chapter  5
13 Pages

Destabilization of airline governance culture

The airline nationality requirements included in international air law and domestic regulations have been the core element of the nation-bound airline governance culture. In order to become an international custom, the airline nationality concept would have to be manifested in the unanimous and continuous practice of states. The principal idea underlying traditional airline nationality concept is to pool airline nationality within a group of states. This instrument would serve for the entire deregulation of substantial ownership and effective control clauses, which would be replaced with a new community clause. The European Union (EU) was the first region where airline ownership and control was deregulated and a comprehensive regime for nationality pooling was established. In 1999, the Council of Ministers of the Common Market for Eastern and Southern Africa (COMESA) adopted regulations for the liberalization of the air transport industry. This document provided for a two-phase liberalization programme aimed at creating a single air market (SAM) comprised of the 19 member states.