From Today's Casper Star Tribune, the following headline:
Air service subsidies expected to continue in Cody and Laramie. But larger questions loom.
But that apparently doesn't mean that such subsidies aren't on the firing line still, to some degree.
For
those who might not be aware, air travel to Cody is subsidized by the
Federal Government for the winter months, and for all passengers all
year long for Laramie. This provides for twice a day winter flights,
for example, to and from Cody to Denver during the winter months.
It's
pretty safe to assume that without these funds air travel to Cody would
be impaired and for Laramie it would simply end. The Tribune notes,
regarding how this works;
United’s new contract to provide service to Cody guarantees the airline
an annual payment of $850,000 to provide 14 nonstop trips each week from
Cody to Denver between October and May.
That
doesn't provide a reason to continue the subsidy, of course, and pure
free marketers would argue that if the market doesn't support it, it
should end. On the other hand, it's been proven that a lack of
convenient air transportation hinders Wyoming's economy fairly
massively.
The Wyoming Department of
Transportation presented an ambitious fix to the state’s reliance on
commercial air carriers, who can currently decide whether and when to
provide service — allowing the fortune’s of Cowboy State communities to
rise and fall based on the whims of national corporations.
WYDOT
proposed effectively creating its own airline, determining which
communities would receive service as well as schedules, ensuring, for
example, that it was possible for business people to catch an early
morning flight into Casper or Rock Springs.
The
state would contract with the same regional providers, like SkyWest or
GoJet, that United and Delta Air Lines use on branded flights to connect
relatively small communities, like those in Wyoming, with major hubs in
Denver and Salt Lake City. These arrangements are known as capacity
purchase agreements.
“This
idea of capacity purchase agreements, for decades, has worked very well
for airlines,” WYDOT director Bill Panos told lawmakers last summer.
At
a bare minimum, a lack of air service certainly isolates Wyoming's
economy. So, at the end of the day, the argument somewhat comes the
degree to which you favor practicality over economic purity, or whether
you believe the government should have any role in subsidizing
transportation. The Governor's office noted, according to the Trib:
“Commercial air service is a significantly limiting factor,” Endow’s
Jerimiah Reiman said earlier this year. “There’s a lack of air service
particularly to global destinations.”
Of
course, if we're going to go for economic purity, at some point we'd
have to request that the Federal Government cease funding highway
construction, which is a subsidy and a fairly direct one. I can't see
that request coming any time soon, but its interesting how in a state
that tends to argue for a fairly laissez faire type of economics, we
don't feel that way about highways. No, not at all. Of course, to be
fair, funding the infrastructure, massively expensive though it is, is
not the same as funding transportation itself. I.e., there's no Federal
bus subsidy, or Federal car subsidy.
There
isn't a Federal rail subsidy of any kind in most places, of course,
although we do still have Amtrak, so I guess that's not fully true.
When railroads carried passengers everywhere cars were not as commonly
used for over the road transportation and the Federal Government hadn't
gotten in to highway funding yet. Indeed, if the Federal Government
quit funding highway construction it'd change the transportation
infrastructure massively and we'd have to wonder if railroads and
airlines would be big benefactors. Anyhow, even at that time the
railroads weren't necessarily super excited about passengers and the
Federal Government somewhat forced the rail lines to carry them, but it
didn't subsidize them. The U.S. Mail was a big moneymaker for railroads
back then, which it no longer is in any fashion, so the railroads had
to listen to the Federal Government for that reason if none other.