The federal government pays airlines to service small cities in the United States through a subsidy program called Essential Air Service which was established in 1978 when the airline industry was deregulated. Most subsidies can't exceed $200 per passenger. Without this subsidy, what is TRUE?

Question

Quizplus · Accepted Answer

Without the subsidy, airlines would likely reduce or eliminate flights to small cities due to unprofitability, leading to higher prices and fewer flights.

The Federal Government Pays Airlines to Service Small Cities in the United