Payments for Essential Air Services
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
The program provides subsidies to air carriers to serve eligible communities as designated by Congress .
Eligibility
Eligible Applicants
- Municipality/Township Government
The list of eligible municipalities are established by statue and. An air carrier selected to serve these municipalities must be found fit and be selected by the Department to perform the subsidized service.
How to Apply
Award Procedure
Evaluation of applications according to factors established in 49 U.S.C. 41731, et seq., and any Department-established factors.
Decision Timeline
- Appeal: From 15 to 30 days
From 2 to 4 months.
Program details & compliance
Description
The EAS program was created after the Airline Deregulation Act in 1978. After deregulation, air carriers were not required to fly to any given community. The goal of the EAS program was to keep communities that had lost service connected to the national transportation system. This is accomplished by providing a subsidy to interested air carriers which makes the route at an ELIGIBLE community viable/profitable. The subsidy is intended to cover the difference between the cost of operating the route and the estimated passenger revenue.
Mission Categories
Primary: Air Transportation
Other categories:
Economic DevelopmentCommercial FisheriesRural Community DevelopmentGeneral Health and Medical
Use of Funds
Allowed Uses
When necessary subsidy payments are made to air carriers providing air services at certain points. Subsidy is paid to cover the carrier's prospective operating loss, plus a profit element.
Restrictions
The funds are awarded for a very specific and narrow use which is to cover the air carrier's prospective operating loss while providing scheduled service to an eligible community. The only prohibited costs are those associated with running the route.
Required Documentation
Financial statements and detailed operating statistics.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart F — Audit Requirements