Journal article
The economic approach to subsidies for foreign airlines
Journal of Air Transport Management: an international journal of research, policy and practice , Vol.74, pp.47-53
01/2019
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Source: InCites
Abstract
Many air carriers have challenged each other's financing arrangements, each asserting that the other benefits from substantial subsidies. We argue that the ‘subsidy’ classification is a distraction. Firstly, subsidies are quite difficult to define. Secondly, subsidies are little different in their economic effects to many other policy actions, and should be evaluated by policymakers similarly to these other measures. An economic approach would be to assess whether, in overall cost-benefit terms, a country is harmed by subsidies received by another country's airlines. Even if home airlines lose out, home passengers will gain, and the balance will often be positive. The paper outlines the circumstances under which a country would gain or lose from a subsidy to a foreign airline.
Details
- Title
- The economic approach to subsidies for foreign airlines
- Creators
- Peter Forsyth - Monash UniversityCathal Guiomard - Dublin City University
- Publication Details
- Journal of Air Transport Management: an international journal of research, policy and practice , Vol.74, pp.47-53
- Publisher
- Elsevier Ltd
- Identifiers
- 991012927095602368
- Copyright
- © 2018 Published by Elsevier Ltd.
- Academic Unit
- Faculty of Business, Law and Arts; School of Business and Tourism
- Language
- English
- Resource Type
- Journal article