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123296 1 (1984-01-31)

handle is hein.gao/gaobactfi0001 and id is 1 raw text is: 



                                      FOR RELEASE ON DELIVERY
                            *         EXPECTED AT 10:00 A.M.
                                      TUESDAY, JANUARY 311, 1984


               UNITED STATES GENERAL ACCOUNTING OFFICE

                       WASHINGTON, D.C.  20548

                            STATEMENT OF

                OLIVER W. KRUEGER, ASSOCIATE DIRECTOR

       RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION

                             BEFORE THE

                   HOUSE SUBCOMMITTEE ON AVIATION

            COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION

                                 ON

                  THE ESSENTIAL AIR SERVICE PROGRAM

                                                              123296

Mr. Chairman  and Members of the Subcommittee:

     We are here  today at your request to discuss our May 18,

1983, report entitled  More Flexible Eligibility Criteria Could

Enhance the Small Communities  Essential Air Service Sub4idy

Program  (GAO/RCED-83-97).

     We found that  the Civil Aeronautics Board (CAB) has

implemented this program  successfully, ensuring continudd air

service to the 555  small communities protected by the Airline

Deregulation Act.  However,  the number of passengers using air

service at the  104 subsidized communities decreased by over 50

percent since deregulation  began in 1978.  Unless the communities

make progress toward achieving  self-sustaining service, carriers

are likely to abandon or  substantially reduce service td most of

the subsidized small communities  when the program ends in 1988.


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