Business & Management Studies

Abstract

This study discusses the application of government subsidies through public policies promoting regional transport. By analysing extant government intervention in the United States, Canada, Australia, Norway and Brazil, the text identifies commonalities in their objectives (the impossibility of economic self-sustainability of air services, lack of satisfactory land transport services, potential healthcare, educational and postal access by local populations, need for national integration, among others). However, the mechanisms of existing public policies in each country or group of countries (European Community) differ substantially according to the socio-cultural and economic elements present in each context. In the European Community, for example, regional air transport services are obligatory public services for all member countries (Public Service Obligations). Its mandatory minimum standards (Level of Services) are defined by the European Community. In parallel, The United States, for instance, has programmes such as Essential Air Services. On the other hand, in the developing or underdeveloped world, government support for regional transport is negligible. Paradoxically, in developing and underdeveloped countries, regional air transport's direct benefits and externalities are shown with greater vigour. This article brings together successful experiences in many countries that could be applied in the non-developed world.