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06/14/05 |
     
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Another important policy imposed by the European Union is the deregulation of the air transportation. In this case, many airlines are affected by this regulation. As a the liberalization process was really hard to apply, the European Union Commission decided to establish it following three different steps. The most important one took place in the year 1993, when admission to the single market was assured to all airlines. Only consumers realized the benefits from this policy because most airlines in Europe entered a tough battle to compete against the low-cost ones. One of the reasons of these difficulties experienced by full-fare companies are due to the fact that with the deregulation policy, airlines are allow to impose their own tariffs with any type of restriction so they can offer promotional fares in all routes. The major problems experienced by these national airlines are related to their financial situations. For this reason many companies are restructuring their strategies in order to be profitable in this difficult market.
This site was last updated 06/14/05 |