ABSTRACT
In order to enable governments to maintain essential air services, Articles 16, 17 and 18 of Regulation (EEC) No. 1008/2008 define a system of public service obligations (PSOs) which can be imposed on carriers operating on designated routes. In essence, the legislation allows Member States to impose a public service obligation in respect of scheduled air services between any airport in the Community and an airport serving a peripheral or development region within its territory or on a thin route to any airport in its territory considered vital for the economic and social development of the region served by the airport. If no airline is willing to provide a service under the conditions imposed, the government may restrict access to the route to a single carrier and award financial compensation to the carrier in return for compliance with the PSO. While a PSO can be imposed by a Member State for a route between its territory and that of another Member State, over 90 per cent of public service obligations are in respect of domestic services.
