Air transport service provision and management strategies to improve the economic benefits for remote regions

Air transport services are often key factors in the transport system in remote regions. They allow human and natural resources to be used more efficiently and they have impacts for resource allocation as well as for value added and income.This paper deals with air transport in remote regions and the main objective is to pinpoint some factors that can be addressed to contribute to regional economic development in a more efficient way. It is based on a literature review and experiences with services under Essential Air Services and Public Service Obligation (PSO) programs. Hence, the discussion of air transport provision in regions is limited to situations where there is a claimed need for some kind of third party involvement to make the services viable. This involvement is most often done by means of subsidies from central or local authorities.It is recommended that factors like the need for subsidies, the level of air fares and the process of competitive tendering under Public Service Obligation should be thoroughly addressed to make the regional air transport system act as a viable supporting factor for regional economic development. These factors are complex and further research is needed to address them in full.