Europe's No Fly Zone? Rights, Obligations, and Liberalization in Practice

This chapter discusses chronological arrangement of John Balfour's selected texts on regulatory European air transport developments. Factortame, or in full R v Secretary of State for Transport ex parte Factortame , is a shipping case from the United Kingdom on appeal to the European Court of Justice (ECJ). State aids in the air transport sector are a subject on which John Balfour has written quite a few texts. State aids to restructuring airlines should be limited, it seems, to airlines from countries which have recently joined the EU. John Balfour wrote an article on the occasion of the ICAO Air Transport Conference of the year 1994 to celebrate the 50 th anniversary of the Chicago Convention. In it, he examines the lessons that the world aviation community can learn from the European experience in liberalizing air transport regulation. Keywords: air transport sector; Chicago Convention; European air transport developments; European Court of Justice (ECJ); Factortame; ICAO Air Transport Conference; John Balfour; United Kingdom

Taking into account the cyclical nature of the world economy development, the identification and analysis of crisis phenomena that arise in the world economic system acquires special importance. At the same time, taking into account that air transport is one of the drivers of social and economic growth, it is necessary to determine the interrelationships and factors of the impact of crises on various aspects of the world air transportation market functioning. The analysis of modern risks and threats is a step towards understanding and developing strategies aimed at maintaining a high level of safety and stability of the air transport sector in conditions of constant change. The purpose of the article is to study the impact of global economic crises on the air transport sector, to identify and substantiate modern risks and threats to the functioning of the global air transport market. The interdependence of the development of the world economy and the air transport system is explored in the article; it was established that the biggest crisis shocks in world aviation are cyclical in nature. The largest economic crises and their consequences for the air transport sector are analyzed. Current key risks and threats to the global air transport market are substantiated: the return of the coronavirus or its mutation, geopolitical instability, reformatting of supply chains, a slowdown in demand for air travel as a result of the global recession, a change in society's eco-consciousness, and others. Scientific theories of economic cycles and crises form the methodological basis of the research; both general scientific and special methods of scientific knowledge were used – historical-logical, descriptive-analytical, analysis and synthesis, methods of quantitative and qualitative comparisons. The informational basis of the article is monographic studies and periodical publications of domestic and foreign economists, analytical reports of international organizations, international consulting companies and analytical centers. Research results can be used for scientific justification and further creation of proper conditions for effective management of the global air transport system, while developing new strategies that will allow the aviation sector to remain stable and competitive in conditions of uncertainty and growing threats.

Th is study ascertained that the air transport sector is still o f interest for the firms that choose to operate in it, despite the global economic crisis. It can be stated that there is a relationship between the economic trends of a continent and the trends in the passenger air transport sector. This relationship varies according to the geographical area considered. The emerging countries are those that are most affected by the increase in the demand for passenger air transport: of the emerging economies, the Middle East has the highest ratio of growth in passenger air traffic to gross domestic product growth. In addition, we identified the continents with an attitude to attract investments in creating large airport infrastructures. The Asian airports had the highest capacity to attract investments for large airport infrastructures, due to a phase of expansion of its air transport market. In contrast, Europe and A merica exh ibited a low attitude to attract investments in creating big airport infrastructures: in these continents, air transport market demand is in a maturity phase.

The small and isolated nature and tourism dependency of Caribbean countries strongly shapes and influences the regional air transport market. The following pages give an overview of the air transport market and how these factors make the regional market unique. The objective of this booklet is to summarize the study and create a common understanding of the key issues affecting the Caribbean air transport market for stakeholders and identify the actions that would contribute to the further development of air connectivity in the Caribbean.

Do pro-environmental interventions matter in restoring environmental sustainability? Unveiling the role of environmental tax, green innovation and air transport in G-7 nations

The aim of the paper is to evaluate the increa sing role of the Italian regions in the air transport sector. The more recent Italian laws delegate the governance of the main transport infrastructures in accordance to the Central Ministries of Transport and Infrastructures, while the policies concerning the start up aids for new air connections are decided at regional level in cooperation with the European Commissions. Sardinia and Pulia, two of the main region in Southern Italy, decided to intervene in the air transport sector with two completely differents approaches. Sardinia used the instrument of public services obligations in order to try to stimulate the air transport demand of the inhabitants, while Pulia used a rich regional fund for start-up aids, especially dedicated to the promotion of new low cost routes. Both the policies partially failed to reach their goals because they introduced too strict rules for a competitive market without ta king care of the economies of network that are the basis of air transport market. The complete absence of a coordination policy at central level produces not efficient use of regional funds and efforts.

