Airlines serving most-remote US cities will be paid not to fly

Airlines being subsidized to serve the most remote U.S. airports can receive partial payments even if they cut flights during the new coronavirus epidemic under a plan announced Wednesday by the government.

The Department of Transportation also said it doesn’t intend to enforce required levels of service if plummeting demand from Covid-19 causes airlines to halt flights.

The Essential Air Service is a sometimes controversial program that pays airlines to fly to about 160 remote cities that otherwise wouldn’t have air service. While it has been attacked as wasteful, Congress has continued to fund it.

With the virus reducing air travel nationwide about 95%, the DOT said in its proposal that it would make adjustments to how it runs the program through June 30.

Major carriers including United Airlines Holdings Inc., American Airlines Group Inc. and Delta Air Lines Inc. fly routes subsidized under the program using smaller regional airlines under contract, according to DOT records. Regional airline Skywest Inc. flies a number of such routes, for example.

If airlines operating at airports in the continental U.S., Hawaii and Puerto Rico complete at least one round trip flight a day, six days a week, the agency plans to pay it 50% for additional flights that weren’t made.

In Alaska, which has the most airports with subsidized flights, the DOT intends to continue paying carriers so long as they complete at least half of their normal weekly schedule.

The department doesn’t plan to launch enforcement cases provided certain conditions are met, including the local community doesn’t object to halted flights and they’re caused by the virus.

Local communities can object to the DOT action on a case-by-case basis, the agency said.