Antitrust & Competition Policy Blog

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

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Monday, May 6, 2013

Competition and Cooperation on European Southeast Air Transport Market

Posted by D. Daniel Sokol

Sanja Steiner, University of Zagreb, Mirko Tatalovic, Croatia Airlines and Jasmin Bajic, Croatia Airlines explore Competition and Cooperation on European Southeast Air Transport Market.

ABSTRACT: Regional Air Transport Market of Southeast Europe is becoming affected by all modes of increasing competition. This Paper will consider the different levels of achievements in traffic results of air carriers and airports of the Southeast Europe including macroeconomic analyses of 11 countries belonging to this the region. They represent more than 30 carriers and almost 40 airports. The year 2007 and 2008 saw high increase of the passenger and cargo carried within the region. More than 30 million passengers were carried and almost 84,000 tones of freight and mail. On 19 primary airports of the Southeast Europe it was carried more than 29 million passengers which is increase of 33 percent compared with the year 2006. Under above-mentioned increase, it is important to emphasize that the growth of airport handled passenger on new born EU countries Bulgaria and Romania was extremely high. Paper will also analyze categorization of the airports according to EU documents and directives. The future development under the new economic circumstances means also adjustments of business models that have been implemented. It also means necessity to cooperate and find out efficient mode of integration which will follow air traffic and legal framework of the EU. Positive example can be implementation of PSO (Public Service Obligation) for air carriers of the Southeast Europe network. Another challenge is capability to provide and realize privatization process for some of the most successful air carriers. The paper will also consider the air traffic forecasts of the Southeast Europe region, which will follow expected implementation of improved model and benefits for the population and economy of 11 countries.

http://lawprofessors.typepad.com/antitrustprof_blog/2013/05/competition-and-cooperation-on-european-southeast-air-transport-market.html

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