Inefficiencies caused by Governments’ interventions in airlines’ markets

Ancell, D. 2019. Inefficiencies caused by Governments’ interventions in airlines’ markets. Journal of Air Transport Studies. 9 (1), pp. 43-60.

TitleInefficiencies caused by Governments’ interventions in airlines’ markets
TypeJournal article
AuthorsAncell, D.
Abstract

At least seven of the indicators of market inefficiencies and/or failure are visible in the airline industry. These have been triggered by national, multi-national or supranational governments’ (NMSGs’) interventions trying to resolve political, social or environmental problems. These seven interventions (many lacking preliminary economic analysis) have been aimed at resolving lack of competition, filling missing markets, and neutralising the presence of negative externalities, free riders, social inequalities and moral panic. Desk research
showed that just one of these NMSGs’ interventions was beneficial since it encouraged competition while the other six unintentionally triggered market inefficiencies or failures. Furthermore, it is possible that some of the interventions could eventually make advanced world airlines subsidise their advancing world competitors.

Keywordsairlines
competition
market interventions
failure
inefficiency
JournalJournal of Air Transport Studies
Journal citation9 (1), pp. 43-60
ISSN1791-6771
Year2019
PublisherHellenic Aviation Society
Accepted author manuscript
Web address (URL)http://etem.aegean.gr/files/JATS_vol91_published.pdf
Publication dates
Published12 Mar 2019

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