Baltic Bird

Public Service Obligations & Route Development Fund


WP Leader

Nordland County Council

Per Strømhaug
Tel. 0047 75 65 03 62
Mob 0047 41 50 30 31
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The main objective of Work Package 5.3 (WP 5.3) is to develop a strategy toolbox providing suitable instruments to partners for stimulating routes to and from BSR with medium or low PAX potential (identified in WP 3 "Passenger Potential Analysis").

First sub-objective is to provide airports with strategies to keep at hand showing how to introduce public funding options, e.g. Route Development Fund (RDF) (best practice Scotland, 2002). Second sub-objective is to provide airlines and regions with strategies on application of public service obligations (PSO) to receive co-financing for commercial risk of setting up new flight connections. Through imposing PSO/ RDF, regional routes shall be opened and maintained leading to better accessibility in remote BSR.

Joint transnational elaboration of airport marketing strategy, and of tourism destination development strategy will lead to pilot-implementation. Together with PSO/ RDF guidelines, they shall result in implementation of new flight routes to and from peripheral BSR.


Activity 5.3.1: Analysis of PSO/ RDF regulations in BSR and other EU regions

Joint workshops on imposing PSO/ RDF at regions and airports will initiate analyses of regulations regarding RDF in BSR. PSO and RDF analysis which will be carried out by Northpoint Aviation Ltd. and the University of Sydney will investigate in EU, national regulations, and the conditions and requirements for PSO set out in Article 16 of the Air Services Regulation 1008/2008. As interpretation and knowledge of PSO and RDF varies greatly from one state to another, it causes a general, common concern about interregional and transnational territorial development. Because of this, transnational concession will be analysed. Berlin airport, Savonlinna region, Aarhus airport and Estonian Air will bring in their experiences and knowledge on PSO/ RDF funding from a regions', airports' and airlines' perspective. Based on these analyses, possible procedures for transnational PSO and RDF application will be identified and flow in a corresponding application guide, serving BALTIC BIRD partner airports, regions, airlines and other airports and airlines in Europe.

Activity 5.3.2: Investigation of regional economic justification

One case study about regional economic justification of PSO and RDF will be elaborated as a pilot-project at Liepaja airport. PSO/ RDF are very interesting for them, because after finalising reconstructions of the airfield in 2013/ 2014, they will be able to support a back up initialising appropriate new routes. Nordland region has great number of regional PSO services, and a great deal of experience with this instrument. Bodø already has RDF, but so far there has been limited interest among airlines to use it. This has been due to the lack of further information about how to handle and apply it.

So Nordland is very interested to find better ways to use RDF for attracting airlines. Nordland also strongly supports execution of a case study. Therefor, the case study will be elaborated transnationally, using best practice experiences from other EU- and Baltic Sea Regions and of BALTIC BIRD partners (e.g. Nordland, Savonlinna) together with the findings of SBGA. Additionally, results of the case study will be made available for all BALTIC BIRD partners, and can be adopted at other airports and regions in the EU for their non-commercially viable flight routes.

5.3.2 shall compare additional regional economic effects of new flight connections, expressed in monetary terms, with a required amount to impose PSO and RDF on those additional flight connections. Regional economic effects of that connection have to be analysed through criteria. For example there will be a number of newly created jobs, income, buying power, number of (foreign) direct investments, population development etc. Criteria show comparisons between the amount of PSO/ RDF required and economic effects in monetary terms. This will make matters transparent, for example it will become clear that imposing PSO/ RDF of 1 million Euro might be covered by additional regional economic effects of (for example) 1.5 million Euro. All general results regarding approach of regional economic justification of PSO/ RDF will be laid down in a corresponding study together with specific results of case studies.

Expected outputs

  • PSO/ RDF application guidelines: partners and associated organisations make jointly available experiences in PSO and RDF to elaborate application guidelines; regions, airports and airlines use them to encourage airlines to start a new flight connection on routes for which PAX market analysis actually show insufficiently PAX numbers.
  • New flight routes at BALTIC BIRD airports due to PAX analysis, airport marketing, and PSO/ RDF application: regional authorities, companies and inhabitants of BSR will become closer together; they can more easily visit each other (internal accessibility). In particular peripheral BSR will receive faster external accessibility to and from important economic centers in EU.

Involved partners

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