The costs to subsidize the system is becoming costly. It has become even more expensive than an Amtrak subsidy. Excluding Alaska, the Transportation Department paid out about $74 for each one-way passenger in the program in fiscal 2005. That is more than Amtrak’s famously large per passenger subsidy, which can be as high as $52 dollars depending on how the process is calculated.
The Bush administration now wants to cut funding to $50 million. So, the Transportation Department is proposing changes to reduce the program costs. Towns more than 100 miles away from a large or medium hub would have to chip in on the subsidy. Towns closer than 100 miles would get a partial subsidy — for bus service to a hub.So should we keep subsidies at all or keep them in place?
Mike Boyd, a consultant to airports, said truly remote routes — those in Alaska, northern Maine, parts of the Western states — should be retained. But he said that most routes should be eliminated.
One of the most recent subsidies occurred in the Missouri city of Columbia. Less than 100 miles from both St. Louis and Kansas City, the town will be receiving air services provided by Mesa Air Group. Mesa will be receiving $598,751a year to operate flights to the city.
From Lewistown, Mont., Jerry Moline, the airport manager, is used to driving 110 miles to shop at the Wal-Mart in Great Falls. Likewise, most of his neighbors drive 125 miles to the airport in Billings, which has jet service, rather than fly there on the subsidized 19-seaters. The Lewistown flights attracted fewer than three people a day in 2005; each passenger’s one-way ticket was subsidized with $472.78 paid by taxpayers.
So why keep it if it is costing so much? Well it provides people with a way to connect to the bigger cities. It provides the opportunity for people to be able to jump on a flight and be in a city within hours (if timed right). It provides a vital link for many people. But the program needs to be re-evaluated. Cities that are close to those larger/medium sized cities need to really weigh the options on whether or not they need that complete federal help. For those cities that are far from any sized city, maybe EAS (Essential Air Service) is necessary.
New York Times
Thanks Tim for the link.
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