How Essential Is Essential Air Service? The Value of Airport Access for Remote Communities

Drukker, Austin

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How Essential Is Essential Air Service? The Value of Airport Access for Remote Communities

2023-05-01
By Drukker, Austin

File Language:

English

Details

Creators:

Drukker, Austin
Corporate Creators:

National Institute for Transportation and Communities (NITC) ; University of Arizona
Corporate Contributors:

United States. Department of Transportation. University Transportation Centers (UTC) Program ; United States. Department of Transportation. Office of the Assistant Secretary for Research and Technology
Subject/TRT Terms:
Resource Type:

Dissertation
Geographical Coverage:

United States
Corporate Publisher:

National Institute for Transportation and Communities (NITC)
Abstract:

Essential Air Service is a federal government program that provides subsidies to airlines that provide commercial service between certain remote communities and larger hubs, which proponents argue are justified because driving to larger airports would be prohibitively expensive for residents of these communities. I estimate the value of Essential Air Service to local communities using a revealed-preferences approach by formulating and estimating a discrete-choice model of domestic air travel purchases that incorporates passengers’ geographical proximity to alternative airports. I estimate the model using proprietary data containing millions of domestic airline passengers’ residential ZIP codes coupled with their choice of airline product. Simple data tabulations reveal that most travelers living in regions receiving subsidized service have several alternative airports to choose from and generally prefer to drive to larger airports. A counterfactual policy simulation using the estimated model finds that, in aggregate, community members value subsidized commercial air service from their local airport at $16 million per year, compared to an annual cost of over $290 million.
Format:

PDF
Funding:

69A3551747112
Download URL:

https://rosap.ntl.bts.gov/view/dot/68535/dot_68535_DS1.pdf
File Type:

[PDF - 4.38 MB]
Collection(s):

University Transportation Centers
Main Document Checksum:

urn:sha-512:ca1414a873f2a697c76136ba68a3710bde5c6c27b8f6e8dccd592d6d26523da626cb3ce49a142ffcfa977d917ed1c38b317df6b4137b7d9745a5d383c0250e53

File Language:

English

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