The Drivers of Airline Industry Transformation
New ways of looking at national ownership controls and the right of establishment as forces for change
At the core of the airline industry “archaic” regulation are restrictions on national ownership. Although most forward looking governments are anxious to remove the system inadequacies that these controls create, unilateral or bilateral change cannot achieve it. This is leading to new forms of experimentation which, while staying within the traditional confines, exploit the avenues opened up by multilateral regimes like the EU’s open skies, as well as cross-border joint ventures where bilateral regimes still apply. This is generating pushback from unexpected sources, like the US, long-time promoter of deregulation.