Navigating unexpected turbulence: a comparative analysis of European government economic responses to national airlines during the Covid-19 pandemic

Despite all states suffering from the same common shocks generated by the Covid-19 pandemic, European governments differed significantly in their strategies to protect their national airlines. This thesis aimed to bring the topic within the realm of public administration, looking at government actions through a multi-theory lens of crisis governance, economic intervention approaches and historical institutionalism. To consider how potential conditions interact with each other, this study utilised a qualitative comparative analysis (QCA) to uncover how political and market elements potentially play a role for policymakers in their approach to state aid. This was followed by process tracing on the cases of Italy, Sweden and Ireland to examine how the mechanisms functioned in detail, and to consider alternative explanations. The results indicate that states that contained a flag-carrier airline were more likely to commit to economic intervention, as well as states that had a reliance...Show moreDespite all states suffering from the same common shocks generated by the Covid-19 pandemic, European governments differed significantly in their strategies to protect their national airlines. This thesis aimed to bring the topic within the realm of public administration, looking at government actions through a multi-theory lens of crisis governance, economic intervention approaches and historical institutionalism. To consider how potential conditions interact with each other, this study utilised a qualitative comparative analysis (QCA) to uncover how political and market elements potentially play a role for policymakers in their approach to state aid. This was followed by process tracing on the cases of Italy, Sweden and Ireland to examine how the mechanisms functioned in detail, and to consider alternative explanations. The results indicate that states that contained a flag-carrier airline were more likely to commit to economic intervention, as well as states that had a reliance on international, hub-based travel. Other factors, such as government ideology and market liberalisation, interacted in different ways akin to equifinality. The case studies highlighted how other factors, such as crisis perception and opportunity for policy change, may also play a role. Overall, the results indicate that, even in crises, governments place value on historical policy legacies and framing opportunities, with intervention being highly context dependent.Show less

Leiden University Student Repository

Documents

In Collections

Navigating unexpected turbulence: a comparative analysis of European government economic responses to national airlines during the Covid-19 pandemic