I assume that MD decided that the economic benefit of the flight exceeded the cost of subsidising it. And so be it.
However, this is the same calculation applied to Amtrak, Commuter rail, and local and regional bus services, and therefore - and I think this is the point of the post - the airlines, presented with this, have to lose their sense of superiority in claiming to be a self sufficient mode.
It isn't just Maryland; in fact,
this New York Times article sheds light on just how widespread the subsidising of airlines is. I don't know about the US, but in Europe, every single flight is subsidised by a huge amount of money, simply by not paying fuel tax - this effective subsidy is estimated, according to pressure group Friends of the Earth, to amount to $15.7 Billion in the United Kingdom alone.
I can't help put think that the money being thrown away in this manner might be far more effective in the long term being spent on high speed rail, good quality regional rail - services like the Downeaster, the Hiawatha service and the Michigan service are examples of what can be done for settlements off the core network - and, as PRR 60 cites, better connectivity between rail and air.
Referring back to the initial example, I love that BWI flight! In all seriousness, it is by far the best flight in terms of accessibility for Central Washington DC and the rest of Maryland. From BWI station, you can get a one-seat ride to Central DC, not having to negotiate any steps, unlike arriving at Washington Dulles, where one has to use a bus and a metro train, neither at all suited to carrying large amounts of luggage with you. And because the MARC takes you to Union station, you can transfer easily for Frederick, Laurel, Brunswick and Harpers Ferry, and that same MARC train from BWI also takes you to Odenton, Baltimore, Aberdeen and Perryville. And this regional connectivity is what Maryland are paying for!
Now, let me go a bit off on a tangent, and analyse my own trips to Frederick, MD:
From Dulles:
1 "moving lounge"
1 bus
two flight of steps
2 metro trains
two flights of steps
1 Marc train
= 5 vehicles, of which:
3 are unsuited to large amounts of luggage.
4 flight of steps
From BWI:
1 bus shuttle
2 Marc trains
= 3 vehicles, of which:
0 are unsuited to large amounts of luggage.
0 flights of steps (Although one encounters two at BWI station footbridge on the return journey).
And there are three points to be made here:
1. The economic benefit of better links to Baltimore and regional MD is what Maryland consider to offset the cost of subsidising the flight;
2. The Airlines cannot justify claims to be a self-sufficient industry, when they are not;
3. You can see how pissed off I was that I had to fly into Dulles on my last trip, because BWI would have cost me $150 more.