Evaluating the efficiency of the Essential Air Service program in the United States

Essential Air Service (EAS) is a federally funded program in the United States that provides connecting, commercial air service between rural communities and their nearest large or medium commercial hub airport. During fiscal year 2010, $170 million dollars were spent to provide this service to 107 communities in the US. However, with significant variations in subsidies to each airport (ranging from $427,757 to $3,082,403) and marked differences in passengers served, there are serious concerns regarding the overall efficiency of the EAS program. The purpose of this paper is to use data envelopment analysis integrated in a geographic information system for evaluating service efficiencies at the community level. Policy implications and strategies to improve the EAS program are discussed.

► The efficiency of the EAS program is evaluated for the continental United States.
► Data envelopment analysis is used to benchmark and compare community performance.
► Systematic geographic inefficiencies are discovered in the EAS program.
► Both subsidy reductions and changes to eligibility guidelines could improve performance.