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THE GLOBAL AIRLINE
INDUSTRY
The G lobal A i rline I ndustry
Edited By Peter Belobaba, Amedeo Odoni and Cynthia Barnhart
© 2009 John Wiley & Sons, L td. ISBN: 978-0-470-74077-4
THE GLOBAL AIRLINE
INDUSTRY
Edited By
Peter Belobaba
Department of Aeronautics & Astronautics, MIT, USA
Amedeo Odoni
Departments of Aeronautics & Astronautics and Civil & Environmental Engineering, MIT,
USA
Cynthia Barnhart
Department of Civil & Environmental Engineering, MIT, USA
A John Wiley and Sons, Ltd., Publication
224210367.002.png
This edition first published 2009
© 2009, John Wiley & Sons, Ltd
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ISBN: 978-0-470-74077-4
Typeset in 10/12 Times by Laserwords Private Limited, Chennai, India
Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire
Contents
List of Contributors
xiii
Series Preface
xv
Notes on Contributors
xvii
Acknowledgements
xxiii
1
Introduction and Overview
1
Peter P. Belobaba and Amedeo Odoni
1.1 Introduction: The Global Airline Industry
1.1.1
Deregulation and Liberalization Worldwide
1
1.1.2
Recent Industry Evolution
6
1.1.3
Looking Ahead: Industry Challenges
12
1.2 Overview of Chapters
13
References
17
2 The International Institutional and Regulatory Environment
19
Amedeo Odoni
2.1 Introduction
19
2.2 Background on the International Regulatory Environment
20
2.2.1
The Chicago Convention
20
2.2.2
“Freedoms of the Air”
21
2.3 Airline Privatization and International Economic Regulation
24
2.3.1
Airline Privatization
24
2.3.2
Types and Critical Aspects of Air Service Agreements (ASAs)
25
2.3.3
Typical Content of Bilateral and Multilateral ASAs
26
2.3.4
The Unified European Union Market and Other Major
Developments
30
2.4 Airports
32
2.4.1
Restrictions on Airport Access
33
2.4.2
Airport Ownership and Management
36
2.5 Air Traffic Management
39
2.6 Key Organizations and Their Roles
40
5
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