Rethinking Policy Priorities for an Aviation Industry in Turmoil

In this article (Paragraph No. 25,361), with bankruptcy becoming the unfortunate hallmark of U.S. aviation, pressure for industry restructuring grows. How government policy addresses a long-awaited industry shakeout and other new industry realities will help determine whether U.S. aviation can reassert its lagging leadership in the global marketplace and effectively fulfill its role as a core element of the nation’s infrastructure. Current U.S. aviation policy—last revisited in the mid-1990s—focuses on expanding international market opportunities for strong U.S. carriers, while curtailing concentration among them in domestic markets, where their potential “dominance” might preclude competitive new entries. Today, however, U.S. carriers face an array of daunting new realities—from spiraling fuel costs to combinations of foreign competitors—that call into serious question whether the decade-old policy frame should be re-examined, or the policy priorities refocused. The author advocates a high-level review of the U.S. policy priorities to generate new thinking about several critical aviation industry issues. Issues to be considered range form enabling airline structures to take best advantage of open market opportunities the U.S. has already achieved, to promoting efficiency-building inter-carrier integration and consolidation in both domestic and international markets, to revisiting outmoded regulatory constraints on cross-border aviation investment, among others. With today’s U.S. aviation industry at a key inflection point, the time seems right for a comprehensive and high-level interagency policy review that aims at enabling a sustainable and globally competitive U.S. aviation sector, the author concludes.

  • Corporate Authors:

    International Aviation Law Institute

    DePaul University College of Law, 25 E Jackson Boulevard
    Chicago, IL  United States  60604
  • Authors:
    • Gerchick, Mark L
  • Publication Date: 2008

Language

  • English

Media Info

  • Media Type: Print
  • Edition: Transfer Binder 2: 2004-2008
  • Features: References;
  • Pagination: pp 13175-13190
  • Monograph Title: Issues in Aviation Law and Policy

Subject/Index Terms

Filing Info

  • Accession Number: 01141783
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 8 2009 3:02PM