About UPI  |  UPI en Español   |   My Account
Free News Update:
United Press International - News. Analysis. Insight.™ - 100 Years of Journalistic Excellence
  • Home
  • Top News
  • Entertainment
  • Odd News
  • Sports
    • Baseball
    • Football
    • Golf
    • Olympics 2008
    • Tennis
  • Business
  • Science
  • Health
  • Analysis
    • Energy Resources
    • Security Industry
    • Emerging Threats
  • Video
  • News Photos
Search:
Go
Advertise on UPI
You are here:  Home / Business News / Subsidy helps keep small airports on radar

Business News

View archive | RSS Feed

Subsidy helps keep small airports on radar

Published: Dec. 31, 2007 at 1:29 PM
Order reprints  |  Print Story  |  Email to a Friend  |  Post a Comment
House Airline Safety Bill Stalled
WAP2001103058 - 30 OCTOBER 2001 - WASHINGTON, D.C., USA: Rep. James Oberstar (D-MN) speaks about the importance of passing an airline safety bill as Sen. John McCain (R-AZ) and Rep. Greg Ganske (R-IA) listen in October 30, 2001, on Capitol Hill in Washington. A bill has passed the Senate and awaits action in Congress. rlw/Roger L. Wollenberg UPI

WASHINGTON, Dec. 31 (UPI) -- A 30-year-old U.S. government subsidy program that helps provide commercial air service to smaller communities grows despite criticism in Washington.

Critics, such as the U.S. Department of Transportation, said the subsidy -- which can underwrite up to 93 percent of a flight's cost -- is essentially luxury travel for people within driving distance of a larger airport, USA Today reported Monday. The subsidies expanded in recent years, thanks, in part, to support from the U.S. Congress, airlines and airports.

U.S. lawmakers, rejecting proposed Transportation Department cuts, allocated $110 million for the Essential Air Service program for 2008. Congress also blocked the department from requiring some communities to pick up a portion of the cost in an effort to prompt local officials to promote flights and draw more passengers.

"This is a compact of rural America with urban America," Rep. Jim Oberstar, D-Minn., chairman of the House Transportation and Infrastructure Committee, told USA Today. He wrote the law enacting the program in 1978 to bar airlines from fleeing small communities when airline deregulation began.

Department of Transportatoion administrators, saying the program is becoming harder to justify, is trying end subsidized flights to about 65 communities that are within 230 miles of larger airports.



© 2007 United Press International, Inc. All Rights Reserved.
News Photos Slideshows
Photos of the Day
Week in Photos
News
Entertainment
Sports
Features
Archives
Olympics 2008
Path to the Presidency
Most Popular
Stories
Photos
Videos
1.
Crude oil prices slide Wednesday
2.
Crude oil prices rebound Tuesday
3.
Crude oil prices notch down Thursday
4.
Kellogg lands Phelps for cereal gig
5.
Oil prices pressured by storm fears
Path to the Presidency


Videos
Enlarge Video
Delegates' reaction: McCain's speech
Delegates' reaction: McCain's speech
Friday, September 5
Hats off to partying on
Hats off to partying on
Thursday, September 4
McCain set to accept party nomination
McCain set to accept party nomination
Thursday, September 4
Household vampires
Household vampires
Wednesday, August 6
© 2008 United Press International, Inc. All Rights Reserved. Official Government Wires  |   About UPI  |   Site Map  |   Terms of Use  |   Privacy Policy  |   Advertise Online  |   Contact Us

Sponsored Links: College Football Tickets - Fundraisers - Press Release Services - prom dresses - Prom dresses and gowns - Wedding and Honeymoon Experts - Auto Dealers - Motivational Sports Speakers Bureau