Airport Alert: DOT Issues Order on Air Service Requirements for Airlines Receiving Coronavirus Aid

The Department of Transportation today issued an "order to show cause" (available here) that outlines the parameters for air service requirements for airlines receiving financial assistance under the third coronavirus relief package. The order proposes that airlines maintain minimum air services on a nationwide basis, offers some exceptions, and allows carriers to request exemptions.

 

As a reminder, the final coronavirus relief bill, which President Trump signed into law on Friday, allows DOT "to the extent reasonable and practicable" to require air carriers receiving financial assistance to continue providing air service to communities that had received service before March 1, 2020.

 

The DOT order indicates that service obligations apply only to destinations in the United States. DOT also determined that in cases where an air carrier serves multiple airports in the same community, "carriers would not need to maintain service to all such airports, but would be able to consolidate operations at a single airport serving the point."

 

"The Department recognizes that demand for air travel has significantly declined as a result of the COVID-19 public health emergency and that requiring covered carriers to operate their full schedules and networks as they did before the public health emergency would be counterproductive to the objectives set forth in the CARES Act," DOT said in the 176-page order.

 

DOT is "requiring only minimum service level for each point served," according to the order. For communities that had one or more flights a day for five days of the week, carriers would be required to provide a minimum of one flight a day for five days of the week. For communities with service on fewer than five days a week, airlines would be required to offer at least one flight per week.

 

The DOT order suggests that it may not be practicable for carriers "to serve all points previously served in the prevailing operating environment." Therefore, the order allows airlines to request an exemption from the service obligation for destinations "not reasonable or practicable to serve."

 

The order from DOT applies to air carriers accepting financial assistance, including airlines with scheduled passenger service. But it does not apply to charter operations or air taxi operators.

 

The Department noted that it expects demand to remain high for all-cargo carriers. The order indicates that the agency is not at this time enforcing a service obligation for all-cargo carriers but reserves the right to do so in the future "if it is necessary to maintain well-functioning health care and pharmaceutical supply chains, including for medical devices and supplies."

 

DOT said it will initially enforce the service obligation on carriers accepting financial assistance through September 30, 2020 but could extend that date. The Department will inform airlines no later than August 1, 2020 if there is an extension.