AVMG 5180 EXAM 2 QUESTIONS AND
ANSWERS 100% PASS
Explain the differences in the European and US markets that influenced the approaches to
deregulation and liberalization - ANS o The US struggled with its Big Bang deregulation and
pressure the rest of the world to open its markets, Europe saw aviation liberalization as a part of
the integration of the countries into the EU and then choose to address the liberalization of the
aviation market in the change environment.
Summarize the EU approach to deregulation - ANS The integration of the countries into the
EU and then establish a one-airline policy in most of the nations of Europe
- Prior to deregulation: government ownership, subsidies, national hubs (at capitals), networks
reflect colonial ties, low productivity, high cost, high fares
early results of deregulation - ANS
winners and losers in liberalization - ANS winners: big airlines and operators
losers: underdeveloped countries and smaller airlines
Outline the issues dividing the US and EU on liberalization - ANS o US - Privately owned
airlines and Large, more competitive market
o Europe - Intermodal competition (trains, bus), short flights on average, well developed charter
industry, and more international departure.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Treaty of Rome - ANS Pact, created in 1957, that set up the European Economic Community
(also known as the Common Market).
- renamed to Treaty on the functioning of the European Union"
Single-sky - ANS Initiative that seeks to reform the air traffic system through a series of action
carried out in four different levels ( institutional, operational, technological and control and
supervision) which satisfies European airspace in terms of safety, efficiency, and environment.
- fifth freedom
Cabotage - ANS the carriage of passengers and cargo between two airports within the same
country, performed by aircraft registered outside of that country. Also known as the Ninth
Freedom of the Air.
Identify the issues that have hindered aviation development in less developed parts of the
world - ANS o Underdeveloped state of national economies.
o No substantial internal demand for air transportation to the general level of poverty.
Air Afrique - ANS was formed in 1961 by ten African nations signing the Yaounde Treaty,
Articles 77 and 79 of the Chicago Convention which provide for the joint or international
operating organization
Yamoussoukro Declaration - ANS committed African states to achieving the total integration
of their airlines through the liberal exchange of air traffic rights, use of an unbiased CRS, and
other joint aviation infrastructure development
Remaining obstacles to liberalization - ANS - preference of governments for national carries
flies in the face of objective to remove barriers to free trade
--keeps excess capacity in the market (like US bankruptcy laws)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
ANSWERS 100% PASS
Explain the differences in the European and US markets that influenced the approaches to
deregulation and liberalization - ANS o The US struggled with its Big Bang deregulation and
pressure the rest of the world to open its markets, Europe saw aviation liberalization as a part of
the integration of the countries into the EU and then choose to address the liberalization of the
aviation market in the change environment.
Summarize the EU approach to deregulation - ANS The integration of the countries into the
EU and then establish a one-airline policy in most of the nations of Europe
- Prior to deregulation: government ownership, subsidies, national hubs (at capitals), networks
reflect colonial ties, low productivity, high cost, high fares
early results of deregulation - ANS
winners and losers in liberalization - ANS winners: big airlines and operators
losers: underdeveloped countries and smaller airlines
Outline the issues dividing the US and EU on liberalization - ANS o US - Privately owned
airlines and Large, more competitive market
o Europe - Intermodal competition (trains, bus), short flights on average, well developed charter
industry, and more international departure.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Treaty of Rome - ANS Pact, created in 1957, that set up the European Economic Community
(also known as the Common Market).
- renamed to Treaty on the functioning of the European Union"
Single-sky - ANS Initiative that seeks to reform the air traffic system through a series of action
carried out in four different levels ( institutional, operational, technological and control and
supervision) which satisfies European airspace in terms of safety, efficiency, and environment.
- fifth freedom
Cabotage - ANS the carriage of passengers and cargo between two airports within the same
country, performed by aircraft registered outside of that country. Also known as the Ninth
Freedom of the Air.
Identify the issues that have hindered aviation development in less developed parts of the
world - ANS o Underdeveloped state of national economies.
o No substantial internal demand for air transportation to the general level of poverty.
Air Afrique - ANS was formed in 1961 by ten African nations signing the Yaounde Treaty,
Articles 77 and 79 of the Chicago Convention which provide for the joint or international
operating organization
Yamoussoukro Declaration - ANS committed African states to achieving the total integration
of their airlines through the liberal exchange of air traffic rights, use of an unbiased CRS, and
other joint aviation infrastructure development
Remaining obstacles to liberalization - ANS - preference of governments for national carries
flies in the face of objective to remove barriers to free trade
--keeps excess capacity in the market (like US bankruptcy laws)
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
