This paper examines the state of liberalisation within the Arab World and discusses how it can move towards a single air transport market. It shows what regional liberalisation has meant for the American and European air transport industries. It shows how much there is to gain from regional liberalisation and some of the threats and costs of delaying it further.
Table of Contents
1. INTRODUCTION
1.1 Objectives:
2. LITERATURE REVIEW
2.1 The Chicago Convention
2.2 Open Skies
2.3 The US Experience in Air Transport Liberalisation
2.4 The European Experience of Air Transport Liberalisation
3. AIR TRANSPORT IN THE ARAB WORLD
3.1 Damascus Convention
3.2 Challenges to Arab Integration
3.3 Privatisation
3.4 Low Cost Carriers
3.5 Outlook
4. THE GULF COOPERATION COUNCIL (GCC)
4.1 History of Aviation in the GCC
4.2 Aviation in the GCC Today
4.2.1 Saudi Arabia
4.2.2 The United Arab Emirates (UAE)
4.2.3 Qatar
4.2.4 Kuwait
4.2.5 Bahrain
4.2.6 Oman
5. WEAKNESSES OF AND THREATS TO THE GCC AVIATION MODEL
5.1. The Euro-Mediterranean Agreement
5.2. Scope for gains from a single GCC aviation market
5.3 Risks of GCC Single Market
6. CONCLUSIONS
ANNEX 1
ANNEX 2
Research Objectives and Themes
This report evaluates the current level of air transport liberalisation within the Arab World and assesses potential pathways for advancing towards a more integrated aviation market. By drawing lessons from the regulatory experiences of the United States and the European Union, the study investigates how regional barriers can be overcome to stimulate economic growth and enhance operational efficiency.
- Analysis of liberalisation strategies implemented by international aviation regions.
- Identification of structural and political barriers to Arab regional integration.
- Evaluation of the economic consequences, potential benefits, and inherent risks of liberalised air transport.
- Examination of the negative impact caused by delaying regional liberalisation efforts.
- Assessment of the role of the Gulf Cooperation Council (GCC) in pioneering a single aviation market.
Excerpt from the Book
2.3 The US Experience in Air Transport Liberalisation
The first deregulation of air transport took place in the United States with the passing of the 1978 Airline Deregulation Act by the US congress. Before that, air transport was heavily regulated by the Civil Aeronautics Board (CAB), the Department of Transport today (DOT). They controlled which airlines gained access to which markets and they set the fares. This system was seen as inefficient and too protective of incumbent carriers. Market entry was very limited, keeping costs and fares artificially high. These reasons led to the eventual deregulation of the industry. In the words of Brian Havel (2009) “Deregulation in the United States attempted a redistribution of industry wealth from the airlines (the protected constituency under regulation) to the passenger/consumer (the new post-regulation protected constituency).”
After deregulation, fares in the US domestic market fell by 40% from 1980 – 2005. The number of airlines rose from 36 in 1978 to over 120 by 1985, a 230% increase in just 7 years. According to Morrison and Winston (1986), travellers have saved $6 billion (in 1977 dollars) annually through lower fares and better service and airlines have improved their earnings by $2.5 billion (in 1977 dollars) annually under deregulation. The main benefits to passenger welfare from deregulation included lower fares, higher frequencies, and an increased number of destinations.
Summary of Chapters
1. INTRODUCTION: Outlines the state of the airline industry in the Arab World and defines the research scope and objectives.
2. LITERATURE REVIEW: Explores global aviation regulations, focusing on the Chicago Convention, US deregulation, and the European experience of creating a single market.
3. AIR TRANSPORT IN THE ARAB WORLD: Discusses the current regulatory landscape in the Arab World, the Damascus Convention, and the challenges to integration.
4. THE GULF COOPERATION COUNCIL (GCC): Examines the development of aviation within the GCC, including historical trends and the status of individual member countries.
5. WEAKNESSES OF AND THREATS TO THE GCC AVIATION MODEL: Analyzes the risks of overcapacity and potential external threats like the Euro-Mediterranean agreement.
6. CONCLUSIONS: Summarizes the findings and emphasizes the necessity of shifting focus from national interests to consumer-driven regional integration.
Keywords
Air Transport, Liberalisation, Arab World, GCC, Aviation Policy, Deregulation, Damascus Convention, Open Skies, Privatisation, Low Cost Carriers, Market Integration, Airline Industry, Economic Growth, Air Traffic, Civil Aviation.
Frequently Asked Questions
What is the primary focus of this dissertation?
This work examines the state of air transport liberalisation within the Arab World and discusses potential strategies for moving toward a single, integrated regional aviation market.
What are the central thematic areas covered?
The core themes include the impact of bilateral versus multilateral agreements, the history of aviation in the GCC, the role of low-cost carriers, and the lessons learned from US and European deregulation.
What is the ultimate goal of the proposed liberalisation?
The ultimate goal is to move away from protectionist national policies to create a cohesive, consumer-focused single aviation market that fosters economic prosperity and regional connectivity.
Which scientific methodology is employed?
The study utilizes a comparative analysis approach, benchmarking the current state of Arab aviation against established models such as the US and the European Union.
What is discussed in the main body of the work?
The main body details the evolution of aviation in the GCC, discusses the "Damascus Convention," identifies barriers to integration like national agendas, and evaluates the benefits and risks of a single GCC market.
How would you characterize the work using keywords?
The work is best characterized by terms such as aviation liberalisation, regional integration, Arab World, GCC, and air transport economic impact.
Why is the GCC considered a pioneer for integration?
The GCC is positioned as a pioneer because its member states share similar economic structures, a common heritage, and a clear charter objective aimed at regional unity and coordination.
What role does the Euro-Mediterranean agreement play in the author's argument?
The author argues that the Euro-Mediterranean agreement poses a threat to the GCC by potentially isolating it from other Arab nations as individual countries join the European common aviation area on a bilateral basis.
- Quote paper
- Ali Al Khalifa (Author), 2013, Towards a Single Arab Aviation Market, Munich, GRIN Verlag, https://www.grin.com/document/372376
