International Aviation: New Competitive Conditions Require Changes in DOT
Strategy (Testimony, 05/05/94, GAO/T-RCED-94-194).

Foreign markets have become increasingly important to the bottom lines
of U.S. airlines.  The success of U.S. airlines in these markets is
limited, however, because of extensive access restrictions and many
operating and market impediments.  In attempting to lower these
barriers, the Transportation Department (DOT) has adopted an "open
skies" approach.  It is apparent, however, that a truly open skies
environment is unlikely in the foreseeable future.  GAO believes that
DOT needs to adopt a strategic approach that better uses its substantial
leverage--greater access to the world's largest aviation market--to
induce foreign countries to open their markets.  A more strategic
approach should include (1) better analysis by DOT of long-term
competitive impacts before reaching agreements with foreign governments
or making major policy decisions, (2) improved analyses by identifying
code-share flights in its traffic data, (3) more expertise and
experience in international aviation at the State Department, and (4) a
review of the existing policies that severely restrict the participation
of U.S. passenger and cargo airlines and other parties in bilateral
negotiations.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-94-194
     TITLE:  International Aviation: New Competitive Conditions Require 
             Changes in DOT Strategy
      DATE:  05/05/94
   SUBJECT:  International economic relations
             International travel
             Airline industry
             Commercial aviation
             Airline regulation
             Competition
             Foreign governments
             Foreign investments in US
             International agreements
             Restrictive trade practices
IDENTIFIER:  Europe
             Asia
             European Community
             Latin America
             
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