chapter  4
16 Pages

Business consequences of aero-nationalism

This chapter discusses how the factors shaping the governance culture have changed. Significant discrepancies have been revealed in the area of aviation policy, both between the policies of particular states and within the national aviation policies of a single state. This policy conflict has translated into the disintegration of the regulatory system. The uneven regulatory and policy background has disturbed the operation of the airline sector and invoked a conflict between the high importance and low economic performance of the industry. Policy premises are basic statements of policy-makers that justify their choice of policy goals and instruments. These statements may change over time, as they arise from current interpretations of constitutive foundations of economic systems, based on dominant political, legal and economic doctrines. Air transport facilitates the process of globalization in its economic and social dimension. The impact of air transportation on economic activity differs from other transportation modes because of its distinctive characteristics: speed, cost, flexibility, reliability and safety.