Accessibility for money? : an evaluation of subsidized air transport services in Europe and the United States

Abstract

The United States Essential Air Service (EAS) programme and Europe’s imposition of Public Service Obligation (PSO) air services are nationally funded and intended to increase access to remote areas. In 2018, the programmes together, involved subsidy payments in excess of US$590 million. Applying a generalized travel-cost-based methodology, this paper analyses to what extent 264 subsidized air services in 12 countries contribute to the locational accessibility of remote regions. It also assesses the routes’ viability in the presence of transport alternatives at nearby airports. The results indicate that the accessibility contributions of subsidized services vary considerably across countries. More than 45 routes are identified for which no measurable accessibility improvements are found. In total, only 15% of all services appear to yield accessibility contributions sufficient to justify the corresponding subsidies. The implications of the findings for future policymaking is discussed. Keywords: essential air service, public service obligation, locational accessibility, generalized travel costs