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By Audrick Krause. Type of airline. Published at Saturday, March 23rd, 2019 - 07:32:06 AM.

The pattern of ownership has been privatized in the recent years that is the ownership has gradually changed from governments to private and individual sectors or organizations. This occurs as regulators permit greater freedom and non-government ownership in steps that are usually decades apart. This pattern is not seen for all airlines in all regions. 86

Domestic air transport grew in China at 15.5 percent annually from 2001 to 2006. The rate of air travel globally increased at 3.7 percent per year over the same time. In the EU greenhouse gas emissions from aviation increased by 87% between 1990 and 2006. 74 However it must be compared with the flights increase only in UK between 1990 and 2006 terminal passengers increased from 100 000 thousands to 250 000 thousands. 75 according to AEA reports every year 750 million passengers travel by European airlines which also share 40% of merchandise value in and out of Europe. 76 Without even pressure from green activists targeting lower ticket prices generally airlines do what is possible to cut the fuel consumption (and gas emissions connected therewith). Further according to some reports it can be concluded that the last piston-powered aircraft were as fuel-efficient as the average jet in 2005. 77

Regulation by definition substitutes the judgment of the regulator for that of the marketplace according to Elizabeth E. Bailey David R. Graham and Daniel P. Kaplan in their book Deregulating the Airlines (The MIT Press 1985 p. 96).

One argument is that positive externalities such as higher growth due to global mobility outweigh the microeconomic losses and justify continuing government intervention. A historically high level of government intervention in the airline industry can be seen as part of a wider political consensus on strategic forms of transport such as highways and railways both of which receive public funding in most parts of the world. Although many countries continue to operate state-owned or parastatal airlines many large airlines today are privately owned and are therefore governed by microeconomic principles to maximize shareholder profit.


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