IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v15y2009i6p344-349.html
   My bibliography  Save this article

Do Public Service Obligations hamper the cost competitiveness of regional airlines?

Author

Listed:
  • Santana, Isabel

Abstract

Panel data is used to model the cost of a set European and US regional air carriers between 1991 and 2002 to see the extent to which they are affected by Public Service Obligations or the US's Essential Air Service Program. Pooling the data set indicates that the Public Service Obligations in Europe do affect the economic performance of carriers, but this is not the case for the US's Essential Air Service Program.

Suggested Citation

  • Santana, Isabel, 2009. "Do Public Service Obligations hamper the cost competitiveness of regional airlines?," Journal of Air Transport Management, Elsevier, vol. 15(6), pages 344-349.
    • Handle: RePEc:eee:jaitra:v:15:y:2009:i:6:p:344-349
    DOI: 10.1016/j.jairtraman.2008.12.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699708001786
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2008.12.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. George Williams, 2005. "European Experience with Direct Subsidization of Air Services," Public Money & Management, Taylor & Francis Journals, vol. 25(3), pages 155-161, June.
    2. Aisling Reynolds-Feighan, 1995. "European air transport public service obligations: a periodic review," Fiscal Studies, Institute for Fiscal Studies, vol. 16(1), pages 58-74, February.
    3. Williams, George & Pagliari, Romano, 2004. "A comparative analysis of the application and use of public service obligations in air transport within the EU," Transport Policy, Elsevier, vol. 11(1), pages 55-66, January.
    4. Reynolds-Feighan, Aisling J., 1995. "European and American approaches to air transport liberalisation: Some implications for small communities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(6), pages 467-483, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wu, Hanjun & Hong Tsui, Kan Wai & Ngo, Thanh & Lin, Yi-Hsin, 2020. "Impacts of aviation subsidies on regional wellbeing: Systematic review, meta-analysis and future research directions," Transport Policy, Elsevier, vol. 99(C), pages 215-239.
    2. Leandro, Francisco & Andrade, Antonio R. & Kalakou, Sofia, 2021. "Designing aviation networks under Public Service Obligations (PSO): A case study in Greece," Journal of Air Transport Management, Elsevier, vol. 93(C).
    3. Fageda, Xavier & Suárez-Alemán, Ancor & Serebrisky, Tomás & Fioravanti, Reinaldo, 2018. "Air connectivity in remote regions: A comprehensive review of existing transport policies worldwide," Journal of Air Transport Management, Elsevier, vol. 66(C), pages 65-75.
    4. Wittman, Michael D. & Allroggen, Florian & Malina, Robert, 2016. "Public service obligations for air transport in the United States and Europe: Connectivity effects and value for money," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 112-128.
    5. Stefan Gössling & Frank Fichert & Peter Forsyth, 2017. "Subsidies in Aviation," Sustainability, MDPI, vol. 9(8), pages 1-19, July.
    6. Merkert, Rico & Williams, George, 2013. "Determinants of European PSO airline efficiency – Evidence from a semi-parametric approach," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 11-16.
    7. Abreu, José & Fageda, Xavier & Jiménez, Juan Luis, 2018. "An empirical evaluation of changes in Public Service Obligations in Spain," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 1-10.
    8. Antonio Martínez Raya & Víctor M. González-Sánchez, 2020. "Tender Management Relating to Imposition of Public Service Obligations on Scheduled Air Routes: An Approach Involving Digital Transformation of Procurement Procedures in Spain," Sustainability, MDPI, vol. 12(13), pages 1-27, July.
    9. Calzada, Joan & Fageda, Xavier, 2014. "Competition and public service obligations in European aviation markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 104-116.
    10. Chen, Yilin & Hou, Meng & Wang, Kun & Yang, Hangjun, 2023. "Government interventions in regional airline markets based on aircraft size—Welfare and environmental implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    11. Branko Bubalo, 2012. "Social costs of public service obligation routes—calculating subsidies of regional flights in Norway," Netnomics, Springer, vol. 13(2), pages 125-140, July.
    12. Fageda, Xavier & Jiménez, Juan Luis & Díaz, Carlos, 2012. "Fare differences between domestic and international air markets on routes from Gran Canaria," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 8-10.
    13. Fageda, Xavier & Jiménez, Juan Luis & Valido, Jorge, 2016. "Does an increase in subsidies lead to changes in air fares? Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 235-242.
    14. Socorro, M. Pilar & Betancor, Ofelia, 2020. "Air transport subsidies for resident passengers: The unexpected effects on competition," Research in Transportation Economics, Elsevier, vol. 79(C).
    15. Chong Wu & Xin Wang & Xinying Zhang & Yongli Li & Brad O'Brien, 2013. "Chinese airline competitiveness evaluation based on extended binary relative evaluation(BRE) model," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(sup1), pages 227-256, June.
    16. Minato, Nobuaki & Morimoto, Risako, 2017. "Dynamically interdependent business model for airline–airport coexistence," Journal of Air Transport Management, Elsevier, vol. 64(PB), pages 161-172.
    17. Pita, João Pedro & Antunes, António Pais & Barnhart, Cynthia & de Menezes, António Gomes, 2013. "Setting public service obligations in low-demand air transportation networks: Application to the Azores," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 35-48.
    18. Xavier Fageda & Juan Luis Jiménez & Carlos Díaz Santamaría, 2012. "“Price differences between domestic and international air markets: an empirical application to routes from Gran Canaria”," IREA Working Papers 201207, University of Barcelona, Research Institute of Applied Economics, revised Mar 2012.
