ABSTRACT
From an economic perspective, competition represents conditions that occur in markets allowing buyers and sellers to interact with a view to establishing prices and exchanging goods and services. From a legal perspective, competition is associated with the rights of the competitor as well as the consumer by acting in a manner calculated to eliminate, restrict or deter competition. Such action is termed 'predation' and is particularly associated in the field of air transport with pricing. Global industries, such as multinational air carrier alliances, are characterized by the presence of competitors operating worldwide from home bases in different countries. Antitrust laws apply equally to international air services, and are calculated to preclude both conduct and structural changes in business enterprises. The circumscribing nature of an inflexible ownership and control requirement has prompted many States to permit privatization of air carriers, with a reduction in percentage of government held shares.
