An Exploration of the Effectiveness of the Essential Air Service ProgramEssential Air Service Program

Abstract

This paper is a study of the Essential Air Service program and its effects on airports in rural communities. The Essential Air Services (EAS) Program is one that provides air carries subsidies to rural airports so that these airports can maintain flights to larger airports and continue to provide necessary services to their community. This program was put together after the 1978 Airline Deregulation Act that gave airlines almost total freedom to where they provide services, automatically causing concern for the fate of the rural airports. The Essential Air Services Program was only meant to be a short-term program but has stayed for almost 50 years. There is debate on whether this program is necessary, and how the criteria is used to choose which airports get the Essential Air Services and which do not. This paper focuses on Essential Air Service airports that were participants or left the program during 1993 – 1994. It studies the changes that occurred for six airports that left the program December 1, 1993, specifically the change in market fare charged to consumers.