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The authors present an empirical analysis of the effects of the deregulation processes carried out in the European air transport industry during the period from 1986 to 1994, prior to the 1997 complete liberalization of the industry. Using individual data for 44 city-pair intra-European scheduled routes, the authors estimate several price equations to assess the relevance of both the deregulation packages released by the European Commission in 1987, 1990, and 1992 as well as the liberal bilateral agreements that several countries had agreed upon before. The results support the idea that during this initial decade, the effects of the deregulation in terms of fare levels and percentages of discount were weaker than expected, thus paving the way for the deeper measures that were adopted after 1997.

Cover -- Half Title -- Title Page -- Copyright Page -- Table of contents -- Contributors -- 1 Introduction -- Note -- 2 Regional economic theory and the impact of transport investments -- Introduction -- How natural advantage and governance can explain differences in regional economic development -- Explaining differences in regional economic development in the absence of differences in natural advantage and governance -- Imperfect competition due to increasing returns to scale -- Home market effect -- Core-periphery model -- Input-output linkages -- Increasing spatial fragmentation of firms and the role of communication costs -- Long-term developments in the costs of trade and transport -- Empirical assessment of the effects of transport costs on regional development -- Economic impact studies -- Econometric studies on the effects of air transport on economic development -- European regional policy -- Conclusions -- Note -- References -- 3 A review of connectivity utility models and their applications -- Introduction -- A review of the Connectivity Utility Model -- The construction of the direct air connectivity measure -- The construction of indirect air connectivity measure -- The construction of a multi-modal connectivity measure -- Applications of the Connectivity Utility Model -- China's direct air connectivity with other countries/economies -- China's overall connectivity (the sum of direct and indirect connectivity) -- Using the extended ConnUM for vulnerability analysis -- Conclusions -- Notes -- References -- 4 Wider economic benefits: What they are, how they manifest, and an example from network air services -- Introduction -- Literature evolution -- Public capital and economic growth -- Mechanisms of WEB -- Wider economic benefits vs catalytic effects -- Wider economic benefits (WEBs) and aviation.