Modern trends in the development of air transport lead to the need for structural, positional and substantive changes in the market of aviation personnel. The response to technological progress in the aviation industry requires more accurate forecasts of staffing needs, changes in the requirements for their quantity and quality by categories and professions, which causes dynamic and structural changes not only in the labor market but also in the education market. To implement the necessary changes in the training of personnel for civil aviation, it is necessary to take into account the economy of the modern air transportation market and airport infrastructure, conduct regular monitoring of vacancies and forecast changes in the quality and level of education of future airlines and airports. Identification and analysis of factors that determine the innovative development of aviation and related markets, allow to form an idea of the trajectory of the space of intermarket interaction and its boundaries. An important point in strengthening the influence of the innovation market on civil aviation is to change the requirements for personnel and their competencies. In turn, the transformation of staff requirements under the influence of technological innovations shapes the professions of the future - technological, analytical, information and control, software. The leading trend in the development of the education market is rapid and flexible adaptation not to new but to the promising needs of the industry market. The task of assessing the compliance of opportunities for the development of the education market with the prospects and goals of air transport development becomes relevant. An employee in demand in terms of innovative employment can be trained only if the markets of education, labor and innovation interact. The close relationship and interdependence of the labor market and the education market require coordination in the intermarket space, which allows to build processes and create conditions in which the goals of each of the interacting systems leads to increased efficiency of their joint efforts and achieve synergies. This phenomenon will be considered inter-market interaction. The air transport sector is an inter-market space within which any changes in one of the markets cause a diffusion effect in the spread of trends to related markets. The main impulses in development come from the innovation market. They form trends and tendencies in the development of aviation equipment and directly determine the requirements for staff in the labor market and for future staff - the education market. The paper proposes a model of interaction of aviation-related markets (innovation market, labor market and education market) and a description of the links between them. Taking into account the links between the subjects of intermarket space, the factors that determine the qualitative and structural dynamics of adjacent interacting markets, which are exogenous and endogenous in nature, have been identified and systematized. air transport in personnel with promising competencies, will promote the growth of innovative, intellectual potential, ensure the stability of markets in the air transport sector and achieve long-term goals for the development of air transport.

The air transport market has been exposed to the biggest crisis in connection with the COVID-19 pandemic over the last two years. Many airlines have tried to stay in the market, but the impact of various factors was so strong that some airlines were forced to stop of the operation. In this way, the pandemic verified the fundamental pillars of airline business models and at the same time pointed out weaknesses in the entire air transport system. Flexibility has become one of the most important features for sustaining any business. The article is focused on the complex processing of the issue of the virtual airline and proposes the concept of a virtual air carrier, considering the current starting points of the market, on which it will have sufficient potential to establish itself, at the level of EU. At the same time, it proposes possibilities for the development of air transport in the Slovak Republic through the introduction of a virtual air carrier as a tool for revitalizing the air transport market in the Slovak Republic. Based on the results of the research, the article defines how and under what conditions a potential virtual carrier could operate, from ticket sales to possible cooperation with other airlines. The aim of the article is to demonstrate that the model of virtual air carrier is a solution for maintaining a stable level of air traffic in several countries in the EU that have lost their air carriers during the pandemic.

Constant monitoring of the state and development trends of the aviation industry in Ukraine, especially in the context of unstable demand for air transportation caused by the coronavirus infection COVID-19 pandemic, allows aviation enterprises of Ukraine to respond in a timely manner to changes and, if necessary, model their business model of behavior in the market. Over time, the importance and role of aviation in the development of the Ukrainian economy will only increase, therefore, timely research and forecasting of the air transportation market is necessary in order to increase their economic efficiency. The aim of the article is to analyze the patterns and trends inherent in the modern air transportation market in Ukraine, and forecast its development in the context of unstable demand for air transportation. Methodological basis of research was logical methods of information processing, statistical analysis, methods of system analysis, comparison. The basic hypothesis of research was the assumption that the development of the aviation industry in Ukraine is influenced by unstable demand in the domestic and international air transportation markets. Presentation of the main material. The main indicators of the activities of enterprises of the aviation industry of Ukraine, the dynamics of transportation by Ukrainian airlines in the domestic and international air transportation market are analyzed. It was revealed that the development of civil aviation is associated with general trends in international air transport and is due to both global and domestic socio-economic, political and other factors. Originality and practical meaningfulness of research. . It is advisable to use the conducted research in determining the principles of management of aviation enterprises to change the priorities of their economic activities. Conclusions. The analysis of domestic air transportation showed that, despite the instability of the economic situation in the country and the world, the growth rate of air transportation in the Ukrainian segment of the market has a positive trend. For domestic air transport, there are prospects for further development and strengthening of positions in the world air transportation system

