ECONOMICS, POLITICS, AND LAW: RECENT DEVELOPMENTS IN THE WORLD OF INTERNATIONAL AIR CHARTERS

This article reviews some of the essential aspects of the changes in U.S. charter law and policy. The development within the U.S. law of the air charter concept from the original concept of the affinity charter to the most current version of the public charter approach is traced. The tour operator and supplemental carrier attitudes are examined. The U.S., the Dutch, and British approaches to charter rules and bilateral accords are noted. The economics of supplemental carriers are discussed, as well as the changing philosophy of the Civil Aeronautics Board (CAB) approach to charters. The events of the last 6 months of 1978 are noted including the passage of a deregulation bill. It is concluded that once the International Air Transport Association's (IATA) transatlantic rate-making functions are replaced by CAB-mandated forces of competition, there is no possibility that there will be any generally agreed-upon transatlantic rates, especially of the promotional type. Also with or without charters, there will be enough carriers operating across the North Atlantic over different routes and with different classes of service to make fixed prices unlikely. If a pattern of price fixing seems to reappear, the CAB could well certificate a new low-price carrier, and so long as the prospect of new entry is real, such a threat will itself reinforce the unlikelihood of fixed prices.

  • Availability:
  • Corporate Authors:

    Southern Methodist University

    School of Law
    Dallas, TX  United States  75222
  • Authors:
    • Lowenfeld, A F
    • MENDELSOHN, A I
  • Publication Date: 1979

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00195746
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 31 1979 12:00AM