BARRIERS TO CONTESTABILITY IN THE DEREGULATED EUROPEAN AVIATION MARKET

S D. Barrett

Document Type

Journal Article

Publication Date

1992

Subject Area

infrastructure - bus/tram lane, policy - fares, organisation - competition, place - europe, place - airport

Keywords

United Kingdom, Great Britain, Fares, Fare reduction, Europe, Competition, Commercial planes, Commercial aircraft, Civil aircraft, Aviation, Airport access, Access to airports

Abstract

The deregulation of aviation in the United States and intercity bus transport in the United Kingdom initially resulted in substantial fare reductions associated with new market entry. This paper proposes measures to ensure access to major airports for new entrant airlines on equal terms with incumbent airlines and the deregulation of the market for airport ground handling. In recent years national airlines have acquired several independent airlines in important European markets. It is recommended that such takeovers be prohibited because of their anticompetitive implications in the absence of competition between national airlines. It is also recommended that the EC competition policy exemption for price consultations between airlines be ended.

Comments

Transportation Research Part A Home Page: http://www.sciencedirect.com/science/journal/09658564

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