“Small airports subsidy cut could hit home”

Small airports subsidy cut could hit home

Posted: 16 Feb 2011 09:39 PM PST

AUGUSTA

Posted: February 17
Updated: Today at 10:46 PM

Panel votes to eliminate the $200 million Essential Air Service program

By Jonathan Riskind jriskind@mainetoday.com
MaineToday Media Washington Bureau Chief

WASHINGTON -- A proposal to eliminate federal subsidies to airlines for offering service to smaller communities could threaten some Maine airports.

A House committee voted Wednesday to eliminate the $200 million Essential Air Service program, which supports service to 110 small and often remote airports nationwide, including those in Augusta, Presque Isle, Bar Harbor and Rockland.

The measure passed the Transportation Committee by a 34-25 vote, with U.S. Rep. Mike Michaud voting against it. The plan now goes to the full House.

The subsidies program also faces scrutiny in the Senate, where U.S. Sen. John McCain, R-Ariz., is among those calling it an example of federal spending that needs to be cut.

But Michaud, a Democrat who represents Maine's 2nd Congressional District, says the Essential Air Service program is a critical lifeline to passenger air service for many Mainers, giving airlines a needed financial incentive to continue serving less traveled routes. The program could be improved, but should not be eliminated, Michaud said. He noted that Alaska, the home state of the second-ranking GOP member of the committee, Rep. Don Young, is the only state spared from the cut.

"Airports serve as significant economic centers of communities and entire regions. Without them we'd have an even tougher time attracting businesses to our state, promoting economic development and creating jobs," Michaud said in a statement. "I support updating the program to make it more efficient, but eliminating it will force airports in Maine to close their doors, dealing a significant blow to local economies around our state."

The measure to eliminate the program was included by the committee in a broader bill renewing Federal Aviation Administration rules and policies.

The loss of the federal subsidy program would have a "devastating impact" on Augusta State Airport, said John Guimond, the airport manager.

The airport just managed to cut in half the subsidy paid to the single carrier that flies commercial passenger planes into Augusta, Guimond said. It signed a contract for service starting Dec. 1 with a small commuter airline, Cape Air, which required just a $1.2 million subsidy to provide the service. That is down from a $2.4 million subsidy required by the previous Augusta carrier, Colgan/USAirways.

The Augusta airport, which maintains a healthy business serving private planes, would stay open even if the federal program is eliminated, but it would have to cut staff and other services, Guimond said.

The potential loss of the subsidy is especially disappointing because with the new airline, the airport is shooting for 6,000 to 7,000 passengers flying into Augusta this year, up from about 4,000 to 5,000 last year, Guimond said.

Jonathan Riskind -- 791-6280

jriskind@mainetoday.com.

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