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

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.