It has almost been a decade since the deregulation of the Greek air transport market.
During these years a number of new airlines entered the market with various degrees
of success, attempting to participate and compete in this growing market. However
Greece's morphology, which includes many island destinations and are a popular
tourist destination, creates a competitive environment between air travel and short-sea
shipping. It should be also mentioned that the deregulation of the greek short-sea
shipping market has recently (from November 2002) been implemented, a fact which
will increase the competition between the two different means of transport. This
article attempts to discover the results and effects of this deregulation in the Greek
transport sector from the scope of both air transport and short-sea shipping. The
conclusions are based on the evaluation of data as they were recorded in the course of
the past decade.
Competition, Domestic Air Transport, Domestic Short Sea Shipping, Deregulation,
Greek Air Market, Greek Insular Market.
The Greek insular market represents an area of special interest, since it is the market
where two different modes of transport (sea and air) compete in offering transport
services to and from the islands. With the application of the EU transportation
policies, which promote deregulation, a new market environment is created offering
opportunities for new operators to enter the market.
Greece has over 2000 islands, 200 of which are populated. The transport needs of
these islands for scheduled transport services are served by a 24 airports and more
than 90 seaports. Questions are therefore being raised as to the coverage offered to the
market, the extend of competition between both transport means and the benefits
which arise for passengers and operators. Furthermore the need to connect smaller
islands with the mainland for social and financial reasons,