Economic Sustainability of Air Transportation in Terms of Unfair Competition and Negative Externalities: Evidence from Turkish Commercial Law

Abstract

Air transportation is a more advantageous form of transportation compared to other types of transportation. This is because it provides economic growth, place, and time benefits. However, the realization of the economic sustainability of these benefits may become difficult in certain cases. It is possible to express these situations as negative externalities in the theory of public finance. The solution to negative externalities lies in their internalization. Unfair competition is also a negative externality for air transport enterprises. One of the sanctions applied for the internalization of this negative externality is compensation. While material compensation can internalize externalities, moral compensation cannot fully compensate for externalities in a number of cases. Such a situation may constitute a violation of the rule that externalities will not be reflected in market prices. In order to understand whether such a rule violation actually occurred judicial decisions were examined using the comparison method in the study. The conclusion reached in the study is that in a few cases externalities are likely to be reflected in market prices and reveal a violation of a rule related to the theory of public finance. To ensure economic sustainability of air transportation, moral compensation decisions that have the potential not to reflect externalities to market prices must be fully determined.

Keywords

• Air transportation
• sustainability
• externality
• theory of public finance
• unfair competition
• comparison

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