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The Economic Impacts of Air Transport Liberalization

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  • Martin Granèay

    (Faculty of International Relations, University of Economics, Bratislava, Slovakia)

Abstract

Air transport liberalization constitutes a whole new level of globalization. The impacts it brings can be divided into direct, indirect, induced and catalytic. The magnitude of impacts is determined by various factors, including air transport liberalization multiplier, market saturation and the degree of liberalization of other sectors. Airlines profit from increased efficiency derived from economies of scale, economies of scope and density economies. On the demand side, the passengers enjoy better range of available destinations, higher frequency of service and new business models, such as was the entrance of low-cost carriers to the EU market in the second half of the 1990s.

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Bibliographic Info

Article provided by Faculty of Economics and Business, University of Zagreb in its journal Zagreb International Review of Economics and Business.

Volume (Year): 13 (2010)
Issue (Month): 2 (November)
Pages: 73-88

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Handle: RePEc:zag:zirebs:v:12:y:2010:i:2:p:73-88

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  1. Button, Kenneth J. & Taylor, Samantha Y, 2000. "International Air Transportation And Economic Development," ERSA conference papers ersa00p483, European Regional Science Association.
  2. Forsyth, Peter & King, John & Lyn Rodolfo, Cherry, 2006. "Open Skies in ASEAN," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 143-152.
  3. Button, Kenneth & Taylor, Samantha, 2000. "International air transportation and economic development," Journal of Air Transport Management, Elsevier, vol. 6(4), pages 209-222.
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