AIR TRANSPORT LIBERALIZATION IN EUROPE: THE PROGRESS SO FAR

Abstract

InApril 1997, the final phase of a series ofmeasureswere implementedwhichwere aimed at liberal-ising air transport within the European Union (EU). These measures were introduced on a phased basis, the first package coming into force in 1988, the second in 1990, and the most significant third package in 1993 (which included a delayed 1997 lifting of cabotage protection). These applied on a multilateral basis within the European Community (with some exclusion clauses), and followed progress towards liberalization on a bilateral basis between 1985 and 1988, most notably on routes between the UK and a number of EU countries. This paper examines the progress so far in the achievement of liberalization and greater competition within Europe. It is based on extensive research carried out by the author and a team fromCranfield University over 1995 and 1996. This includeddesk research, a survey of and interviewswithEUair-lines and aviation authorities, and five more-detailed airline case studies. This has been updated by the author to take into accountmore recent developments, especially regardingnewentrant airlines. Some of the expectations following the introduction of EU liberalization have not been met: there have been few serious challenges to the flag carrier duopolies, there has been a consolidation of the

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