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Government Regulation of International Air Transportation

In: The Economics of International Airline Transport

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  • Darren Prokop

Abstract

This chapter examines the unique regulatory environment that trans-border air carriers work within. Using a U.S. perspective the concept of the bilateral air agreement is outlined and discussed. These agreements form the basis for how two countries decide to share their airspaces among their air carriers. The trend has been toward more liberal approaches. To explain this trend the concepts of the Freedoms of the Air and Open Skies are discussed. Other liberalization programs are also discussed; specifically, co-terminalization and cabotage. Finally, the air cargo transfer operations at Ted Stevens Anchorage International Airport are used as an example to highlight a rare example of unilateral liberalization on the part of the United States.

Suggested Citation

  • Darren Prokop, 2014. "Government Regulation of International Air Transportation," Advances in Airline Economics, in: The Economics of International Airline Transport, volume 4, pages 45-59, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:aiaezz:s2212-160920140000004002
    DOI: 10.1108/S2212-160920140000004002
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    More about this item

    Keywords

    Air transportation; economics of regulation; bilateral air agreements; L93; L51;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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