When it comes to international air travel, there are two types of agreements that govern the rules and regulations between countries: open skies agreements and bilateral air service agreements. While both types of agreements aim to facilitate air travel between countries, their purposes and provisions differ significantly. In this article, we will explore the differences between these two agreements.
Open Skies Agreement
An open skies agreement is a bilateral or multilateral agreement that liberalizes international aviation markets by allowing airlines to operate on any route between the countries that have signed the agreement. In other words, airlines from any country can fly to, from, and within the territories of the signatories to the agreement without restrictions on capacity, frequency, or pricing. Open skies agreements aim to increase competition, reduce fares, and improve connectivity between countries.
The first open skies agreement was signed between the United States and the Netherlands in 1992. Since then, the US has signed open skies agreements with more than 120 countries, including the European Union, Japan, and Australia, among others. The European Union, on the other hand, has signed open skies agreements with more than 50 countries, including the US, Canada, and Brazil.
Benefits of Open Skies Agreement
The benefits of open skies agreements are numerous. They allow airlines to offer more flights and destinations, which increases travel options for passengers. They also allow airlines to operate without restrictions, which means they can adjust their services and prices according to market demand. Moreover, open skies agreements promote economic growth by facilitating trade, tourism, and foreign investment.
However, open skies agreements are not always beneficial for all parties involved. They can lead to the domination of certain airlines in the market, which can hinder competition and lead to higher prices. Additionally, open skies agreements can lead to the loss of jobs and revenue for domestic airlines and airports.
Bilateral Air Service Agreement
A bilateral air service agreement (BASA) is a treaty between two countries that regulates air travel between them. BASAs determine the number of airlines that can operate on a specific route, the frequency of flights, the types of aircraft that can be used, and the tariffs that can be charged by the airlines. In other words, BASAs limit the capacity of airlines operating on specific routes, in contrast to open skies agreements.
BASAs are usually negotiated between countries with significant air traffic between them, but they can also be signed between countries with less traffic. BASAs can also be amended or revoked if both parties agree.
Benefits of Bilateral Air Service Agreement
The benefits of BASAs are that they provide a framework for airlines to operate between the two countries, which encourages investment in the aviation industry. BASAs also provide a level of protection for domestic airlines, as they limit the number of foreign airlines that can operate on specific routes.
However, BASAs also have limitations. They can lead to less competition and higher ticket prices, as they limit the number of airlines that can operate on specific routes. BASAs can also be restrictive in terms of the types of aircraft that can be used and the pricing that can be charged by airlines.
Conclusion
In conclusion, open skies agreements and bilateral air service agreements have different objectives and provisions. Open skies agreements aim to liberalize air traffic between countries, while bilateral air service agreements provide a framework for airlines to operate between two countries. Open skies agreements allow airlines to operate without restrictions, while bilateral air service agreements limit the number of airlines that can operate on specific routes. Both agreements have benefits and limitations, and their suitability depends on the specific circumstances of each country.