Review of Industrial Organization 14: 85–90, 1999. c 1999 Kluwer Academic Publishers. Printed in the Netherlands. A Note on Public Sector Integration: The Decline of British Naval Aviation, 1914–1945 MANLEY R. IRWIN Professor Emeritus, Whittemore School of Business and Economics, University of New Hampshire, Durham, NH 03824, U.S.A. I. Introduction Economists have traditionally conﬁned their study of mergers to the economy’s private sector. Over the years a body of knowledge has contributed to our under- standing of corporate buyouts and acquisitions. But what about the public sector? Can an industrial organization framework tell us anything about the performance of a public enterprise once amalgamated? This note suggests that industrial organization can offer some insight into gov- ernment mergers. Our case study focuses on Great Britain’s treatment of its naval aviation unit, the Royal Naval Air Service. The time, 1914 to 1945, covers naval aviation’s evolution from the First through the Second World War. Speciﬁcally, Britain’s aviation consolidation played a pivotal role in arresting the Royal Navy’s once heralded lead in naval aviation. II. The Setting The Royal Naval Air Service (RNAS), the aviation wing of the Royal Navy, was established by none other than Winston Churchill in 1913. A
Review of Industrial Organization – Springer Journals
Published: Oct 15, 2004
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