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Wednesday, February 8, 2012

Congress Approves Legislation That Guarantees Equal Treatment for Puerto Rico’s Airports

Provision Was Included in Bill Through a Successful Floor Amendment from Pierluisi

WASHINGTON, DC- Resident Commissioner Pedro Pierluisi announced today that the U.S. Congress has approved legislation, the FAA Modernization and Reform Act of 2012, that includes his amendment to expressly guarantee equal treatment for Puerto Rico’s airports with respect to federal funding. The bill, which is expected to be signed by President Obama in the coming days, also continues the important Essential Air Service program, which benefits Puerto Rico.

According to the Federal Aviation Administration, Puerto Rico needs $285 million over the next five years to bring its airports up to current design standards, to add capacity to meet projected needs, and to improve safety. In addition to Luis Muñoz Marín Airport in San Juan, Puerto Rico is home to five other commercial service airports, located in Aguadilla, Ponce, Mayagüez, Isla Grande and Vieques, as well as to five other general aviation airports that serve smaller communities.

Back in April 2011, when the FAA bill was being considered on the House floor, Pierluisi filed an amendment to ensure that Puerto Rico’s airports will be treated equally with airports in the States in regards to both formula and discretionary funding allocated by the federal government under the Airport Improvement Program (AIP). AIP funds are used to maintain and upgrade airports across the country. Typical projects funded through AIP grants include runway construction and safety improvements.

“There is no reasonable basis to treat Puerto Rico less-than-equally when it comes to obtaining federal funds under the Airport Improvement Program, especially since aviation serves such a critical role on the Island. Puerto Rico is heavily dependent on safe and reliable air service to carry passengers and transport goods to and from the U.S. mainland. The Island’s main airport, the Luis Muñoz Marín International Airport in San Juan, is ranked among the top 50 commercial service airports in the United States in terms of the number of passenger boardings, averaging over four-and-half million boardings each year,” said Pierluisi during his April 2011 speech on the House floor in support of his amendment.

The Resident Commissioner’s amendment to clarify and confirm that Puerto Rico airports should receive state-like treatment was supported by Chairman John Mica (R-FL) and Ranking Member Nick Rahall (D-WV), the lead Republican and Democrat on the House Committee on Transportation and Infrastructure, which has jurisdiction over the bill. Ultimately, the amendment was unanimously adopted by the full House. This week, the Senate agreed to accept Pierluisi’s language, and it was included as Section 142 in the final bill approved by both chambers that will be signed by President Obama.

The final bill also preserves the Essential Air Service (EAS) program, which was created to help maintain airline service at certain smaller airports throughout the nation. During the April 2011 House deliberation on the bill, the Resident Commissioner also offered an amendment with respect to the EAS program.

Under the EAS program, the federal government provides an annual subsidy of about $1 million to Cape Air to conduct flights between “El Mani” Airport in Mayagüez and Luis Muñoz Marín Airport in San Juan. Because the House bill would have phased out the EAS program across the United States by October 2013, Pierluisi offered an amendment to continue the EAS program in Puerto Rico beyond that date.

In response to his amendment, Chairman Mica committed on the record to working with the Resident Commissioner over the future of the EAS program. At the time, Pierluisi said: “Thanks to Chairman Mica’s pledge, I feel confident that the EAS program will continue in Puerto Rico. This program is of great importance to my constituents.”

As the Resident Commissioner predicted, under the bill approved this week, the EAS program will continue to operate, and carriers serving Mayagüez remain eligible to qualify for federal subsidies. Specifically, Cape Air has approval from the U.S. Department of Transportation to continue providing air service connecting Mayagüez and San Juan through at least 2016. With this federal support, Cape Air provides 28 weekly nonstop, roundtrip flights—amounting to four a day—between the two airports.

The final bill also leaves open the possibility that EAS support will be provided in the future to air carriers who serve Ponce, in the event that JetBlue discontinues its current service between Ponce and Orlando and Ponce and New York.