Published at Thursday, March 28th, 2019 - 04:14:20 AM. Type of airline. By Amet Franke.
Regulation by definition substitutes the judgment of the regulator for that of the marketplace according to Elizabeth E. Bailey David R. Graham and Daniel P. Kaplan in their book Deregulating the Airlines (The MIT Press 1985 p. 96).
In the 1990s open skies agreements became more common. These agreements take many of these regulatory powers from state governments and open up international routes to further competition. Open skies agreements have met some criticism particularly within the European Union whose airlines would be at a comparative disadvantage with the United States because of cabotage restrictions.
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