AIR WARS: REGULATION AND DEREGULATION IN THE INTERNATIONAL AIR PASSENGER MARKET |
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| Authors: | John A.C. Conybeare |
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| Affiliation: | JOHN A. C. CONYBEARE, Associate Professor of Political Science at Columbia University, specializes in international relations, with emphasis on political economy and public choice issues. His articles have appeared in such journals as the American Economic Review, American Journal of Political Science, International Organization, International Studies Quarterly, Journal of Business Research, Policy Sciences, Policy Studies Review, Public Choice, and World Politics;. His most recent research has been on international trade conflict, the results of which will appear in a book entitled Trade Wars (Columbia University Press, forthcoming 1987). |
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| Abstract: | ![]()
International civil aviation is governed by a cartel that dissipates its monopoly profits in surplus capacity. Based on the 1946 Bermuda agreement and the International Air Transport Association, the cartel imposes heavy costs on U.S. consumers and air travellers in general. The Carter administration attempted to make international aviation more competitive, but this progress was substantially reversed under Reagan. A new policy should be based on treating air travel the same as any other commodity and therefore subject to U.S. antidumping and antitrust laws. The goal of the policy should be to shift the cost of maintaining inefficient national flag carriers from the international community back on to the taxpayers of those countries. |
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