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  • 08. April 2021

    Advantages Of Open Sky Agreement

    The overly complex framework conditions of bilateral agreements have not only significantly increased business costs, but have limited choice and no competition and have created barriers to continued growth in air traffic. Since the early 1990s, states have begun to remove regulatory barriers, negotiate more liberal bilateral and multilateral agreements, including „open skies“ agreements, which have allowed the industry to do business in more favourable operating environments in order to expand into new markets. But there could be some impact on air traffic, especially for those travelling to the United States or from the United States. Under the „open skies“ agreement between the EU and the US, there have been important agreements between European countries and the United States, which could be called into question if US policy on this issue changes. As is often the case with this type of trade-related legislation, open-ski agreements can improve conditions for Member States by preventing state intervention in the aviation sector. This prevents, for example, a certain national government from creating unfair conditions to favour the airlines of its own country. Third, the removal of the four undeered agreements would result in an increase in passenger traffic. Current bilateral agreements between the United States and the United Kingdom, Greece, Ireland and Spain limit the amount of transatlantic travel. In order to assess the impact of replacing these restrictive bilateral agreements with open airspace, we calculated the impact of the „open skies“ agreements between the United States and other EU countries in the 1990s, which replaced equally restrictive agreements. The „open skies“ agreement between the United States and Brazil, which came into force on May 21, 2018, will pave the way for the conclusion of the joint venture between American Airlines (AA, Dallas/Fort Worth) and LATAM Airlines (LA, Santiago de Chile Int`l), according to the U.S. airline.

    In fact, even the U.S. government website notes that „open skies agreements have significantly increased international passenger and cargo flights to and from the United States, promoting more travel and trade, increasing productivity and stimulating quality jobs and economic growth.“ The benefits to consumers are obvious – open-ski agreements have helped liberalize the air traffic environment, leading to much wider choice and convenience at lower prices. Indeed, it is difficult to imagine that there is an extremely diverse and complex international air transport market without such open skies agreements. For more information, including the texts of the open skies agreements, please visit www.state.gov/civil-air-transport-agreements or contact the Office of Aviation Negotiations: EEB-A-TRA-AN-DL@state.gov President Trump has expressed concern about making America great again, but a withdrawal from the „open skies“ policy would slow U.S. economic growth. President Trump, along with his top advisers such as Gary Cohn, Peter Navarro and members of the White House Domestic Policy Council, should ignore special interests and unite with Americans on this extremely important issue. Iowans know that we win if companies are allowed to compete for our business.

    Verfasst von Stefan Oberhauser

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