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REGIONAL AIRPORTS IN A DEREGULATED EUROPEAN AVIATION MARKET

Guillaume Burghouwt, Jacco Hakfoort, T Kreukels

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Abstract

The deregulation of the US aviation market has caused drastic changes in route structures and the widespread adoption of the hub and spoke system. As a consequence, part of the regional airports at the lower end of the airport hierarchy has been confronted with lower traffic volumes, higher fares and fewer direct connections than under a regulated environment. The Essential Air Service program (EAS) has been set up in order to maintain the accessibility of small, regional airports. This paper addresses the question of whether European regional airports have faced similar developments after the deregulation of the air transport market and the emergence of hub and spoke systems. The policy implications of the results are discussed, especially in relation to the Euopean version of EAS, namely the Public Service Obligation (PSO). (A) For the covering abstract of the conference see ITRD E206312.

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What this paper is about

The deregulation of the US aviation market has caused drastic changes in route structures and the widespread adoption of the hub and spoke system. As a consequence, part of the regional airports at the lower end of the airport hierarchy has been confronted with lower traffic volumes, higher fares and fewer direct connections than under a regulated environment. The Essential Air Service program (EAS) has been set up in order to maintain the accessibility of small, regional airports. This paper addresses the question of whether European regional airports have faced similar developments after the deregulation of the air transport market and the emergence of hub and spoke systems. The policy implications of the results are discussed, especially in relation to the Euopean version of EAS, namely the Public Service Obligation (PSO). (A) For the covering abstract of the conference see ITRD E206312.

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Available abstract

The deregulation of the US aviation market has caused drastic changes in route structures and the widespread adoption of the hub and spoke system. As a consequence, part of the regional airports at the lower end of the airport hierarchy has been confronted with lower traffic volumes, higher fares and fewer direct connections than under a regulated environment. The Essential Air Service program (EAS) has been set up in order to maintain the accessibility of small, regional airports. This paper addresses the question of whether European regional airports have faced similar developments after the deregulation of the air transport market and the emergence of hub and spoke systems. The policy implications of the results are discussed, especially in relation to the Euopean version of EAS, namely the Public Service Obligation (PSO). (A) For the covering abstract of the conference see ITRD E206312.

Key concepts: Deregulation, Aviation, Air transport, Air traffic control, Order (exchange), Business, Liberalization, Hierarchy

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