"Regional air service subsidies to be cut"

Saturday, February 8, 2003

Regional air service subsidies to be cut
The Lincoln (NE) Journal Star


President Bush's budget would reduce subsidies for airline service to small
cities, including at least six in Nebraska.

Last year, Essential Air Service was funded at $113 million. Bush's budget
would cut it to $50 million and require cities that do receive funding to
pay a percentage of the costs, depending on the city's distance from a
larger hub airport.

Nebraska cities that would be affected include Kearney, Norfolk, McCook,
North Platte, Alliance and Chadron. Those cities received $5.6 million last
year.

For example, Great Lakes Aviation last year received $839,000 -- or about
$168 per passenger -- to carry 4,996 passengers from Kearney Municipal
Airport to Denver International Airport.

Under Bush's proposal, Kearney and Norfolk would have to pay 25 percent of
the costs because they are relatively close to Omaha, a hub airport.

"The secretary of transportation will then rank these communities in order
of relative decreasing distance from the nearest large, medium or small hub
airport and provide subsidies, beginning with the most isolated, until not
more than $50 million is obligated," said David DiMartino, an aide to Sen.
Ben Nelson, D-Neb.

Last year Bush's budget contained $50 million for Essential Air Service
subsidies, but Nelson and other senators attained additional funds in an
airport security bill. DiMartino said Nelson was determined to improve the
funds.

A spokeswoman for Sen. Chuck Hagel, R-Neb., said Hagel was confident the
funds would increase above Bush's proposal.

Lincoln Airport Authority executive director John Wood said any service cuts
to outstate airports will have a minimal effect on the Lincoln airport. He
said about half of its passengers live in the outstate areas.

If Great Lakes Aviation were to stop serving one or more of the airports
receiving subsidies, people using those airports likely would fly direct
from Lincoln, Omaha, Denver or from Kansas City, Mo., Wood said.

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