For Immediate Release                           June 11, 2003
Contact: Paul Feenstra - 202-226-8279

U.S. HOUSE APPROVES PETERSON AMENDMENT TO REMOVE COST-SHARING REQUIREMENT FOR RURAL AIRPORTS RECEIVING ESSENTIAL AIR SERVICE FUNDS

WASHINGTON -- The U.S. House of Representatives approved an amendment to the Federal Aviation Administration (FAA) reauthorization bill today that removes a provision which threatened to raise costs and eliminate commercial air service to many rural communities across the country.

By unanimous consent, the House passed an amendment introduced by U.S. Representatives John Peterson (R-PA/5), John McHugh (R-NY/23), and Bill Shuster (R-PA/9) to remove a new cost-sharing requirement in the Essential Air Service (EAS) program that would have phased in a 10 percent matching requirement for communities that are less than 170 miles from a medium or large hub, or less than 75 miles from a small hub.

The requirement would have threatened air service to rural communities in 24 states, and would have affected several airports in Pennsylvania including those in Venango County, Bradford, Altoona and Johnstown.  Other states with airports that would be harmed by the provision include Alabama, Arizona, Arkansas, California, Colorado, Georgia, Illinois, Iowa, Kentucky, Maine, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, Oklahoma, Tennessee, Texas, Vermont, Virginia, West Virginia, and Wyoming.

Established by Congress in 1978, the EAS program ensures that communities that had commercial air service before deregulation continue to receive scheduled air service.  Without EAS, many rural communities would be completely without commercial air service.

"Across the nation, rural communities are facing budget deficits and ever-increasing hurdles when it comes to job creation and economic development," said Peterson.  "The Venango Regional Airport in northwest Pennsylvania currently lacks the $5,200 necessary to effectively market their air fares and service, yet they would be required to pay more than $87,000 per year if this cost-sharing plan were fully implemented.  While thousands of dollars may not seem like much money in Washington D.C., it can mean the difference between continuing air service or shutting the doors for many small airports.  I would like to thank my colleagues for recognizing the challenges faced by our rural airports and supporting this amendment to help preserve air service to rural communities."

The House passed the FAA reauthorization bill today by a vote of 418 to 8.  The U.S. Senate must still pass the legislation before it can be sent to the President for his signature.

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