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Taking Stock of Air Liberalization : Center for Research on Transportation 25th Anniversary Series, 1971-1996 - M. Gaudry

Taking Stock of Air Liberalization

Center for Research on Transportation 25th Anniversary Series, 1971-1996

By: M. Gaudry (Editor), Robert Mayes (Editor)

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Published: 30th November 1998
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Taking Stock of Air Liberalization is about Technology, Economy, and Policy (TEP) in the airline industry. Ten years ago, the practical collaboration was begun of bringing together people who belonged to the complementary streams of economic analysis and policy analysis presented int his book. During this time, we opened discussions on the relationship between transportation technology, transportation economics and transportation policy under the general auspices of the Canadian Royal Commission on National Passenger Transportation. Working over a 40-month period (1989-1992), this Commission took stock of transportation and produced an up-to-date A0/00tat de la question' and policy framework (Hyndman, et al, 1992). Clearly, the project committee's discussions on air policy, over the period 1995-1997 (see Chapter 8), outlined the possibilities for a mechanism to understand the differences about the desirability of air liberalisation, as well as the possible TEP interactions in this area. This led to an exploratory first formulation and computer programme (HLB, 1997) incorporating the approach outlined in Chapter 15. A joint celebration of the CRT's 25th birthday and Transport Canada's 60th birthday seemed appropriate to bring together the various streams. Part I of Taking Stock of Air Liberalization looks at the record, and Part II focuses on specific impacts of policies. Policy formulation (Part III) and the required tools (Part IV - Modelling Demand) are also discussed in this context. The book ends with perspectives in Part V - The Future Market Structure and Public Policy. The competition among airlines is rapidly spreading to the competition among airports, and the difficult regulation of these strategic spatial monopolies (which is introduced in Chapter 13) is now attracting research activity. The next discussion in the airline industry will be the role of airports.

Presenting Authorsp. ix
Prefacep. xi
Prefacep. xiii
Introductionp. xv
The Overall Record of Air Liberalization
A Profile of the Airline Industryp. 1
Industry Structurep. 2
Faresp. 5
Service Qualityp. 13
Profitsp. 22
Safetyp. 23
Implicationsp. 24
The Record in Australasiap. 27
Introductionp. 27
Domestic Deregulationp. 28
The Australia-New Zealand Single Aviation Market (SAM)p. 31
Liberalization in Australia's International Aviation Policyp. 32
Air Safetyp. 36
Conclusions And The Futurep. 36
Competition in the European Airline Industry: 1976-1994p. 39
Introductionp. 39
A Recent Of The European Airline Industryp. 40
Datap. 43
Comparison Of US And European Carriersp. 47
Econometric Model Of Cartel Behaviorp. 50
Empirical Resultsp. 53
Conclusionsp. 56
Referencesp. 57
Specific Impacts of Deregulation
Pricing and Deregulation in the Airline Industryp. 61
Introductionp. 61
The Effects Of Deregulation On Faresp. 62
Pricing In A Deregulated Environmentp. 66
Open Questionsp. 72
International Experiencesp. 73
Conclusionsp. 74
Referencesp. 75
The Impact of Airline Deregulation on Costs and Efficiencyp. 77
Cost Estimatesp. 78
Network Characteristics And Costsp. 83
Deregulation And Technological Changep. 88
Conclusionsp. 91
Referencesp. 92
Aviation Deregulation and Safety in the United States: Evidence After Twenty Yearsp. 93
Introductionp. 93
The Historical Perspectivep. 93
Time Trend For Part 121 Carriersp. 94
Time Trend For Part 135 Carriersp. 100
Public Perceptionsp. 101
Deregulation And New Entrant Jet Airlinesp. 102
Deregulation And Financial Pressurep. 104
Deregulation And The Growth Of Commuter Airlinesp. 106
Deregulation And The Level Of Surveillancep. 108
Deregulation And The Quantity Of Infrastructurep. 109
Deregulation And Reduced Road Trafficp. 110
Summary And Conclusionsp. 111
Referencesp. 113
Earnings, Employment and the Economics of Airline Labour Costsp. 115
Introductionp. 115
Deregulation And Labour Earningsp. 116
Occupational Labour Demandp. 122
Thinking About Labour Costp. 125
Concluding Observationsp. 129
Referencesp. 130
Policy Formulation
The Oecd Project on International Air Transportp. 133
The Organisation For Economic Co-operation And Developmentp. 134
Current Forecasts For International Aviationp. 135
Qualitative Trends And Their Implications For Air Transportp. 136
Pervasive Uncertaintiesp. 138
The Challenges For International Air Transport Policyp. 140
The EU/US Relationshipp. 143
Three Trendsp. 145
The Canada-U.S. Air Agreementp. 153
Introductionp. 153
The Regime Before 1995p. 154
Our Analysisp. 154
The New Air Agreementp. 155
The Results So Farp. 156
Conclusionsp. 158
Policy Formulation: The Iata Positionp. 161
Modelling Demand
Are Fixed-Form Regression Models Ever Credible? Some Evidence from Transportation Studiesp. 171
Introduction: Two-Stage Demand Modelling As A Frameworkp. 171
Making Total Demand Responsive To Network Conditionsp. 171
Referencep. 185
The Interdependency of Airport Choice and Travel Demandp. 189
Introductionp. 189
System Approachp. 190
Airport Choice Modelp. 192
Selected Resultsp. 210
Referencesp. 220
The Air Network Itinerary and Trip Aggregation (Anita) Modelp. 223
Introductionp. 223
Aggregation Proceduresp. 224
Data Setp. 225
Formulation Of The ANITA Modelp. 225
Resultsp. 226
Conclusionp. 226
Referencesp. 227
Evaluating Air Liberalization Agreements: An Integration of Demand Analysis and Trade Theoryp. 229
Introductionp. 229
Understanding Marginal Gains From Policy Changesp. 231
Previous Studies Of Welfare Gains From Liberalizationp. 233
Trade Theory Approachp. 235
Approach To Model Development And Estimationp. 238
Summary And Conclusionp. 248
Referencesp. 249
The Future Market Structure and Public Policy
An Industry Perspectivep. 251
On The Future Role of Alliancep. 257
Introductionp. 257
Fundamentals Of Alliancesp. 258
Factors Affecting Alliance: Regulation, Technology, Demand, Supply-Side Economies, And Market Organizationp. 263
Assessing The Effects Of The Above Factors On The Future Role Of Alliancep. 273
Referencesp. 278
Wrap Up: The Way I See Itp. 281
Alliancesp. 281
The Evolution Of Networksp. 282
Airport Competitionp. 282
Table of Contents provided by Syndetics. All Rights Reserved.

ISBN: 9780792383871
ISBN-10: 0792383877
Series: Center for Research on Transportation 25th Anniversary Series, 1971-1996
Audience: Professional
Format: Hardcover
Language: English
Number Of Pages: 282
Published: 30th November 1998
Publisher: Springer
Country of Publication: NL
Dimensions (cm): 2.54 x 2.54  x 2.54
Weight (kg): 0.45