner." The budget doesn't outline what steps it would take to initiate reform nor identifies which communities would be affected by the cut or what would replace EAS. Tupelo Airport Authority board chairman Eric Gibens said the board is monitoring the situation closely. "Any cuts are a concern," he said. "Contour has been successful, and when they review that, they will see the flights are needed here. Hopefully, they look at the numbers and see their flights are for business and leisure and our flights are full. We'll definitely keep an eye on it, but it's wait and see at this point" Tupelo has taken part in the EAS program since 2009 after Northwest Airlines, followed by Delta Airlines, ended their regional flights to Memphis and Atlanta. Following the unsatisfactory performance from two airlines from 2009-2015, a new airline, Contour, stepped up in April 2016. It has provided air service since, and passenger enplanements, or boardings, have soared. In Tupelo, Contour has recorded at least 10,000 boardings in seven of the eight full years it has provided service. The only exception was in 2020, with the start of the pandemic. Currently, Contour provides daily round-trip flights to Nashville and Dallas. Through the first three months of this year, boardings were up 37% compared to a year ago. Contour's four-year contract, which began last October and runs through Sept. 30, 2028, has an annual subsidy of $6,924,450 in the first year, with a yearly increase of 5% in each of the next three subsequent years. Mississippi's two U.S. Senators said they support EAS and hope the administration backs off from talk of drastic cuts to its funding. 'It is not unusual for administrations to suggest that EAS be terminated. However, there is strong bipartisan support for this program, and I am confident the House of Representatives and Senate will continue our strong support," said U.S. Sen. Roger Wicker. In statements to U.S. Department of Transportation Secretary Sean Duffy, U.S. Sen. Cindy Hyde-Smith expressed her disappointment with the proposed budget cut to the EAS program. 'I was disappointed to see that the administration proposes drastic cuts to the Essential Air Service program. As we have discussed, the EAS program connects our nation's rural communities to the broader transportation network by facilitating safe air travel for customers traveling to and from smaller markets like in Greenville, Mississippi, Tupelo, and Hattiesburg, Mississippi,' Hyde-Smith told Duffy. 'I know you understand the importance of this program from your time as a congressman when you had multiple EAS-supported airports in your district. Drastically cutting this program will have a severe impact on EAS-supported rural communities and regions that rely on having access to the broader transportation network.' Hyde-Smith added that businesses rarely locate in areas without dependable commercial air service. 'Supporting these rural airports is vital for future economic development,' the senator said.
Yahoo
17-05-2025
- Business
- Yahoo
Ravn Alaska tells federal government it intends to end scheduled service to more rural communities
May 16—Ravn Alaska, once a prominent rural Alaska airline, provided the federal government with notice this week that it intends to terminate subsidized scheduled air service to two of the last rural communities it serves. The actions come on the heels of the airline's decisions over the last couple of years to suspend service in most of the rural Alaska communities that it served. In the filings to the U.S. Department of Transportation, Ravn Alaska said it intends to terminate service to Valdez as well as St. Paul in Western Alaska at the end of September. The separate filings say the airline is giving notice of "its intention to terminate subsidized scheduled air service between Anchorage" and the rural communities. The filings occurred due to a "significant and unanticipated" reduction in Ravn Alaska's fleet of Dash 8 airplanes, they say. Tom Hsieh, the chief executive of Ravn Alaska, said in an interview that Canadian-based Avmax has leased some of the Dash 8 planes to Ravn, but has decided not to extend the lease on those planes. In response, Ravn will not be able to provide sufficient levels of service under the Essential Air Service program, the filings say. The Essential Air Service program provides federal subsidies when necessary to allow regular air service in communities where it otherwise wouldn't be economically viable. Ravn urged the department in the filings to move quickly to select new carriers for the communities. Asked if the filings mean Ravn no longer expects to provide scheduled service in Alaska, Hsieh said they alert the "department and the communities that there's a risk that we will not have aircraft for those communities." The filings are part of a 140-day notice requirement. Also, early this week, Ravn ended its scheduled service to Unalakleet in Northwest Alaska. "The route is now serviced by Kenai Aviation," Ravn's website says. The airline, which last year laid off many of its employees, is currently making scheduled flights to only three rural locations, St. Mary's in Southwest Alaska as well as Valdez and St. Paul, according to its reservations website. Late last year, Ravn Alaska filed notice that it intended to cancel unsubsidized scheduled air service in St. Mary's. The U.S. Department of Transportation has ordered that Ravn continue flying to that community through May 29 as it seeks proposals from other air carriers that might provide the service. In its notice about St. Mary's, Ravn said a "significant increase in operational costs over the past several years has made it economically untenable for Ravn to continue to operate service" at levels determined by the agency. Jacob Caldwell, the chief executive of Kenai Aviation, said another airline, Aleutian Airways, has picked up service in many of the rural Alaska communities after Ravn left those locations. The Kenai airline has picked up scheduled service in Kenai and recently Unalakleet as Ravn Alaska has backed out. "Some communities may look at it as an upgrade or downgrade, depending on the perspective," Caldwell said. "But everywhere has has comparable service at this point." Ravn Alaska's parent company, New Pacific Airlines, has also faced turbulence. It had planned to begin scheduled flights to destinations such as Tokyo and Seoul, with stops in Anchorage, starting in 2022. But it appears to provide only charter flights, according to its website.
