Public Funding of Airport Incentives: The Efficacy of the Small Community Air Service Development Grant (SCASDG) Program
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ICAT-2014-01.pdf
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404.26 KB
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Author(s)
Wittman, Michael D.
Date Issued
January 8, 2014
Series/Report no.
ICAT;2014-01
Abstract
As U.S. airlines began to restrict available domestic capacity at smaller airports in 2008 as a result of higher
fuel prices and an economic downturn, these airports have increasingly started to rely on incentive packages
comprised of revenue guarantees, waived or reduced airport use fees, marketing support, or direct subsidies to
attract new service. There are two main federal programs that provide funding for such incentives for small
U.S. airports: the Essential Air Service (EAS) program and the Small Community Air Service Development
Grant (SCASDG) program. While the EAS program has received considerable academic attention, there
has been no comprehensive analysis of the success of SCASDG recipients in attracting and retaining their
targeted air service.
Using a metric of SCASD grant success, this paper evaluates the outcomes of 115 SCASD grantees from
2006-2011. In each year, fewer than half of the grant recipients were ultimately successful in meeting the goals
of their proposal. Three case studies suggest that successful grantees often had signi cant community or
airline support prior to submitting their grant and were located in slightly larger-than-average communities.
Further careful consideration is necessary to determine whether reform of the SCASDG program is warranted
to more e ectively support the development of small community air service in the United States.
Subjects
Airt Transportation
airport incentives
Small Community Air Service Development Grant program
small airports
capacity discipline
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