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eBook details

• Title: Entry and exit in the post-liberalized German airline market
• Author : Nicole Petrick
• Release Date : January 30, 2007
• Genre: Language Arts & Disciplines,Books,Professional & Technical,Education,
• Pages : * pages
• Size : 15188 KB

Description

“Nothing like the system of government imposed impediments to economic decision-making exists in any other sector of international trade.” (Jeffrey Shane, 1992)16

As mentioned above, air transport is despite its purely international sphere bound to rather national legislation. Subsequently, aviation is confronted with several levels of either national or supranational law. Likewise, air transport can be classified into either domestic or international traffic not withstanding the economic differentiation of traffic according to length of haul.17 However, with the foundation of the European Community that later became the European Union, a third level took shape: the intra-European traffic. Figure 2-1 presents the different organizational levels of air transport schematically.

Figure 2-1: Multi-level air transport

Source: Following Gillen (2001), p.67.

Generally speaking, domestic air transport (a) is all intra-national air traffic between a country’s airports no matter the type of airport. International air transport (c) is all air traffic between two countries, usually via primary airports only. Intra-European air transport (b) is all air traffic between the airports of the member states of the European Union while traffic frequents both primary and secondary airports directly.18

Without the European liberalization, all domestic air traffic fell only under national laws and control, regulated in the case of Germany via the basic governing statute, the Basic Law of the Federal Republic of Germany, in combination with the Air Traffic Act (“Luftverkehrsgesetz” [LuftVG]). Competition within this domestic market is, next to being subject to federal policy, controlled by the Bundeskartellamt [BKartA], the German federal cartel office. All international transport to and from Germany is regulated via air service agreements [ASAs]. These air service agreements are usually bilateral and each uniquely agreed upon between the two countries of origin-destination relationship. As of December 2006, Germany held ASAs with 138 different countries.19 Intra-European traffic, without the EU liberalization, consequently is also regulated by bilateral agreements between each of the member states of the European Union, while each agreement is unique of its type and with respect to the rights granted.20

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