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Network dependency and airline competition – Consequences for remote areas in Norway

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  • Lian, Jon Inge

Abstract

Due to the long stretched shape of the country and sparse population many regions in Norway are dependent on air travel that involves chained trips with two or more legs. Northern Norway and the west coast are particularly dependent on such networks. In these areas a number of short take-off and landing airports and subsidised regional airlines engaged in a public service obligations route tendering systems. However, regions dependent on competitive network travel have not all benefited from the last ten years of competition which has lead to lower fares on the main routes and ‘through-fares’ for network travellers have become relatively expensive. This is because there is only one network airline offering through fares. Network travel where one leg is commercially provided and not covered by public service obligation rules, leaving regulation authorities to intervention when fares are excessively high on other legs.

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  • Lian, Jon Inge, 2010. "Network dependency and airline competition – Consequences for remote areas in Norway," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 137-143.
    • Handle: RePEc:eee:jaitra:v:16:y:2010:i:3:p:137-143
    DOI: 10.1016/j.jairtraman.2009.07.007
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    3. Pita, João Pedro & Antunes, António Pais & Barnhart, Cynthia & de Menezes, António Gomes, 2013. "Setting public service obligations in low-demand air transportation networks: Application to the Azores," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 35-48.
    4. Fageda, Xavier & Jiménez, Juan Luis & Valido, Jorge, 2017. "An empirical evaluation of the effects of European public policies on island airfares," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 288-299.
    5. Calzada, Joan & Fageda, Xavier, 2014. "Competition and public service obligations in European aviation markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 104-116.
    6. Antunes, António P. & Santos, Miguel G. & Pita, João P. & Menezes, António G., 2018. "Study on the evolution of the air transport network of the Azores," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 837-851.
    7. Pita, João P. & Adler, Nicole & Antunes, António P., 2014. "Socially-oriented flight scheduling and fleet assignment model with an application to Norway," Transportation Research Part B: Methodological, Elsevier, vol. 61(C), pages 17-32.
    8. Branko Bubalo, 2012. "Social costs of public service obligation routes—calculating subsidies of regional flights in Norway," Netnomics, Springer, vol. 13(2), pages 125-140, July.
    9. Tolga Ülkü & Vahidin Jeleskovic & Jürgen Müller, 2014. "How scale and institutional setting explain the costs of small airports? -An application of spatial regression analysis," MAGKS Papers on Economics 201435, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    10. Mathisen, T.A. & Jørgensen, F. & Solvoll, G., 2014. "Marginal costs pricing of airport operations in Norway," Research in Transportation Economics, Elsevier, vol. 45(C), pages 49-56.

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