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Details for Button, K.J. (2002) Toward truly open skies
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NameButton, K.J. (2002) Toward truly open skies
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Button, K.J. (2002) Toward truly open skies. Regulation (2002), pp. 12–16 (Fall).
http://www.cato.org/pubs/regulation/regv25n3/v25n3-5.pdf. Accessed March 11, 2010  



The past 25 years have seen significant beneficial changes in airline regulation. Transatlantic airline markets, however, are still heavily regulated. Setting aside the realities of military considerations, the issue is not so much whether transatlantic deregulation would generate overall economic gains but the distribution of those gains. European airlines would begin the process of further liberalization across the Atlantic at something of a disadvantage in cost terms, although the gap between their efficiency levels and those of their American counterparts is getting smaller over time. The hub-and-spoke system operated by major U.S. carriers would give them a comparative advantage over EU carriers in terms of feeder services, although the operation of strategic alliances could offset some of that effect. The potential efficiency gains in the system overall, however, could well lead to traffic and revenue generation that leaves net benefits on both sides of the Atlantic even if individual carriers suffer. What is more, globalization of the industry may well lead to a blurring of the distinction between "domestic" and "foreign" carriers if barriers on ownership and investment are removed.
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Created On: 12/12/2007 18:03
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