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- Title
LIBERALIZATION OF THE INTERNATIONAL AIR TRANSPORT: ITS ROLE IN THE GROWTH OF THE AIR TRAVEL AND THE ECONOMIC EFFECTS.
- Authors
MOJSOSKI, Dejan
- Abstract
Since its very begining the international air transport sector was characterized as a heavy economically regulated sector, based on the reciprocity and control by the governments. With the increase of the importance of this transport modality, the need for growth and the elimination of this kind of limitations arose in order to satisfy the needs of the economy and society. The alteration of the economic regulation in the international air transport began with deregulation of the USA air transport sector and continued with the European Union air transport three-packet liberalization. This process further continued in other parts of the world. The comparative approach has been used to express the characteristic of the liberalization of air transport. The main result of the liberalization is the introduction of the Low-Cost Carriers in the air transport market with the continuous increase of their capacity in the share of total seats. The Low-Cost carriers had a share of 35% of the capacity share of total seats on the market in Europe in 2010, compared to the 5% in 2001. In the North America this number amounted to 29% in 2010, compared to the 18% in 2001. In addition, the liberalization of the air transport enabled creation of three global alliances which have strengthened the world-wide aviation network and have stimulated planetary growth of the air transport. In conclusion, as a result of the liberalization, the air transport came to a continuous growth which supported the economic activities, and in narrower sense it influenced the macroeconomic components, the gross domestic product and the employment. The liberalization of the air transport enabled the support of the economy through increase of the economic activities and support of the employment.
- Subjects
COMMERCIAL aeronautics research; AIRLINE industry &; economics; FREE trade; DEREGULATION; ECONOMIC activity; EMPLOYMENT
- Publication
Economic Development / Ekonomiski Razvoj, 2014, Issue 1-2, p91
- ISSN
1409-7893
- Publication type
Article