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Subsidisation policies in the provision of air services to small communities : European and US approaches

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  • Aisling J. Reynolds-Feighan

Abstract

In this paper, regulatory approaches to European and US social air service provision for small communities are compared. The subsidisation policies currently in place are reviewed briefly. The impact of social air service provision on small communities in the US is then focused. The Essential Air Service (EAS) Program was established as part of the 1978 Airline Deregulation Act and its aim was to guarantee a minimum level of air services to small and medium communities in the new competitive environment. Extensive data have been gathered from a variety of sources pertaining to EAS services and funding and community economic characteristics for centers covered by the programme. The characteristics of subsidized communities are compared with unsubsidized communities for the recent period (i.e. 1985-95). Policy issues are then discussed in a European context.

Suggested Citation

  • Aisling J. Reynolds-Feighan, 1999. "Subsidisation policies in the provision of air services to small communities : European and US approaches," Open Access publications 10197/2966, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:oapubs:10197/2966
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    File URL: http://hdl.handle.net/10197/2966
    File Function: Open Access version, 1999
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    References listed on IDEAS

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    1. 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.
    2. J.R. Meyer, 1986. "Bailey, Graham, and Kaplan's Deregulating the Airlines," RAND Journal of Economics, The RAND Corporation, vol. 17(3), pages 461-466, Autumn.
    3. Moore, Thomas Gale, 1986. "U.S. Airline Deregulation: Its Effects on Passengers, Capital, and Labor," Journal of Law and Economics, University of Chicago Press, vol. 29(1), pages 1-28, April.
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    Cited by:

    1. 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.
    2. 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.
    3. 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).
    4. Jorge Valido & M. Pilar Socorro & Aday Hernández & Ofelia Betancor, 2012. "Subsidies for resident passengers in air transport markets," Working Papers 2012-10, FEDEA.

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