The new competition conditions in air business, due to the single European market, are examined. The Brussels commission proposed a liberalization law, which guarantees price freedom and allows any service to be offered by any airline in any country of the European community; former capacity restrictions were suppressed. Freight and charter activities were submitted to the same conditions. In order to avoid the excesses of American deregulation, which causes a concentration of traffic on big, dominating companies, a liberalization through elimination of unnecessary rules was desired by European bureaucracy. The future development of air traffic is found to be currently restricted by the lack of runway capacity in European airports. Prices are assumed to be increased since the government aids are suppressed. The problem of airline mergers and cooperations, which could cause the overwhelming supremacy of United Airlines, British Airways and Japan Airlines, was examined.
Binnenmarkt und Luftverkehr: Chancen und Risiken (Single European Market and Air Traffic Chances and Risks)
1992
12 pages
Report
No indication
English