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Moroccan Passenger Airlines Framework and Performance

Author

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  • Brahim Morchid
  • Khalid Sekkat

    (University of Brussels)

Abstract

This paper studies the relationship between the current passengers’ airlines framework and the performance of the sector in Morocco. The analysis aims at investigating the impact of further liberalization on passengers and on airline industry. The paper has two additional contributions to the existing literature. First, it addresses the issue at the route level. Second, it constructs an Openness Index (OI) that should reflect the degree of openness on each route. The analysis sets up an economic model of air transport, computes the indicator of openness, estimates the model incorporating the indicator and other determinants and uses the estimation results to simulate the impact of further liberalization on passengers and on welfare. The result of the OI computation shows that routes linking the main airport (i.e. Casablanca) are the least open to competition while Agadir and Marrakech are the most open. All routes became more open between 2000 and 2010. The econometric and simulation results show that further liberalization would increase the number of passengers to and from Morocco and decrease the average airfare. The net effect on society welfare is positive; the consumer surplus increase outweighs the producers’ surplus decrease. This conclusion is robust the various liberalization scenario.

Suggested Citation

  • Brahim Morchid & Khalid Sekkat, 2012. "Moroccan Passenger Airlines Framework and Performance," Working Papers 725, Economic Research Forum, revised 2012.
    • Handle: RePEc:erg:wpaper:725
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    References listed on IDEAS

    as
    1. Touhami Abdelkhalek & Ejjanoui, 2010. "Approche Multidimensionnelle de la Pauvreté: Présentation Théorique et Application au cas de la Ville de Marrakech," Working Papers 513, Economic Research Forum, revised 04 Jan 2010.
    2. Novella Bottini & Mohamed Ali Marouani, 2009. "An Estimation of Service Sectors Restrictiveness in The MENA Region," Working Papers 489, Economic Research Forum, revised May 2009.
    3. Piermartini, Roberta & Rousová, Linda, 2008. "Liberalization of air transport services and passenger traffic," WTO Staff Working Papers ERSD-2008-06, World Trade Organization (WTO), Economic Research and Statistics Division.
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    Cited by:

    1. Jala Youssef & Chahir Zaki, 2019. "A Decade of Competition Policy in Arab Countries: A De jure and De facto Assessment," Working Papers 1301, Economic Research Forum, revised 2019.
    2. Jala Youssef & Chahir Zaki, 2019. "Between Stabilization and Allocation in the MENA Region: Are Competition Laws Helping?," Working Papers 1319, Economic Research Forum, revised 21 Aug 2019.

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