Regulation of Foreign Airlines in the United States

The regulation of foreign airlines in the United States is governed by international agreements indicating how foreign airlines are to be treated at airports and in airspace throughout the world. Several important international agreements have been passed and implemented to assure that international air travel takes place in a regular manner, following specific rules, and with a minimum of interference. The rules passed and the manner in which these rules have been applied have changed over the years, and the United States has altered its view as to how international regulations should be enforced.

There is no completely liberal regime for air services in the world today:

A genuinely liberal regime for air services would permit firms to enter and exit markets without government restrictions; to select which markets they would serve; to tailor their products, services, and capacity to meet perceived market demands; and to set prices independently and competitively in a marketplace free of distortions caused by government subsidies, protectionism, and other measures favoring local airlines over their foreign competitors. (Kasper, 1988, p. 2)

Before 1978, international air services were routinely subjected to strict limits on entry, routing, and capacity, and prices charged for international air services were also subject to government control, though governments had largely ceded that control to airlines under the auspices of the International Air Transport Association (I

Related Essays

REGULATION/DEREGULATION ISSUES .... the constitutional basis for the regulation of commercial .... foreign air carriers or permit foreign air carriers .... Once dominant airlines have disappeared or have .... (2745 11 )

Investing in Continental Airlines .... of year-end 2003, Continental Airlines flew to .... through alliances with domestic and foreign carriers. .... problems in the industry, government regulation to prevent .... (1633 7 )

Airline Industry .... Entry into the airline industry under regulation was difficult. .... Such a change would give American airlines greater access to foreign capital, and would .... (2312 9 )

Government Regulation & Deregulation .... the "powerato regulate commerce with foreign nations, and .... the tele-communications sector, the airlines and other .... and state) oversight and regulation; in some .... (2047 8 )

Issues in Merger of Continental & Northwest Airlines .... Entry into the airline industry under regulation was difficult. .... ownership, even skirting laws against foreign ownership in .... for any of the three airlines in the .... (2102 8 )

air. The U.S. government initiated the Pan American Convention on Commercial Aviation in Havana in 1928 to achieve international cooperation with Latin American countries. These two conventions together established in broad terms the principle of international aviation law, but it was necessary to form the IATA in order to coordinate the operations of international air transportation in such matters as documentation, conditions of travel, carrier liability, and timetables (Taneja, 1980, pp. 1-2). The Chicago Conference held in 1942 was the next major important agreement on the issue, and the conference was conducted under presidential guidelines set forth by Roosevelt. The conference was attended by representatives from 54 countries desirous of making arrangements to allow international airlines to develop commercial air transportation services. The British emphasized the need for strict regulation through some form of international, civil aeronautics authority modeled after the CAB of the United States, and the British feared that without such authority, the international carriers would establish services far in excess of that warranted by traffic. The British also feared a U.S. monopoly. the U.S. delegation, however, opp

Category: Government - R