Local politics–not economic necessity or distance from commercial centers–might influence the administration of Europe’s public-service obligation (PSO) air service contracts more than any single factor, according to an academic report for Scotland’s Highlands and Islands (H&I) regional authority. While PSO flights, usually flown by regional airlines, exist ostensibly as a function of geography, the study found that PSO provision “perhaps more importantly [reflects] political culture within government decision-making.” The report, by Cranfield University, compared specific examples in many countries and found many inconsistencies in the application of PSO procedures in different European Union (EU) member states.
Under 1992 European Commission air-transport liberalization rules, states may grant PSO status to routes serving peripheral or developmentally sensitive regions, including cross-border routes considered economically vital but where demand cannot sustain profitable airline service. States must also consider the adequacy of alternative transportation services. All EU-registered airlines–and those in Iceland, Norway and Switzerland–can tender to fly any number of PSO routes.
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