Small Community Air Service Improvement Act of 1987

Small Community Air Service Improvement Act of 1987 - Amends the Federal Aviation Act of 1958 to direct the Secretary of Transportation to enter into contracts with air carriers to assure that each eligible point (small community) receives basic air service.

Directs the Secretary to enter into certain air transportation contracts providing enhanced service of a type and quality specified by a State or local government if such entities agree to provide 50 percent of such transportation costs. Directs the Secretary to enter into contracts with air carriers to provide air transportation to and from a hub to major destinations beyond such hub when it is necessary to meet basic air service requirements.

Requires the Secretary, when selecting air carriers, to give great weight to a carrier's demonstrated reliability in providing scheduled air transportation, and to the contractual arrangements the carrier has made with other air carriers to assure services beyond the hub. Directs such contract to reflect the preferences of actual and potential users at the eligible point.

Sets forth circumstances under which an air carrier may suspend air transportation to an eligible point. Mandates that air transportation service contracts require: (1) the contracting air carrier to continue to provide such service beyond the termination date if, despite diligent efforts, the Secretary has not entered into a contract with another carrier to provide such service; and (2) the Secretary to compensate the carrier for such service (including the demonstrable cost of opportunities foregone as a result of the requirement to provide such Service).

Sets a deadline by which the Secretary is required to enter into initial air transportation contracts. Terminates such air transportation program ten years after the date of enactment of this Act.