Annual Report - RAA

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Essential Air ServiceIn recent years, airlines, communitiesand other stakeholders have cited theseservice termination notices, among otherissues, as evidence of the program’s failureto keep pace with changes in the airlineindustry and other modes of transportationthat impact passenger traffic atEAS points. New highways and increasedspeed limits, for instance, have resulted ingreater numbers of passengers driving tonearby airports in search of lower fares.The increased operational costs of 19-seatturboprop aircraft, coupled with skyrocketingfuel prices and passenger migration tonearby airports with scheduled air service,have also caused program costs associatedwith EAS to climb sharply.Most stakeholders agree continuedmodification is necessary to improve theprogram, but several recent proposalsto “reform” the program would, in fact,dismantle it. RAA has instead sought toimprove the program while maintaining airservice that is, in fact, essential for smallercommunities.RAA Supports the Essential Air ServiceProgramPresident Bush in December 2003 signedinto law HR 2115, the Century of AviationReauthorization Act (Vision 100), whichprovided DOT with a tool to index airlinecost increases and adjust EAS compensationrates accordingly without requiring airlinesto file termination notices in order torenegotiate contracts. Unfortunately DOTfailed to implement the cost-adjustmentmechanism. Consequently, carriers havesuffered under increased fuel costs withoutreal time subsidy adjustments. BecauseEAS providers have already suffered severefinancial losses for many years underDOT’s failed policy of requiring service terminationnotices to trigger necessary rateadjustments, the fuel cost indexing toolwill no longer provide significant help. Infact, in the years since RAA first suggestedMost stakeholders agreecontinued modification isnecessary to improve theprogram, but several recentproposals to “reform” the[EAS] program would, infact, dismantle it. RAAhas instead sought toimprove the program whilemaintaining air servicethat is, in fact, essential forsmaller communities.this relatively simple solution, several airlinesproviding EAS flights have gone outof business.RAA RecommendationsIn order to make vital changes that willrestore health to the EAS system, RAAproposes the following program improvements,which should be enactedimmediately:1. Increase overall program funding byretaining current standing appropriationof $50 million and authorizing andappropriating an additional $150 millionin FY2009, bringing total programfunding to $200 million. This increasedfunding is necessary in order to continueserving current EAS markets.2. Amend the carrier profit allowancefrom a margin of five percent toa margin of 15 percent. This wouldallow carriers to weather cost fluctuations,which are often significant, overthe lifetime of a contract. As such, anincrease in the profit allowance wouldreduce instances of service terminationas the sole means of carrier survival,and more importantly, help preservecommunity trust in the program.3. Increase the per-passenger subsidycap to $300 per-passenger in order toaccommodate unavoidable programcost increases associated with fueland other rising costs. The subsidy capshould also be indexed for inflation.4. Lengthen DOT’s commitment to carriersfrom the current two-year model to aperiod of five years for EAS contracts.Longer contracts will provide carriersgreater access to capital when financingaircraft, and ensure stability to the communities.Current EAS Funding StatusEAS has been inadequately funded in recentyears, with DOT subsidizing service at140 communities. Lawmakers in the 110thCongress do not expect to pass EAS fundinglegislation before they adjourn, butexpect to address EAS funding early in the111th Congress. In its most recent budgetrequests, the Administration has soughtto cut or eliminate the program, mostrecently proposing to limit funding for theprogram to $50 million per year, allocatingthose reduced funds to the most isolatedcommunities according to distance to theextent allowed by available funds. Underthis proposal, more than one half of thecommunities currently receiving subsidizedair service would lose service. Congress hasrejected these cuts, with some congressionalleaders suggesting that the Departmentof Transportation has lost sight ofthe history of the EAS program, and ofwhy it exists.As a new Congress and Administrationtake office next year, RAA will be workingto educate lawmakers – not only on therole EAS has played in upholding Congress’commitment to communities during airlinederegulation; but also on the reforms andimprovements we know to be vital for thefuture of this important program.54RAA 2008 Annual Report
