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3h ago

DOT Warns EAS Funding Will Lapse Oct. 12, Waives Carrier Obligations Starting Oct. 13

During the shutdown, DOT says it can pay only pro rata from overflight fees, leaving roughly 175 small‑community routes at financial risk.

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Overview

  • In a formal notice, DOT said Essential Air Service and Alternate EAS subsidies will lapse on October 12 and that carriers’ contract obligations will be waived beginning October 13 if funding is not restored.
  • The Department told airlines that any flights operated after October 12 would be at their own risk because contracted subsidies may not be paid during the lapse.
  • DOT stated it will pay valid claims only on a pro rata basis from FAA overflight fees and other limited resources, making revenue unpredictable for participating carriers.
  • Contour Airlines and SkyWest said they intend to keep flying their EAS schedules for now while evaluating the impact of a prolonged shutdown.
  • The programs support about 175 communities, with the most recent data showing roughly $233.9 million in annual EAS subsidies plus $37.2 million for AEAS, and the largest recipients include SkyWest, Contour, and Southern/Mokulele.