The Aviation Industry of Tomorrow

According to the author of this article (Paragraph No. 10,301), taken in proper perspective, the tragedy of September 11, 2001 was simply the trigger to an accumulation of ten years of problems plaguing the aviation industry. The author identifies three structural problems that act as barriers to free competition and hurt air travel consumers: open skies policy, preferential slot rights at airports, and consumer protection policies. The real problem with open skies policy is that carriers in countries with vast, profitable domestic markets are able to "cross-subsidize" from the highly profitable domestic market to the international markets. Thus, for example, American domestic users are forced to pay more to make up for low yields in the Pacific market. Also, small carriers are often unable to compete in a commercially viable manner, due to the inequities of preferential airport slot allocation to airlines holding existing slot rights. Lastly, the author urges the adoption of stronger consumer protection policies to offset the advantages large carriers have due to the advantages they enjoy with their hub-and-spoke systems and preferential slot allocations. In order to move beyond the current crisis and revitalize the industry, the entire market must be opened up, the system of preferential treatment of slot holders with existing rights must be abolished, and improved consumer protection policies must be introduced, the author concludes.

• Corporate Authors:

  International Aviation Law Institute

  DePaul University College of Law, 25 E Jackson Boulevard
  Chicago, IL  United States  60604
• Authors:
  • Hanyu, Jiro
• Publication Date: 2004

Language

• English

Media Info

• Media Type: Print
• Edition: Transfer Binder 1: 2001 to 2004
• Features: Tables;
• Pagination: pp 4301-4308
• Monograph Title: Issues in Aviation Law and Policy

Subject/Index Terms

• TRT Terms: Airlines; Aviation; Competition; Economic factors; Industry structure
• Subject Areas: Aviation; Law;

Filing Info

• Accession Number: 01149566
• Record Type: Publication
• Files: TRIS
• Created Date: Jan 29 2010 12:03PM