In autumn 2028, the current contracts for publicly subsidised air routes in Northern Norway will expire. Commissioned by the Norwegian Ministry of Transport, Oslo Economics, in collaboration with Norconsult and Gravity Consult, has assessed how air services could be organised for the next contract period. The report examines capacity, schedules, fares, transport standards, competition, and climate and environmental considerations. <\/p>\n\n\n\n
The report finds that the 50 per cent reduction in maximum fares introduced in April 2024 has resulted in lower ticket prices and increased demand, putting greater pressure on capacity on several routes. At the same time, competition for many of the Public Service Obligation (PSO) routes is limited, partly because short runways restrict which aircraft types and operators can be used. <\/p>\n\n\n\n
We propose two alternatives for the future route network. The continuation alternative largely builds on the current structure, with adjustments to capacity and frequency requirements. The efficiency alternative involves more substantial changes, including removing the routes to and from Vard\u00f8, Stokmarknes, Mosj\u00f8en and Namsos from the PSO scheme, and serving R\u00f8st by helicopter. <\/p>\n\n\n\n
The report also recommends giving operators greater flexibility in setting fares by regulating the maximum average fare rather than the maximum fare for each individual ticket. Changes to route combinations could also help facilitate greater competition. <\/p>\n\n\n\n