Anti-trust issues on American airline industry
Anti-trust issues on American airline industry
The first airline company that provides air transport services for traveling passengers and freight was established in early 1920s, and also at that time, Queensland and Northern Territory Aerial Services (QANTAS) was formed, and continues to operate. Over 90 years, the world has changed a lot. Now there are over two thousand airlines operating more than 23000 aircrafts providing services to over 4000 airports all over the world. Passengers can easily find flights that can take them to any place they expect to be. From London to Sydney, or from Beijing to New York. Aero-technics do convenience the world a lot, and in some sense, it is one of the best inventions in human history. Nowadays, airlines basically can be classified into three broader categories: domestic route airlines regional airlines international airlines
In the past, airlines ownership basically belong to governments. That is because individual or private company cannot afford the cost of running an airline company, and also, due to political or safety reasons, governments prefer to take control airlines by themselves. But in recent years, the ownership has gradually changed from governments to private and individual sectors or organizations. ‘This occurs as regulators permit greater freedom and non-government ownership, in steps that are usually decades apart.’(Davies, 2011) But this pattern is not seen for all airlines in all regions. Like the U.S., Australia, Canada and Brazil, countries with a deregulated airline industry always have more competition and greater pricing freedom. As in many mature industries, consolidation is a trend. But airlines are different from other industries. Because it is one of the key factors of transportation and it can affect a country’s economy, policies and also very close to people’s life. So regulators must consider what effects of a merger can bring to the whole industry and most of their people’s benefits,
The first airline company that provides air transport services for traveling passengers and freight was established in early 1920s, and also at that time, Queensland and Northern Territory Aerial Services (QANTAS) was formed, and continues to operate. Over 90 years, the world has changed a lot. Now there are over two thousand airlines operating more than 23000 aircrafts providing services to over 4000 airports all over the world. Passengers can easily find flights that can take them to any place they expect to be. From London to Sydney, or from Beijing to New York. Aero-technics do convenience the world a lot, and in some sense, it is one of the best inventions in human history. Nowadays, airlines basically can be classified into three broader categories: domestic route airlines regional airlines international airlines
In the past, airlines ownership basically belong to governments. That is because individual or private company cannot afford the cost of running an airline company, and also, due to political or safety reasons, governments prefer to take control airlines by themselves. But in recent years, the ownership has gradually changed from governments to private and individual sectors or organizations. ‘This occurs as regulators permit greater freedom and non-government ownership, in steps that are usually decades apart.’(Davies, 2011) But this pattern is not seen for all airlines in all regions. Like the U.S., Australia, Canada and Brazil, countries with a deregulated airline industry always have more competition and greater pricing freedom. As in many mature industries, consolidation is a trend. But airlines are different from other industries. Because it is one of the key factors of transportation and it can affect a country’s economy, policies and also very close to people’s life. So regulators must consider what effects of a merger can bring to the whole industry and most of their people’s benefits,