I’ve been thinking a lot recently about what ownership structures will be necessary to bring about change in the aviation industry. Do models where the state invests heavily in its flag carrier produce better environmental outcomes?
Take France, for example. This is the only country I’m aware of which actively banned domestic flights (within certain parameters). It is also a country whose government owns a significant share in its flag carrier, Air France. Are the two things linked?
What about China? This is by all accounts the nation most capable of enabling the global energy transition through its sale of cheap batteries, EVs, wind turbines, and more. It therefore has the potential to be very influential in other sectors too. China has invested significantly in transportation through its high-speed rail portfolio on the domestic front, which has reduced demand for air transport companies. Like in France, the government maintains ownership, albeit with a slightly different structure. Here, each of its three major airlines are steered by a state-owned corporation, with private investors (including some foreign) taking up the rest of the shares. So, again, how has the state-market relationship here influenced the ability for modal share to be shifted away from aviation and towards more sustainable modes?
My guess is that it has been a factor in enabling these policies, at minimum.