Abstract
State intervention of the air transport industry is a widespread practice throughout the world where this kind of interference from the government to the air transport industry could be in the form of state aid or state subsidies. This paper attempts to explain the impact of state aid in the competition of air transport in The Republic of Indonesia resulting distortion in the competition of the aviation industry. This paper examines the state aid practice in The Republic of Indonesia and attempts to answer the debate whether this practice resulting in an unfair competition and violating level playing field in air transport in Indonesia or such method then creates an efficiency in air transport in Indonesia which makes it a good policy. However, this paper will not look into the analysis of the difference between terminologies on State aid and State subsidies.
Highlights
State intervention of the air transport industry is a widespread practice throughout the world where this kind of interference from the government to the air transport industry could be in the form of state aid or state subsidies
This paper examines the state aid practice in The Republic of Indonesia and attempts to answer the debate whether this practice resulting in an unfair competition and violating level playing field in air transport in Indonesia or such method creates an efficiency in air transport in Indonesia which makes it a good policy
This paper will examine the practice of State aid in Indonesia from the view of aviation competition law regime to determine whether it distorts the air transport market or unsurprisingly, it creates efficiency in the industry
Summary
Air transport in the view of competition law is a contentious topic given the fact that there are no international rules of competition. One of the hot issues in this respect is the State intervention to the air transport practice in the form of State aid. Air transport in The Republic of Indonesia ( on referred as “Indonesia”) plays a significant role in transporting the population of more than 237 million which spread across more than 10.000 islands to develop the economy of the country. The practice of State aid in air transport leaves some perceptions regarding the fair competition in effect where there is a presumption that state aid as such distorts the market. The danger is that the distortion of competition produced by state aids in favoring one air carrier over another means that any gains of liberalization will be. This paper will examine the practice of State aid in Indonesia from the view of aviation competition law regime to determine whether it distorts the air transport market or unsurprisingly, it creates efficiency in the industry. This elaboration is necessary considering the objective of the competition law is to create fair competition and a level playing field throughout the industry. It is not the position of this paper to elucidate profoundly on the differences in terminologies between State aid and State subsidies.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
