The paper “ Should Foreign Carriers Be Allowed to Access US Market? ” is a breathtaking variant of the case study on business. The transportation sector in the United State comprises air, maritime, and land transport services. In 1978, Americans passed the Airline Deregulation Act that led to significantly lower fares and multiple choices in transportation services. Even though the deregulation has shown valuable success as regards domestic liberation in the United States and many other places, there is still strong regulation on international air travel. Besides, the US domestic air travel market is still restricted to foreign firms (“ US International Trade, ” 13).
The current regulation requires non-U. S. to control not more than 25 percent of the domestic carrier’ s voting stock in the country while foreign-based carriers are restricted from carrying paying passengers between American Cities. Such regulations are not healthy to the service providers and even to the consumers and therefore there is a need for the foreign carriers to be allowed free entry into the US market. American Air TransportThe current international air transport comprises of various local monopolies that are related to a section of protected international routes.
Most of the markets around the world are controlled by known cartels that are mostly organized and to a larger extent financed by governments. However, it is believed that the current global structure will most likely go through a dramatic change when the century ends, as the air services across the world are being provided by big multinational airlines that are currently competing at the global level. Some of these significant changes are likely to be triggered or induced by the deregulation of the American domestic air services market along with the U. S.
policy concerning competitive international aviation. Even though the United States has been seen to promote the competitive aviation sector from the moment the deregulation of its domestic airline industry was signed in 1978, the industry continues to face significant government regulation. For instance, the government is capable of disapproving prices for international air services. Some of the significant barriers to the internal air services in America can be categorized into four major groups (“ US International Trade, ” 15).
Button, Kenneth John. Opening US skies to Global Airline competition. Center for Trade Policy Studies, Cato Institute, 1998. Print.
Elliott, Christopher. "Should Foreign Airlines Be Allowed To Fly Domestic Routes?". US Today. N.p., 2016. Web. 6 Nov. 2016.
US International Trade Commission. "The Economic Effects of Significant US Import Restraints." (2011). Print.