Deregulation and the Airline Business in Europe
By Sean Barrett
Routledge – 2009 – 194 pages
Over the past twenty years air fares in Europe have fallen steadily. New entrant airlines such as Ryanair and Easyjet have become the largest passenger airlines in Europe, old national airlines have become commercialised and staff productivity of airlines and airports now compete. The reason behind these changes was the change in policy from protecting national airlines to market competition. This book documents a dramatic change in the economic policy surrounding the low-cost airlines and the airport industry as a whole.
In this fascinating monograph, Dr Barrett provides a full deregulation case study from market control by national airlines through regulatory capture of governments to the transformed competitive market today. The topics covered include the deregulation of Europe’s busiest route – London to Dublin, the market entry of Ryanair and its sustainability, the outlook for full service airlines, the commercialisation of national airlines and the impact of airports on competing airlines.
Through a discussion of controversial issues such as the regulation capture of government by protected airlines, the dominance of producers over consumers in protected markets and the costs of protectionism in aviation to the wider economy, Dr Barrett’s book will be of interest to anyone involved in the airline business, as well as to wider public or competition policy-makers.
'This book greatly enriches the literature on air transport policy. It is especially valuable by reason of it being penned by someone who has over many years been most influential in debates on policy in his own native country of Ireland.' Pat Hanlon (University of Birmingham, UK)
Preface; Regulating Europe's Skies 1. The Defeat of Regulatory Capture 2. A Europe of National Airlines 3. Deregulating the Dublin-London Route 4. Ryanair's Market Entry 5. The Sustainability of the Ryanair Model 6. The New Entrant Full-Service Airline 7. Commercialising a National Airline 8. Airport Competition- Low Cost Airlines and Low Cost Airports 9. Regulating and Dismantling a National Airport Monopoly - a Case Study 10. A Sector Transformed
Sean Barrett is Senior Lecturer in Economics at Trinity College Dublin, Ireland.