How Essential is Essential Air Service? A Welfare Analysis of Airport Access for Remote Communities
| 项目名称： | How Essential is Essential Air Service? A Welfare Analysis of Airport Access for Remote Communities |
| 摘要： | The Airline Deregulation Act of 1978 gave airlines almost total freedom to determine which domestic markets to serve and which fares to charge. To alleviate fears that newly deregulated airlines would shift their operations to serve large, profitable markets, leaving remote communities without access to the national passenger airline network and the markets and opportunities that come along with such access, Congress established Essential Air Service (EAS), a federal government program that provides subsidies for more than 100 communities in the continental US. This study conducts a welfare analysis of EAS by estimating a discrete choice model of demand using unique data that couple passengers’ choice of flight with their residential ZIP code. These data allows the study team to estimate passengers’ willingness to trade off farther driving distance for lower prices, which in turn allows the team to estimate the monetary value residents place on having access to a nearby airport. The study team finds that subsidies to several EAS airports that are relatively close to a larger hub airport cannot be justified on public finance grounds, suggesting these EAS funds could be put to better use elsewhere. |
| 状态： | Active |
| 资金： | 15000 |
| 资助组织： | Office of the Assistant Secretary for Research and Technology |
| 管理组织： | TREC at Portland State University |
| 执行机构： | University of Arizona, Tucson |
| 主要研究人员： | Drukker, Austin |
| 开始时间： | 20220201 |
| 预计完成日期： | 20230131 |
| 主题领域： | Aviation；Finance；Operations and Traffic Management；Passenger Transportation；Terminals and Facilities |
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