Liberalisation developments in key selected emerging markets

This chapter examines the degree of air transport liberalisation in emerging economies and its effect on the state and intensity of competition. It provides an overview of the bilateral and multilateral policies used by emerging markets to expand their air services. The chapter reviews the literature on air transport liberalisation and competition in emerging economies, and their role in facilitating this growth. It presents four case studies in which air policy and the structure of the airline industry are analysed in detail. Indonesia has emerged as one of the world's most dynamic and biggest aviation growth markets. Most Indonesian carriers have been slow to expand in international markets, preferring to content themselves with domestic expansion. The chapter concludes with a summary that emphasises the need for further liberalisation and competition policies to safeguard consumer interests.