ABSTRACT
Aviation is becoming increasingly internationalized, not only because international traffic is growing rapidly but because airlines are losing their national identity as cross-equity holdings expand and alliances grow in number. These changes affect the commercial and regulatory environment, where aviation services are provided but they also have potential implications on air transport safety. Although air safety is often treated as port of public policy, it is also influenced by the commercial interests of the airlines themselves. While there is recognition of the need for a public policy response to globalization and strategic alliances now part of the air transport market, this response has to be made in the context of changing private incentives affecting airlines’ own altitudes to safety. This paper focuses on the changes in private incentives that the growth in airline alliances may have on safety.
