Abstract
A new wave of liberalisation of domestic airline competition is taking place in less developed nations, although the initial motivation in most cases is to supplement the capacity of the government's own airline. Liberalisation tends to begin with free market entry and a strong interest in privatisation while other regulatory controls are maintained. This position is untenable and policy makers in the less developed countries are having to learn quickly without the benefit of the detailed analyses that preceded liberalisation in the developed countries. This paper explores these problems and focuses on the lessons that policy makers in the less developed countries can draw from experiences elsewhere.
Similar content being viewed by others
References
Ashworth M & Forsyth P (1985) Civil Aviation Policy and the Privatisation of British Airways. Institute of Fiscal Studies, London.
Bailey M (1993) Asia's new airlines. EIU Travel and Tourism Analyst 3: 4–18.
Barrett SD (1992) Barriers to contestability in the deregulated European aviation market. Transportation Research 26A(2): 159–165.
Button K (1989) The deregulation of US interstate aviation: An assessment of causes and consequences (Part 2). Transport Reviews 9(2,3).
Forsyth PJ (1991) The economics of thin air service markets. In: Mawuli A & Temu I (eds) Strategic Options for Transport Development in Papua New Guinea. Proceedings of the International Seminar on Strategic Options for Transport Developmentheld on23–28 September, 199. Department of Transport, Port Moresby.
Hensher DA & Beesley ME (1992) Privatisation of public transit: lessons from the wider experience. Institute of Transport Studies Working Paper ITS-WP-92-I. The Institute of Transport Studies, Graduate School of Business, The University of Sydney, Sydney.
Kahn A (1990) Deregulation: looking backward and looking forward. Yale Journal on Regulation 7(2): 325–354.
Lee Y-H (1992) The two airline policy in Korea — the early experience. Paper presented at the 6th World Conference on Transport Research, Lyon, June 29–July 3.
Levine ME (1987) Airline competition in deregulated markets: theory, firm strategy, and public policy. Yale Journal on Regulation 4(393): 394–494.
Louden D (1993) Fledglings enter India's open skies. Business Review Weekly, June 4, 1993.
Mama H (1993) Salvation for private airlines? Air Corporation Act likely to be repealed. Interavia Aerospace World, October 1993.
Mason R (1994) The price of safety in regional aviation. In: Nyathi M (ed) Transport Policy Perspectives 1994. Sydney: The Institute of Transport Studies, Graduate School of Business, The University of Sydney (forthcoming).
Mhatre K (1994) Private carriers unbridled. Air Transport World, March: 99–102.
Morrison S & Winston C (1989) The Economic Effects of Airline Deregulation. Brookings Institute, Washington DC.
Nyathi MZ (1992) Developments in international civil aviation: What are southern Africa's strategic options? Papers of the Australasian Transport Research Forum 17(2): 495–512.
Nyathi M, Hooper P & Hensher D (1993) Compass Airlines: 1 December 1990 to 20 December 1991. What went wrong? Transport Reviews, 12(2 & 3).
Ritchie PC & Rowcroft JE (1992) The servicing of thin markets in a deregulated aircraft industry. Proceedings of the 6th World Conference on Transportation (pp 1–15). Lyons.
Ruppenthal KM (1987) US airline deregulation — winners and losers. Logistics and Transportation Review 23(1), 65–82.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Hooper, P., Hutcheson, S. & Nyathi, M. The challenge of liberalising domestic airline competition in a less developed country. Transportation 23, 395–408 (1996). https://doi.org/10.1007/BF00223063
Accepted:
Issue Date:
DOI: https://doi.org/10.1007/BF00223063