Business View Magazine - Dec 2023

serve as the consulting firm for the city, overseeing projects and contributing to the airport’s ongoing development. ESSENTIAL AIR SERVICE PROGRAM The Essential Air Service Program, initiated in the late ‘70s following airline deregulation, emerged as a response to the shift from airlines as public services supported by the federal government.With deregulation, there was no obligation for airlines to serve specific destinations, prompting the introduction of a subsidy to ensure air connectivity in rural areas. Allen, expands on the program, relaying, “The Department of Transportation is responsible for the Essential Air Service Program, and the intent is to connect rural communities that are of a certain distance from a hub airport, such as Sky Harbor, where you can fly to any destination, basically.” Allen highlights the process, explaining that the Department of Transportation initiates the bid for airline service through a request for proposals. Qualified airlines interested in participating in the Essential Air Service program submit proposals, including pricing and proposed flight schedules. “Those contracts are typically for two years, and the city is given the opportunity to make a recommendation to the Department of Transportation about what airline we would like to serve us,” he explains. “For example, last time, we had three airlines submit a proposal, and then with the city a committee was put together to review them, weigh the pros and cons, and then make a recommendation to the DOT. But at the end of the day the Department of Transportation is paying for the subsidy 100%, and they get to make the final decision. SHOW LOW REGIONAL AIRPORT’S ECONOMIC IMPACT The airport serves as an economic engine for Show Low and beyond, with a 2021 economic impact study revealing a staggering $9,342,000 for on- airport activities, $1,997,000 from visitor spending, and an indirect/induced economic impact of 374 BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 12