Cheap Liberalization: Cutting Regulatory Corners in Air Transport or Cutting One’s Own Throat?

Jan Walulik (ed.), Harmonising Regulatory and Antitrust Regimes for International Air Transport, Abingdon, New York: Routledge 2019, pp. 157-176; ISBN: 9780815353867; 9781351134910; DOI: 10.4324/9781351134910

Posted: 9 Mar 2019

See all articles by Jan Walulik

Jan Walulik

Centre for Antitrust and Regulatory Studies, Faculty of Management, University of Warsaw; Warsaw School of Economics; Independent

Date Written: December 15, 2018

Abstract

The airline industry usually calls for further liberalisation of traffic rights, operational rights and airline ownership and control. This paper concentrates on the 7th and 9th freedoms of the air. Due to the lack of legal safeguards, liberalisation in this respect may lead to ‘offshore’ operations without appropriate regulatory oversight, and thus compromise aviation safety. In the long run, it may also hamper liberalisation awaited in other fields of air law. As an alternative, a more balanced solution for liberalisation is proposed. It is argued that a proper reform of airline ownership and control restrictions may successfully substitute for the economic benefits of the 7th to the 9th freedoms of the air, although at a lower price for the industry’s safety.

Keywords: safety oversight, safety dumping, regulatory oversight, deregulation, aviation policy, airline ownership and control, Liberalization, Flags of Convenience, Civil Aviation, Cabotage, Aviation management, Aviation Safety, Aviation Law, Aviation Industry, Aviation, Airline business, Airlines

JEL Classification: K23, K33

Suggested Citation

Walulik, Jan, Cheap Liberalization: Cutting Regulatory Corners in Air Transport or Cutting One’s Own Throat? (December 15, 2018). Jan Walulik (ed.), Harmonising Regulatory and Antitrust Regimes for International Air Transport, Abingdon, New York: Routledge 2019, pp. 157-176; ISBN: 9780815353867; 9781351134910; DOI: 10.4324/9781351134910. Available at SSRN: https://ssrn.com/abstract=3336665

Jan Walulik (Contact Author)

Centre for Antitrust and Regulatory Studies, Faculty of Management, University of Warsaw ( email )

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HOME PAGE: http://walulik.aero

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