DISCUSSION PANEL REPORT: INTERNATIONAL AIRLINES

The workshop panel on international airlines discussed events that could shape the growth in international airline activity in major market areas affecting the United States. In forecasting the future of international airlines, the panel found the following: The largest emerging trends in the international airline markets are the gradual shift of growth and traffic from traditional U.S. gateways to carrier hubs. The removal of restrictions overseas would also tend to stimulate the U.S. market for international airline services. In the U.S. domestic market, new entrants are providing price discipline. Even though they may not serve an airport with many flights, they tend to discipline the yields available to other carriers. If new entrants could also provide competitive discipline on yields in the international markets, then the improved service offered by the carriers in an alliance is likely to stimulate additional traffic growth. The U.S. policy of liberal approval of code shares seems to be a force leading towards more open international markets. The increase in airline alliances may lead to more frequent services with smaller aircraft, a trend that has been recently observed in the international markets. This would tend to result in a slightly higher growth rate for aircraft operations than passenger enplanements, as average aircraft size is reduced.

Language

  • English

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Filing Info

  • Accession Number: 00721442
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: May 14 1996 12:00AM