{"id":455,"date":"2016-10-11T21:05:30","date_gmt":"2016-10-11T21:05:30","guid":{"rendered":"http:\/\/crp.trb.org\/acrp0331\/?page_id=455"},"modified":"2016-11-30T16:51:15","modified_gmt":"2016-11-30T16:51:15","slug":"federal-programs-and-regulations-impacting-air-service","status":"publish","type":"page","link":"https:\/\/crp.trb.org\/acrpwebresource1\/federal-programs-and-regulations-impacting-air-service\/","title":{"rendered":"Federal Programs and Regulations Impacting Air Service"},"content":{"rendered":"

Federal Programs and Regulations Impacting Air Service<\/h1>\n
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The commercial airline industry was deregulated in 1978, providing for additional competition for scheduled air service among air carriers. Although there are still a number of regulations in place to certify the air-worthiness of air carriers, decisions regarding air service routes and fares are in the hands of airlines. Since deregulation, airports had very little say in the level of service provided and airfares offered at their airports. There are several federal and state programs available for air service assistance. A summary of programs and additional resources are provided here.<\/p>\n

EAS<\/span><\/a><\/h4>\n

The U.S. DOT<\/span> has provided subsidies for scheduled service to the most rural U.S. airports, through the EAS<\/span> Program since airline deregulation. 163 rural airports are currently served across the U.S. under this program. Basic information regarding the program and its requirements can be found on the U.S. DOT<\/span> website. Changes to community eligibility and funding caps have recently been added to the program. A summary of the changes to the EAS<\/span> program can be found in the “Tools” section below.<\/p>\n

SCASDP<\/span><\/a><\/h4>\n

SCASDP<\/span> provides grants to help small communities achieve sustainable air service. Airports can apply for the grant by identifying their air service deficiencies and proposing appropriate air service solutions. While many of the grants have been used for revenue guarantees, others have involved studies, start-up costs, and financial assistance for marketing programs.<\/p>\n

FAA<\/span>’s Air Carrier Incentive Programs<\/a><\/h4>\n

The FAA<\/span> provides guidance on air carrier incentive programs, including how federal dollars may be used and how airports can comply with federal grant assurances (See airport role<\/a>). Airline incentives take many forms including airline revenue guarantees, cash payments, marketing support, airport fee waivers, facility improvements and travel banks. Air service development programs often include a mix of incentives that are provided to the target airline or in support of the desired airline service. The amount of incentives that can be provided by an airport are limited due to the FAA<\/span>’s policy and\/or airport grant assurances.<\/p>\n

The FAA<\/span> provides guidance on air carrier incentive programs through a pdf document titled Air Carrier Incentive Program Guidebook: A Reference for Airport Sponsors<\/a>. It is the role of the airport to be aware of these restrictions and determine what can be funded by the airport’s resources. Typical airline incentives include marketing, fee waivers, and facility improvements. One of the most valuable incentives to an airline that cannot be funded by your airport is revenue guarantees, which can be funded by local businesses, universities and Economic Development Corporations or by grants obtained through the SCASDP<\/span><\/a> that also require community participation.<\/p>\n

State Programs<\/h4>\n

Some states have programs in place to provide air service development assistance. Programs have varied in the past from providing marketing assistance to providing assistance with revenue guarantees. A few examples of states with programs at this time include [see Resources<\/a> for program links]:<\/p>\n