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To what extent is the Intercity Marketplace skewed in the US
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<p>Unless it could be shown that people would be isolated without the Essential Air Service Program, I would eliminate it. There may be a few locations in the far west and Alaska where it should be retained, in which case I would treat it like the Rural Transit Assistance Program and Emergency Medical Services. </p> <p>Most of the EASP locations are within a reasonable distance of an airport served by non-subsidized commercial airline service. For example, in Pennsylvania, at the end of FY10, Altoona, Bradford, Dubois, Franklin/Oil City, Johnston, and Lancaster had EASP service. All of these cities are less than 102 miles from a commercial airport. In Texas, only Victoria gets EASP. It is 85 miles from Victoria to Corpus Christi, which has excellent service from Southwest.</p> <p>I would bid competitively for the operation of the air traffic control system, under tight regulatory oversight, and award the contracts with stiff performance standards. I would retain government ownership of the airports, harbors, etc., but I would contract their operation to private operators, again with tight regulatory oversight.</p> <p>Contractors have incentives to perform at the top of their game. This is especially true when the contract is on the line periodically. Without a competitive environment where is the pressure for management and employees to stretch? </p> <p>Each outsourcing possibility would need to be examined thoroughly. I don't favor privatization where it clearly will not work. I understand that there may be exceptions in every case, i.e. there may be a small number of locations in the U.S. where withdrawal of the EASP would result in an undue hardship.</p>
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