chapter  6
18 Pages

Incoherence of the airline industry’s environment

Deregulation of airline nationality is the central instrument for the further reform of the airline governance culture, which is intended to relieve airlines of the onerous outstanding remnants of the system of centralized imposition of national interest goals. In line with the International Civil Aviation Organization (ICAO) guidelines, the 'effective regulatory control' condition attaches the functions of certification and regulatory oversight to the designating state. The commercialization of airline governance culture is a process whereby international civil aviation is transformed from a market of states into a market of airlines. The shift in economic doctrine implies reinterpretation of the fair and equal opportunity standard of the Chicago Convention. State aid has been a regular element of the aero-nationalistic industry's organization. In the early years of civil aviation, government support was used as an instrument to foster the development of airlines, which were regarded as public utilities.