COMPARISON OF APPROACHES FOR SUPPORTING, PROTECTING AND ENCOURAGING REMOTE AIR SERVICES

Prepared by: Prepared by: RP Erickson & Associates Aviation Consultants

June 30, 2015

ABSTRACT:

This study examines the approaches of other comparable jurisdictions/countries for protecting, supporting and encouraging remote air services for passengers and cargo. The report identifies the bases or rationale for the approaches, explains how the systems operate, assesses the costs and benefits of the approaches, and analyses whether and how such approaches could be contemplated for Canada. The report considers public subsidies in support of scheduled air services to remote communities in the US, the EU and Australia. For Canada, the author recommends against a public subsidy scheme which would be an inefficient use of scarce public funds in the North. Instead, government should focus on more targeted measures to level the playing field. Examples include, promoting improved cooperation between northern and southern-based carriers on marketing and services to reduce over-capacity on the most lucrative routes, investing in northern infrastructure to strengthen safety and efficiency, and adjusting the federal government travel system to make it easier for officials to use northern-based carriers for travel to the North.

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