Essential Air Service Section 419Compensation by Carrier and Community - July 2008AlabamaEAS Community Airline Service Annual Order Expirationto hub EAS Rate NumberMuscle Shoals Mesaba Memphis $1,504,929 2006-11-12 1/31/09OST-2000-7856Arizona EAS Community Airline Service Annual Order Expirationto hub EAS Rate NumberKingman Great Lakes Phoenix/ $1,275,771 2008-6-11 2 YearsOST-1996-1899Las VegasPage Great Lakes Phoenix $1,497,556 2007-6-10 9/30/09OST-2000-7856Prescott Great Lakes Phoenix/ $1,622,719 2008-6-11 9/30/101996-1899 Las VegasShow Low Great Lakes Phoenix $988,181 2007-6-10 9/30/091998-4409ArkansasCaliforniaEAS Community Airline Service Annual Order Expirationto hub EAS Rate NumberEl Dorado/Camden Great Lakes Dallas $2,311,637 2008-7-8 2 Years1997-2935Harrison Great Lakes Kansas City $1,587,067 2008-7-8 2 Years1997-2935Hot Springs Great Lakes Kansas City $1,991,307 2008-7-8 2 Years1997-2935Jonesboro Great Lakes St. Louis $1,607,385 2008-5-2 2 Years1997-2935EAS Community Airline Service Annual Order Expirationto hub EAS Rate NumberCresent City SkyWest San Francisco/ $1,136,896 2008-4-23 7/31/101997-2649 SacramentoMerced Great Lakes Las Vegas $1,541,365 2008-6-26 8/31/101998-3521Visalia Great Lakes Las Vegas $1,494,319 2008-6-26 8/31/102004-19916ImperialTBD2005-21191Essential Air ServiceColoradoEAS Community Airline Service Annual Order Expirationto hub EAS Rate NumberAlamosa Great Lakes Denver $1,853,475 2008-5-24 7/31/101997-2960Cortez Great Lakes Denver $1,297,562 2008-5-24 7/31/101998-3508Pueblo Great Lakes Denver $1,057,128 2007-11-10 1/31/101999-6589RAA 2008 Annual Report 55
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2008Annual Report
Page 4 and 5:
We offer the longest running Compon
Page 6 and 7: educe turn timeGreater worldwide su
Page 8 and 9: Great service forsmall enginesOutst
Page 10 and 11: Thank you!to all of our 2008 Conven
Page 13 and 14: 2007 US Summary StatisticsRAA 2008
Page 15 and 16: Industry Traffic Statistics2003 200
Page 17 and 18: Passengers EnplanedPassengers Enpla
Page 19 and 20: Corporate Groupings of Top 50 Regio
Page 21 and 22: Regional Airline FleetScheduled Pas
Page 23 and 24: Accidents, Fatalities and Rates, 19
Page 25 and 26: Regional Aircraft Statistics
Page 27 and 28: Regional Aircraft Distribution by C
Page 29: US Airports and Regional Service(St
Page 32 and 33: US Airports Served Exclusively by R
Page 34 and 35: Passenger Service in United States(
Page 36 and 37: ConnecticutRegional only (95% and a
Page 38 and 39: IndianaRegional only (95% and above
Page 40 and 41: MarylandRegional only (95% and abov
Page 42 and 43: MontanaRegional only (95% and above
Page 44 and 45: Regional only (95% and above)Region
Page 46 and 47: PennsylvaniaRegional only (95% and
Page 48 and 49: UtahRegional only (95% and above)Re
Page 50 and 51: Regional only (95% and above)Region
Page 52 and 53: HawaiiRegional only (95% and above)
Page 54 and 55: LOWcost of ownership is built into
Page 58 and 59: GeorgiaEAS Community Airline Servic
Page 60 and 61: MontanaEAS Community Airline Servic
Page 62 and 63: PennsylvaniaEAS Community Airline S
Page 64: AlaskaEssential Air ServiceEAS Comm
Page 69 and 70: RAA Member AirlinesAerolineas Meso
Page 71 and 72: Era Aviation, Inc.6160 Carl Brady D
Page 73 and 74: Republic Airlines, Inc.dba US Airwa
Page 75 and 76: OxygenBottleContainersTireToteBagCa
Page 77 and 78: Associate Member Directory
Page 79 and 80: AssociateMemberCouncil2007-2008AMC
Page 81 and 82: Associate Member Index A-ZEpic Avia
Page 83 and 84: Associate Member Index by CategoryA
Page 85 and 86: Associate Member Index by CategoryF
Page 87 and 88: Perrone Aerospace182 Riverside Driv
Page 89 and 90: Heads Up Technologies2033 Chennault
Page 91 and 92: Accel Aviation Accessories, LLC1190
Page 93 and 94: Aerospace Welding890 Michele-BohecB
Page 95 and 96: Aviation Representatives (Av-Reps)
Page 97 and 98: Emery Air, IncOne Airport CircleRoc
Page 99 and 100: Hawker Pacific Aerospace /CONT’Da
Page 101 and 102: Messier Services Americas1400 Woodl
Page 103 and 104: Perkins Aircraft Services, Inc2300
Page 105 and 106: Southern Aeroparts Ametek10837 E. M
Page 107 and 108:
Unicorp Systems, Inc /CONT’D.Avia
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Engage Aviation, LLC5580 Ships Chan
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Aero Quality Sales47 Harbor View Av
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Interturbine Logistik GmbH /CONT’
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TBM, Inc6662 Olive BlvdSt. Louis, M
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BAE SYSTEMS Regional Aircraft13850
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Flight Training Services Internatio
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InsuranceAIG Aviation, Inc100 Colon
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Professional Aviation Board of Cert
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PublicationsSpecialized ServicesAir
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FFC Services / Floats & Fuel Cells4
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Sabre, Inc3150 Sabre DriveSouthlake
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Reference
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North American Scheduled Carrier Le
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Airport CodesELD.........El Dorado
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Airport CodesRBY.........Ruby AKRCP
Page 140:
TheCRJ NextGen Familywith the all-n
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