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This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns.
This groundbreaking book offers a critical and wide-ranging assessment of the global air transport liberalization process over the past 40 years. This compilation of world experts on air transport economics, policy, and regulation is timely and significant, considering that air transport is currently facing a series of new challenges due to technological changes, the emergence of new markets, and increased security concerns. The book initially explores liberalization within various geographical markets such as the United States, Australia, Ireland, the European Union, China, India, Latin America, and Africa. It expands upon this by addressing the main concerns that were initially leveled against air transport liberalization, including those involving safety, social services, market concentration, and the domination of hub airports as well as market instability. This analysis of air transport and its regulation will be of interest to aviation professionals, regulators, researchers, and students who are taking courses in air transport, economic regulation, and contemporary transport history. Contributors include: S. Barrett, M. Baumgartner, P. Berster, V. Bilotkach, K. Button, M. Finger, P. Forsyth, M.C. Gelhausen, D. Gillen, S.V. Gudmundsson, G. Martini, W.G. Morrison, R. Nagpal, R. Neiva, C.V. Oster Jr., J. Peoples, A. Reynolds-Feighan, H. Saranga, D. Scotti, J.S. Strong, H. Vega, E. Zeki, A. Zhang, Y. Zhang, C.K. Zorn
Aviation is one of the most regulated industries in the world. Much of this regulation is safety-related, to mitigate the inherent risks tied with air transport. But aviation is also subject to economic regulation that influences which airline flies which route, at which frequency, capacity and price. It even stipulates the nationality of its owners and decision makers. Aviation has freed itself from some restrictions over the past three decades, with many benefits to society. Yet liberalisation has also raised issues with regard to maintaining fair competition, high labour standards and mitigating aviation’s growing environmental impact.
This title was first published in 2001. By giving long over-due detailed consideration to airline deregulation in countries other than the US, Dipendra Sinha makes a unique contribution to the literature on airline deregulation and transport economics.
The aviation sector consists of various actors such as airlines, ground handling companies, and others all with conflicting priorities. In order to understand how these actors position themselves in an increasingly competitive market, The Air Transportation Industry: Economic Conflict and Competition analyzes all the market segments in detail, examining such issues as which industrial economic structure drives decisions, the main economic problems, the consequences for negotiations between different actors, impacts on the global aviation market, and much more. This book covers the entire aviation sector including strategies, regulation, resilience, privatization, airport slot management, and more. It examines how economic and strategic struggles underlie the current market structure, both for aviation as a whole and for the constituent actors as carriers, authorities, and handlers. It examines the ways market and nonmarket approaches impact the competitiveness of the air transport industry, offering a complete mapping of the economic actions between actors of the air transport industry. This volume will help readers gain insight into the possible strategic choices and the mutual competitive strength within the future aviation market. - Contains contributions from well-known aviation scholars - Includes numerous cases studies throughout that explore a wide range of topics - Focuses on applied knowledge, with clearly structured chapters examining topics from a global perspective - Addresses the ongoing consequences of COVID-19 on the air transportation industry, examining potential strategic responses in the event of subsequent pandemics
The last few decades have witnessed substantial liberalization trends in various industries and countries. Starting with the deregulation of the US airline industry in 1978, regulatory restructuring took place in further network industries such as telecommunications, electricity or railways in various countries around the world. Although most of the liberalization movements were initially triggered by the worrying performances of the respective regulatory frameworks, increases in competition and corresponding improvements in allocative and productive efficiency were typically associated with the respective liberalization efforts. From an academic perspective, the transition from regulated industries to liberalized industries has attracted a substantial amount of research reflected in many books and research articles which can be distilled to three main questions: (1) What are the forces that have given rise to regulatory reform? (2) What is the structure of the regulatory change which has occurred to date and is likely to occur in the immediate future? (3) What have been the effects on industry efficiency, prices and profits of the reforms which have occurred to date? Liberalization in Aviation brings together renowned academics and practitioners from around the world to address all three questions and draw policy conclusions. The book is divided into five sections, in turn dealing with aspects of competition in various liberalized markets, the emergence and growth of low-cost carriers, horizontal mergers and alliances, infrastructures, and concluding with economic assessments of liberalization steps so far and proposed steps in the future.
