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August 16, 2010

Augusta airport pushes carrier switch

Augusta State Airport officials are recommending switching its commercial flight operator from Colgan Air to Cape Air in order to preserve a federal subsidy.

The city's Airport Advisory Committee voted unanimously to recommend a four-year contract with Cape Air for flights between Maine's capital and Boston, according to the Kennebec Journal. Airport officials said they were satisfied with Colgan's service, but wanted to go with a cheaper airline in order to continue to qualify for a federal subsidy. The U.S. Department of Transportation subsidy is only available to airlines where the per-passenger cost does not exceed $200 if the airport is less than 210 miles from the nearest hub airport. Colgan's current subsidy amounts to $298 per passenger, while Cape Air's proposal would require a subsidy below the $200-per-passenger limit, according to the paper. Last month, the DOT said it would reduce subsidies to the airport by $1.4 million in the next two-year contract in order to bring the funding in line with the federal requirements.

City councilors will decide which airline to recommend to the DOT, which makes the final decision, according to the paper.

Go to the article from the Kennebec Journal >>

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