Future of International Air Transport Policy: Responding to Global Change

International air transport is not only a major industry in itself, it also plays a crucial role in the functioning of the overall economy. Faced with the prospect of an increasingly turbulent and uncertain world economic environment in the coming decades, it is vital that international aviation evolve into an efficient, dynamic, and responsive sector that is able to contribute fully to global economic development. This report, overseen by a high-level steering group composed of representatives from government, major airlines, airports, aircraft manufacturers, air fuel suppliers, and consumer groups, addresses the key policy challenges confronting international air transport. It describes the role of international aviation in globalization, assesses the likely future development of the world economy, and puts the spotlight firmly on the changing nature of uncertainties in tomorrow's world. After analyzing the difficult issues surrounding market entry and exit, the report explores the complexities of competition within the market - the concept of workable competition, alliances, subsidization, privatization, foreign ownership, etc - focusing throughout on the role that policy makers can play in helping or hindering the efficient functioning of international markets for air transport. In so doing, it tackles head on the highly contentious quesiton of liberalization, and proposes a set of wide-ranging policy recommendations to help decision makers shape the regulatory framework of the future.