President Donald Trump inaugural budget includes a proposal to eliminate the program that subsidizes commercial air service to Harrison, Hot Springs and El Dorado.
RELATED ARTICLES
http://www.arkansas…">Moans over budget bipartisan http://www.arkansas…">Proposed HUD cutback worries officials in state http://www.arkansas…">Pledged border wall in budget http://www.arkansas…">Trump’s plan guts agency boosting Delta http://www.arkansas…">Budget plan backs air traffic spinoff
After the deregulation of the airline industry in 1978, the Essential Air Service program was designed to protect small communities when airlines pulled out of less-profitable, isolated communities. It was originally supposed to last 10 years but has remained funded ever since.
In December, the Department of Transportation approved $7 million in funding for service from Southern Airways Express across the three Arkansas airports over two years. In 2015, according to the Federal Aviation Administration, more than 11,000 passengers boarded planes from Arkansas' Essential Air Service airports.
The proposal explained that Essential Air Service flights "are not full and have high subsidy costs per passenger," and asserted "several ... eligible communities are relatively close to major airports, and communities that have [the service] could be served by other existing modes of transportation."
[TRUMP'S BUDGET: Explore proposed cuts, additions by agency]
"If the [Essential Air Service program] is eliminated we would lose air service as airlines cannot financially provide service to small communities without the subsidy," said Judy McCutcheon, manager of Boone County Regional Airport in Harrison. The elimination would "hurt any growth for business and possibly cost existing businesses located in Harrison," she said.
Tim Johnson, manager of South Arkansas Regional Airport in El Dorado, said the proposal is unsurprising: "There have been rumors for years over past administrations," he said.
Glen Barentine, director of Hot Springs Memorial Field Airport, said, "I believe this is a stronger stance than in the past. In the past I've seen where they were going to cut certain cities, not the entire program, period. So that's new."
In terms of the future of the airport, he said it would remain stable as most of its business comes from the about 100 private airplanes based there.
[PRESIDENT TRUMP: Timeline, appointments, executive orders + guide to actions in first 100 days]
William Swelbar, executive vice president at InterVistas Consulting in Washington, D.C., is working to put together an alliance to lobby for issues facing small and nonhub airports.
"I think this time it's a little different. It's a new sheriff in town. [The President] clearly is not fond of these types of programs," Swelbar said. "Do I think that total elimination is where we end up? No. Do I think the program could be modernized and made better? Yes."
"We're all throwing darts against a board with this guy," he said of Trump. "Who am I kidding to say I know how he thinks? But it's time to give the program a serious review."
Swelbar said the program has not been re-evaluated in any significant way since 1978.
"Can we improve it? I think we can," Swelbar. "So let's have a debate."
Business on 03/17/2017