Of Cabbages and Cabotage: The Case for Opening Up the U.S. Airline Industry to International Competition

Abstract:     
The United States should aggressively pursue cabotage agreements with foreign governments and in particular with the EEC. Such agreements should be reciprocal in principle, offering cabotage rights in the U.S. equal in terms of mileage or other agreed upon benchmark in exchange for equal rights in the foreign country participating in the agreement. The adoption of cabotage with whomever it can be negotiated should be combined with domestic policies opening up domestic airport gates and resources and slots to all who seek entry, whether new entrants or incumbent foreign carriers. All foreign airlines granted cabotage rights should be required to satisfy all safety and regulatory and security requirements currently imposed on U.S. carriers, as well as additional security requirements deeded necessary under Homeland Security laws.

Number of Pages in PDF File: 42

Accepted Paper Series