The Importance of Completeness and Clarity in Air Transport Contracts in Remote Regions in Europe and Australia
Year: 2013
Type: article
Abstract: This article compares the current experience of public service obligations carriers in Europe and Australia ex ante with regard to contract clarity, and then ex post regarding the completeness of their transport contracts. Particularly in times of government austerity, clear contracts are of immense importance to transport authorities in order to achieve value for money when procuring air-transport services. Weak contracts can result in uncertainties, transaction costs, and poor performance of regional airlines. Our results show differences across carriers that go beyond differences associated with geographic region, and highlight the importance of trust and good relationships between transport authorities and operators.
Source: Transportation Journal
Authors: Rico Merkert, David A. Hensher
Institution: The University of Sydney
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W292920834