Major differences in the application of the public service obligation (PSO) mechanism in air transport across EU member states give rise to questions as to its misuse. Variations in the levels of subsidy awarded per passenger are due in part to the large differences in the maximum fares that...

<title>Abstract</title> This article seeks to clarify the implications of the Open Skies agreement reached between the European Union (EU) and the USA in March 2007. It begins by reviewing the background of aviation regulation and the negotiations that have taken place between the European Commission (EC) and...

<title/> Major differences in the application of the public service obligation (PSO) mechanism in air transport across EU member states give rise to questions as to its misuse. Variations in the levels of subsidy awarded per passenger are due in part to the large differences in the maximum fares that...

The paper seeks to compare and contrast how different European Economic Area member states have adopted and made use of the public service obligation (PSO) mechanism in air transport. Analysis shows that there is considerable variation in the extent and way in which various countries have...