The deregulation of the USA aviation market has led to drastic changes in route structures and the widespread adoption of the hub-and-spoke system. As a consequence, part of the regional airports at the lower end of the airport hierarchy has been confronted with lower traffic volumes, higher fares and fewer direct connections than under a regulated environment. This paper addresses the question whether European deregulation has led to a similar pattern for the smaller, regional airports. This paper first gives an overview of deregulation impacts for regional airports in the United States. Secondly, the changing position of small community airports in the European Union is investigated. The study uses ABC/OAG-data for all scheduled airports in the European Union during the period 1990 - 1998. The results suggest that liberalisation has had negative impact for a number of small, regional airports. The causes of these changes are analysed by focusing on a few examples. Finally, the question is addressed of which role the regional, national and European governmental bodies should play in maintaining the air service level of small communities in a deregulated environment.
Abstract