WHO SOARS IN OPEN SKIES? A REVIEW OF THE IMPACTS OF ANTI-TRUST IMMUNITY, AND INTERNATIONAL MARKET DEREGULATION ON GLOBAL ALLIANCES, CONSUMERS AND POLICY MAKERS

Global airline alliances have proliferated due to a significant shift in two government economic policies: international market deregulation (open skies) and the granting of anti-trust immunity to alliances. These policy shifts have affected the relationship between government, airlines and consumers. This article reviews several previous analyses and builds a link between open skies policy and findings of lower fares, higher revenues, higher profits and service improvements. The article suggests that U.S. policy makers advanced the open skies agenda through foreign coalition building and multilateral agreements. Foreign ownership restrictions remain a major obstacle to true open skies. Given these existing foreign ownership limits, immunity from antitrust regulation provides the most competitive industry paradigm.