airline Archives — LIRNEasia


Network economics and regulation

Posted on April 14, 2015  /  2 Comments

Sri Lanka has decided to fully liberalize a white-elephant airport, an unusual act in this network industry which is riddled with protections for national flag carriers. Taking a respite from the Constitutional matters that preoccupy most Sri Lankans these days, I shared some ideas on the prospects for the fully liberalized airport with a journalist. These thoughts are more fully fleshed out in an op-ed that will appear shortly. Airlines are usually drawn to airports which give fifth freedoms, or the right to pick up passengers on the way to a third destinations, which is restricted by many countries to give a privilege to – usually – a badly run state-run domestic carrier. “Fifth freedom rights are valuable where there is are passengers to pick up,” explains Rohan Samarajiva of LirneAsia, a regional think tank based in Colombo.