This paper outlines the future possible scenarios that the air transport sector may evolve into after 2010, starting from the most important trends from the past and actual market developments. A big market shift was the liberalization which was introduced in the 1990’s, which led to an improved capacity utilisation for both passengers and freight. The impacts on and reactions from airlines have been different over continents and over types of companies. Furthermore, increasing importance has been attached to yield, pushing airline companies towards various forms of co-operation and integration. In the future, some more developments may change the air transport market. First, we may expect a stronger split between traditional air transport and niche markets. Second, privatisation may be strengthening, not only among airlines, but also in airports. Third, mergers and acquisitions may drastically shift the market and lead to new competitive balances. Fourth, the Southwest model, based on low costs and low fares, is likely to survive, although some maturity is observed, but new products emerge. Fifth, the relatively large number of bankruptcies is a new phenomenon for air transport. Carriers not belonging to strategic alliances turn out to be more likely victims. Sixth, increasing aggressiveness in company strategies and reactions is observed, including price cuts but also hostile takeover bids. Seventh, privatization is gaining pace, while on the other hand governments will continue to be an important player, be it on a different front: as infrastructure providers, market regulators and environmental protectors. Eight, air freight is still a growing market, with an own network which is gradually developing, next to the passenger network. A ninth and last tendency is the entry of more foreign and private equity capital, the latter of which may sometimes be at odds with the long-term strategies of the sector.

Air transport provides important transportation services for economic development; meanwhile, its operation requires massive resource inputs into the air transport sector (ATS). In order to ensure sustainable development of air transport industry, improve the utilization efficiency of resources, and coordinate the development of the ATS and the macroeconomy, the operational efficiency of the industry should be evaluated accurately. However, few studies have analyzed the operational performance of ATSs across different regions. This study therefore constructs an index system and applied a three-stage data envelopment analysis (DEA) approach, which considers various regional environmental factors and statistical noise, to evaluate regional ATS operational performance. China’s 30 provincial ATS operational efficiencies in year 2017 are empirically evaluated using the proposed model. The empirical results show that different levels of environmental factors, such as regional GDP, openness, technical markets, technological development, and consumption, pose various influences on provincial ATS operational efficiency in China. Operational performance evaluation results eliminating these environmental effects in the third stage show considerable differences with that stage 1 results. In addition, corresponding development strategy implications in different provinces and regions are put forward according to the evaluation results.

Current and forecasted use of air transportation by businesses in Minnesota using the Standard Industrial Classification is described. The research is based upon a study on air service and commercial and industrial activity in Minnesota required by the Minnesota legislature in 1996. Purchases from the air transportation sector that includes scheduled and nonscheduled passenger and freight services are based upon the 1993 IMPLAN input-output model for Minnesota and Bureau of Economic Analysis (BEA) and Bureau of Labor Statistics (BLS) forecasts for Minnesota. In addition to intraindustry transfers within the air transportation sector, purchases of air transportation are dominated by business associations, management and consulting services, and the U.S. Postal Service sectors. These four sectors also represent the sectors with the largest share of purchases of air transportation. BLS historical and forecast data suggest that the major group of industries that purchased air transportation in 1977 will remain intact through 2005. Under BEA forecasts for Minnesota, air transportation purchases by all industry sectors will increase more rapidly than other transportation modes. BEA also forecasts the air transportation component of gross state product growing faster than forecasted passenger originations at Minneapolis–St. Paul (MSP). The implications of the BEA forecasts will be considered in the next update of activity forecasts for MSP. This research is considered only the first step in understanding the role of air transportation to commerce and industry in Minnesota and other states.

