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International Civil Aviation Policy Options

Author

Listed:
  • Christopher C. Findlay

    (Australian National University. This paper was improved substantially by comments of Peter Forsyth. Other valuable comments were made by Peter Swan and Michael G. Kirby. An earlier draft of this paper was presented at the Tenth Conference of Economists, ANU, August, 1981. Comments of the participants, particularly Claude Piccinin, were also helpful. Another version of this paper was presented to the Australian-ASEAN Economic Relations Workshop on Trade in Services, ANU, June, 1981.)

Abstract

Welfare of air transport consumers depends on the money price of travel and the quality of service. These aspects are summarised in a consumer welfare measure which, combined with measures of producer rents, is used to compare some international civil aviation policy options. These are the current regime, open skies (with subsidies where necessary), deregulation of fares and deregulation of capacity. The cheapest way of pursuing public interest goals is found to be a combination of open skies and subsidies where necessary. It is pointed out that operation of the subsidy policy is not straight-forward but could be implemented by a bidding system. Also cooperation between countries will be required to avoid the ever-present tendency to return to regulation like the current regime.

Suggested Citation

  • Christopher C. Findlay, 1981. "International Civil Aviation Policy Options," Australian Journal of Management, Australian School of Business, vol. 6(2), pages 27-42, December.
    • Handle: RePEc:sae:ausman:v:6:y:1981:i:2:p:27-42
    DOI: 10.1177/031289628100600204
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    References listed on IDEAS

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    1. Auquier, A A & Caves, R E, 1979. "Monopolistic Export Industries, Trade Taxes, and Optimal Competition Policy," Economic Journal, Royal Economic Society, vol. 89(355), pages 559-581, September.
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