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Title: U.S. CABOTAGE POLICY
Accession Number: 00611987
Record Type: Component
Availability: Find a library where document is available Abstract: The continuing liberalization of the international aviation regime has forced the reexamination of many long-standing policies and accepted conventions. Cabotage, the right of a foreign carrier to transport domestic traffic within another country, has been almost universally banned throughout aviation history. Recently, however, cabotage has surfaced as a major issue in various international aviation forums. The regionalization of aviation, as evidenced by the recent moves toward unity in Europe, has given special force to calls for cabotage. As the most robust aviation market in the world, the U.S. market is an obvious target for foreign carriers and governments that want to share the enormous amount of U.S. air traffic. Calls from some European governments and carriers have been particularly strong and may, if the trend toward European integration continues, force an alteration of U.S. cabotage policy. There are significant legal, political, and practical barriers to such an alteration. Despite these barriers, however, U.S. policymakers should continue their recently revealed willingness to use cabotage at the bargaining table. The potential advantages of allowing foreign carriers to carry cabotage traffic in the United States include increasing competition in U.S. markets, providing international service to secondary U.S. gateways, and, perhaps most important, improving the negotiating position of the U.S. vis-a-vis other countries or regions. Potential costs of allowing cabotage, such as those to U.S. carriers, must also be a factor in the decision. An analysis of the potential impact of limited cabotage suggests that allowing a limited form of cabotage would have neither an extremely negative nor an extremely positive impact on U.S. and foreign carriers, respectively. Because of the formidable level of U.S. carrier opposition and other factors, the foreign carrier market share would probably be minimal. The Quality of Service Index model, when used to analyze potential European carrier limited-cabotage routes, clearly points to this outcome.
Supplemental Notes: This paper appears in Transportation Research Record No. 1298, Public Sector Aviation Issues: Graduate Research Award Papers 1989-1990. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved
Monograph Accession #: 01495453
Authors: Agnew, David PPagination: p. 14-24
Publication Date: 1991
Serial: ISBN: 030905107X
Features: Figures
(1)
; References
(16)
; Tables
(3)
Geographic Terms: Subject Areas: Aviation; Finance; Highways; Planning and Forecasting; Policy
Files: TRIS, TRB
Created Date: Aug 31 1991 12:00AM
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