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Managing America: Transportation

TheWeekInCongress.com (TM)

Week Ending November 2, 2007

S.2265 A bill to extend the existing provisions regarding the eligibility for essential air service subsidies through fiscal year 2008.

The Century of Aviation Reauthorization Act is amended to extend Federal subsidies to essential air services through September 30, 2008. Should the bill pass, the subsidy would be retroactive to September 29, 2007 when the current subsidy expires.

The airline industry was deregulated in 1978 leaving airlines to decide which destinations they would carry to and which they would not. They tended to cut service to smaller airports where profits were low or non-existent. The Essential Air Services program was implemented to guarantee carrier service to 140 small airports. Currently, the subsidies are paid for service to 102 airports at an average of $800,000 to $900,000 yearly per airport.

Sponsor:  Senator John Thune (R-SD)

Vote: Passed Senate by Unanimous Consent October 30, 2007

Cost to the taxpayer: Estimated at $80 million yearly.

Earmark Certification:   Not applicable to this bill.

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