The ailines are run similar but more effectively. Firstly each operator must gain a license for their operations which is given to them by the Civil Aviation authority based on their decision as to whether the company is suitable for operations (e.g they have to be able to show they can finance it). After that there is no contract, they can keep on going as long as it is a good operation. The CAA dont tell them what to do after gaining a license unless it all goes wrong.
The DfT on the other hand, grant a company a franchise, then say, 'you must use this stock, on these routes, at these times.'
Hang on, who won the franchise again?
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