International Aviation: DOT Needs Better Data for Monitoring and
Decisionmaking (Testimony, 07/11/95, GAO/T-RCED-95-240).

This testimony discusses efforts by the Transportation Department (DOT)
to increase U.S. airlines' access to foreign markets.  The importance of
these efforts has increased.  In 1994, international operations made up
27 percent of U.S. airlines' traffic--up from 21 percent in 1980--and
this share is expected to grow to 31 percent by 2006.  By emphasizing
the importance of economic analysis, establishing a new office dedicated
to such analysis, and creating a formal system to track problems
plaguing U.S. airlines doing business abroad, DOT is headed in the right
direction.  However, DOT negotiators will need the support of thorough
analysis from the new economic office.  Because of data shortcomings,
the new office is limited in the extent to which it can value proposed
exchange of traffic rights and code-share rights as well as factors in
such related variables as antitrust immunity.  By addressing these
shortcomings, DOT will be in a better position to negotiate increased
access for U.S. airlines to foreign markets, equitably accommodate the
competing interests of U.S. airlines, and track the impact of its deal
to review current agreements--as well as such trends as code-sharing--on
competition and fares.

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

 REPORTNUM:  T-RCED-95-240
     TITLE:  International Aviation: DOT Needs Better Data for 
             Monitoring and Decisionmaking
      DATE:  07/11/95
   SUBJECT:  International travel
             Commercial aviation
             Airline industry
             Air transportation operations
             Airline regulation
             Competition limitation
             Airports
             Investments abroad
             Antitrust law
             International agreements
IDENTIFIER:  Canada
             
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