This policy perspective is the result of an ambitious research to study the impacts of the Arab airline industry framework on its performance and to investigate the effect of possible further liberalization on the number of passengers and welfare. It examines the historical framework for airline traffic and how it has evolved dramatically over the past three decades, from a duopoly in 1978 to the current, extremely competitive, market. It finds that one with one exception, Arab airlines tend to be underperformers. It concludes that the results should encourage the concerned governments to further push the liberalization of airline passengers markets.
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