EC air transport liberalisation : implications for small communities

This paper looks at the impact of the EC 'Third Package' of liberalisation measures on small communities. The liberalisation package came into effect on January 1, 1993 and allows for free entry on intra-European routes and freedom by carriers to set passenger fares and cargo rates. It is shown that in the case of the US, deregulation there produced many benefits to the travelling public. For small communities, the detrimental impacts of competition, namely a focus by carriers on the larger centres, were alleviated with the introduction of the 'Essential Air Services Programme' in 1978. This programme ensured that a basic level of air services was provided to designated small communities even if subsidies were requires. The EC liberalisation does not include administrative or financail provision for an equivalent programme. [extract]

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