Some Considerations About Value Creation in Regard to Entrepreneurship and Innovation From Public Service Obligations on Scheduled Air Transport

Abstract

Airlines are open to and enjoy a high standard of regulations within the EU Internal aviation market. However, scheduled air services are at times restricted to the access of single markets due to the imposition of public service obligations. This situation is regarded as market failure so this chapter addresses some key aspects in which these impositions can provide elements to create value in regional economies and the private sector through entrepreneurship and innovation. To this end, authors analyze the importance of such fundamental concepts in the transportation sector in regard to air routes not sufficiently covered by carriers in a free market regime despite business opportunity or lack of profitability. This chapter suggests how to improve participation of entrepreneurial companies in tender processes and award of contracts for these specific impositions.