NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein.
| The State Department web site below is a permanent electronic archive of information released prior to January 20, 2001. Please see www.state.gov for material released since President George W. Bush took office on that date. This site is not updated so external links may no longer function. Contact us with any questions about finding information. NOTE: External links to other Internet sites should not be construed as an endorsement of the views contained therein. |
 |
U.S. Civil Aviation Policy Goals Fact Sheet released by the Bureau of Economic and Business Affairs U.S. Department of State, August 18, 1999 |
Air transport is among the most important and fundamental industries
in any economy, playing a critical role in nearly all other economic
activities. Air transport makes possible the circulation of people,
products, and services through markets around the world; worldwide,
it helps generate over $1 trillion in economic activity and more
than 22 million jobs. It is also a significant sector in and of
itself: U.S. Department of Commerce statistics show that the U.S.
air transport industry constitutes approximately 1% of
U.S. gross domestic product (GDP), employs nearly 1 million
people, and has a direct output of $54 billion. Statistics collected
by the International Air Transport Association show that worldwide,
scheduled airline revenues surpassed $247 billion in 1994, and
the number of passengers topped 1 billion.
The globalization of the world economy has significantly expanded demand for worldwide networks of affordable, convenient, and reliable international air services. Unfortunately, the industry and its potential contribution to the world economy are hobbled by a 50-year-old system in which nations trade air services rights on a strictly bilateral basis. In this system, trades of air service rights are often still influenced more by countries' desire to protect inefficient national flag carriers from competition than by broader economic considerations -- such as the role of air service in facilitating trade, tourism, and investment in communities around the world. One of the Administration's highest economic priorities is to facilitate the ability of the exceptionally competitive U.S. airline industry to meet the growing worldwide demand for better air service. The State Department plays a key role in this process: working with the Department of Transportation, the airline industry, U.S. cities, labor groups, and other interested parties, the State Department seeks to negotiate aviation agreements that let demand and marketplace competition -- not governments -- determine the variety, quality, quantity, and price of air service. The Department also works to maintain a fair and competitive environment by defending U.S. air carriers' bilateral air service rights, and by helping them resolve the "doing-business" problems they encounter overseas. In addition to benefiting the competitive air transport industry, liberal air services agreements provide new opportunities for service to even more U.S. cities -- including cities not large enough to support direct or nonstop international services. Studies indicate that there are numerous small- to medium-sized cities in the United States that may not have a local traffic base large enough for airlines to justify direct intercontinental service. Through the codeshare alliances and other cooperative marketing provisions in our new air services agreements, however, these cities gain access to the growing international air transportation network. U.S. International Aviation Policy Goals The overall goal is to foster safe, affordable, convenient, and efficient air service for consumers. The best way to achieve this goal is to rely on the marketplace and unrestricted, fair competition to determine the variety, quality, and price of air service. This approach will provide consumers and shippers with more and better service options at costs that reflect economically efficient operations and work best to:
International Aviation Achievements Since the beginning of 1995, teams chaired by the Department of State have negotiated:
[end of document]
Transportation Affairs Documents | Economic and Trade Policy | Department of State |