Liberalization refers to the relaxation of government restrictions to encourage competition and efficiency. It has led to substantial economic and aviation growth through increased competition and productivity. Countries that have liberalized their aviation markets have seen benefits for both their aviation industries and overall economies, including positive externalities, through bilateral and plurilateral agreements allowing greater commercial flight opportunities between contracting states.

1. LiberalizationLiberalization

2. • refers to a relaxation of previous government
restrictions
• refers to loosening or removal of controls so that the
party involved gets encouragement

3. • has led to substantial economic and traffic growth
• increased competition in the aviation market
• productive efficiency
• improve productivity, and eliminates inefficient
carriers out of the market
• positive externalities to the overall economy
Positive Effects ofPositive Effects of
LiberalizationLiberalization

4. • a contract to liberalize aviation services, usually
commercial civil aviation, between two contracting
states
• allows the airlines of both states to launch
commercial flight
Bilateral Air TransportBilateral Air Transport
AgreementAgreement

5. • involves more than two contracting states
Multilateral Air TransportMultilateral Air Transport
AgreementAgreement

6. • a multi-national legal or trade agreement between
countries
• an agreement between more than two countries, but
not a great many
PlurilateralLiberalizationPlurilateralLiberalization

7. • a term coined when countries involved have
benefited from liberalization in general
Progressive LiberalizationProgressive Liberalization

8. **Countries leading deregulation and
liberalization scored various benefits for their aviation
industry as well as the overall economy.