ASSESSING THE PERIPHERAL STATUS OF LOCAL AIRPORTS

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Frode Kjærland
Terje Andreas Mathisen

Keywords

public service obligation, subsidy, air transport, peripheral regions, remoteness, tendering duration

Abstract

The European Union (EU) has defined seven regions as outermost (or ultra-peripheral), of which three are located near the European mainland (the Azores, Madeira and the Canary Islands). These regions benefit from certain relaxations in EU law to promote economic development such as extended duration on tendered contracts for subsidised air transport routes subject to public service obligation. This article aims to determine the peripheral status of Norwegian municipalities hosting airports with subsidized air transport routes in order to assess whether they qualify for a similar extension of contract length. Evidently, a majority of the route areas can be classified as equally or more peripheral than the outermost regions. The method for assessment can be transferred to PSO-routes in other peripheral regions of the EU as well as for considering relaxation of other laws promoting the development of such areas.

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