In this paper, the calculation of exhaust emission costs originating from aircraft and road vehicles in the base year 2017 and in the forecasting year 2032, in the Republic of Serbia, was carried out. The presented methodology includes a number of influential factors for air transport (airport capacity, number of operations, aircraft type, relevant engine, range) and for road transport (changing of traffic volumes, design and operating speeds, the quality of the pavement structure, type of terrain and category of road sections, dependence of exhaust emission from changes in vehicle speed). It was found that in the current operating conditions, the dominant costs in the total exhaust emission costs are the costs of nitrogen oxides (61%) in road transport, whilst carbon dioxide costs are dominant in air transport (52%). In the future, carbon dioxide costs will have a share of over 80% in the road transport sector and over 58% in the air transport sector in total exhaust emission costs. The average exhaust emission costs per one aircraft operation (international flights) will range from 141 to 145€. In road transport, the average exhaust emission costs at 100 km in 2032 will range from 1.8 to 2.2€.

The purpose of the research. Research of the current state of the domestic air transport market and international experience of state support of this sector, identification of opportunities and threats to its functioning in Ukraine, as well as development of directions for its future development. Methodology. A set of methods used to highlight the theoretical, legal and applied aspects of the operation of the air transport market, namely: methods of generalization, comparison, analysis, synthesis and systematic approach. Results. The role of the air transportation market in achieving the Sustainable Development Goals has been determined. The peculiarities of the development of the international air transportation market are also determined. The current state of the air transportation development is evaluated and the specifics of its state regulation in Ukraine are highlighted. The basic directions of perspective development of the air transportation market in Ukraine are substantiated. Practical meaning. Possibility of using the results of the research by the state authorities in the development of the main directions of support for the development of the domestic air transportation market under the conditions of creating a system of market differentiation into segments of air transportation; use of various forms of interaction; increase in the number of flights due to the creation of transfer passenger flows, transportation in the regions by hub airports (hubs); technical improvement; establishment of a single airport network in conjunction with efficient use of airport property; increase of investment activity of aviation enterprises. Prospects for further research. We see the prospects for further research outlined in the article in the development of mechanisms for the implementation of directions for the future development of the air transport market in Ukraine.

The study focused on the air transportation and its impact on the tourism industry in Rwanda; the case of RwandAir. The study objectives were to identify the contributions of air transportation to the development of tourism industry in Rwanda; to establish the challenges facing the air transport sector and to propose strategic measures to mitigate the challenges. The study used a cross-sectional survey thus both the qualitative and quantitative approaches were applied. The study used closed-ended questionnaires, structured interview, as well as document review. Purposive sampling was used on the key managers of both RwandAir and Rwanda Development Board. The study targeted 700 international tourists and 200 domestic tourists (conveniently selected), as well as structured interview with 30 senior officers of RwandAir and 20 senior officers of RDB, hence making the total population to be 950 respondents. The study sample size was 274 respondents. However, after validating the returned questionnaires, only 240 questionnaires were found to be valid. It was revealed that RwandAir greatly contributes to tourism development in many ways such as marketing, job creation, transporting tourists, providing a convenient, quick and safe way to get into the country among others. It was revealed by the world bank that international tourism arrivals in 2016 was 932000 tourists bringing in 25.85 % of total exports and total imports and expenditure on travel service es was 11.99 % in Rwanda. The number of tourists’ arrivals was limited to arrivals by air. However, RwandAir and air transport in general faces changing oil prices, expensive jets, terrorism in neighbouring countries, limited funding, skills gap in aviation sector (lack of technical engineers and pilots), geographical location, inadequate infrastructure and to a great extent, lack of safety compliance. The strategies that can be adopted to improve air transport sector are: more funding to air transport industry by government; oil and energy negotiations with oil-producing countries; skills enhancement like training local pilots and engineers; improved airport infrastructure in Rwanda e.g. at Kigali international airport and other domestic airports; space agreements as well as benchmarking best airline companies like Qatar and emirates and others in the region. The study recommends tax concessions for the air transport, oil negotiations, opening up and re-development of the domestic airports in the country, reduced prices for incoming tourists using RwandAir, partnerships between government and private sector in developing air transport, increased training of aviation staff among others. It is believed that when these are done, then air transport will continue to positively transform tourism into a better and developing sector with sustained customer base hence national development.