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Commercial aviation: issues regarding federal assistance for enhancing air service to small communities
U.S. Government
Paperback. Books LLC, Reference Series 2011-10-01.
ISBN 9781234225773
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Publisher description
Original publisher: [Washington, D.C.] : U.S. General Accounting Office, [2003] OCLC Number: (OCoLC)53041831 Subject: Local service airlines -- United States -- Finance. Excerpt: ... of one other airport in the United States that provides these services for an airline. Baker City, Oregon, received a grant of $ 300, 000 to invest in an air taxi * franchise. Baker City has a small population and is in a fairly remote part of Oregon that does not have scheduled airline service. The community decided to pursue an alternative to scheduled service and purchased an air taxi franchise from SkyTaxi, a company that provides on-demand air service. Casper, Wyoming, received a grant of $ 500, 000 to purchase and lease back * an aircraft to an airline to ensure that the airline serves the community. It is fairly unusual for a community to approach air service development by purchasing an aircraft to help defray some of the airline's costs and mitigate some of the airline's risk in providing the service. However, the majority of these grants funded the same types of projects discussed earlier - studies of a community's potential market, marketing activities to stimulate demand for service or to lure an airline, and financial incentives such as subsidies to airlines for providing service. If these communities experience the same results as the other state and local efforts we identified, their efforts are unlikely to attract new or enhanced service for the small communities using them, or if they do, the service will only last as long as these funds are available. Since final grant agreements were signed in December 2002, it is too early to determine how effective the various types of initiatives might prove to be. Additionally, some of the funded projects contain multiple components and some are scheduled to be implemented over several years. Therefore, it might be some time before DOT is able to evaluate the initial group of projects to determine which have been effective in
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Commercial aviation: issues regarding federal assistance for enhancing air service to small communities
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