International air transport signifies connection between two countries. As a rule, the air connection between countries is regulated by international treaties, which determine air carriers which are designated to provide such a connection. Therefore, to execute flight between countries, air carriers should possess some rights, like to enter country's territory, or to fly over country's territory to reach certain destinations. These rights are called freedoms of air. There are several levels of such freedoms commencing from minimum - the right to fly over a foreign country without landing, and ending by right to do traffic within a foreign country without continuing service to one's own country.
The liberalization of international air transport means rapid expansion of such freedoms during recent years. However, not only traffic rights are the factor, which defines liberalization. Liberalization process also signifies gradual shifting of aviation industry from public sector to private one. Thus, for a long time countries owned their national air carriers, "partly for national prestige and symbolism, and partly because of traditional requirement in the standard bilateral air service agreement, that a designated carrier should be substantially owned and effectively controlled by nationals of a country, which designated that carrier to operate air services under bilateral agreements…"(Forsyth, 2005, p.59). Later, states found that they were left with unprofitable airlines, which required additional subsidies. Such situation forced many governments to reconsider the ownerships requirements to aviation sector operators.
States agreed to privatization of airlines, which meant reduction in governmental shares. Gradually, such well-known airlines as British Airways and Lufthansa were completely transferred to the private hands, while Air France, Alitalia, Iberia were only partly privatized. The brightest example of liberalized airline market is European Union. According to Cheng-Jui Lu (2003, p.30), "EU started the process of liberalization of its internal market and the establishment of intra – EU aviation market, in 1983". This was done to observe the principle of the freedom to provide services. Therefore, EU created common air transport market with equal opportunities for competition.
To buy an essay or a paper on any possible topic, visit our online writing service available for every customer 24/7.
This post was brought to you by Colin Debrow.