Globalization of Air Transport: The Challenges of the GATS

The impacts of globalization on national and international policy making processes are illustrated by an examination of the effects on air transport industries. Trends towards the liberalization of air transport activities have been noted in many countries, mainly, to date, those of developed or rapidly developing status. Specific demand and supply conditions affect the air transport industries, and a particular regulatory framework has grown up since the 1940s. The study examines trends towards the privatization of airline companies in the context of (a) the development of so-called global ‘alliances’ or ‘partnerships’ and (b) liberalization at regional level and within trade groups such as the European Union. The new challenges of the General Agreement on Trade in Services (GATS) are considered, especially in terms of how developing countries can develop appropriate policies in response to the forces of globalization, increasing liberalization and competition.