Alaska’s airline subsidy in jeopardy

The subsidy, established when the airline industry was deregulated in 1978, uses U.S. federal money to lower air-travel costs to 34 Alaska communities.

The Essential Air Service program’s aim is to provide a safety-net level of air service to the smallest amd most isolated communities.

But the U.S. now plans to overhaul the program, cutting the number of communities eligible and making them bear some of the cost. Changes the Transportation Department is proposing include requiring communities to kick in at least 10 percent of the subsidy.