Hoernig, SteffenFreitas, Gonçalo Lebre deAmbrogi, Francesco2024-11-272023-12-222023-09-12http://hdl.handle.net/10362/175887This study examines the evolution of Flag Carriers in the European Civil Aviation market. Employing various theoretical perspectives, it analyses the rationale for state ownership of airlines, weighing political interests and socio-economic efficiency. Additionally, it assesses state aid measures granted to flagship airlines amid the COVID-19 Pandemic and their potential effects on the sector’s competitiveness. Finally, a case study of TAP Air Portugal illustrates the complexities associated with state intervention and privatization attempts in the management of state-owned carriers. A comparison of route frequencies before and after the 2015 partial privatization highlights that services of public interest can effectively be operated under private leadership. Overall, the article advocates prioritizing economic efficiency over political motives. Keywords.engFlag carriersTap Air PortugalState-owned enterprisesLiberalisationCompetitive dynamicsEfficiencyPolitical interferenceSoftened budget constraintState interventionState aidCovid-19master thesis203684699