Exporting Deregulation - Alfred Kahn and the Celtic Tiger

Abstract

Airline deregulation in Ireland arose from a parliamentary revolt in 1984 against legislation to imprison and fine those selling airline tickets below government approved fares. The revolt was heavily influenced by US airline deregulation in 1978 and the writings of Alfred Kahn. The results were spectacular. Dublin-London, deregulated in 1986, became the busiest international route in Europe. The 2.2m passengers on the Irish national airline before deregulation in 1986 increased to 72m passengers on four Irish airlines in 2008. Ryanair redefined the European aviation. The success of airline deregulation had a major influence on Irish economic policy.