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Metropolitan Washington Airports base them on a hypothetical debt designed to assure full reimbursement to the Treasury of appropriated funds. Fees are low at the airports because the airports are efficiently run and the level of capital investment has been low.

SENATOR CHILES: Governor Holton has informed me that National and Dulles cannot receive AIP funds. What is the history of this situation? Should we change it? If not, why not?

ANSWER: The laws authorizing the AIP and predecessor airport grant programs have excluded federally-owned airports from eligibility. There would be obvious questions of propriety and conflict of interest if FAA were in a position of awarding grant funds to its own airports, particularly since requests for AIP grants always exceed program availability.

Under the Department's proposal to transfer the two Washington airports to a regional airports authority, both National and Dulles would become eligible to receive AIP grants. Pending resolution of this initiative, we would not propose pursuing changes to the current AIP statute.

QUESTION SUBMITTED BY SENATOR BYRD

ESSENTIAL AIR SERVICE SUBSIDIES

SENATOR BYRD: The FY 1986 Budget proposes the elimination of the essential air services subsidy program. The Airline Deregulation Act provided for this subsidy for a ten year period -through 1988 -- to guarantee air service to small communities. As a matter of fact, I have written to the Secretary of Transportation to express my grave concerns over the elimination of this subsidy. I quote in part from her response:

"...The airline industry, which has matured and adjusted

to deregulation and is earning the highest profits since 1978, should now be prepared to meet the transportation needs of most of these communities without our intervention." This may be true in some states; however, I can tell you that this is not true in West Virginia. Since deregulation, most major airline carriers have pulled out of West Virginia, and we now have limited commuter airline service in my state. The cost of traveling to West Virginia in most instances is more than traveling to the West Coast -- you can travel from Washington, D.C. to California at a cost of $99. It costs half as much again to travel to Beckley, West Virginia, and we are talking of a distance of less than 300 miles. Beckley is one of those communities that receives the essential air service subsidy there are four other communities in West Virginia that have benefited from that program -- Bluefield, Clarksburg, Morgantown, and Elkins.

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Let me outline a scenario of what is happening in rural states like West Virginia.

1.

With airline deregulation, the major carriers pulled out of

most of the airports in West Virginia, with the exception of

Charleston and Huntington.

2. Because of the Essential Air Service Program, the transition to commuter service was made without wholesale loss of air service to small and rural communities.

3. With the advent of commuter service and a reduced number of flights, passenger counts fell.

4. In spite of the terrain and adverse weather conditions making flying hazardous in my state, FAA made several attempts to close various flight service stations and air traffic control towers. 5. In spite of the fact that people flying into West Virginia pay almost half as much again in fares as those going to California, DOT is now proposing that the essential flight service subsidy be eliminated.

6. This will further jeopardize air service to West Virginia. While I am pleased to note that the airline industry has made its greatest profit since 1978, anyone who thinks that major air carriers are going to provide service to rural areas out of the goodness of their hearts is just simply not looking at the record. Would you provide a list of all commercial carriers, types of aircraft, and flight schedules for all West Virginia airports prior to 1978: Would you also supply the same information for 1985?

ANSWER: Table 1, attached, shows the carriers, types of aircraft, and weekly aircraft departures for the nine West Virginia points served in the months of April 1977. and. April 1985.

Table 2, attached, shows the percentage changes in weekly departures and seats at the nine West Virginia points between April 1977 and April 1985.

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Table 1

AIR CARRIERS SERVING WEST VIRGINIA POINTS, AIRCRAFT USED, AND WEEKLY DEPARTURES
April 1977 and April 1985

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SUBCOMMITTEE RECESS

Senator ABDNOR. Thank you. The subcommittee will now stand in recess until 10 a.m., Thursday, April 18.

[Whereupon, at 12:10 p.m., Thursday, April 4, the subcommittee was recessed, to reconvene at 10 a.m., Thursday, April 18.]

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