Nature of Civil Aviation

• Movement at very high speeds
• Forefront of Technological Change
• Difficult to examine & study
  • Widespread international operations, several airlines
  • Labyrinth of bilateral negotiations
• Volatile
  • ~ 80% of airline capital tied up with aircraft
  • One bad decision -- black to red
• Sensitive to changes
  • External --- oil crisis of seventies
  • Technological -- turboprop / turbofan
  • Policy -- US domestic deregulation
  Structure of world civil aviation has been fashioned by many forces, of which economic logic has played only a modest part
  The Edwards Committee Report 1969

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