ABSTRACT
The initial period post market deregulation in the USA and liberalization of the air-transport system in the EU was marked by a considerable degree of enthusiasm about the superiority of market forces in delivering optimal outcomes. In fact, the low-cost revolution on both sides of the Atlantic has brought about the democratization of the airline industry and the freedom, of those previously unable, to fly for the cost of ‘a pair of jeans’. Many airlines at least on short-haul routes moved away from the bold, luxurious and formal context to offer a rather informal, relaxed and minimalist service where the core product is offered for a low price and ancillary services are available for an additional payment. Nonetheless, the relaxation of tight regulatory supervision and the freedom of the private sector to provide new B2B (business to business) and B2C (business to customer) services within the system of air transport has been also associated with headline incidents and accidents, which acted as the stepping stone for traditional carriers to defend their existence over the ever-increasing low-cost sector. For example, aircraft accidents such as the August 2005 Helios Boeing 737-300 in Greece, where everybody on-board died, have raised concerns over the potential adverse effects of the airline deregulation on aviation safety as a result of the cost minimization practices used by the profit-maximizing, cost-reducing commercial operators (Papatheodorou and Platis, 2007).
