OPENING UP THE SKIES : ASIA-PACIFIC MULTILATERAL LIBERALISATION

Abstract

Liberalisation of the aviation industry in the US and Europe represents a significant break from the restrictive regulatory foundations laid by the Chicago Convention of 1944. In view of these developments, some industry observers have presented liberalisation as both inevitable and universally beneficial. This thesis debunks the myth that liberalisation is both inevitable and universally beneficial. The possibility and desirability of evolving a liberal multilateral system for air service trade in the Asia-Pacific is examined. Detailed analysis of developments in the Southeast Asian aviation sector reveals the complexity of the processes at work that will determine the future of the industry in this region. The two dominant actors in determining the regulatory fabric of the aviation sector- governments and airlines- are examined in turn to illuminate their attitudes towards multilateral liberalisation. It is postulated that the unduly optimistic view of an inevitable panacea brought by liberalisation of the industry is a mistaken one. A more balanced view is needed and phased liberalisation is more likely than a quick adoption of the multilateral system.