USDOT issues order on air carriers service obligations to receive CARES Act money

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The U. S. Department of Transportation (USDOT) issued its final order on Tuesday, establishing minimum air services for air carriers receiving financial assistance under the Coronavirus Aid, Recovery, and Economic Security Act (CARES Act).

According to the new orders, both passenger and cargo air carriers are covered by the order, which requires them to maintain a minimum level of flights to the communities they served before March 1, while adjusting for seasonal services. The department said it would use scheduled data combined with T100 traffic data to determine what those communities would be.

The CARES Act allows the Secretary of Transportation to require “to the extent reasonable and practicable,” that air carriers receiving financial assistance under the act maintain scheduled air transportation services. In drafting the proposed parameters of the act, the USDOT opened the proposal up for comments.

“Several air carriers, including Allegiant, Frontier, Sun Country, Spirit, United, Delta, Alaska, and Ravn, as well as (Airlines For America) and (National Air Carrier Association) objected, noting that most carriers, but especially low-cost and ultra-low-cost carriers, operate significant amounts of seasonal service and that it would not be reasonable, practicable, or in the public interest to require carriers to operate to all points served during a given week in February throughout the summer,” the order stated. “For example, NACA states that, ‘[b]y not taking into account the seasonality of air service provided by a large number of air carriers, including [ultra-low-cost carriers], the obligation effectively would require carriers to maintain a schedule developed for the peak winter travel season into the spring travel season and beyond.’ Similarly, A4A urges the Department to clarify that, if seasonal service is included in the minimum service baseline, carriers should not be obligated to continue that service beyond the season in which the service is and has been historically scheduled.”

The orders do not apply to air taxis and charter services, the order said.

The minimum flight levels per the order will remain in effect until Sept. 30, 2020, the department said but may be extended if the need arises.