TY - JOUR
T1 - The impact of Air Service Agreement liberalisation
T2 - The case of Nigeria
AU - Ismaila, Danjuma Adamu
AU - Warnock-Smith, David
AU - Hubbard, Nick
PY - 2014/5/1
Y1 - 2014/5/1
N2 - The positive impact of air transport liberalisation as suggested by economic theories and empirical studies has inspired many developing countries like Nigeria to liberalise some of its Air Service Agreements (ASAs). This paper seeks to examine the extent to which international air service liberalisation has impacted upon Nigeria ten years after it was introduced. The research developed a cross-sectional model with passenger traffic as the dependent variable, while macroeconomic factors (trade and GDP), historical links, distance and ASAs (a proxy for liberalisation) served as independent or predictor variables. The analysis revealed a set of ASA stages in the country's policy-making process (restricted Bilateral Air Service Agreement, Open Skies Agreement and Yamoussoukro Declaration). Further analysis showed that the predictor variables were all significant in explaining passenger demand. The model demonstrated that the liberalisation of market access to the Open Skies Agreement level could stimulate traffic growth by at least 65 percent. The findings can assist in guiding policy and industry stakeholders in future decisions relating to liberalisation and ASAs.
AB - The positive impact of air transport liberalisation as suggested by economic theories and empirical studies has inspired many developing countries like Nigeria to liberalise some of its Air Service Agreements (ASAs). This paper seeks to examine the extent to which international air service liberalisation has impacted upon Nigeria ten years after it was introduced. The research developed a cross-sectional model with passenger traffic as the dependent variable, while macroeconomic factors (trade and GDP), historical links, distance and ASAs (a proxy for liberalisation) served as independent or predictor variables. The analysis revealed a set of ASA stages in the country's policy-making process (restricted Bilateral Air Service Agreement, Open Skies Agreement and Yamoussoukro Declaration). Further analysis showed that the predictor variables were all significant in explaining passenger demand. The model demonstrated that the liberalisation of market access to the Open Skies Agreement level could stimulate traffic growth by at least 65 percent. The findings can assist in guiding policy and industry stakeholders in future decisions relating to liberalisation and ASAs.
KW - Air service agreement
KW - Liberalisation
KW - Passenger demand
UR - http://www.scopus.com/inward/record.url?scp=84896465910&partnerID=8YFLogxK
U2 - 10.1016/j.jairtraman.2014.02.001
DO - 10.1016/j.jairtraman.2014.02.001
M3 - Article
AN - SCOPUS:84896465910
VL - 37
SP - 69
EP - 75
JO - Journal of Air Transport Management
JF - Journal of Air Transport Management
SN - 0969-6997
ER -