Policy Perspectives

Arab Passenger Airlines Framework and Performance: Egypt, Jordan, Morocco and UAE

No.

4

Date

November, 2012

Topic

L9. Industry Studies: Transportation and Utilities

L1. Market Structure, Firm Strategy, and Market Performance

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.
Arab Passenger Airlines Framework and Performance: Egypt, Jordan, Morocco and UAE

Research Fellows

Khalid Sekkat

Full Professor of Economics, University of Brussels