ABSTRACT
This chapter seeks to examine the impact of airline deregulation in the domestic markets of three European countries: France, Norway and Spain. In 1985, Air Inter was authorised by the French Government to continue operating its domestic route network on an exclusive basis for a further 15 years. As well as competing on fares, Air Liberté provided it's passengers with a superior in-flight service. At the beginning of 1996, Air Liberté, claimed that its 30" share of the Paris-Toulouse market was generating profits. British Airways acquired Air Liberté in December 1996 and merged its two French subsidiaries in 1997, adopting the Air Liberté name. Prior to 1994, Spanish domestic services were the preserve of the flag carrier Iberia and its subsidiary, Aviaco. From 1997 Norway's domestic market became subject to entry by any commercial carrier registered and controlled within any of the EU Member States.
