POLICY IMPLICATION. SUMMARY OF WORKSHOP SESSION 2

U.S. international aviation policy, growing out of domestic deregulation policies, has moved away from protectionism toward a less restrictive and competitive environment. Under this policy, the U.S. government has been willing to trade traffic rights (new routes/gateways to foreign carriers) in exchange for a more competitive posture, lower fares, etc. This has been done to give the consumer more service choices at lower fares than would have been experienced under the previous regulatory environment. The United States is attempting to use its market power to achieve a "free market" internationally via bilateralism. The consensus of the workshop is that the new international regulatory environment has had very little impact on total demand for international travel. This is true even to/from Europe which has been affected the most by recent liberal bilaterals. However, there have been structural changes in the market, which have affected routes, traffic flows, frequency of service, and aircraft size. In summary, this new regulatory environment has not had much of an impact internationally. The changes in the regulatory environment hve been overwhelmed by the economic factors: the devaluation of the dollar, the availability and price of fuel, inflation, and differing countries. It is felt that these factors will also be the key factors influencing future demand for international travel. (Author)

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  • Accession Number: 00330231
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Apr 15 1981 12:00AM