23 May 2010

MIT thesis on the trans-Atlantic air transport market

I recently found available for download a June 2009 MIT thesis The Evolution of Network Competition in Transatlantic Aviation and the Effects of Regulatory Liberalization by Alexander Cosmas. The thesis has an interesting analysis of stakeholder interests in the market. I will leave it to others to comment on the econometrics.

What was of particular interest to me was the concise presentation of the eight freedoms of the air in one diagram (see Figure 1 on page 24) which was sourced from Michael Francesconi at UPS. Usually multiple diagrams are used. The diagram does not distinguish between the eight and ninth freedoms and in an international context (rather than in the US context) I would question the comments that the sixth freedom is "Generally prohibited" and that cabotage is "Always prohibited".

Also I had not come across this quote before from musician Frank Zappa: "You can't be a real country unless you have a beer and an airline."

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