In Africa, where poor roads, ports, and railways often constrain efficient transportation, air transport holds great potential as a lever for economic growth and development. Yet Africa has suffered several decades of inefficient air services. Uncompetitive flag carriers, set up by newly independent African states, offered primarily intercontinental flights, while the domestic air service market remained underdeveloped and underserved. The 1999 pan-African treaty on liberalization of access to air transport markets, the Yamoussoukro Decision, attempted to address these shortcomings. Yet a decade later, only partial liberalization has been achieved. 'Open Skies for Africa: Implementing the Yamoussoukro Decision' reviews progress made in carrying out the treaty and suggests ways in which the liberalization process can be encouraged. The book analyzes the completed and still-pending steps toward implementation of the Yamoussoukro Decision, both on a pan-African level and within various regions. Special focus is given to the challenges posed by the poor aviation safety and security standards that exist in most African countries. Finally, the book measures the impact that certain policy steps of the Yamoussoukro Decision have had and evaluates the economic significance of air transportation and its full liberalization in Africa. The book concludes that the process of liberalizing African air services must continue, and provides policy recommendations for the way forward.
Competition in air transport has been transformed by industry liberalization initiatives, resulting in the emergence of a wide array of new airline start-ups. Restrictions on low fares have been removed, uniform control requirements have been established, and legislation has facilitated the proliferation of low-fare carriers and competition. The new breed of independent low-fare airlines (LFAs) use market freedoms to shake up the industry's competitive dynamics and offer the customer the alternative of low prices and basic service. A successful low fare business model requires a ruthless and relentless focus on cost cutting and increased operational productivity, combined with an ability to generate and maintain a cash surplus and a cautious but steady fleet and route network expansion. The mastery of these techniques has made Southwest and Ryanair industry leaders, but others such as EasyJet also have a proven record of profitability and market growth, despite not always being the lowest cost or price providers. In this comprehensive and topical study the author systematically provides: · a step-by-step approach to understanding the conditions and choices shaping airline competitiveness, and an assessment of the nature of the low fare market · a comprehensive study of the low fare airline sector's evolution and growth and arguments as to why the European low fare industry is here to stay despite the inevitability of a shake out (reminiscent of the early 1980s in the USA). · unique insights into the success of low fare market leaders in Europe, North America and Australasia and an examination of the experience of US new entrants in the post-deregulations era, to discern strategic lessons for their counterparts; · critical perspectives on strategic management principles and practices in modern airline companies, discussing strategies for survival, and comparing competitive strategies for the main low fare airlines and their limitations; · key reasons for the robustness of the low fare business model during industry crises The book also determines the conditions and strategies that shape sustainable advantage for LFAs in highly competitive deregulated markets where established airlines seek to force out new entrants and considerable political interference remains. Moreover, the book considers why, during the airline industry crisis of late 2001, the market capitalizations of low fare leaders held steady in the wake of the US terrorist attacks, while the major carriers on both sides of the Atlantic were decimated. Cleared for Take-Off is essential reading for airline executives, aerospace manufacturers, regulatory and government transportation agencies, researchers or students of aviation management, transport studies, the travel industry and/or corporate strategy.
The fast-growing last decade of strong economic growth of the Association of Southeast Asian Nations (ASEAN) has played a critical role in Asia-Pacific regionalism and global trade. This book explores the concept of ASEAN law under the normative framework of the new regional economic order. It examines the roadmap of the new ASEAN Economic Community Blueprint 2025 by evaluating the impact of ASEAN trade agreements on domestic legislation on professional services, financial integration, investment disputes and digital trade. More importantly, it sheds light on the legal implications of ASEAN's agreements with China and India and the potential developments of mega-regional trade agreements such as the CPTPP and the RCEP. Hence, the legal analysis and case studies in the book offer a fresh view of Asia-Pacific integration and bridge the gap between academia and practice.
Making a detailed contribution to geographies of air transport and aeromobility, this book examines the practices and processes that produce particular patterns of air transport provision both regionally and globally. In so doing, it updates the seminal contributions of Eva Taylor (1945), Kenneth Sealy (1957), Brian Graham (1995) and others to the study of air transport geography. Leading scholars in the field offer a unique insight into the key developments that have occurred in the field and the implications that these developments have had for geography, geographers, and global patterns of past, present and future air transport. Although globalization and liberalization processes have greatly expanded the demand for air transport over the last two decades, the industry has experienced several major setbacks due to economic, security, and environmental concerns. Many of these impacts have been much more pronounced in some regions, such as North America and Europe while others, such as Asia-Pacific have not been as adversely affected. Accordingly, there is a clear need to examine these recent economic and geopolitical changes from a geographical perspective given the differentiated pattern of effects from global processes. Addressing this need, this volume opens with thematic chapters covering key topics such as the historical geographies, socio-cultural mobilities, environmental externalities, urban geographies, and sustainability of the global air transport industry, followed by regional analysis of the industry in Asia-Pacific, Latin America, Greater Middle East and Africa as well as North America and Europe.