Title: Is EU’s Open Aviation Policy Good for Air Transport?
Publisher: The World Bank
Publication Year: 2017
JRC N°: JRC107336
URI: http://www.worldbank.org/en/topic/transport/brief/connections
Type: Articles in periodicals and books
Abstract: International air transport is at a crossroads. The aviation industry’s center of gravity has moved toward the East, with main hubs in the Gulf region and ever-increasing passenger markets located in Asia. Long-haul inter-continental low-cost-carriers have emerged. Global alliances and their effects on competition have come into question. These outcomes have led to a reignited interest in the issue of liberalization in aviation: European regulators now need to balance concerns about fair competition with their own decades-long push for the multilateral liberalization of the aviation industry. The European Union has been at the forefront of market liberalization in international air transport for the last few decades, relaxing the conditions of market access such as airline designation, fare setting, and flight frequencies. After deregulating its domestic market in the 1990s, in 2005 the EU began exporting its open market policies to its neighbors and key strategic partners through comprehensive aviation liberalization packages. With this pioneering approach, individual countries handed over the economic regulation of their international air markets to regional bodies like the EU. This ushered in the era of a potential multilateral approach for achieving global air transport market liberalization. In a recent study, we looked at the economic effects of the EU’s external aviation policy with third countries, focusing on 27 countries with which the EU has Air Services Agreements with varying degrees of liberalization.
JRC Directorate:Energy, Transport and Climate

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