Transport and Covid-19: responses and resources

Government Support Measures for Domestic Air Connectivity

This report reviews government support measures for domestic air connectivity in Australia, Canada, Japan, Norway, Sweden and the United States. It analyses different approaches to providing regional connectivity in terms of their effectiveness in reaching government policy goals as well as value-for-money considerations. The study was commissioned by the United Kingdom’s Department for Transport.

 

Policy Insights

  • Establish explicit domestic transport connectivity objectives.
  • Assess the impacts of potential intervention in the aviation market.
  • Monitor and periodically evaluate the effectiveness of support for domestic air connectivity.
  • Make the award of subsidies transparent.
  • Keep support programmes simple.
  • Provide incentives to create value-for-money.
  • Weigh the benefits of safeguarding slots at congested airports against the costs of denying them to more profitable services.

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