SUBSIDIES AND THE LOCAL SERVICE AIRLINES. THE US EXPERIENCE

Federal government subsidies to local service airlines in the United States are analysed, and it is concluded that the government is bearing over half the cost of providing a service over marginal routes, a cost which can only be justified on social grounds. The author suggests that the profitability of these routes can only be increased by increasing the frequency of service, but decreasing the size of aircraft used. Present operators are, for a number of reasons, unwilling to respond in this way. The author concludes that a system of sub-contracting should be instituted on these marginal routes in order to improve service and lower subsidies.

• Corporate Authors:

  University of British Columbia, Vancouver

  Faculty of Commerce
  Vancouver, British Columbia  Canada 
• Authors:
  • Eads, G
• Publication Date: 1974

Media Info

• Features: References;
• Pagination: p. 23-39
• Serial:
  • LOGISTICS AND TRANSPORTATION REVIEW
  • Volume: 10
  • Issue Number: 1

Subject/Index Terms

• TRT Terms: Airlines; Federal government; Level of service; Local service airlines; Needs assessment; Profits; Social factors; Subsidies
• Subject Areas: Aviation; Finance; Society;

Filing Info

• Accession Number: 00170834
• Record Type: Publication
• Source Agency: European Conference of Ministers of Transport
• Files: TRIS
• Created Date: Jun 28 1978 12:00AM