Small cities should prepare for fewer flights

PRESCOTT, Ariz. – The rejection from Air Midwest came swiftly on a one-page fax. The carrier couldn’t afford to fly to the mountain community of Prescott anymore, officials said. The city would simply have to find a new tenant for its tiny airport.

“Everything was going fine

The federal government guaranteed numerous small towns and cities air service 30 years ago when it deregulated the industry. But skyrocketing fuel prices have outpaced subsidies from the Essential Air Service program, and many carriers are either trying to re-negotiate their contracts or dropping out altogether.

According to the Department of Transportation, which administers the program, airlines have asked to opt out of subsidy contracts to 20 cities so far this year. That almost matches 2007’s total of 24 cities. In 2006, airlines asked to drop contracts for 15 cities.

Meanwhile, the federal government plans to slash its Essential Air Service budget for 2009 to $50 million, less than half of its program budget in each of the last seven years.

AP