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The impact of US–EU “Open Skies†agreement on airline market structures and airline networks

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  • Button, Kenneth

Abstract

The gradual liberalization of international air transport has largely benefited the traveling public. Progress since the development of concepts such as “Open Skies†in the late 1970s as an alternative to the restrictive bilateral air service agreements that had effectively controlled most international air transport since the mid-1940s has been uneven and spasmodic. The recent move to open the North Atlantic more fully to competition has proved a particularly challenging task, and the agreement between the US and the European Union is still both partial and conditional. This paper offers an overview of the economics of the situation and provides insights into the reasons why it has developed in the way it has, the outcomes that we may expect from it, and some consideration of the wider, non-commercial, impacts that it may have.

Suggested Citation

  • Button, Kenneth, 2009. "The impact of US–EU “Open Skies†agreement on airline market structures and airline networks," Journal of Air Transport Management, Elsevier, vol. 15(2), pages 59-71.
  • Handle: RePEc:eee:jaitra:v:15:y:2009:i:2:p:59-71
    DOI: 10.1016/j.jairtraman.2008.09.010
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    References listed on IDEAS

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    Cited by:

    1. Tu, Ningwen & Li, Zhi-Chun & Fu, Xiaowen & Lei, Zheng, 2020. "Airline network competition in inter-continental market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    2. Kenneth Button & Rui Neiva & Junyang Yuan, 2014. "Economic development and the impact of the EU--US Transatlantic Open Skies Air Transport Agreement," Applied Economics Letters, Taylor & Francis Journals, vol. 21(11), pages 767-770, July.
    3. Christidis, Panayotis, 2016. "Four shades of Open Skies: European Union and four main external partners," Journal of Transport Geography, Elsevier, vol. 50(C), pages 105-114.
    4. Dobruszkes, Frédéric & Van Hamme, Gilles, 2011. "The impact of the current economic crisis on the geography of air traffic volumes: an empirical analysis," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1387-1398.
    5. Joshan, Saeid & Maertens, Sven, 2020. "Low cost carriers in the Middle East and North Africa (MENA) region: Emergence and barriers to development," Journal of Transport Geography, Elsevier, vol. 87(C).
    6. Wu, Chuntao & Hayashi, Yoshitsugu, 2014. "The effect of LCCs operations and scheduled services deregulation on air charter business in Japan," Journal of Transport Geography, Elsevier, vol. 41(C), pages 37-44.
    7. Hua-An Lu & Kung-Don Ye & Ming-Chen Chang, 2017. "An Empirical Evaluation for Passenger Markets Before and After Open-Sky Policy between Taiwan and Japan," International Journal of Technology and Engineering Studies, PROF.IR.DR.Mohid Jailani Mohd Nor, vol. 3(1), pages 29-37.
    8. William Morrison, Jaap de Wit, 2017. "US Open Skies Agreements and Unlevel Playing Fields," LCERPA Working Papers 0104, Laurier Centre for Economic Research and Policy Analysis, revised 01 Aug 2017.
    9. Kottas, Angelos T. & Madas, Michael A., 2018. "Comparative efficiency analysis of major international airlines using Data Envelopment Analysis: Exploring effects of alliance membership and other operational efficiency determinants," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 1-17.
    10. Pere Suau-Sanchez & Guillaume Burghouwt & Xavier Fageda, 2016. "Reinterpreting EU Air Transport Deregulation: A Disaggregated Analysis of the Spatial Distribution of Traffic in Europe, 1990–2009," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(1), pages 48-65, February.
    11. Zhang, Shengrun & Derudder, Ben & Fuellhart, Kurt & Witlox, Frank, 2018. "Carriers’ entry patterns under EU-US open skies agreement," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 101-112.
    12. Tello Contreras, Juan, 2017. "An Analysis Of The Open Skies Policy And Its Effects On The Tourism Industry In Mexico," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 5(4), pages 376-399.
    13. Alves, Vera & Forte, Rosa, 2015. "A Cournot model for analysing the effects of an open skies agreement," Journal of Air Transport Management, Elsevier, vol. 42(C), pages 125-134.
    14. Narangajavana, Yeamduan & Garrigos-Simon, Fernando J. & García, Javier Sanchez & Forgas-Coll, Santiago, 2014. "Prices, prices and prices: A study in the airline sector," Tourism Management, Elsevier, vol. 41(C), pages 28-42.
    15. Morrison, William G. & de Wit, Jaap, 2019. "US open skies agreements and unlevel playing fields," Journal of Air Transport Management, Elsevier, vol. 74(C), pages 30-38.
    16. Zhang, Yi & Zheng, Xingwu & Lu, Wei, 2018. "Measuring the openness of Chinese international air transport policy," Transport Policy, Elsevier, vol. 72(C), pages 208-217.
    17. Maertens, Sven, 2012. "Estimating the market power of airports in their catchment areas – a Europe-wide approach," Journal of Transport Geography, Elsevier, vol. 22(C), pages 10-18.
    18. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    19. Zhang, Shengrun & Fuellhart, Kurt & Yang, Wendong & Tang, Xiaowei & Witlox, Frank, 2019. "Factors shaping non-stop airline services in the transatlantic air transport market: 2015–2017," Journal of Transport Geography, Elsevier, vol. 80(C).
    20. Suau-Sanchez, Pere & Burghouwt, Guillaume, 2011. "The geography of the Spanish airport system: spatial concentration and deconcentration patterns in seat capacity distribution, 2001–2008," Journal of Transport Geography, Elsevier, vol. 19(2), pages 244-254.
    21. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.
    22. Itani, Nadine & O׳Connell, John F. & Mason, Keith, 2014. "A macro-environment approach to civil aviation strategic planning," Transport Policy, Elsevier, vol. 33(C), pages 125-135.
    23. Tomasz Stanisław Szopiński & Robert Nowacki, 2015. "The Influence of Purchase Date and Flight Duration over the Dispersion of Airline Ticket Prices," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 9(3), September.

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