The aim of this dissertation is threefold: 1) to provide an overview of the Asia Pacific Economic Cooperation (APEC) air transport services and evolving regulatory landscape; 2) to estimate the potential effects of easing trade and regulatory impediments in the sector; and 3) to examine policy options available to Asia Pacific economies to maximise the gains of air transport services liberalisation. Particular attention is paid to the policy relevance of this research for APEC governments in the medium term. The first two chapters present trade and regulatory patterns in the APEC region, respectively in air passenger and cargo services. They then analyse the extent to which reduction of air transport services impediments enhances the region's international trade. Both are primarily empirical, but build on insights from recent research that provides a theoretical foundation to motivate the empirical investigation. The first chapter focuses on the effects of liberalisation on passenger traffic and the second on trade in merchandise, including with a focus on products of interest for Asia Pacific economies. The third chapter complements the first two by examining the role of regulation and remedial policies for the successful liberalisation of air transport in APEC. Having made the case for liberalisation through empirical analysis in the first two chapters, the focus here is on to how to minimise the downsides potentially stemming from reform in the sector, particularly in relation to competition policy and environmental protection. The chapter also explores negotiating options available to economies in the region.

The air transport industry is one of the most rapidly growing in the Asia Pacific region. However, the airlines of the region face a number of challenges. These include not only a number of commercial issues but also the reform of the policy environment. How will consumers be affected as the industry and the regulators respond? These challenges and questions are examined in this timely and authoritative book on the air transport industry and its future direction. A separate edition for Australia and New Zealand is available from Australia Japan Research Centre.

Includes: The Ascent of Asian Airlines (losses, cost-cutting, & consolidation in the global industry; entry, expansion, & profits in Asia); Bilateral Relations (5th freedom rights; 5th freedom rights & the U.S.-Japan Aviation Treaty; the future of bilateral agreements in Asia); Moving Beyond the Bilateral Regime (U.S. & Asian views on aviation liberalization; Asia-Pacific Economic Cooperation (APEC) & civil aviation; from restricted bilateral to open skies arrangement; & Asia-Pacific aviation & the WTO). Photos.