Private solutions to the conflicted environment
Current experience and debates concerning the liberalization of airline nationality indicate that there are important challenges ahead regarding the commercialization of the airline governance culture. Legal challenges connected with the commercialization of airline governance culture embrace two areas. The first concerns the legal incoherence that arises as a result of the interaction of two regimes that is the regime where ownership and control criteria are deregulated, as well as the system of traditional airline nationality. The second set of legal challenges involves problems of the liberalized regime itself, in particular the limitations of liberalization based on nationality pooling and its incompatibility with the commercial nexus concept. Provisions regarding liberalization of investment rules have been contained in other comprehensive air services agreements entered into by the European Union (EU). Liberalization of the investment regimes of the parties to Euro-Mediterranean agreements is subject to the decision of joint committees.