The Disaggregated Organisation of Air Transport: Problems for Competition and Regulation

Over the last 30 years the governance structure of air transport has changed. Typically a disaggregated approach has been adopted. Doubts however arise, because of the vertical relationships. This paper addresses the following two research questions: By what type of organization is which part of the value chain organized? What are the main problems of this organization from the point of competition and regulation policy? The first question will be analyzed with transaction cost theory, the second by reviewing the literature. Finally, policy recommendations will be drawn.