Original scientific paper

The Economic Impacts of Air Transport Liberalization

Martin Grančay ; Faculty of International Relations, University of Economics, Bratislava, Slovakia

Abstract

Air transport liberalization constitutes a whole new level of globalization. The impacts it brings can be divided into direct, indirect, induced and catalytic. The magnitude of impacts is determined by various factors, including air transport liberalization multiplier, market saturation and the degree of liberalization of other sectors. Airlines profit from increased efficiency derived from economies of scale, economies of scope and density economies. On the demand side, the passengers enjoy better range of available destinations, higher frequency of service and new business models, such as was the entrance of low-cost carriers to the EU market in the second half of the 1990s.

Keywords

air transportation; liberalization; multiplier; demand elasticity

Hrčak ID:

78719

URI

https://hrcak.srce.hr/78719

Publication date:

1.11.2010.

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