The charter airline industry has historically been regulated in a far more liberal fashion than the scheduled sector. The first two liberalization packages of the European Commission did not apply to charter operations, but the third package removed the regulatory distinction between the two modes. As a result of the establishment of the Single Market in air transport, charter carriers have ventured into the scheduled market and have developed new relationships with the major carriers. They have been cautious in taking advantage of the new freedoms afforded by the third package, but have adopted a variety of strategies to cope with the increasingly competitive air transport industry, including vertical and horizontal integration, product development and cost control.