These papers represent the chief topics of discussion at the European Air Law Association's annual conference for 1997 in Madrid. These include the last remaining qualifications for a fully liberalised EC air transport market, and increasing signs that liberalisation is stimulating structural changes and producing significant benefits for passengers. The text discusses the focus of regulatory attention moving from liberalisation to safety matters, with initiatives in the field of foreign safety oversight, the reformation of Eurocontrol and the creation of a single European aviation safety authority. Also included are EC and US issues regarding transatlantic airline alliances (particularly British Airways/American Airlines) and the Commission's reaction to the Boeing/McDonnell Douglas merger.