The redistribution of regulatory powers between governments and international organisations: the case of European airline deregulation

Abstract. This paper looks at the issues raised when deregulation is also accompanied with redistribution of the residual regulatory powers between governments and international organisations by focusing on the experience of deregulation of the airline industry in the European Community. The paper starts by applying a model of the political market for protection to the specific circumstances of the European airline industry in an effort to clarify the difficulties raised when redistribution of regulatory powers between different levels of government takes place. The findings of this analysis are then used to elucidate the European experience and in particular to explain the gap between the original proposals of the Commission and the final compromises worked out in the Council of Ministers.