What We Looked AtIn 2013 and 2014, reports from the Government Accountability Office (GAO) and the Massachusetts Institute of Technology (MIT) documented a disproportionate decline in commercial air service to smaller communities. Since that time, there have been concerns that small- and medium-sized communities continue to have limited access to the National Airspace System. The lack of a recent analysis, as well as major changes in the industry, prompted our office to update the GAO and MIT reports. Accordingly, our objective for this self-initiated audit was to detail recent trends in the aviation industry, particularly as they relate to small- and medium-sized communities.What We FoundCompared to larger metropolitan areas, smaller communities have experienced disparate effects from several recent aviation industry trends. For example, departures declined in larger communities by roughly 12 percent and in smaller communities by about 34 percent. Connectivity--the ability to connect to and move throughout the national air system--declined by 16 percent in smaller communities, double the rate in larger communities; however, data limitations hindered our analysis of delays and cancellations. Similarly, competitive conditions improved in larger communities, but grew worse in smaller communities, where the cost to fly was also greater. Finally, we found that some airlines have dramatically increased their revenues from booking charges and other ancillary fees. However, the Department of Transportation (DOT) does not collect adequate data on ancillary fees, which reduces its ability to fully assess competition in the industry. Also, ancillary fees are not subject to the excise tax that funds the Airport and Airway Trust Fund (AATF). We conservatively estimate that certain carriers' use of booking fees as a revenue source reduced AATF revenues by $60.6 million in 2019 alone.Our RecommendationsWe made three recommendations to address DOT's data shortcomings and improve departmental clarity on the impact of ancillary fees on AATF receipts. The Department concurred with one of our three recommendations.
| Report Date | Agency Reviewed / Investigated | Report Title | Type | Location | |
|---|---|---|---|---|---|
| Department of Transportation | Changes in Airline Service Differ Significantly for Smaller Communities, but Limited Data on Ancillary Fees Hinders Further Analysis | Audit | Agency-Wide | View Report | |
| U.S. Agency for International Development | Financial Audit of Nurturing Early Literacy Project in India Managed by Centre for Microfinance, Cooperative Agreement AID-386-A-15-00020, April 1, 2018, to March 31, 2019 | Other |
|
View Report | |
| U.S. Agency for International Development | Closeout Audit of Ministry of Education Youth and Information's Management of the USAID/MOEYI Partnership for Improved Safety and Security in Schools Program in Jamaica, Program Assistance 532-DOAG-2013-JM, 532-IL-532-ED-DOAG-00002, July 3, 2017, to July | Other |
|
View Report | |
| U.S. Agency for International Development | Financial Audit of the Project Sambhuya: Engaging Private Sector to Improve Reproductive, Maternal, Neonatal, Child and Adolescent Health Outcomes in India Managed by Solidarity and Action Against the HIV Infection in India, Cooperative Agreement AID-386- | Other |
|
View Report | |
| U.S. Agency for International Development | Financial Audit of PREVENTION, Thai Red Cross AIDS Research Centre Under Multiple USAID Agreements in Thailand for the Period Ended September 30, 2018 | Other |
|
View Report | |
| U.S. Postal Service | Facility Condition Reviews – Miami Springs, Promenade, and Doral Post Offices | Audit |
|
View Report | |
| Internal Revenue Service | Improvements Are Needed to Ensure That Members of the Military Receive Tax Benefits to Which They Are Entitled | Audit | Agency-Wide | View Report | |
| Department of Labor | Alert Memorandum: The Pandemic Unemployment Assistance Program Needs Proactive Measures to Detect and Prevent Improper Payments and Fraud | Other | Agency-Wide | View Report | |
| Office of Personnel Management | OPM's Physical Security Risk Assessment Process | Inspection / Evaluation | Agency-Wide | View Report | |
| Department of Veterans Affairs | Semiannual Report to Congress | Semiannual Report | Agency-Wide | View Report | |