Globalization, Liberalization and Privatization of Aviation Industry: Emerging Legal Issues by Shweta Prakash Durge 2
“Globalization, Liberalization and Privatization of
Aviation Industry: Emerging Legal Issues”
Submitted for the
Post Graduate Diploma in Aviation Law and Air Transport
SHWETA PRAKASH DURGE
Globalization, Liberalization and Privatization of Aviation Industry: Emerging Legal Issues by Shweta Prakash Durge 3
TABLE OF CONTENTS:
Privatization in aviation industry
Emerging Legal Issues
Globalization, Liberalization and Privatization of Aviation Industry: Emerging Legal Issues by Shweta Prakash Durge 4
Abstract: The aviation industry is, by its very nature, a global industry. Airports and airlines link cities and countries and rely on global standards to ensure that the system runs efficiently. The global forces of privatization, globalization and liberalization that swept all industries and sectors in the 1980s and 1990s inevitably impacted on international air transport as well. These are dealt by bilateral air services agreements, regional and plurilateral agreements, multilateral initiates etc. Also many issues are emerging like safety and security concern, free riders, national security etc in the process. The project aims at studying the globalization, liberalization and privatization of the aviation industry and emerging legal issues.
Globalization, Liberalization and Privatization of Aviation Industry: Emerging Legal Issues by Shweta Prakash Durge 5
Introduction: Aviation industry remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. Airlines have recognized the need for radical change to survive and prosper. The new trends emerging in the aviation industry in a global scenario are the increased globalization of economies, liberalization of aviation policies, new technological developments in civil aviation, privatization of airlines and airports and liberal and open skies bilateral agreements. A number of factors are forcing airlines to become more efficient. The liberalization of international air transport regulation continued to evolve at various levels since 1980s. Bilateral air services agreements remain the primary vehicle for liberalizing international air services for most States. Most of the international air services operate under bilateral or regional regimes, the International Air Services Transit Agreement (IASTA) provides for the multilateral exchange of rights of over flight and non-traffic stops for scheduled air services among its Contracting States. The agreement is entered in 1945 and is a cornerstone of multilateralism in air transport. There has been an attempt to liberalize air transport services through the multilateral trading mechanism under the World Trade Organization (WTO) through the General Agreement on Trade in Services (GATS). With the liberalization trend competition and consumer protection issues are coming into consideration, and many States have already adopted the relevant laws. Also privatization of government-owned airlines has been one of the pre-eminent transformations in air transport. The motives for privatization vary from purely economic, improving operating efficiency and competitiveness, to a more pragmatic desire to reduce the heavy financial burden for governments for financing capital investment in new equipment. Whatever the reason, the privatization of...