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The implications of the Ireland-UK airline deregulation for an EU internal market

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  • Barrett, Sean D

Abstract

The deregulation of air transport between Britain and Ireland in 1986 brought reductions in fares of over 50% and a doubling of passenger numbers in contrast to high fare increases and market stagnation before deregulation. The factors which contributed to the greater success of this deregulation than on US internal routes or Anglo-Dutch routes included market stagnation before deregulation, weak competition from sea carriers, the lack of charter airlines, the large ethnic Irish population in Britain, a change in fashion away from sun tourist destinations, market exit by British Airways and the availability of low cost labour to the main new market entrant due to high unemployment in Ireland. The development of Stansted as an alternative to the slot-constrained Heathrow airport was critical. The implications of this successful deregulation for the EU deregulation in April 1997 depend on the strength of these factors in other markets and the deployment of pro-contestable policies on slot allocation, state aids and predation.

Suggested Citation

  • Barrett, Sean D, 1997. "The implications of the Ireland-UK airline deregulation for an EU internal market," Journal of Air Transport Management, Elsevier, vol. 3(2), pages 67-73.
    • Handle: RePEc:eee:jaitra:v:3:y:1997:i:2:p:67-73
    DOI: 10.1016/S0969-6997(97)00003-3
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    References listed on IDEAS

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    1. Severin Borenstein, 1992. "The Evolution of U.S. Airline Competition," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 45-73, Spring.
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    Cited by:

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    3. Rigas, Konstantinos, 2009. "Boat or airplane? Passengers’ perceptions of transport services to islands. The example of the Greek domestic leisure market," Journal of Transport Geography, Elsevier, vol. 17(5), pages 396-401.
    4. Dobruszkes, Frédéric, 2009. "Does liberalisation of air transport imply increasing competition? Lessons from the European case," Transport Policy, Elsevier, vol. 16(1), pages 29-39, January.
    5. Frank Barry, 2000. "Foreign direct investment, cost competitiveness and the transformation of the Irish economy," Development Southern Africa, Taylor & Francis Journals, vol. 17(3), pages 289-305.
    6. Nagy, András, 1999. "Írország Európai Uniós csatlakozásának tanulságai [The lessons of Ireland's accession to the European Union]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1092-1115.
    7. Sonja GRÖNBLOM & Johan WILLNER, 2008. "Privatization And Liberalization: Costs And Benefits In The Presence Of Wage‐Bargaining," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 133-160, March.
    8. Johan WILLNER & Sonja GRÖNBLOM, 2015. "The Organisation of Services of General Interest in Finland," CIRIEC Working Papers 1520, CIRIEC - Université de Liège.
    9. Wang, Jiaoe & Bonilla, David & Banister, David, 2016. "Air deregulation in China and its impact on airline competition 1994–2012," Journal of Transport Geography, Elsevier, vol. 50(C), pages 12-23.
    10. John Francis O’Connell & David Connolly, 2017. "The strategic evolution of Aer Lingus from a full-service airline to a low-cost carrier and finally positioning itself into a value hybrid airline," Tourism Economics, , vol. 23(6), pages 1296-1320, September.
    11. Barrett, Sean D., 2009. "EU/US Open Skies – Competition and change in the world aviation market: The implications for the Irish aviation market," Journal of Air Transport Management, Elsevier, vol. 15(2), pages 78-82.
    12. Kieran Feighan & Aisling J. Reynolds-Feighan, 2004. "An application of damage cost allocation for airport services in Ireland," Open Access publications 10197/2934, School of Economics, University College Dublin.

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