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| 20.901 PAYMENTS FOR ESSENTIAL AIR SERVICES |
| FEDERAL AGENCY |
| OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION |
| AUTHORIZATION |
| 49 U.S.C. 41731 - 41742. |
| OBJECTIVES |
| To assure that air transportation is provided to eligible communities by subsidizing air carriers when necessary to provide service. |
| TYPES OF ASSISTANCE |
| Direct Payments for Specified Use. |
| USES AND USE RESTRICTIONS |
| 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. |
| Applicant Eligibility |
| Air carrier must be found fit and be selected by the Department to perform the subsidized service. |
| Beneficiary Eligibility |
| Air carriers and eligible local communities. |
| Credentials/Documentation |
| Financial statements and detailed operating statistics. |
| Preapplication Coordination |
| None. This program is excluded from coverage under E.O. 12372. |
| Application Procedure |
| In accordance with 14 CFR, Part 271, and specific Department requests in docketed cases. |
| Award Procedure |
| Evaluation of applications according to factors established in 49 U.S.C. 41731, et seq., and any Department-established factors. |
| Deadlines |
| None. |
| Range of Approval/Disapproval Time |
| From 2 to 4 months. |
| Appeals |
| In accordance with 14 CFR, Part 302.14. |
| Renewals |
| If selected air carrier is willing to renew, renewal may be by show-cause procedures under Part 302 of the Department's regulations; otherwise, application procedures are repeated. |
| Formula and Matching Requirements |
| None. |
| Length and Time Phasing of Assistance |
| In accordance with Department evaluation and determination of demonstrated need. |
| Reports |
| None. |
| Audits |
| Air carriers are subject to audits of financial and operational fitness, of major contested claims of compensation for continued service, and of monthly billings to the Department for subsidy. |
| Records |
| Air carriers must retain all books, records and other source and summary documentation for 7 years to support subsidy claims. |
| Account Identification |
| 69-8304-0-7-402. |
| Obligations |
| (Direct payments) FY 07 $50,000,000; FY 08 est not available; and FY 09 est not reported. |
| Range and Average of Financial Assistance |
| For continental United States: $247,122 to $1,733,997 annually per point; $636,161 annually per point average. |
| PROGRAM ACCOMPLISHMENTS |
| Essential air service has been maintained with subsidy support at approximately 154 communities affected by airline deregulation. |
| REGULATIONS, GUIDELINES, AND LITERATURE |
| 49 U.S.C. 41731, et seq.; 14 CFR, Parts 204, 271, 323, 325, 398. |
| Regional or Local Office |
| None. |
| Headquarters Office |
| Director, Office of Aviation Analysis, X-50, Department of Transportation, 400 Seventh Street, SW., Washington, DC 20590. Telephone: (202) 366-5903 Use the same number for FTS. |
| Web Site Address |
| http://ostpxweb.dot.gov/aviation/index.html |
| RELATED PROGRAMS |
| None. |
| EXAMPLES OF FUNDED PROJECTS |
| (1) Great Lakes Aviation-Essential Air Service to Alliance, Chadron, Kearney, and McCook, Nebraska. (2) Big Sky Airlines-Essential Air Service to Glasgow, Glendive, Havre, Lewistown, Miles City, Sidney, and Wolf Point, Montana. (3) Alaska Airlines-Essential Air Service to Cordova, Gustavus, Petersburg, Wrangell, and Yakutat, Alaska. |
| CRITERIA FOR SELECTING PROPOSALS |
| Established by statute and by precedent in individual docketed cases. |
|
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |
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