A Study for the Cause of Airline’s Withdrawal from Local Air Routes and Sustainment/Expansion of Those Routes

Abstract

The paper is to conduct the analysis over the cause of airline’s withdrawal from local air routes based on the thorough review of withdrawal facts data from 2001 to 2010.Then, together with the analysis on the status of Europe and the analysis on the future potential of changing air transport in Japan, it addresses appropriate measurers for sustaining and expanding local routes. As a result, it is concluded that (1)High utilization of regional airlines/regional aircrafts, (2)Encouragement of LCC’s entering into local routes and (3)Subsidy scheme to supplement above measures are effective.