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The evolution of airline ownership and control provisions

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  • Chang, Yu-Chun
  • Williams, George
  • Hsu, Chia-Jui

Abstract

Airlines are constrained by the ownership and control rules contained in nearly all bilateral Air Services Agreements. This paper aims to provide details of the ways in which ownership rules around the world have evolved and how governments and carriers have responded to these changes. Some famous cases involving US Department of Transportation's decisions on foreign investment and developments in the US's open skies policy have been studied. The influences of the decisions of the European Court of Justice on open skies agreements and the recent European Commission mandate are analysed. Prospects for easing ownership rules under bilateral, multilateral and plurilateral arrangements are discussed. It concludes that International Civil Aviation Organisation's view expressed at its recent Worldwide Air Transport Conference presents a practical solution for changing the ownership rules.

Suggested Citation

  • Chang, Yu-Chun & Williams, George & Hsu, Chia-Jui, 2004. "The evolution of airline ownership and control provisions," Journal of Air Transport Management, Elsevier, vol. 10(3), pages 161-172.
    • Handle: RePEc:eee:jaitra:v:10:y:2004:i:3:p:161-172
    DOI: 10.1016/j.jairtraman.2003.09.004
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    References listed on IDEAS

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    1. Chang, Yu-Chun & Williams, George, 2002. "European major airlines' strategic reactions to the Third Package," Transport Policy, Elsevier, vol. 9(2), pages 129-142, April.
    2. Chang, Yu-Chun & Williams, George, 2001. "Changing the rules—amending the nationality clauses in air services agreements," Journal of Air Transport Management, Elsevier, vol. 7(4), pages 207-216.
    3. Findlay, Christopher, 2003. "Plurilateral agreements on trade in air transport services: the US model," Journal of Air Transport Management, Elsevier, vol. 9(4), pages 211-220.
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    Citations

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    Cited by:

    1. Walulik, Jan, 2016. "At the core of airline foreign investment restrictions: A study of 121 countries," Transport Policy, Elsevier, vol. 49(C), pages 234-251.
    2. Pitfield, D.E., 2007. "The impact on traffic, market shares and concentration of airline alliances on selected European—US routes," Journal of Air Transport Management, Elsevier, vol. 13(4), pages 192-202.
    3. Carney, Michael & Dostaler, Isabelle, 2006. "Airline ownership and control: A corporate governance perspective," Journal of Air Transport Management, Elsevier, vol. 12(2), pages 63-75.
    4. Duval, David Timothy, 2005. "Public/stakeholder perceptions of airline alliances: The New Zealand experience," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 448-454.
    5. Chang, Yu-Chun & Hsu, Chia-Jui & Lin, Jenn-Rong, 2011. "A historic move – the opening of direct flights between Taiwan and China," Journal of Transport Geography, Elsevier, vol. 19(2), pages 255-264.
    6. Chang, Yu-Chun & Woon, Hui Kee & Yen, Jin-Ru & Hsu, Chia-Jui, 2017. "A destination selection model for long haul routes – The case of Taiwan-US," Journal of Air Transport Management, Elsevier, vol. 64(PA), pages 60-67.
    7. Tan, Alan Khee-Jin, 2010. "The ASEAN multilateral agreement on air services: En route to open skies?," Journal of Air Transport Management, Elsevier, vol. 16(6), pages 289-294.
    8. Piotr Niewiadomski, 2013. "International airline groups in Africa," Global Development Institute Working Paper Series ctg-2013-36, GDI, The University of Manchester.

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