LiberalizationLiberalization

• refers to a relaxation of previous government restrictions

• refers to loosening or removal of controls so that the party involved gets encouragement

• has led to substantial economic and traffic growth

• increased competition in the aviation market • productive efficiency • improve productivity, and eliminates

inefficient carriers out of the market• positive externalities to the overall economy

Positive Effects of Positive Effects of LiberalizationLiberalization

• a contract to liberalize aviation services, usually commercial civil aviation, between two contracting states

• allows the airlines of both states to launch commercial flight

Bilateral Air Transport Bilateral Air Transport AgreementAgreement

• involves more than two contracting states

Multilateral Air Multilateral Air Transport AgreementTransport Agreement

• a multi-national legal or trade agreement between countries

• an agreement between more than two countries, but not a great many

PlurilateralLiberalizationPlurilateralLiberalization

• a term coined when countries involved have benefited from liberalization in general

Progressive Progressive LiberalizationLiberalization

**Countries leading deregulation and liberalization scored various benefits for their aviation industry as well as the overall economy.