Aviation contributes to economic and social development, but air traffic congestion and aircraft-related gas emissions damage the environment; hence, appropriate policies should be introduced to ensure sustainable growth. This paper highlights the interdependence of environmental reforms in aviation by thoroughly investigating two major European policy schemes, i.e. the European Union Emissions Trading Scheme and the Single European Sky. Emphasis is given on policy aspects of multi-stakeholder governance. Based on focus group interviews with thirty-nine senior managers and in-depth interviews with seven experts, transaction costs are highlighted and a stakeholder power vs. interest grid is developed to identify and, most importantly, to address governance failure, thus effectively linking different aviation policies in a holistic manner.