Published at Monday, March 25th, 2019 - 05:49:00 AM. Type of airline. By Adelbert Scholz.
If a particular city has two or more airports market forces will tend to attract the less profitable routes or those on which competition is weakest to the less congested airport where slots are likely to be more available and therefore cheaper. For example Reagan National Airport attracts profitable routes due partly to its congestion leaving less-profitable routes to Baltimore-Washington International Airport and Dulles International Airport.
Ultimately the federal government provided $4.6 billion in one-time subject-to-income-tax cash payments to 427 U.S. air carriers with no provision for repayment essentially a gift from the taxpayers. (Passenger carriers operating scheduled service received approximately $4 billion subject to tax.) 48 In addition the ATSB approved loan guarantees to six airlines totaling approximately $1.6 billion. Data from the U.S. Treasury Department show that the government recouped the $1.6 billion and a profit of $339 million from the fees interest and purchase of discounted airline stock associated with loan guarantees.
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