More goods taking the high road

ED RICHARDSON AIR TRANSPORT is growing in importance for international trade, according to World Trade Organization’s 2005 World Trade Report. The report says techno­logical changes, combined with an evolving policy environment, have changed the face of the industry. It has become more competitive and more efficient and different models have been adopted to meet new competition and growing demand for air transport services. Air carriers have chosen between a hub-and-spoke model and a point-to-point approach to service provision. Competitive pressures have also led to a new generation of bilateral “open skies” agreements among governments, resulting in liberalisation of service between countries. The GATS has exerted limited influence on competitive developments in the sector and only covers a narrow range of relevant services – repair and maintenance services, marketing and selling of air transport services, and computer reservation services. Differing views persist about arrangements to deliver mutually beneficial liberalization, according to the report.