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Deregulation Dilemmas: Flying the Flag in the Global Market

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The Politics of International Aviation
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Abstract

If any single word epitomises changes in most industries and services during the last decade it is ‘globalisation’. The global market has reached a new dimension in the sky. Global strategies in air transport may be less conspicuous than in other industries, but they are nevertheless evident in every phase of civil aviation. Aircraft are built by international consortia, marketing has become a component of computerised reservation systems which are themselves part of conglomerates. A significant aspect of the global trend in air transport is international ownership and affiliation of airlines. There is scarcely a major airline that has not entered into some kind of partnership, affiliation or marketing agreement with another carrier.

For business purposes the boundaries that separate one nation from another are no more real than the equator.

J. Maisonrouge, President of IBM in 1971

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Notes and References

  1. Louis Gialloreto, Strategic Airline Management: the Global War Begins (London: Pitman, 1988) p. 187.

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  2. Knut Hammarskjöld, ‘Deregulation: Idealism, Ideology or Power Politics?’, Annals of Air and Space Law, 12, 1987, (Montreal: McGill University), p. 75.

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  3. Mancur Olson Jr, The Logic of Collective Action (Cambridge, Mass.: Harvard University Press, 1965) p. 37.

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  4. Krasner, Structural Conflict: The Third World Against Global Liberalism (Berkeley: University of California Press, 1985) p. 207.

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  5. It has been suggested without evidence that a global airline operated in the public interest would have avoided all the ills which have plagued the industry with the net result of a cheaper air transport for all. Allan McKnight, ‘Functionalism and the Specialised Agencies’, in A.J.R. Groom and Paul Taylor (eds), Theory and Practice in International Relations (London: University of London Press, 1975) p. 170.

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  6. Kasper, Deregulation and Globalization: Liberalizing International Trade in Air Services (Cambridge, Mass.: Ballinger, 1989) Chapter 6.

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  7. It should come as no surprise that the developing countries steadfastly resisted including trade in services in the Uruguay Round of Negotiations, so much so that for a period of about one year the GATT Secretariat was prohibited from gathering data on the subject. Gilbert R. Winham, ‘The Prenegotiation Phase of the Uruguay Round’, International Journal, XLIV (2), spring 1989, p. 291.

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© 1991 Eugene Sochor

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Sochor, E. (1991). Deregulation Dilemmas: Flying the Flag in the Global Market. In: The Politics of International Aviation. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11347-7_12

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  • DOI: https://doi.org/10.1007/978-1-349-11347-7_12

  • Publisher Name: Palgrave Macmillan, London

  • Print ISBN: 978-1-349-11349-1

  • Online ISBN: 978-1-349-11347-7

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