ABSTRACT
This chapter describes the transport within Great Britain. For most purposes, the self-imposed limitation of scope simplifies the institutional context without significantly reducing the theoretical generality of the exposition. In many respects the cost structure for air is very similar to that for rail transport. The demand for any domestic air transport route is determined by the amalgam of a very complex set of factors. The Civil Aviation (Licensing) Act 1960, created an Air Transport Licensing Board (ATLB) to regulate the activities of British civil aviation. During the 1960s, ATLB commented adversely on a number of occasions on the financial soundness of applicants. Finally it is suggested that, in the interests both of proper resource allocation within air transport and of co-ordination between modes, prices should be related to cost for individual services though in a simple price structure.
