Policy Conclusions

Abstract

Previous chapters outlined facts, developed a model and tested the resulting working hypotheses. The present chapter draws policy relevant conclusions from this work. The number of subjects approached increases the difficulty of the task. For this reason the chapter is separated into two divisions: aviation policies and trade policies. The first section analyzes the results of preceding chapters for the aviation sector. Different perceptions could cause airlines policy-makers, national governments and regional governors to draw dissimilar conclusions. These may be contrasted with a global welfare maximizer’s ideal. The relevant lessons for deregulation and subsidization occupy the major part of this discussion. Reflecting earlier results, important points concerning mergers, computerized reservations systems, airport congestion and safety are discussed. These topics also relate to the theme of reregulation, which is addressed in this context. The policy implications for trade in aviation services begins the next section on trade policies. Again the themes of deregulation and subsidization assume important roles. In addition, the trade policies of developing countries and the impacts of progressive liberalization on these countries receives special attention. Discussion of the Uruguay Round of Multilateral Trade Negotiations Group of Negotiations on Services outlines the principles, rules and concepts relevant to trade in services in the light of the theoretical and empirical results appearing in earlier chapters.