US Transportation Department issues notice of subsidy to Essential Air Service air carriers

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The U.S. Department of Transportation announced Wednesday it will address the impact of the COVID-19 pandemic on Essential Air Service (EAS) air carriers through subsidies.

The department issued a notice to all EAS air carriers that it would authorize payments equal to 50 percent of the contracted per-flight subsidy for flights that do not fly, so long as the carrier serving a community in the United States, Hawaii and Puerto Rico completes at least one round trip flight a day, six days a week for that community. In Alaska, the EAS air carrier would have to complete at least 50 percent of its weekly schedule for that community.

The notification permitted those carriers to reduce their schedules due to the significant reduction in passenger demand and seek compensation for the resulting financial impact.

The DOT said it would also not enforce statutory level-of-service requirements in situations where the noncompliance takes place during the period of the coronavirus public health emergency that is creating a significant reduction in passenger demand, so long as the air carrier complies with the level-of-service requirements outlined in the notice and the eligible community the carrier services does not object to the change in service levels.

The plan is effective from March 1, 2020, through June 30, 2020, and applies to all 160 communities that receive EAS subsidized service. The notice does not apply to the eight communities that receive alternate EAS grants from the department.