Order 2002-2-13 - Essential Air Service (Program Wide) - Authorizing Emergency Essential Air Service Payments

Order 2002-2-13 - Essential Air Service (Program Wide) - Authorizing Emergency Essential Air Service Payments

Essential Air Service - Program Wide

Order 2002-2-13	Issued February 15, 2002 Served February 22, 2002	Order Authorizing Emergency Essential Air Service Payments	Essential Air Service - Program Wide
		Appendix A - Calculations of Revised EAS Subsidy Rates
		Appendix B - Calculations of Revised EAS Subsidy Rates
		Appendix C - Stabilization Act Rates
		Appendix D - List of Docket Numbers

While the stabilization payments are an important element in efforts to restore the economic viability of the airline industry after the events of September 11, the commuter/regional sector of the industry faces certain unique challenges. Like most of the industry, these smaller carriers have been forced to deal with a precipitous rise in costs at the same time that they are confronted with a substantial drop in revenue. But, unlike the major airlines, they do not have the financial resources to help them maintain operations until traffic begins to stabilize. In addition, those carriers that participate in the EAS program do not have the same flexibility as non-EAS airlines to adjust their systems to reflect the shifts in costs, revenue, and traffic. Because they remain under contract with the Department to provide a prescribed level of service at EAS communities, they have very little ability to eliminate service on unprofitable routes, reduce frequencies, downsize aircraft, or contract out flight operations in order to reduce their losses.

By: Read Van de Water