ISSN: 2225-8329
Open access
While the aviation industry has often been a target of government policies, the COVID-19 crisis has precipitated a new suite of loans, loan guarantees, wage subsidies and equity injections, raising concerns about competition and the efficient use of public resources (OECD, 2020). The oligopolistic nature of the airline industry makes it tougher for new players to enter the market as the oligopolistic sets high barrier to entry. The objective of this paper is to deliver a competitive aviation industry framework to foster economic efficiency in the form of allocative, productive and dynamic efficiencies. The paper examines the market structure in respect of each segment of the aviation industry together with their level of barriers of entry. This paper employed thematic analysis, focusing on analysis of articles on air transportation, Malaysian Aviation Commission Act 2015, Competition Act 2010, air transportation journals, and other legal sources. Thematic analysis is a type of qualitative research in which precedent is analysed utilising documents as source material. The data are used to evaluate the relationship between the market players in Malaysian aviation industry, endogenous and exogenous factors, and competition policy in Malaysia. The result of the discussion suggests that deregulation / restructuring of the aviation industry is needed to foster competitive aviation market structure. The paper aims to provide a efficient framework for air transport operators, mutual benefits for stakeholders and the relevant authorities such as MAVCOM, Ministry of Transport and other air transport operators to ease the barriers of entry in aviation market in Malaysia.
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In-Text Citation: (Amin & Ghani, 2023)
To Cite this Article: Amin, W. L. M., & Ghani, N. K. A. A. (2023). Delivering Competitive Aviation Industry in Malaysia. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2), 1147–1165.
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