Liberalization of Air Transport Services and Passenger Traffic

• DOI: 10.2139/ssrn.1315204
• Publication Date: 2011-12-28T17:59:00Z
• Authors: Roberta Piermartini; Linda Rousova
• Keywords: Passenger transport; Air travel

Using a gravity-type model to explain bilateral passenger traffic, this paper estimates the impact of liberalizing air transport services on flows for sample 184 countries. We find robust evidence positive and significant relationship between volumes traffic degree liberalization aviation market. An increase in from 25th percentile 75th increases countries linked by direct service approximately 30 per cent. In particular, removal restrictions determination prices capacity, cabotage rights possibility airlines other than flag carrier foreign country operate are found be most traffic-enhancing provisions agreements. The results use different measures as well estimation techniques.