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Economic Effects of the EU External Aviation Policy

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Abstract

This report investigates the economic effects of EU’s external aviation policy with third countries. In particular, focusing on 27 countries with which the EU has an Air Services Agreement (ASA) of varying degree of liberalization, we assessed changes in fare, flight frequency and capacity utilization. We find that the implementation of the EU external aviation policy results in lower fare levels and higher load factors (capacity utilization). The effect of the policy on frequency, however, is not statistically significant. Our findings suggest that further liberalization can lead to more benefits to consumers.

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  • Megerska Abate & Panayotis Christidis, 2017. "Economic Effects of the EU External Aviation Policy," JRC Research Reports JRC105822, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc105822
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    More about this item

    Keywords

    Transport economics; transport policy; aviation; air transport; EU; Africa;
    All these keywords.

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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