Foreign direct investment in airlines, does telecommunications provide a solution?

by Liebenberg, Hendrik A.

The field of international air transpon is one of complex regulation. When it cornes to Foreign direct investment (FDI) in this area regulators have long sought to protect the industry from outside control and ownership. Recently, however. a more liberal attitude is emerging towards FDI as one which embraces this source of capital. The questions that this dissertation will try to answer are why FDI in air transpon is still so strictly controlled in air transport and how it could be regulated in the future. FDI in basic telecommunications has experienced the same development as international air transport. As in aviation, basic telecommunications providers have been prevented tiom acquinng excessive foreign convolling capital. This year. however, basic telecommunications was brought under the General Agreement on Trade and Services (GATS). This has resulted in a decrease in the regdatory restraints against FDI. it is the contention of this dissertation that as in international basic telecornmunications. FDI in international air transport should be regulated through the