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By Jim Douglas |
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September 21, 2010
- Gulfstream International Group, Inc. announced that it will receive
$8.5 million in federal subsidies as part of the Essential Air Service
Program for five routes for small communities around
The U.S.
Department of Transportation (“DOT”) has awarded the Company new
two-year contracts as the Essential Air Service provider for the
communities of
The federal funds
are granted under the Essential Air Service Program. Essential Air
Service (EAS) is a |
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Its aim is to
maintain a minimal level of scheduled air service to these communities
that otherwise would not be profitable. This came in response to the
Airline Deregulation Act, passed in 1978, which gave
The United States
Department of Transportation (DOT) subsidizes airlines to serve rural
communities across the country that otherwise would not receive any
scheduled air service. As of June 1, 2009, 152 communities are being
served with a subsidy, of which 45 are from
The decision as to
what degree of subsidized service a community requires is made based on
identifying a specific hub for the community and from there determining
the number of trips, seats, and type of aircraft that are necessary to
reach that hub. |
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