Commercialising a national airline—the Aer Lingus case study

Abstract

National airlines dominated international aviation in Europe for almost 70 years. They also dominated policy and achieved identification of the national airline interest with the national interest in the era of protectionism. The success of Aer Lingus in achieving regulatory capture of policy making in Irish aviation from 1936 to 1986 is examined. In the present era of competition and privatisation this article examines the commercialisation of Aer Lingus, its relative decline in competition with Ryanair after deregulation in 1986, its reinvention as a low-cost carrier in 2001 and its likely privatisation at a time when most countries are discarding the national airline model.