Economics at your fingertips  

Air Transport Liberalization and its Effects on Airline Competition and Traffic Growth – An Overview

Xiaowen Fu and Tae Hoon Oum

A chapter in The Economics of International Airline Transport, 2014, vol. 4, pp 11-44 from Emerald Publishing Ltd

Abstract: Abstract This chapter reviews the effects of air transport liberalization, and investigates the roles played by airport-airline vertical arrangements in liberalizing markets. Our investigation concludes that liberalization has led to substantial economic and traffic growth. Such positive outcomes are mainly due to increased competition and efficiency gains in the airline industry, and positive externalities to the overall economy. Liberalization allows airlines to optimize their networks, and thus may introduce substantial demand and financial uncertainty to airports. Vertical arrangements between airlines and airports may offer a wide range of benefits to the parties involved, yet such arrangements could also lead to airline entry barriers which reduce the effects of liberalization. Three approaches have been developed to model the effects of liberalization in complex market conditions, which include the analytical, econometric and computational network methods. These approaches should be selectively utilized in policy studies on liberalization.

Keywords: Air liberalization; airport-airline vertical arrangements; airline competition; L510; L930; L980; L160 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) ... RePEc&WT.mc_id=RePEc (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This item can be ordered from
Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
http://www.emeraldgr ... ies.htm?id=2212-1609

Access Statistics for this chapter

More chapters in Advances in Airline Economics from Emerald Publishing Ltd
Bibliographic data for series maintained by Charlotte Maiorana ().

Page updated 2022-01-08
Handle: RePEc:eme:aiaezz:s2212-160920140000004000