Changes in air service at small communities and the level of service protection provided by the current system of economic regulation is reviewed, and the development of unsubsidized commuter air service and the stability of that service is examined. The study estimates what service losses might be expected at small communities if the existing system of economic regulation and the present subsidy system were eliminated, and provides estimates of the costs of providing continued air service to small communities through a more efficient subsidy system. The study showed that as a result of natural market forces, commuters provided a far greater continuity and reliability of service than had previously been thought. Communities which receive service from commuter airlines are far less likely to lose it than those receiving regulated service. Conclusions are also drawn concerning the fast growing commuter segment of the air transport industry, the viability of commuter service at low passenger levels, subsidies to regulated carriers, route restrictions to regulated carriers, and an alternative to the subsidy program.

  • Corporate Authors:

    Department of Transportation

    Office of Transportation Regulatory Policy, 1200 New Jersey Avenue, SE
    Washington, DC  United States  20590
  • Publication Date: 1976-3

Media Info

  • Features: Appendices;
  • Pagination: 72 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00131573
  • Record Type: Publication
  • Files: TRIS, USDOT
  • Created Date: Jul 22 1976 12:00AM