    19. Salesi, Vinolia Kilinaivoni & Kan Tsui, Wai Hong & Fu, Xiaowen & Gilbey, Andrew, 2022. "Stakeholder perceptions of the impacts of aviation subsidies in the South Pacific Region," Journal of Air Transport Management, Elsevier, vol. 103(C).
    20. Roberto Rendeiro Martín-Cejas, 2022. "The Influence of the Resident Subsidy on Regional Carrier Economies and the Environment in the Canary Interisland Air Traffic Network," Tourism and Hospitality, MDPI, vol. 3(3), pages 1-15, June.
    21. Joan Calzada & Xavier Fageda, 2012. "Discounts and Public Service Obligations in the Airline Market: Lessons from Spain," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(4), pages 291-312, June.
    22. Leão e Silva, Celso José & de Andrade, Maurício Oliveira & Falcão, Viviane Adriano & da Silva, Carlos Fabricio Assunção, 2022. "The geographical characteristics of subsidized air routes serving as lifelines," Journal of Air Transport Management, Elsevier, vol. 104(C).
    23. Fageda, Xavier & Jiménez, Juan Luis & Valido, Jorge, 2017. "An empirical evaluation of the effects of European public policies on island airfares," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 288-299.
    24. Pita, João P. & Adler, Nicole & Antunes, António P., 2014. "Socially-oriented flight scheduling and fleet assignment model with an application to Norway," Transportation Research Part B: Methodological, Elsevier, vol. 61(C), pages 17-32.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Smyth, Austin & Christodoulou, Georgina & Dennis, Nigel & AL-Azzawi, Marwan & Campbell, Jonathan, 2012. "Is air transport a necessity for social inclusion and economic development?," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 53-59.
    2. Pita, João P. & Adler, Nicole & Antunes, António P., 2014. "Socially-oriented flight scheduling and fleet assignment model with an application to Norway," Transportation Research Part B: Methodological, Elsevier, vol. 61(C), pages 17-32.
    3. Wu, Hanjun & Hong Tsui, Kan Wai & Ngo, Thanh & Lin, Yi-Hsin, 2020. "Impacts of aviation subsidies on regional wellbeing: Systematic review, meta-analysis and future research directions," Transport Policy, Elsevier, vol. 99(C), pages 215-239.
    4. Lian, Jon Inge, 2010. "Network dependency and airline competition – Consequences for remote areas in Norway," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 137-143.
    5. Vega, Amaya & Reynolds-Feighan, Aisling, 2016. "The impact of the great recession on Irish air travel: An intermodal accessibility analysis," Journal of Air Transport Management, Elsevier, vol. 51(C), pages 1-18.
    6. Francesco, Antonio Di & Pagliari, Romano, 2012. "The potential impact of removing public service obligation regulations on air fares between the Italian Mainland and the island of Sardinia," Journal of Transport Geography, Elsevier, vol. 24(C), pages 332-339.
    7. Calzada, Joan & Fageda, Xavier, 2014. "Competition and public service obligations in European aviation markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 104-116.
    8. Pita, João Pedro & Antunes, António Pais & Barnhart, Cynthia & de Menezes, António Gomes, 2013. "Setting public service obligations in low-demand air transportation networks: Application to the Azores," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 35-48.
    9. Merkert, Rico & Williams, George, 2013. "Determinants of European PSO airline efficiency – Evidence from a semi-parametric approach," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 11-16.
    10. Abreu, José & Fageda, Xavier & Jiménez, Juan Luis, 2018. "An empirical evaluation of changes in Public Service Obligations in Spain," Journal of Air Transport Management, Elsevier, vol. 67(C), pages 1-10.
    11. Kinene, Alan & Granberg, Tobias Andersson & Birolini, Sebastian & Adler, Nicole & Polishchuk, Valentin & Skoglund, Jean-Marie, 2022. "An auction framework for assessing the tendering of subsidised routes in air transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 159(C), pages 320-337.
    12. Eriksson, Martin & Pettersson, Thomas, 2012. "Adapting to liberalization: government procurement of interregional passenger transports in Sweden, 1989–2008," Journal of Transport Geography, Elsevier, vol. 24(C), pages 182-188.
    13. Fageda, Xavier & Jiménez, Juan Luis & Díaz, Carlos, 2012. "Fare differences between domestic and international air markets on routes from Gran Canaria," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 8-10.
    14. Xavier Fageda & Juan Luis Jiménez & Carlos Díaz Santamaría, 2012. "“Price differences between domestic and international air markets: an empirical application to routes from Gran Canaria”," IREA Working Papers 201207, University of Barcelona, Research Institute of Applied Economics, revised Mar 2012.
    15. Leão e Silva, Celso José & de Andrade, Maurício Oliveira & Falcão, Viviane Adriano & da Silva, Carlos Fabricio Assunção, 2022. "The geographical characteristics of subsidized air routes serving as lifelines," Journal of Air Transport Management, Elsevier, vol. 104(C).
    16. Valido, Jorge & Pilar Socorro, M. & Hernández, Aday & Betancor, Ofelia, 2014. "Air transport subsidies for resident passengers when carriers have market power," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 388-399.
    17. Bråthen, Svein & Eriksen, Knut Sandberg, 2018. "Regional aviation and the PSO system – Level of Service and social efficiency," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 248-256.
    18. Graham, Brian, 1997. "Regional airline services in the liberalized European Union single aviation market," Journal of Air Transport Management, Elsevier, vol. 3(4), pages 227-238.
    19. Jorge Valido & M. Pilar Socorro & Aday Hernández & Ofelia Betancor, 2012. "Subsidies for resident passengers in air transport markets," Working Papers 2012-10, FEDEA.
    20. Socorro, M. Pilar & Betancor, Ofelia, 2020. "Air transport subsidies for resident passengers: The unexpected effects on competition," Research in Transportation Economics, Elsevier, vol. 79(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:15:y:2009:i:6:p:344-349. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.