Can Buses Compete with Planes?

The House of Representatives agreed to extend reauthorization for the Federal Aviation Administration (FAA) for four months and for surface transportation for six months. That’s not as long as the two years the Senate wanted for surface transportation, but apparently House Republicans weren’t ready to give up the gas tax (which would otherwise have expired at the end of this month) as a bargaining chip for a more sensible reauthorization bill.

Reauthorization of the FAA has foundered on the essential air service program which subsidizes commercial airline service to about 100 rural communities in the lower 48 states and another 45 communities in Alaska. This subsidy cost about $170 million in 2010, some $12 million of which went to the Alaska airports.

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