Impacts of air transport subsidies on landlocked developing countries’ connectivity under the “One Belt One Road” initiative

This chapter highlights the importance of air connectivity to landlocked developing countries (LLDCs) in terms of trade and economic development, flows of goods and people, and tourism, so as to call for air transport subsidies to improve LLDCs’ air connectivity under the One Belt One Road initiative. A major obstacle to support the growth of air transport among LLDCs has been the lack of funding. Hence, introducing viable forms of support or aid to improve LLDCs’ transport infrastructure and air connectivity appears to be required. Without a clear set of air transport subsidy policies in place for LLDCs, the rationale for providing air transport subsidies to LLDCs can be put forward by drawing lessons from the provision of essential air services to small and remote communities. Improved air connectivity is expected to bring a “win-win” outcome for both LLDCs and partner countries relating to their overall development and external trade in goods and services, and people movements as well as LLDCs’ connectivity to global markets.