IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v69y2018icp248-256.html
   My bibliography  Save this article

Regional aviation and the PSO system – Level of Service and social efficiency

Author

Listed:
  • BrÃ¥then, Svein
  • Eriksen, Knut Sandberg

Abstract

The variation in Level of Service (LOS) and the objective of the Public Service Obligation (PSO) system raises the need for a method for determining the LOS based on social efficiency measures. Such a method is developed for assessing PSO and LOS in Norway. This paper presents and discusses this method, which may be relevant for other countries that employs similar supporting systems for air transport. A stepwise procedure is suggested for assessing PSO routes: Firstly, a framework for deciding upon LOS for air transport under PSO is presented. Secondly, we present a way of doing rough calculations of socio-economic profitability of PSO routes compared with best alternative transport. Finally, a model is presented which refines these calculations. One finding from the model simulations is that loosening the LOS restrictions on this type of regional aviation may lead to increased ticket prices and a reduced LOS. PSO restrictions may lead to a situation close to social optimum if wisely chosen. The most important step in future research is probably to test and refine the numerical model.

Suggested Citation

  • BrÃ¥then, 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.
  • Handle: RePEc:eee:jaitra:v:69:y:2018:i:c:p:248-256
    DOI: 10.1016/j.jairtraman.2016.10.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969971630223X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jairtraman.2016.10.002?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. Merkert, Rico & O’Fee, Basil, 2013. "Efficient procurement of public air services—Lessons learned from European transport authorities' perspectives," Transport Policy, Elsevier, vol. 29(C), pages 118-125.
    2. 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.
    3. 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.
    4. Alda Metrass Mendes & Richard de Neufville & Ã lvaro Costa, 2011. "Air Accessibility In Northern Canada: Prospects And Lessons For Remoter Communities," ERSA conference papers ersa11p1647, European Regional Science Association.
    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. Mueller, Falko, 2021. "Accessibility for money? An evaluation of subsidized air transport services in Europe and the United States," Transport Policy, Elsevier, vol. 106(C), pages 153-164.
    2. Arturs Kokars, 2023. "Strategic Development of Aviation in Latvia ," GATR Journals jber240, Global Academy of Training and Research (GATR) Enterprise.
    3. Kinene, Alan & Granberg, Tobias Andersson & Polishchuk, Valentin & Rydergren, Clas, 2020. "Decision Support for an Optimal Choice of Subsidised Routes in Air Transportation," Journal of Air Transport Management, Elsevier, vol. 82(C).
    4. 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.
    5. Defossez, Delphine, 2021. "Proposed revisions of regulation 261/2004: Endangering passengers’ rights and going against the international trend?," Journal of Air Transport Management, Elsevier, vol. 91(C).
    6. Budd, Thomas & Suau-Sanchez, Pere & Halpern, Nigel & Mwesiumo, Deodat & Bråthen, Svein, 2021. "An assessment of air passenger confidence a year into the COVID-19 crisis: A segmentation analysis of passengers in Norway," Journal of Transport Geography, Elsevier, vol. 96(C).
    7. Frédéric Dobruszkes & Jean-Michel Decroly & Pere Suau-Sanchez, 2022. "The monthly rhythms of aviation: A global analysis of passenger air service seasonality," ULB Institutional Repository 2013/341140, ULB -- Universite Libre de Bruxelles.
    8. Das, Amit Kumar & Bardhan, Amit Kumar & Fageda, Xavier, 2020. "New regional aviation policy in India: Early indicators and lessons learnt," Journal of Air Transport Management, Elsevier, vol. 88(C).
    9. 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).
    10. Kinene, Alan & Birolini, Sebastian & Cattaneo, Mattia & Granberg, Tobias Andersson, 2023. "Electric aircraft charging network design for regional routes: A novel mathematical formulation and kernel search heuristic," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1300-1315.
    11. Antonio Martínez Raya & Víctor M. González-Sánchez, 2021. "Efficiency and Sustainability of Regional Aviation on Insular Territories of the European Union: A Case Study of Public Service Obligations on Scheduled Air Routes among the Balearic Islands," Sustainability, MDPI, vol. 13(7), pages 1-31, April.

    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. 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. 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.
    3. 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).
    4. 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.
    5. 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.
    6. Merkert, Rico & O’Fee, Basil, 2016. "Managerial perceptions of incentives for and barriers to competing for regional PSO air service contracts," Transport Policy, Elsevier, vol. 47(C), pages 22-33.
    7. 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).
    8. 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.
    9. Das, Amit Kumar & Bardhan, Amit Kumar & Fageda, Xavier, 2020. "New regional aviation policy in India: Early indicators and lessons learnt," Journal of Air Transport Management, Elsevier, vol. 88(C).
    10. 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.
    11. 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.
    12. 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.
    13. 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).
    14. 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.
    15. 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.
    16. 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.
    17. Solvoll, Gisle & Hanssen, Thor-Erik Sandberg, 2018. "Importance of aviation in higher education," Journal of Air Transport Management, Elsevier, vol. 72(C), pages 47-55.
    18. 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.
    19. 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.
    20. Gordan Stojić & Dušan Mladenović & Olegas Prentkovskis & Slavko Vesković, 2018. "A Novel Model for Determining Public Service Compensation in Integrated Public Transport Systems," Sustainability, MDPI, vol. 10(9), pages 1-20, August.

    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:69:y:2018:i:c:p:248-256. 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.