Business & Entrepreneurship Journal

Pricing and Market Results of Greek Coastal System after Cabotage Privilege Removal (2002-2010): The Example of European and Global Aviation

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  • Abstract 

    The purpose of this article is to compare Greek coastal shipping and aviation industry immediately after their liberalization. It focuses mainly on fare configuration analysis of domestic and global aviation to compare the conclusions with Greek coastal market. This is an innovative approach as there has been no such research effort on this issue in the past. The importance of our analysis lies to a large extent in exploring the improvement or deterioration of passenger services for the two modes of transport following the lifting of cabotage privilege. It can be a yardstick for those researchers who want to know in advance what could happen in the first years of liberalization in a transport industry. The analysis results show that the institutional framework and the economic market conditions in two industries characterized by both similarities and differences. 

    JEL classification numbers: R40, M21, L50. 
    Keywords: Global and European Aviation, Greek coastal shipping, Market liberalization, Lifting of cabotage privilege, Fares, Passenger service.