Summary

The operations of air carriers in providing transportation services to passengers and/or undertakings is an economic activity in its nature. However, servicing routes of general economic interest may not always be commercially sustainable. The public service obligation in aviation is an exception to the general approach of the European Union, stating that there is a liberalised and free aviation market within the Union. The purpose of the public service obligation is to ensure air access to certain isolated areas under fixed terms and conditions.

A public service obligation may be prescribed to serve a route under the provisions established in Articles 16–18 of Regulation (EC) No. 1008/2008 of the European Parliament and of the Council. The regulation sets out in detail both how the public service obligation shall be established, and how compensation shall be set for the respective air carrier. At that, public service is solely used for providing scheduled flight services.

The article presents an overview of the public service obligation and the procedure for the establishment thereof. It also analyses how contracting a public service is related to the prohibition of state aid. The objective is to assess whether the public service obligation regulation could also be used to ensure transnational air connections.