AIR ACCESSIBILITY IN NORTHERN CANADA: PROSPECTS AND LESSONS FOR REMOTER COMMUNITIES

This paper assesses the impact of Canada’s air transportation policy on air accessibility of remote and arctic communities in a context of liberalization of the aviation industry. The central objective is to examine policy’s impact on essential air service – travel and shipment. An observational study of the federal government’s National Airports Policy (NAP) of divesting smaller airports to local entities is conducted using airport cases both inside and outside the National Airports System (NAS) covering 12 communities in Ontario (Ont.), Manitoba (Man.), British Columbia (B.C.), Quebec (Que.), the Northwestern Territories (NWT), and Yukon Territory (YT). The paper also evaluates the impact of Airports Operations and Maintenance Subsidy Program (O&MSP) and investigates the impact of several federal government departments in assuring air accessibility to remote areas. It is argued that: (a) local management allows for greater entrepreneurship and leads to some efficiency gains, (b) remote and arctic airports seem to be unable to sustain and operate their infrastructures without receiving local or federal contributions, and (c) Health Canada, Indian and Northern Affairs Canada (INAC), and Inuit organizations, such as the Makivik Corporation through its subsidiaries carriers First Air and Air Inuit, play a significant role in making air travel accessible. It concludes that, although the decentralization strategy and the subsidy mechanisms are benefiting remote communities, Canada’s policy success is constrained by its failure to incorporate changing conditions, loss of focus, and flaws in performance evaluation. Keywords: National Airports Policy (NAP), Remote airports, Arctic airports, Inuit organizations, Health Canada, Indian and Northern Affairs Canada (INAC), Canada.

AIR ACCESSIBILITY IN NORTHERN CANADA: PROSPECTS AND LESSONS FOR REMOTER COMMUNITIES

This paper assesses the impact of Canada's air transportation policy on air accessibility of remote and arctic communities in a context of liberalization of the aviation industry. The central objective is to examine policy's impact on essential air service - travel and shipment. An observational study of the federal government's National Airports Policy (NAP) of divesting smaller airports to local entities is conducted using airport cases both inside and outside the National Airports System (NAS) covering 12 communities in Ontario (Ont.), Manitoba (Man.), British Columbia (B.C.), Quebec (Que.), the Northwestern Territories (NWT), and Yukon Territory (YT). The paper also evaluates the impact of Airports Operations and Maintenance Subsidy Program (O&MSP) and investigates the impact of several federal government departments in assuring air accessibility to remote areas. It is argued that: (a) local management allows for greater entrepreneurship and leads to some efficiency gains, (b) remote and arctic airports seem to be unable to sustain and operate their infrastructures without receiving local or federal contributions, and (c) Health Canada, Indian and Northern Affairs Canada (INAC), and Inuit organizations, such as the Makivik Corporation through its subsidiaries carriers First Air and Air Inuit, play a significant role in making air travel accessible. It concludes that, although the decentralization strategy and the subsidy mechanisms are benefiting remote communities, Canada's policy success is constrained by its failure to incorporate changing conditions, loss of focus, and flaws in performance evaluation

Comparing Air Transport Policies for Small Remote Communities: U.S.A., Canada, Portugal, Spain and Brazil

This paper examines the regulatory status in the aviation industry, and the efforts of the U.S.A., Canada, Portugal, Spain and Brazil to adopt air transport policies and mechanisms to provide their populations with universal accessibility. A systems engineering grounded theory approach and a cross-national case-based comparison framework are used to look at the impacts of different policies and mechanisms on the air service to small remote communities. It is found that the success of a policy design critically depends on five factors: 1) the joint support of infrastructure investment, maintenance and operations and air services; 2) governments’ ability to promote competition and protect passengers in markets where competition does not exist; 3) the operating carrier’s choice of business model, technology for thin routes, and network; 4) political interest; and 5) local participation. Based on the evaluation of policy designs and assessment of policies in five substantially different national contexts and interviews with several stakeholders, the authors provide insights and suggest recommendations in small remote air transport policy for policy makers and practitioners. The recommendations are applicable to other countries reforming their aviation industries

Comparing Air Transport Policies for Small Remote Communities: U.S.A., Canada, Portugal, Spain and Brazil

This paper examines the regulatory status in the aviation industry, and the efforts of the U.S.A., Canada, Portugal, Spain and Brazil to adopt air transport policies and mechanisms to provide their populations with universal accessibility. A systems engineering grounded theory approach and a cross-national case-based comparison framework are used to look at the impacts of different policies and mechanisms on the air service to small remote communities. It is found that the success of a policy design critically depends on five factors: 1) the joint support of infrastructure investment, maintenance and operations and air services; 2) governments’ ability to promote competition and protect passengers in markets where competition does not exist; 3) the operating carrier’s choice of business model, technology for thin routes, and network; 4) political interest; and 5) local participation. Based on the evaluation of policy designs and assessment of policies in five substantially different national contexts and interviews with several stakeholders, the authors provide insights and suggest recommendations in small remote air transport policy for policy makers and practitioners. The recommendations are applicable to other countries reforming their aviation industries