Air transportation is truly global industry

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Air transportation is truly a global industry. However, future growth in world demand is being impeded by many nations that have enacted various air regulations and restrictive laws. A beginning toward a “new world order” of global competition and interconnectedness has occurred. The first “open skies” agreement was established between the United States and The Netherlands. This agreement, dubbed Open Skies I, signals the beginning of open skies becoming global. The agreement abolishes all legal and diplomatic environments, as well as all other trade barriers, that impede airline efficiency. It also encourages competition. The Open Skies I accord completely deregulates air services between the two countries. Now such a pact has been agreed to between the United States and the European Union. How will this affect demand for travel on the world’s airlines? Explain and give several examples.

Reference no: EM132306872

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