Report by : Gan Yung Chyan, KUCINTA SETIA
Image : Video Screenshot
At the recent Dubai Airshow, Air Corsica and ATR announced firm orders for five new ATR 72-600 aircraft, which will be equipped with the new Launched the Canadian Pratt & Whitney PW127XT engine. Aircraft deliveries will begin in November 2022.
French carrier Air Corsica is founded in 1989. Its main shareholder is the local government of Corsica. It has a fleet of 12 aircraft: 5 ATR 72-500s, 1 ATR 42-600 and 6 Airbus A320s (including 2 Next Generation A320neo).
The company's base is located at Ajaccio Airport in Corsica, France, and it flies to four airports on the island: Ajaccio, Bastia, Calvi and Figari with regular flights to mainland France and major European cities.
Air Corsica has operated ATR flights to and from Corsica since its inception more than 30 years ago, commissioned by the government. ATR has low fuel consumption and low operating costs, and can quickly build reliable and sustainable air connections, promoting local economic and social development.
Image : Air Corsica ATR Aircraft Routes 2019-2022 (Source: OAG)
At present, Air Corsica has 33 routes connecting domestic destinations in France, such as Paris-Charles de Gaulle Airport, Paris-Orly Airport, Marseille, Nice, Lyon, Toulon, Toulouse, etc., including 12 public service routes (Public Service Routes) .
Public service routes serve remote areas
What is a public service route? Public service routes, namely the European "Public Service Obligation" (Public Service Obligation - PSO) routes, PSO is a unified traffic service specification formulated by the European Council for member states. In remote or underdeveloped areas with appropriate transport links, establish a standard system of air services that is continuous, scheduled, affordable or suitable for capacity, so that the EU government can provide flight services in the remote and less developed areas with the indispensable basic regular through means of regulation outside the free market.
In short, in certain remote or underdeveloped areas, under normal market conditions, if airlines are unable to make profits and have no intention to open scheduled flights, the EU and local governments of various countries will use time resources or subsidies to attract airlines through bidding. Use suitable aircraft types to provide sustainable and affordable scheduled flights to the local area, ensure the basic travel needs of the people, and develop the local economy.
Background: The European Union's aviation liberalization started in 1987 removed the original institutional barriers to market access and competition, and established a true European single market. With the intensification of market competition, it is difficult for airlines to make profits on routes in remote areas and underdeveloped areas, and this market is gradually neglected. In order to maintain appropriate scheduled flight services and ensure the basic travel needs of the people, the EU has formulated corresponding subsidy guidelines. The main regulatory basis of PSO is: EU Regulation 1008/2008 - "General Regulations on Community Air Transport Services" and EU Control Principles of interpretation of Regulation No 1008/2008.
Key features of the PSO project:
Image : Routes covered by PSO in Europe in 2019 (Source: EU official website data)
Routes linking remote or developing regions and thin routes linking any airport
Bidding method
Each EU member state submits PSO demand information such as airports, flight schedules, and project implementation period, which will be released by the EU in a unified manner for bidding. The first tender generally involves the exclusive right to operate a certain route without any subsidy, and the time slot and the right to operate are used to attract airlines to sail without subsidies. If no operator wins, another round of tenders with subsidy conditions is initiated.
Model selection
According to the take-off and landing conditions of the airport, the length of the route and the number of passengers to be satisfied, the aircraft type should be reasonably selected to avoid the problem of low occupancy rate, high cost and subsidized air consumption caused by the use of oversized aircraft types.
Flight frequency: In most cases, airlines are required to provide at least 1-2 flights per day. Maintain a relatively stable travel mode and cultivate travel habits.
Flight frequency
In most cases, airlines are required to provide at least 1-2 flights per day to maintain a relatively stable travel mode and cultivate travel habits.
The EU data in August 2019 shows that the number of PSO routes has reached 176, covering major EU countries. Among them, France, Greece, Spain, Portugal and Italy have more PSO routes, accounting for 80% of the total.
Image : Video Screenshot
What the PSO program has taught us:
1
The purpose is clear: to solve the basic travel of the people and promote the development of the local economy
2
Precise positioning: targeting airports and regions that are in urgent need of connectivity, especially cities where basic air travel cannot be guaranteed under normal market conditions
3
Competition mechanism: Attract airlines to bid, the process is open and transparent, and the results are publicly announced
4
Scientific subsidy: Provide basic subsidies based on aircraft type, capacity and frequency, and hand over operators to operate in a market-oriented manner, effectively stimulating the development of markets and routes, and reducing local financial burdens
The huge driving effect of flights on the local economy: According to the European Union's PSO interpretation principle, research shows that for every 10% increase in regional airline connections through PSO routes, per capita GDP increases by 0.5%, and regional GDP increases by 1%.
Image : Video Screenshot
After the comprehensive upgrade of Air Corsica's ATR 72 fleet, Air Corsica will use the most advanced turboprop engines to optimize operations, increase capacity, reduce operating costs, and contribute to a more sustainable development of the aviation industry. Air Corsica passengers will benefit from a more spacious cabin and larger overhead luggage compartment, and the aircraft's advanced avionics technology will further improve flight punctuality and reliability.
Marie-Hélène Casanova-Servas, Chairman of the Supervisory Board of Corsica Aviation commented, “When performing a public service flight, there are many factors to consider: which modern aircraft is the most reliable, efficient and cost-effective? Corsica has a well-preserved ecology and we pay particular attention to the impact of aircraft on the environment . That's why, starting at the end of 2019, we have selected the latest ATR 72-600 to modernize our fleet."
ATR CEO Stefano Bortoli said, "ATR is proud to have long-standing customers like Air Corsica, who have always believed that ATR aircraft are in line with the company and fleet modernization strategy. By choosing ATR, Air Corsica chose economy, and social responsibility: ATR is the most cost-effective and environmentally friendly solution for the feeder."
Image : Video Screenshot
Air Corsica Board Chairman Luc Bereni added, "Our development has been inseparable from ATR since its first flight in the spring of 1990, and this order for five ATR 72-600s with PW127XT engines will drive our future. These new, more efficient aircraft will deliver on the customer experience. A number of innovations, all at the same time creating the air travel model that we depend on for success in Corsica: a certain frequency, time stability and reliability.”
Thanks to low fuel consumption, low CO2 emissions and high operational reliability, ATR feeder market leadership is being consolidated day by day. By establishing connections between major airports and regional airports, regional air transport has driven the development of tourism, but the positive impact does not stop there. Flights bring local opportunities for education, medical care, cultural exchange and access to the global economy - Not all situations require the development of expensive, complex road or rail infrastructure.
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