Competition Law Enforcement vs. The Policy Goal of an International Aviation Hub: Case Studies in East Asia

Abstract

To what extent does the policy goal of an international aviation hub affect the enforcement of competition law? This article examines the dynamics between competition law enforcement and the policy goal of an international aviation hub in three East Asian competition jurisdictions: Singapore, Korea, and Hong Kong. Broadly speaking, industrial policy is one of the goals identified by some competition jurisdictions and plays an important role in enforcing competition law both explicitly and implicitly. While making an international aviation hub is a legitimate policy goal that competition law agencies can consider in their enforcement, competition law enforcers should be aware of the difference between making an international aviation hub and making a national champion airline. Although there is overlap between the two (i.e., having a competitive airline with a good network is helpful for making an aviation hub), the two are not identical and not always complementary. In keeping with the principle of competitive neutrality, this article argues that competition law enforcers should not selectively favour flag carriers when pursuing the policy goal of an international aviation hub. aviation hub, competition law, industrial policy, competitive neutrality, national champion airline, state-owned airline