The Transportation Department will ease its requirement that
carriers receiving federal stimulus assistance continue to fly to all
destinations that they served either last summer or this past winter.
In a notice on May 12, the DOT said that airlines will be
allowed to discontinue service to 5% of their destinations or five total
markets, whichever is greater. Airlines must submit the lists of destinations
to which they’d like to pause service by May 18. The DOT said it will continue to
require that at least one airline serve every destination.
The department’s decision to ease the service requirement
rule followed testimony by Airlines for America CEO Nick Calio last week before
the Senate transportation committee. Calio called for the rule to be loosened,
saying that it is exacerbating airline liquidity challenges.
In its Tuesday notice, the DOT said, “Carriers contend that
services to certain points in their networks are unreasonable, impracticable,
costly, and challenging to complete in light of public health and safety
concerns.”
Over the past month, the DOT has been granting exemptions to
the minimum-service requirement on a case-by-case basis. The new rule, the
department said, will streamline that process and make it more equitable.
Carriers, however, will still be able to apply for
additional exemptions.