United States-Canada air services: The role of alliances in a future bilateral agreement

Journal Article · Fri Dec 01 04:00:00 EST 1995 · Transportation Journal

OSTI ID:133265

Lewis, I ^[1]

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1. National Defense Headquarters, Ottawa, Ontario (Canada)

Transborder air services between the U.S. and Canada represent a mixing of two dynamic domestic markets whose relationships with each other is governed by a diplomatically negotiated agreement between governments. Trying to divide up the pie between the carriers of both nations while promoting economic growth is proving to be very difficult; four years of negotiations have yet to reach fruition. The Canadian government and carriers see the pie as fixed; there is only so much transborder traffic and Canadian airlines need their share. In contrast, U.S. carriers, airport operators, and government negotiators see the airline industry as a major instrument of economic growth. In this view, they are joined by many Canadian communities who believe that increased service can be of considerable benefit. More competition and better service can only lead to higher demand and passenger volume, from which Canadian airlines will benefit. Alliances between U.S. and Canadian carriers can help break the deadlock. The two governments need to recognize that their domestic airline industries are not distinct, and that they will share in any liberalization. Alliances need formal recognition, encouragement, and may be one of the few viable instruments available that will promote a greatly needed bilateral air services agreement between the U.S. and Canada.

• OSTI ID: 133265
• Journal Information: Transportation Journal, Journal Name: Transportation Journal Journal Issue: 3 Vol. 34; ISSN TRNJAE; ISSN 0041-1612
• Country of Publication: United States
• Language: English

Related Subjects

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
AIR TRANSPORT
AIRPORTS
CANADA
NEGOTIATION
TRANSPORTATION SYSTEMS
TREATIES
USA