| Liberalization of the international air transport services is the cornerstone for a growing air transport industry. Since the 1990s, it has progressed at various levels through relaxation of key provisions in about 4000 bilateral services agreements currently in place globally. In 2007, almost 30 per cent of the international traffic moved between States that have embraced liberalization.;Liberalization has been well accepted and embraced in other industrial sectors and there is increased activity in international mergers and acquisitions across the globe. Trans-national and cross border investments have increased exponentially. Removal of national restrictions in airline industry is the need of the hour. The recent US-EU 'open skies plus policy' and the potential of the ongoing second stage negotiations resulting in allowing of foreign ownership of the US and the EU airlines will usher in a new era of further liberalization of ownership and control rules. This thesis seeks to discuss the policies and rationale behind archaic ownership and control requirements and the benefits flowing from a liberal approach. After recommending the opening up of cross border investments in the airline industry, this thesis proposes important steps to be taken to achieve prosperous results for the airline industry.;The international character of the airline sector facilitated the rapid growth of trade in goods and services over the last sixty years. Yet, paradoxically, it has the most restrictive rules on ownership and control unlike other sectors. This anomalous restriction prevents freedom to invest, considered essential to the functioning of the market, and promotes protectionist policies. As a result, the airline industry has emerged as a conspicuous oddity in a world of widespread trade liberalization. |
