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Government Support Measures for Domestic Air Connectivity Case-Specific Policy Analysis

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Government Support Measures for Domestic Air Connectivity Case-Specific Policy Analysis CPB Corporate Partnership Board Government Support Measures for Domestic Air Connectivity Case-Specific Policy Analysis Government Support Measures for Domestic Air Connectivity Case-Specific Policy Analysis The International Transport Forum The International Transport Forum is an intergovernmental organisation with 59 member countries. It acts as a think tank for transport policy and organises the Annual Summit of transport ministers. ITF is the only global body that covers all transport modes. The ITF is politically autonomous and administratively integrated with the OECD. The ITF works for transport policies that improve peoples’ lives. Our mission is to foster a deeper understanding of the role of transport in economic growth, environmental sustainability and social inclusion and to raise the public profile of transport policy. The ITF organises global dialogue for better transport. We act as a platform for discussion and pre- negotiation of policy issues across all transport modes. We analyse trends, share knowledge and promote exchange among transport decision-makers and civil society. The ITF’s Annual Summit is the world’s largest gathering of transport ministers and the leading global platform for dialogue on transport policy. The Members of the Forum are: Albania, Armenia, Argentina, Australia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Chile, China (People’s Republic of), Croatia, Czech Republic, Denmark, Estonia, Finland, France, Former Yugoslav Republic of Macedonia, Georgia, Germany, Greece, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Republic of Moldova, Montenegro, Morocco, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, the United Arab Emirates, the United Kingdom and the United States. International Transport Forum 2 rue André Pascal F-75775 Paris Cedex 16 [email protected] www.itf-oecd.org Case-Specific Policy Analysis Reports The ITF’s Case-Specific Policy Analysis series presents topical studies on specific issues carried out by the ITF in agreement with local institutions. This work is published under the responsibility of the Secretary- General of the ITF. The opinions expressed and arguments employed herein do not necessarily reflect the official views of ITF or OECD member countries. ACKNOWLEDGEMENTS Acknowledgements The UK Department for Transport (DfT) asked the International Transport Forum (ITF) at the Organisation for Economic Co-operation and Development (OECD) to review government support measures for domestic air connectivity in selected OECD member countries. This report summarises the discussion on the effectiveness of support for domestic air connectivity in Australia, Canada, Japan, Norway, Sweden, and the United States among experts, decision-makers and industry representatives at an expert workshop convened by the ITF. The meeting took place in September 2018 at the OECD Headquarters in Paris. The organisers would like to thank participants of the expert workshop (see Annex 1 for the list of participants) for their contributions to the debate. The project was directed by Jagoda Egeland (ITF), with support from Lucie Kirstein (ITF). Chapter 1 was written by Jagoda Egeland and Paul Smale. Chapter 2 was written by Mike Tretheway (InterVISTAS Consulting Inc.). Chapter 3 was written by Svein Bråthen (Molde University College) and Jon Inge Lian (Avinor) and Harald Thune Larsen (Institute of Transport Economics – TØI). Chapter 4 was written by Katsuhiro Yamaguchi (University of Tokyo). Valuable comments on a draft version of the report were provided by Chris Bosworth (Bosworth Aviation Consultancy Ltd), Svein Bråthen (Molde University College), Guillaume Burghouwt (Royal Schiphol Group), Peter Irvine (U.S. Department of Transportation), Lucie Kirstein (ITF), Cameron Levy (DfT), Daigo Ota (Permanent Delegation of Japan to the OECD), Michael Stanton-Geddes (ACI Europe), Harald-Thune Larsen (Norwegian Centre for Transport Research), Peter Mackie (University of Leeds), Jonathan Saks (DfT), Mike Tretheway (InterVISTAS Consulting Inc.), James Wiltshire (IATA), and Katsuhiro Yamaguchi (University of Tokyo). Editing and formatting assistance with the report was provided by Cécilia Paymon (ITF). Maps were provided by Ana Cuzovic (ITF) and InterVISTAS. Assistance with organising the workshop was provided by Monserrat Fonbonnat (ITF) and Alex DiPaola (ITF). GOVERNMENT SUPPORT MEASURES FOR DOMESTIC AIR CONNECTIVITY © OECD/ITF 2018 3 TABLE OF CONTENTS Table of contents Executive Summary ............................................................................................................................. 7 Background ..................................................................................................................................... 7 Key findings ..................................................................................................................................... 7 Policy recommendations ................................................................................................................. 8 Glossary of Terms and Acronyms ....................................................................................................... 10 Chapter 1. Government Support Measures for Domestic Air Connectivity ........................................ 17 Background: The domestic air connectivity challenge .................................................................. 17 Domestic air connectivity objectives ............................................................................................. 20 Assessing domestic air connectivity .............................................................................................. 22 Establishing criteria to guide the choice and level of support for domestic air connectivity ........ 23 Supporting domestic air connectivity: A toolkit of measures ........................................................ 24 Overview of support for domestic air connectivity in a selection of OECD countries ................... 29 The way forward: Designing support measures for domestic air connectivity .............................. 36 Notes ................................................................................................................................................. 39 References ........................................................................................................................................ 40 Annex 1. List of participants .............................................................................................................. 43 Chapter 2. Policy regarding regional connectivity across all transport modes in Australia, Canada, and the United States .......................................................................................................... 47 Australia ........................................................................................................................................ 47 Canada .......................................................................................................................................... 48 The United States .......................................................................................................................... 49 Domestic air connectivity in Australia, Canada, and the USA ............................................................. 50 Issues impacting regional air connectivity ..................................................................................... 50 Domestic air connectivity – status and challenges ........................................................................ 51 Overview of the current support systems ..................................................................................... 55 Domestic air connectivity support going forward .............................................................................. 57 Outcomes and challenges of the domestic air connectivity support system ................................ 57 Concluding remarks ....................................................................................................................... 59 Notes ................................................................................................................................................. 60 References ........................................................................................................................................ 61 Chapter 3. Government support measures for domestic air connectivity: The cases of Norway and Sweden ....................................................................................................................................... 63 Public Service Obligations to foster regional connectivity in the EU .................................................. 63 GOVERNMENT SUPPORT MEASURES FOR DOMESTIC AIR CONNECTIVITY © OECD/ITF 2018 5 TABLE OF CONTENTS Regional connectivity in Norway ........................................................................................................ 65 Characteristics of the PSO network in Norway .............................................................................. 69 Regional connectivity in Sweden ....................................................................................................... 71 Characteristics of the PSO network
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