COVID-19 presents the airline industry with unprecedented challenges that constitute no less than an existential threat. Given airlines’ importance in the economy, which includes providing connectivity, preserving jobs, and supporting related sectors, many governments have given local airlines enormous financial support since early 2020. Although it is well understood why many governments cannot allow their major airlines to shut down, the ongoing massive government bailouts can distort competition in the airline industry. In this seminar, Prof. Lee will analyze various government bailouts of airlines in the COVID-19 crisis, discuss how these bailouts are creating a growing problem with fair competition in the international air transport market, and recommend multilateral, bilateral, and unilateral rule-based approaches that can better serve economic governance of international air transport in the post-COVID-19 era. This seminar is based on his recent article in the Journal of International Economic Law (December 2021).
About the speaker: Prof. Jae Woon Lee, Assistant Professor, CUHK LAW