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

• Main Author: Lian, Jon Inge
• Format: Article in Journal/Newspaper
• Language: unknown
• Subjects: Norway; Northern Norway
• Online Access: http://www.sciencedirect.com/science/article/pii/S0969699709000544

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. Network air travel; Airline competition; Regional airline subsidies;