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A review of the international experience of airline deregulation

Author(s): Natália dos Santos Ferreira | German Alberto Barragan | Miguelangelo Geimba de Lima

Journal: Journal of Transport Literature
ISSN 2238-1031

Volume: 2;
Issue: 1;
Start page: 61;
Date: 2008;
Original page

Keywords: deregulation | air transportation

This paper aims at comparing the evolution of the regulatory framework for air transportation in the USA, European Union (EU), Canada, Mexico, Chile, India and Australia, in order to assess the impacts of deregulation on market structure, fares and consumer welfare. We reach the conclusion that, for the USA, EU and Canada, the liberalization led to an increase of competition, mainly stimulated by low-cost carriers, and the consumers have benefited for smaller tariffs and more options for choosing airlines, times, frequencies and routes. With regards to other countries, this study found that, in the short term, deregulation led to moderate benefits for industry and consumers while, in the long term, there is some evidence of increasing market concentration and higher airfares.
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