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Abstract: An investigation is conducted of the contribution of low-cost carriers (LCCs) to traffic diversion from Canadian airports to nearby US airports. An estimated five million Canadian passengers divert to US airports each year. We find that LCCs contribute significantly to the diversion of traffic to US airports. Routes to/from US border airports have a 27 percentage points higher traffic account when an LCC operates on the route, compared to equivalent routes without an LCC presence. Canadian policymakers need to seek ways to attract LCCs to transborder routes to stem this costly traffic diversion. [Copyright &y& Elsevier]

This article examines the internal decision-making process in the European Union with regard to the 2007 EU-US Open Skies Agreement. By exploring the principal-agent relation between the European Commission and the member states, it analyses the constraints and opportunities the Commission faced in avoiding an involuntary defection. Based on interviews and document research, the process-tracing in the article reveals that the main constraints for the Commission were the high degree of political sensitivity in certain member states, the struggle over external aviation competences, and an ambitious mandate. However, during the process, the Commission was able to overcome these constraints by making use of the following opportunities: closely involving the member states in its negotiation task and increasing the cost of no agreement for the member states, not at least by making an appeal to European allies, such as the Court of Justice, the Presidency, and member states with Commission-like preferences. [ABSTRACT FROM AUTHOR]

The aim of the article is to analyze civil aviation relations between the United States of America and the European Union - constituting the most important intercontinental air transportation market in the world. Air transport between the EU and USA was traditionally regulated by bilateral Air Service Agreements of rather protectionist nature. The change came after Jimmy Carter had become the president of the USA and started pushing towards liberalization. After 1992, USA and some European states signed bilateral Open Skies treaties, representing an even higher level of liberalization than during Carter's era. However, the European Court of Justice declared these treaties unlawful in 2002. This decision led to a general EU-US Open Skies Agreement signed in 2007. There have been ongoing negotiations on further liberalization; however their success is highly doubtful. [ABSTRACT FROM AUTHOR]

Abstract: The EU/US Open Skies agreement became operational on March 29th, 2008. The 23% increase in flights between Ireland and the US in 2008 under the agreement is the highest expected increase under the agreement and is almost three times greater than the expected overall increase in air travel between the EU and the US. Open Skies increases the number of routes between Ireland and the US by 3 to 10 and allows airlines to fly directly to and from Dublin without a compulsory stop at Shannon. There are very strong economic, investment, visitor, political and ethnic ties between Ireland and the US and air travel between the countries per head of population in Ireland is 5.6 times greater than the EU average. The benefits from Open Skies include lower fares, new routes and direct services reducing the need to backtrack over European hubs, in addition to the abolition of the requirement to stopover at Shannon. [Copyright &y& Elsevier]

Abstract: The paper examines the impact of removing the restrictions remaining in EU/US bilateral air service agreements, the major one relating to the air services between the US and the UK. These are dismantled under Stage I of the EU/US Open Skies agreement, which will automatically fall unless progress is made on the Stage II issues, especially reform of the US ownership and control rules. Previous evaluations of the likely impact of lifting these restrictions are reviewed, especially in relation to passengers and fares between the US and London. Such evaluations look optimistic given preliminary plans for the first summer season. Reasons why airlines prefer Heathrow to Gatwick are discussed before comparing US/London air service capacity for June 2008 with the previous June, with indications for a 5% increase in overall seat capacity and an 8% increase in flights. A net increase of seven daily flights is planned from Heathrow and Gatwick, not far in excess of normal market growth and no new non-stop routes will be introduced that had not already been operated from either UK airport. These changes are analysed in terms of US and UK airline responses, taking into account slot availability and cost. The seat capacity share of US carriers from both Heathrow and Gatwick advances by just over 2 percentage points to 40%. [Copyright &y& Elsevier]