The geographical characteristics of subsidized air routes serving as lifelines

Leão e Silva, Celso José, Oliveira de Andrade, Maurício, Falcão, Viviane Adriano and da Silva, Carlos Fabricio Assunção

Journal of Air Transport Management, 2022, vol. 104, issue C

Abstract: The regional economic growth promoted by air transportation has fomented investigation into regional air transportation and the required incentives for its development. According to the types of financing used and the results of the investments, several countries have established particular subsidy strategies aiming to integrate their regions through air services. On the other hand, a few studies have explained the physical attributes of the served areas, demonstrating their reliance on air transport as it is the only feasible means of transportation. This article aims to distinguish the geographical characteristics of these areas, revealing the circumstances that explain the necessity of subsidies for air transport operation. The socio-economic information was collected from 1365 subsidized routes in 28 countries in the Americas, Asia, Europe, and Oceania. The profiles of the served communities were divided into nine clusters. The results reveal that 51.36% of the subsided flights connect as lifelines to isolated populations in either remote or inaccessible regions mainly to satisfy social and humanitarian services. Many of these areas depend on air transport because they are sparsely occupied or home to an underprivileged population. However, this service may be commercially unfeasible. This situation legitimizes air service subsidization as a crucial requirement to guarantee the population's access to places where they may meet essential needs.

Keywords: Air transport; Subsidized air routes; Remote locations; Regional air routes; Lifeline routes (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:104:y:2022:i:c:s0969699722000990

DOI: 10.1016/j.jairtraman.2022.102280

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