Deregulation 2 - The EU's Open Skies Policy
- Created by: TessAni
- Created on: 19-01-13 13:12
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- The EU's Open Skies' Policy
- Third Package
- Airlines are permitted to fix their own fares and cargo rates
- Open access, whereby EU airlines can establish themselves in any other member state and operate services with no capacity restrictions
- Common criteria have to be applied for granting operators' licences
- Airline Market - within the EU, April 1997
- Effects
- New routes - particularly from smaller airports - because of the high prices of larger airports (and low availability)
- New entrants tend to low-cost carriers (now almost 100 in the EU)
- Pressure on national airlines to compete with low-cost carriers through competitive fares
- Massive grown in the passenger numbers particularly for low-cost carriers (6-9% since deregulation)
- Alliances not considered to be anti-competitive
- Generally made the market more contestable and benefited consumers.
- Environmental Question
- Third Package
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