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Wed, Jul 15, 2009

Rural Air Travel Subsidy Survives House Appropriations Subcommittee

Essential Air Service Approved For $53 Million Increase

A U.S. House of Representatives panel has increased funding for the Essential Air Service, which makes airline and other travel available to some of the more rural communities in the United States. But money for the much-criticized program is far from a done deal.

The Associated Press reports that in many cases the flights are nearly empty. And in the case of some of the shorter-haul flights, it takes less time to drive than fly.

Essential Air Services serves 107 communities in 31 states, including 45 very small towns in Alaska. While the most recent Bush administration tried to cut the program more than once, it enjoys strong support on Capitol Hill. In April, White House Budget Director Peter Orszag received a letter signed by 22 Members of Congress practically demanding more money for the program. President Obama obliged, asking for the major increase in his budget presented in February even while admitting the program was inefficient. In many cases, the subsidy per seat is more than the passenger paid to be on the airplane.

While the Obama administration says the increase is needed just so the program can stay even, Transportation Secretary Ray LaHood admits there are inefficiencies in the Essential Air Service. "The program design must be updated and made more cost effective," Transportation he told lawmakers earlier this year, adding that there needs to be "a more sustainable program that will provide better value for passengers and the American taxpayer."

Approval by the House Subcommittee is a preliminary step, and the bill faces a long road.  It is part of a broader transportation bill that would also build high-speed rail, spending more than 4 times what the President requested in his stimulus package.

FMI: www.house.gov

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