ABSTRACT

This chapter provides a critical analysis of the EC air transport policy and identifies the various barriers towards complete freedom of competition. A system of separate bilateral agreements between EC countries emerged and intra-European air services were carried out by licensed duopolies. Air transport has continued to operate on highly national lines throughout the EC. The growing imbalance between the expansion of the air transport system in Europe and the availability of adequate airport infrastructure to meet that demand would hinder the liberalisation process. The transport ministers agreed to call upon Eurocontrol to set up a single centre to control air traffic flow management throughout their collective airspace. The new EC rules in the field of air transport have modified the set of external parameters on which both day-to day and long-term business is based. However, if air transport services are produced efficiently in foreign countries they can be imported by local companies.