Airline Subsidy Reduction Act of 1981 - Amends the Federal Aviation Act of 1958 to prohibit the Civil Aeronautics Board from paying any compensation to an air carrier for the transportation of mail: (1) to or from specified airports; and (2) between points within the State of Alaska.

Directs that rates of compensation paid for such transportation shall be determined in accordance with the provisions of a specified local service class subsidy rate.

Alters the date after which an air carrier may file an application with the Board to have such compensation terminated.

Directs the Board and the Secretary of Transportation, by January 1, 1982, to report to Congress on the possibility of limiting subsidy payments for small community air service.

Sets forth the effective dates of various provisions of this Act.