Air Transport as a Tool for Regional Development in Central and Eastern EU Countries - The Chances and Challenges of Public Service Obligation
Czech Yearbook of International Law 2015. Volume VI. International Transportation
35 Pages Posted: 11 Mar 2015
Date Written: March 9, 2015
Abstract
It goes without saying that maintaining connections with remote, secluded areas constitutes a valid reason for public authorities’ involvement. Such intervention is necessary due to fact, that small local communities would usually be unable to generate enough demand to commercially justify high-cost air operations. At the same time there is significant analytical material depicting positive influence that active airport have on region’s economy. Therefore from Central and Eastern EU Member States which are generally underdeveloped in comparison to the countries of “Old Union”, stimulating air traffic should be perceived as a tool for regional development.
Public Service Obligation, mentioned in the title is a EU law-based tool that allows sustaining air routes that are deemed necessary by the public authorities. Current regulatory framework is flexible or imprecise enough to cover connections beyond prima facie market failures. This paper presents PSO framework in the light of its role for regional development.
Keywords: air transport, EU Law, Competition Law, State Aid, Regional Development, Public Service Obligation, Services of General Economic Interest
JEL Classification: K2
Suggested Citation: Suggested Citation