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

Bråthen, Svein; Eriksen, Knut Sandberg

doi:10.1016/j.jairtraman.2016.10.002

Cited by 21 publications

(15 citation statements)

References 2 publications

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“…To try and support the industry, the Norwegian government announced a rescue package totalling NOK 21 billion (US$2.5 billion) for the industry in 2020 and 2021 ( Norwegian Government, 2021c , Norwegian Government, 2021d ). This includes tax exemptions; support for Avinor and non-state airports; as well as underwriting and additional compensation for Public Service Obligations (PSOs); domestic services in peripheral regions designated as having an important regional economic and social role (see Bråthen and Eriksen, 2018 ).…”

Section: The Immediate Impact Of the Covid-19 Crisis On Norwegian Aviation Activitymentioning

confidence: 99%

An assessment of air passenger confidence a year into the COVID-19 crisis: A segmentation analysis of passengers in Norway

Budd

Suau-Sánchez

Halpern

et al. 2021

Journal of Transport Geography

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The COVID-19 crisis has become the most intense and long-lasting in the history of aviation. There is already a significant literature on the immediate impact of the outbreak, as well as on speculation on the future evolution of the industry. This paper seeks to contribute to this discussion by assessing a year into the crisis the demand related aspects and passenger behavioural impacts of the pandemic. Specifically, the paper aims to identify discrete market segments of air passengers according to their shared attitudes and preferences about air travel in light of the COVID-19 crisis, as well as past behaviour and future travel intentions. To achieve this, we analyse data from a large ( n = 2096) online questionnaire survey of air passengers in Norway. The cluster analysis identifies four distinct passenger segments, with each displaying varying attitudes, behaviours, and levels of concern about air travel. One of these groups, described as the ‘ Apprehensive Elders’, were identified as having the highest level of concern about flying, and subsequently showed a sharp decline in their intention to travel in the future. Another group, termed the ‘Cautious Commuters’, showed similarly enhanced levels of concerns about flying, but maintained a high propensity to fly following the pandemic despite these concerns. Regarding possible interventions to increase confidence in flying in the future, across all segments the data shows a clear preference for more ‘traditional’ active interventions, including wearing of face masks and enforcement of physical distancing, over and above passive or technological interventions. Norway represents a valuable case as a possible signal for future policy and practice in relation to the recovery of air travel following the pandemic. The findings have important implications for air transport managers and decision makers in terms of managing the perceptions and expectations of different passenger groups as air travel begins to return.

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Section: The Immediate Impact Of the Covid-19 Crisis On Norwegian Aviation Activitymentioning

confidence: 99%

An assessment of air passenger confidence a year into the COVID-19 crisis: A segmentation analysis of passengers in Norway

Budd

Suau-Sánchez

Halpern

et al. 2021

Journal of Transport Geography

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“…Apart from the criteria and the associated targets, there may also be other requirements on the subsidised routes. According to Bråthen and Eriksen (2016); Williams (2010), commonly used requirements on PSO routes are: (1) minimum number of round trips per day; (2) minimum seat capacity per day; (3) maximum number of stops; (4) time table requirements, for example, maximum number of days per year with no service; (5) size of aircraft; (6) air emissions of specified substances; and (7) maximum one-way ticket fares. The EAS has requirements such as service with not more than one connection, flights at reasonable times taking into account the needs of passengers with connections, and aircraft seat capacity (DoT, US, 2009).…”

Section: Criteria and Targetsmentioning

confidence: 99%

“…The subsidy schemes aim to achieve an efficient air transportation network and this involves making decisions about which routes to subsidise, with respect to defined criteria and the available budget. Defining a criterion avoids ad-hoc decision-making by the authorities, eliminates wasteful resource allocation through inefficient transportation networks and is used as a foundation for efficient transportation service provision (Bråthen and Eriksen, 2016).…”

Section: Introductionmentioning

confidence: 99%

Decision Support for an Optimal Choice of Subsidised Routes in Air Transportation

Kinene¹,

Granberg²,

Polishchuk³

et al. 2020

Journal of Air Transport Management

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The aim of the work presented here is to develop a mathematical model that can assist decision-makers in selecting the optimal network of subsidised routes in air transportation. Sweden is used as a case study. The results show that even if most of the Swedish population already has a good accessibility, the model can suggest new routes that can further improve accessibility without increasing the subsidisation cost. The closure of an airport reduces the available commercial routes, which would impair the accessibility to a given destination; a subsidised route would hence be required as a replacement. The ability of the model to consider several accessibility criteria makes it useful for managers at transportation authorities when making airport location decisions.⋆ This research is part of the Sustainable Location of Airports (SAILAS) project that is funded by the Swedish Transport Administration (Trafikverket).

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“…If there is no operator willing to provide scheduled services on some air route which is vital for regional development, "under the conditions imposed, the government may restrict a single carrier's access to the route financial compensation to the carrier in compliance with the Public Service Obligations (hereafter PSO)". [4]. This trend affects not only the EU outlying regions, but also Central European airports.…”

Section: Introductionmentioning

confidence: 99%

“…The Ostrava airport wanted to find an airline which could operate the air routes to Amsterdam and Helsinki; while the Brno airport was looking for airline to operate the route to Munich [21]. Several research articles have their focus on PSO effectiveness, [1,4,15,16]. In some cases, it is also understandable as this applies to hard-toreach locations, such as small islands.…”

Section: Introductionmentioning

confidence: 99%

Trends in development of aircraft for regional routes: impact on the european air transportation system

Nõmmik¹

2019

13th Research and Education in Aircraft Design: Conference Proceedings

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The beginning of the twenty-first century in air transportation is characterized by increasing competition between (regular, i.e. not low-cost) airlines, which in its turn affects the low cost airlines by necessitating for them the operating of aircraft with larger seat capacity also on local routes, with the goal of operating the aircraft at lower cost per available seat kilometer. Taking into account the importance of air connections for the regional economy, the local authorities are obligated to support regional airports and impose public service obligations on some routes. This study examines the regional aircraft development after the air transportation market liberalization, while also delving into the background of differences in environments of operation in Europe and United States. To evaluate the regional routes' equipment competitiveness, this research is focusing on to the regional aircraft fuel consumption which is the considerable factor for airline's operating costs. Analysis of the differences between operating environments in Europe and the United States is based on an earlier review of the research findings on development of the markets after liberalization, and the role regional aircraft in air transportation system. Also, the comparisons of the profitability and airlines' strategies in both regions are given. The results provide insights into the main drivers of regional aircraft design and development from the demand's point of view.

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

Cited by 21 publications

References 2 publications

An assessment of air passenger confidence a year into the COVID-19 crisis: A segmentation analysis of passengers in Norway

An assessment of air passenger confidence a year into the COVID-19 crisis: A segmentation analysis of passengers in Norway

Decision Support for an Optimal Choice of Subsidised Routes in Air Transportation

Trends in development of aircraft for regional routes: impact on the european air transportation system

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