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Word Count: 5,166
It has almost been a decade since the deregulation of the Greek air transport market During these years a number of new airlines entered the market with various degrees of success attempting to participate and compete in this growing market However Greeces morphology which includes many island destinations and are a popular tourist destination creates a competitive environment between air travel and short-sea shipping It should be also mentioned that the deregulation of the greek short-sea shipping market has recently from November 2002 been implemented a fact which will increase the competition between the two different means of transport This article attempts to discover the results and effects of this deregulation in the Greek transport sector from the scope of both air transport and short-sea shipping The conclusions are based on the evaluation of data as they were recorded in the course of the past decade Keywords Competition Domestic Air Transport Domestic Short Sea Shipping Deregulation Greek Air Market Greek Insular Market 1 Introduction The Greek insular market represents an area of special interest since it is the market where two different modes of transport sea and air compete in offering transport services to and from the islands With the application of the EU transportation policies which promote deregulation a new market environment is created offering opportunities for new operators to enter the market Greece has over 2000 islands 200 of which are populated The transport needs of these islands for scheduled transport services are served by a 24 airports and more than 90 seaports Questions are therefore being raised as to the coverage offered to the market the extend of competition between both transport means and the benefits which arise for passengers and operators Furthermore the need to connect smaller islands with the mainland for social and financial reasons led the state from very early to impose public service obligations on transport operators a measure which applies even in the deregulated era In order
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