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US airline deregulation: implications for European transport

Author: Röller, Lars-Hendrik ; Good, David H ; Sickles, Robin CINSEAD Area: Economics and Political ScienceIn: Economic Journal, vol. 103, jul. 1993 Language: EnglishDescription: p.1028-1041.Type of document: INSEAD ArticleNote: Please ask the Library for this articleAbstract: The last fifteen years has seen a proliferation of deregulation in transportation industries throughout the world; in the United States, Canada, Australia and Japan. While it is easy to view the European liberalization of civil aviation as a late comer to this trend, it takes place in by far the most difficult environment thus far. All previous deregulatory efforts have been solely domestic in nature. Even where trade between nations has been liberalized (such as in the North American Free Trade Agreement), transportation sectors have been explicitly excluded. While deregulation in individual countries has proceeded quickly, even through the various legislation provided for phased processes, the politics in Europe are likely to move the process along much more slowly. This expected sluggishness is due to two factors: the close association of the major European carriers to national governments and to differences in the competitive postures of these airlines
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The last fifteen years has seen a proliferation of deregulation in transportation industries throughout the world; in the United States, Canada, Australia and Japan. While it is easy to view the European liberalization of civil aviation as a late comer to this trend, it takes place in by far the most difficult environment thus far. All previous deregulatory efforts have been solely domestic in nature. Even where trade between nations has been liberalized (such as in the North American Free Trade Agreement), transportation sectors have been explicitly excluded. While deregulation in individual countries has proceeded quickly, even through the various legislation provided for phased processes, the politics in Europe are likely to move the process along much more slowly. This expected sluggishness is due to two factors: the close association of the major European carriers to national governments and to differences in the competitive postures of these airlines

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