PROSPECTS FOR CHANGE IN EUROPE'S AND THE UNITED STATES' AIRLINE OWNERSHIP RULES

Since the first Bermuda agreement in 1946, the nationality clauses in most bilateral agreements have limited the airlines designated to provide services for more than 50 years. Pressures have been growing to ease the ownership rules contained in bilateral agreements, to allow airlines greater commercial freedom. The Third Package of liberalizing measures implemented in 1993 by the European Union, aside from opening up cross-border and domestic markets, removed national ownership controls. By contrast, the United States Administration continues to pursue a restrictive stance on this issue ostensibly for national defense reasons. This paper reviews the history of airline ownership regulation in bilateral Air Services Agreements and national laws, and discusses cases of cross-border merger and acquisition activity between airlines in Europe and the United States. It goes on to analyze US open skies policies and European prospects for extending the scope of application of Community legislation and advocates the Single European Aviation Market as one that provides a sensible basis for the development of a multilateral approach to transatlantic services.

• Corporate Authors:

  Transportation Research Forum

  One Farragut Square South, Suite 500
  Washington, DC  United States  20006-4003
• Authors:
  • Chang, Yu-Chun
  • Williams, George
• Conference:
  • Proceedings of the 42nd Annual Meeting of the Transportation Research Forum
  • Location: Annapolis, Maryland
  • Date: 2000-11-29 to 2000-12-1
• Publication Date: 2000

Language

• English

Media Info

• Features: Figures; Tables;
• Pagination: p. 727-752

Subject/Index Terms

• TRT Terms: Airlines; Aviation; International transportation; Open skies; Ownership; Privatization; Regulations
• Geographic Terms: Europe; United States
• Subject Areas: Aviation; Law;

Filing Info

• Accession Number: 00804804
• Record Type: Publication
• Files: TRIS
• Created Date: Jan 11 2001 12:00AM