This book provides a comprehensive and contemporary study on the reform of the airline nationality rule. It explores how the traditional system of airline ownership and control, rooted in the post-World War II bilateral framework, has become an increasingly contested obstacle to foreign investment in national aviation sectors.
The airline nationality rule has long served as a cornerstone of international air transport regulation. Designed to preserve state control over air services, the rule restricts foreign ownership of airlines operating under bilateral air services agreements. However, the globalization of the aviation industry and the growing need for cross-border capital have intensified demands for regulatory liberalization. This book examines whether the existing ownership and control regime remains reconcilable with the economic realities of contemporary international aviation.
The analysis traces the evolution of the liberalization agenda pursued by the International Civil Aviation Organization (ICAO), including its strategic initiatives on foreign investment in airlines; the 2003 liberalization balanced approach principle; and the ICAO’s work on the draft convention on foreign investment in airlines. In addition, the book examines recent regional liberalization initiatives and provides comparative case studies from various jurisdictions on foreign direct investment in airlines. It also evaluates the paradoxical retreat of major aviation powers from earlier liberalization commitments, despite their historical support for liberal air transport policies.
Particular attention is devoted to the ICAO’s institutional capacity to act as a “norm entrepreneur” capable of facilitating regulatory reform at the international level. The book concludes with policy recommendations aimed at strengthening the ICAO’s effectiveness in promoting liberalization, including procedural innovations, enhanced stakeholder engagement, and renewed efforts to conclude a multilateral treaty on airline ownership and control.
Given its scope and focus, the book will be of interest to policymakers, regulators, aviation entrepreneurs, legal practitioners and industry professionals, as well as scholars and students of international air law and air transport policy.

Artur A. Eberg holds doctoral and master’s degrees in air law from McGill University, as well as a master’s degree in maritime law from London Metropolitan University. He is the former managing partner of the law firm Eberg, Stepanov and Partners, which operated in Eastern Europe, where he practised law for two decades. Under his leadership, the firm was recognized as one of the leading national law firms in the transport sector. His professional experience includes projects involving the privatization of aircraft manufacturers and airports, airline consultancy, and advice on international trade and financing. Before entering legal practice, he served as an air traffic controller and gained experience as a helicopter pilot. Since 2012, Dr. Eberg has worked as an air law and policy consultant based in Montreal, advising on international aviation regulatory matters. He also teaches international air law globally within the International Civil Aviation Organization (ICAO) training programmes and serves as Secretary General of the International Foundation for Aviation and Development (IFFAAD).