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The Economic Impacts of Air Transport Liberalization

Author

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  • Martin Granèay

    (Faculty of International Relations, University of Economics, Bratislava, Slovakia)

Abstract

Air transport liberalization constitutes a whole new level of globalization. The impacts it brings can be divided into direct, indirect, induced and catalytic. The magnitude of impacts is determined by various factors, including air transport liberalization multiplier, market saturation and the degree of liberalization of other sectors. Airlines profit from increased efficiency derived from economies of scale, economies of scope and density economies. On the demand side, the passengers enjoy better range of available destinations, higher frequency of service and new business models, such as was the entrance of low-cost carriers to the EU market in the second half of the 1990s.

Suggested Citation

  • Martin Granèay, 2010. "The Economic Impacts of Air Transport Liberalization," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 13(2), pages 73-88, November.
    • Handle: RePEc:zag:zirebs:v:12:y:2010:i:2:p:73-88
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    References listed on IDEAS

    as
    1. Button, Kenneth & Taylor, Samantha, 2000. "International air transportation and economic development," Journal of Air Transport Management, Elsevier, vol. 6(4), pages 209-222.
    2. Germà Bel & Xavier Fageda, 2008. "Getting there fast: globalization, intercontinental flights and location of headquarters," Journal of Economic Geography, Oxford University Press, vol. 8(4), pages 471-495, July.
    3. Forsyth, Peter & King, John & Lyn Rodolfo, Cherry, 2006. "Open Skies in ASEAN," Journal of Air Transport Management, Elsevier, vol. 12(3), pages 143-152.
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    Cited by:

    1. Anushka Wijesinha & Ratnakar Adhikari & Puspa Sharma & Paras Kharel, 2012. "Air services liberalization in South Asia," Regional Economic Integration: Challenges for South Asia during turbulent times (Edited volume), in: Saman Kelegama (ed.), Regional Economic Integration : Challenges for South Asia during turbulent times (Edited volume), edition 1, volume 1, chapter 6, pages 103-125, South Asia Watch on Trade, Economics and Environment.
    2. Van De Vijver, Elien & Derudder, Ben & Witlox, Frank, 2014. "Exploring causality in trade and air passenger travel relationships: the case of Asia-Pacific, 1980–2010," Journal of Transport Geography, Elsevier, vol. 34(C), pages 142-150.
    3. Anushka Wijesinha & Deshal de Mel, 2012. "Liberalization of Air Services in South Asia: Prospects and Challenges," Chapters, in: Sultan Hafeez Rahman & Sridhar Khatri & Hans-Peter Brunner (ed.), Regional Integration and Economic Development in South Asia, chapter 5, Edward Elgar Publishing.

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    More about this item

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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