Federal subsidy that helps fund Valley airports criticized | McClatchy Washington Bureau

×
Sign In
Sign In
    • Customer Service
    • Mobile & Apps
    • Contact Us
    • Newsletters
    • Subscriber Services

    • All White House
    • Russia
    • All Congress
    • Budget
    • All Justice
    • Supreme Court
    • DOJ
    • Criminal Justice
    • All Elections
    • Campaigns
    • Midterms
    • The Influencer Series
    • All Policy
    • National Security
    • Guantanamo
    • Environment
    • Climate
    • Energy
    • Water Rights
    • Guns
    • Poverty
    • Health Care
    • Immigration
    • Trade
    • Civil Rights
    • Agriculture
    • Technology
    • Cybersecurity
    • All Nation & World
    • National
    • Regional
    • The East
    • The West
    • The Midwest
    • The South
    • World
    • Diplomacy
    • Latin America
    • Investigations
  • Podcasts
    • All Opinion
    • Political Cartoons

  • Our Newsrooms

You have viewed all your free articles this month

Subscribe

Or subscribe with your Google account and let Google manage your subscription.

Politics & Government

Federal subsidy that helps fund Valley airports criticized

Michael Doyle - McClatchy Newspapers

May 19, 2008 04:22 PM

WASHINGTON — A federal subsidy that's funded air travel through Fresno, Modesto and other Central Valley cities has often failed to meet its goals, auditors warn in a new report.

The Valley cities have received hundreds of thousands of dollars in recent years from the Small Community Air Service Development Program. The money is supposed to help small airports gain financial altitude, but auditors question the grants' long-term worth.

"We found that half of the grants we reviewed failed to achieve (any of) their objectives, or were unable to sustain the resulting benefits beyond their grant horizon," the Transportation Department Office of Inspector General noted.

Seventy percent of the air service grant recipients failed to meet all of their stated objectives, auditors added. Typically, the grants provide either revenue guarantees to the airlines or support advertising and marketing aimed at boosting local air travel.

The critical audit could provide political ammunition for the Bush administration, which opposes the air service subsidy. Until now, Congress has kept the money flowing, with grants totaling about $100 million since 2002.

"Sometimes, the programs do work out; there have been grant success stories," Jerome Thiele, manager of the Modesto Airport, said Monday, "and there have also been times when (the grant) is not enough money."

Neither the Fresno nor Modesto grants appeared to work out. In both cases, the federal subsidy helped spur local air traffic -- but not for long.

The grants are different than the long-running Essential Air Service subsidy, which provides annual funding for the Merced and Visalia airports. Congress initially launched the Essential Air Service as a temporary program 30 years ago, but it has long since become permanent.

The separate Small Community Air Service Development Program is set to expire Sept. 30. Despite criticism, lawmakers savor the program as a way to help local airports.

"These programs are incredibly important to rural communities, and to the people who live in these rural communities," Rep. Mike Thompson, D-St. Helena, told the House Transportation and Infrastructure Committee.

Modesto, for instance, received a $550,000 air service grant in 2005. Fresno received a $1 million air service grant in 2003. Stockton received $400,000 last year, while Visalia received $200,000 in 2002.

Fresno's $1 million grant helped offset some of Frontier Airlines' costs for boosting service to Denver. The Modesto grant was to help SkyWest Airlines provide service to Los Angeles.

The new 40-page audit examines the overall program and does not specifically criticize any of the San Joaquin Valley grants. But for Valley cities, air service has proven volatile in the years since the grants were received.

SkyWest's traffic through Modesto, for instance, jumped from 35,000 passengers in 2005 to 96,000 last year, Transportation Department records show. But in March, SkyWest cited high fuel prices and insufficient revenue in announcing it would discontinue its four round-trip flights to Los Angeles in June.

"They cannot charge enough to make it profitable," Thiele said. "When they do charge more, we lose passengers to Sacramento (or other airports)," Thiele said.

Fresno Yosemite International Airport passenger traffic jumped from 990,000 in 2003 to 1.2 million last year, Transportation Department records show. The subsidized Frontier Airlines flights to Denver, though, collapsed relatively quickly. Helped by the federal grant, the Frontier flights began in September 2005. In June 2007, the flights ended.

Fresno airport officials could not be reached to comment Monday.

If the air service grants continue, auditors recommend that communities conduct in-depth marketing studies and provide "substantial financial and non-financial support." Transportation Department officials agreed, in their response to the audit.

Read Next

Congress

Lindsey Graham finds himself on the margins of shutdown negotiations

By Emma Dumain

January 04, 2019 04:46 PM

Sen. Lindsey Graham is used to be in the middle of the action on major legislative debates, but he’s largely on the sidelines as he tries to broker a compromise to end the government shutdown.

KEEP READING

MORE POLITICS & GOVERNMENT

Congress

Who will replace Roberts? Kansas senator’s retirement could spur wild 2020 race

January 04, 2019 04:12 PM

Immigration

Trump officials exaggerate terrorist threat on southern border in tense briefing

January 04, 2019 05:29 PM

White House

HUD delays release of billions of dollars in storm protection for Puerto Rico and Texas

January 04, 2019 03:45 PM

Congress

Kansas Republican Pat Roberts announces retirement, sets up open seat race for Senate

January 04, 2019 11:09 AM

Congress

Mitch McConnell, ‘Mr. Fix It,’ is not in the shutdown picture

January 04, 2019 05:14 PM

Congress

Here’s when the government shutdown will hurt even more

January 04, 2019 03:25 PM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

McClatchy Washington Bureau App

View Newsletters

Subscriptions
  • Newsletters
Learn More
  • Customer Service
  • Securely Share News Tips
  • Contact Us
Advertising
  • Advertise With Us
Copyright
Privacy Policy
Terms of Service