Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Monday, July 21, 2008

Impact of the Economic Politics in Agreement of Open Skies in Chile

Posted by D. Daniel Sokol

Marcelo Villena, University of Adolfo Ibanez - Economics, Rodrigo Harrison, Catholic University of Chile - Economics and Mauricio Villena, University of Adolfo Ibanez - Business School have posted a paper on the Impact of the Economic Politics in Agreement of Open Skies in Chile.

ABSTRACT:  In 1979, the "Ley de AviaciĆ½n Comercial" (Commercial Aviation Act) was passed in Chile. Its main goal was to improve the air transport by means of "Open Sky Policies", competence (freedom of prices) and a progressive lesser intervention of the official authority. Since then an international air policy is applied under the frame of "Open Skyes with Reciprocity". This article evaluates economically the impact of the Chilean liberalization policy in this market during the last years. Specifically, we evaluated the impacts of the Agreements on Open Skyes that Chile has reached with the most important countries in terms of air traffic. Besides that, a comparison is made with other countries in the region with lower levels of economic openness.

http://lawprofessors.typepad.com/antitrustprof_blog/2008/07/impact-of-the-e.html

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