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Sequestration to cut $40m from Essential Air Service budget

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Sequestration to cut $40m from Essential Air Service budget

Great Lakes Aviation, which holds many Essential Air Service contracts that are funded by the federal government to ensure commercial flights to continue to unprofitable or hard to reach locations in the US, has announced that sequestration will trim more than $40 million from the operating budget of Essential Air Service.

Essential Air Service contract funding will be cut by 7.6% but the program has already been operating about $37 million over budget so the cuts will be much deeper.