Commercial aviation : factors affecting efforts to improve air service at small community airports

52897945PDFPolicy Statementhttp://www.gao.gov/ereport/GAO-11-318SP/data_center_savings/Economic_development/Revising_the_essential_air_service_program_could_improve_efficiency_and_save_over_$20_million_annually#5GAO-03-330AirportsCivil aviationFinancingQuality of serviceUnited States. General Accounting OfficeUnited States. General Accounting OfficeNTL-AVIATION-AVIATIONNTL-AVIATION-Aviation Economics and FinanceNTL-AVIATION-Aviation Planning and PolicyNTL-ECONOMICS AND FINANCE-Aviation Economics and FinanceNTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCEUS Transportation CollectionThe nation\ue2\u20ac\u2122s small communities face a range of fundamental economicchallenges in obtaining and retaining the commercial airline service theydesire or making their existing service more attractive to potentialpassengers. The smallest of these communities, usually served by nonhubairports, typically lack the population base and level of economic activitythat would generate sufficient passenger demand to make them profitableto air carriers. Larger communities in this group, often served by small hubairports, may have enough people to support some level of air service, but not enough to attract additional carriers to compete at that communityairport, thereby providing greater choice and possibly lower fares.Further, if a small community is located within driving distance of a largerairport, this already-limited demand is often diluted because passengersmay drive to the larger airport for better service or cheaper fares. Thesechallenges are exacerbated by an airline industry in economic turmoil.Wall Street analysts have estimated projected industry losses approaching$8 billion in 2002. Some carriers have taken significant steps to cut costsand/or minimize losses by reducing service. At some small communities,this can mean eliminating service altogether