Air Transport Market Deregulation and its Effect on the Short-Sea Shipping of the Greek Domestic Market

5. Conclusions
From the above analysis two different markets can be distinguished in offering
domestic scheduled passenger transport services in the Aegean sea, namely short sea
shipping and air transport. Both having operated under different market conditions are
now going to operate under deregulated environments. In regard with air travel the
first results of deregulation have shown a failure of the early attempts at competition,
leading to the existence of only a few airlines in the market, capable of offering
scheduled services, one of which being stately owned and under public service
obligations.
With the new developments in the short sea shipping market that take effect from this
year, competition in the Aegean sea is expected to rise, not only in the within the sea
transport market, but extending to air transport as well. Maritime companies already
introducing new quality standards in the market. The main breakthrough is the
building of new high-speed vessels, in order to satisfy the demand for low traveling
time in a competitive price12 and improving on-board service levels.
From an air-carrier's perspective the already hard market conditions (with the exit
from the market of many operations) are expected to intensify with Domestic Short
Sea Shipping becoming a new competitor. The areas where competition is going to be
stronger include especially destinations within a small travel distance from Athens
and/or destinations with small airports, where domestic short sea shipping has a
distinctive advantage. On the other hands in longer journeys (like Rhodes) the
advantage seems to be on the side of air travel.
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