Abstract
This paper is concerned with the liberalization of the airline industry in the European Union (EU) from the perspective that transport can be properly analysed only in the context of its wider political and socio-economic milieu. The central interest lies with the internal geography of demand for scheduled air transport within the EU. It is argued that significant tensions exist between the neo-liberal framework of airline liberalization and other EU regional development policies aimed at convergence, cohesion and European solidarity. It concludes that, although liberalization is achieving consumer benefits, the policy's impact is constrained by regional development disparities, which are the most influential factors in determining the geographical demand for air transport.
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