Discussion – Deregulation Today

Discussion – Deregulation Today

Topic 1: Open Skies – Describe what is implied by “Open Skies” and argue the evolution of these international agreements affecting access to world aviation markets. Compare “Open Skies” arrangements with bilateral agreements.

Open Skies is a policy in aviation that entails the liberalization and ease of rules in the access and use of a country’s airports by foreign airlines. This entails the rules and regulations that govern the entry of international airlines into a country’s or region’s airlines (Mirzabaev, 2019). Therefore, the degree of sky openness is determined by the level of freedom granted to foreign airlines. The evolution of the Open Skies policy dates back to October 14, 1992, when an agreement was signed between the US and the Netherlands. The agreement had several elements, including entry terms on all routes. With the familiarization of the treaty in the aviation industry, other countries and regions signed agreements between themselves. The policy has since become one of the wide-ranging international efforts to enhance transparency and openness in aviation. On the other hand, bilateral agreements entail the documentation of civil aeronautical products exported or imported from two countries or regions (Federal Aviation Administration, 2019). These agreements mainly focus on the safety, airworthiness, and technical cooperation guidelines between two parties

Topic 2: Global Deregulation – Elaborate how American deregulation has affected Europe.

The US air deregulation has been among the strategies to achieve greater global airline liberalization, especially in Latin America, Asia, and European countries. The Deregulation Act of 1972 partially controlled traveling over the air from a political to economic market sphere perspective (Smith & Cox, 2004). The economic liberalization that was part of the deregulation constrained the operations and investments by airlines. This limited the routes for airlines, including the European airlines, and controlled the prices, leaving the elements of competition restrained to the quality of the cabin crew, food, and frequency for the airlines. The restrictions in air travel flows were felt by travelers moving between the US and Europe.

References

Federal Aviation Administration (FAA). (2019). Bilateral Agreements Overview. Retrieved from https://www.faa.gov/aircraft/air_cert/international/bilateral_agreements/overview/

Mirzabaev, F. (2019). What is an Open Skies Policy, and Who Needs It? Retrieved from https://cabar.asia/en/what-is-an-open-skies-policy-and-who-needs-it

Smith, F. L., & Cox, B. (2004). Airline Deregulation. Retrieved from https://www.econlib.org/library/Enc/AirlineDeregulation.html

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Write a one-page (not including cover and reference pages) APA-formatted report on two of the following four topics:

Topic 1: Open Skies – Explain what is meant by “Open Skies,” and discuss the evolution of these international agreements affecting access to world aviation markets. Compare “Open Skies” arrangements with bilateral agreements.
Topic 2: Global Deregulation – Describe how American deregulation has impacted Europe.
Topic 3: Post 9/11 Legislation – Discuss how the Air Transportation Safety and System Stabilization Act and the Homeland Security Act both financially assisted the airlines and increased their financial burden.
Topic 4: International Cargo and 9/11 – What impact did 9/11 have on the international air cargo industry, and how did they adjust to these changes?
Save your assignment using a naming convention that includes your first and last name and the activity number (or description). Do not add punctuation or special characters.