Early last year, the President signed the “FAA Modernization and Reform Act of 2012,” authorizing spending for the Federal Aviation Administration and the programs it runs. Included were reforms of the Essential Air Service (EAS). Recognizing the program needed reform, in part because its costs were exploding, authorizers made eligibility changes intended to bump the most expensive airports and imposed reductions in annual funding to lessen the overall taxpayer burden.
For three primary reasons, the reforms aren’t working. Three airports have been removed (leaving 115 non-Alaskan EAS subsidized airports), but the program’s cost continues to escalate.
To read this analysis: FULL ANALYSIS.
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