Published at Monday, April 01st, 2019 - 16:13:19 PM. Type of airline. By Adelle Jäger.
A glimpse of the future could already be had in California and Texas. Devoid of jurisdiction over local air transportation the CAB could neither exercise fare nor route authority over intrastate airlines and these carriers usually offering high-frequency single-class no-frills service at half the fares the regulated trunk airlines were forced to charge consistently recorded both profit and traffic growth.
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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