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July 19, 2010

Subsidy cut could hurt Augusta airport

The federal government is cutting funding to airlines that service the Augusta State Airport, which could mean changes to the airport's flight offerings.

The U.S. Department of Transportation will reduce government subsidies to the airport's carriers by nearly $1.4 million over the next two-year contract in order to bring the funding in line with federal requirements, according to the Morning Sentinel. Currently, the airport receives $2.08 million as part of a total $4.17 million subsidy to Colgan Air, which flies to Bar Harbor and Boston. The subsidy equals $298 a passenger, exceeding the government's legal limit of $200 per passenger. Airport Manager John Guimond told the paper Colgan would need to increase passenger numbers or decrease operating costs, which could mean operating smaller planes.

The DOT is accepting bids for a two-year contract to provide service to Augusta, which are due by July 22. The new contract would pay about $1.4 million to the airline a year. If no airlines meet DOT specifications, the airport could lose the entire subsidy, which would threaten airline service from Augusta, Guimond told the paper. Colgan Air did not return the Sentinel's calls for comment.

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