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At the core of airline foreign investment restrictions: A study of 121 countries

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  • Walulik, Jan

Abstract

There is a growing discrepancy between the success of economic liberalization in international air services and the remaining limits to trans-border airline investment, especially the constraints embedded in national airline establishment regimes. The discussion on this problem should be backed with adequate legal research concerning the actual state of regulations and government actions regarding airline investment. The aim of this article is, therefore, to deliver practical information on these limitations worldwide, along with careful annotations. The paper portrays the world-wide scale and extent of the discussed restrictions by presenting regulations on airline ownership and control in 121 states and territories. Normative characteristics of the airline nationality requirements are discussed based on the above material, key rulings and literature. This includes an analysis of legal construction of the limitations, their sources and addressees, relations of the ownership and control tests and the role of discretionary regulatory policy. The study shows that airline investment rules worldwide generally remain restrictive and that the potential for reform is outside the ownership and control-based system rather than within it.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:trapol:v:49:y:2016:i:c:p:234-251
    DOI: 10.1016/j.tranpol.2016.05.006
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    References listed on IDEAS

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    1. 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.
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    3. 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.
    4. Alan Khee-Jin TAN, 2013. "Toward a Single Aviation Market in ASEAN: Regulatory Reform and Industry Challenges," Working Papers DP-2013-22, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Hooper, Paul, 2014. "Has liberalisation stalled?," Journal of Air Transport Management, Elsevier, vol. 41(C), pages 17-21.
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    Cited by:

    1. Gudmundsson, Sveinn Vidar & Merkert, Rico & Redondi, Renato, 2020. "Cost structure effects of horizontal airline mergers and acquisitions," Transport Policy, Elsevier, vol. 99(C), pages 136-144.
    2. Never, Jan & Suau-Sanchez, Pere, 2020. "Challenging the interline and codeshare legacy: Drivers and barriers for airline adoption of airport facilitated inter-airline network connectivity schemes," Research in Transportation Economics, Elsevier, vol. 79(C).

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