FRANCE IS to open up internal competition within its domestic air market from January 1996, in preparation for the fierce competition, which is expected to follow the completion of the European single air market in April 1997.
The French Government says that it will allow all French operators to compete in the domestic market from January.
The French domestic market has been operated as a virtual monopoly by Air France's subsidiary Air Inter, but new regional challengers such as Air Liberte AOM, TAT and Euralair are making inroads on major-city routes, and the Government is encouraging smaller operators to compete on services to smaller cities.
Italy has declared that it will liberalise its domestic market from January 1996, while others such as Germany and Spain have moved to open their highly regulated markets to greater internal competition.
By 1997, all European Union markets will be open to competition from domestic and foreign carriers.
A recent study on European competition carried out by the UK Civil Aviation Authority revealed that France had the least competitive of the region's major domestic airline markets.
Source: Flight International
