With air transport becoming an increasingly vital part of the economy, the regulatory reform of this market has been a major development in European political economy. This book focuses on two market failures within the airline industry, market power and environmental externalities, and analyzes how they have been affected by deregulation. The author employs economic models complemented by extensive empirical research, to demonstrate how the introduction of competition, brought about by liberalization, has resulted in considerable consumer benefits. The author argues that these benefits, such...