DOT 111-02
Friday, December 20, 2002
Contact: Bill Mosley
Tel.: (202) 366-5571
DOT
Awards Small-Community Air Service Grants To Chico, CA, and Telluride, CO
The U.S. Department of Transportation (DOT) today awarded
grants to Telluride, CO, and Chico, CA, under a program to help smaller U.S.
communities enhance their airline service.
Telluride received a grant of $300,000 and Chico $44,000 to help them
address local air service needs.
The funds come from the Small Community Air Service
Development Pilot Program, which was authorized by the Aviation Investment and
Reform Act for the 21st Century.
The program was designed to help the communities address their local air
service problems, such as high fares and insufficient levels of service.
DOT was authorized to award grants totaling $20 million to up to 40
communities, no more than four of which could be from the same state.
“The goal of this program is to help smaller communities
develop and improve their access to the national air transportation system,”
Secretary Mineta said. “We will
monitor these programs and use the results to better assist other communities in
the future.”
On June 26, DOT awarded grants to 40 communities in 38
states. The applications submitted
by Chico and Telluride were not among those granted at that time.
Two communities that received grants – Pasco, WA, and the consortium of
Houghton and Pellston, MI – subsequently notified the department that they
would decline the awards. This
allowed DOT to reallocate these funds to other communities.
In an order issued today, the department said that, among the applications not previously granted and that sought grants within the grant funds available, the proposals of Telluride and Chico best meet the goals of the program and will provide an important opportunity to test different approaches to improving air service at small communities.
Telluride proposes to use its grant award to promote
service at its airport in order to increase ridership, improve scheduling of
existing services and secure service to an additional hub to provide greater
access to the community. In
addition to the grant funds, Telluride plans to contribute $210,000 to the
project.
Chico plans to conduct a study to determine the most
feasible air service routes and to recruit a second carrier to the community.
In addition to the grant funds, Chico plans to contribute $30,000 toward
its project.
In soliciting proposals, DOT invited communities to develop
their own innovative solutions and seek federal financial assistance for their
projects. Eligible projects
included subsidies and financial incentives to air carriers, studies and
marketing programs. The department
received 180 proposals from 47 states, seeking nearly $143 million.
The department’s order, carrier applications and comments on the program are available on the Internet at http://dms.dot.gov, docket number OST-2002-11590.
###