US Transportation Regulations and Policy

US Transportation Regulations and Policy

Case 1

US Airline Deregulation and Open Skies Treaty (Open Skies Treaty HYPERLINK "http /www .state .gov /t /ac /rls /fs /2004 /33147 .htm http /www .state .gov /t /ac /rls /fs /2004 /33147 .htm Kahn , 2007

Economic policies of the United States during the presidency of President Franklin Roosevelt can be described as state-oriented , that is , several of the major industries were under the guidance if not the control of the federal government . When the National Recovery Act was declared to be unconstitutional by the

US Supreme Court in 1935 , the federal government was forced to transfer many of the government 's shares of stocks in major industries to the private sector . The gasoline , telecommunications , and steel industries were the first to be transferred to the private sector . In 1978 , the US Congress passed the so-called United States Airline Deregulation Act . Its purpose was to provide better airline services to US citizens (which is possible only in a free-market structure . It was also expected that the said law will give US airline consumers some form of preference in terms of flight services , as it was expected that investors would flood the newly deregulated industry

The deregulation measure of the government was a success . It generally decreased the cost of traveling of airline consumers from 1976 to 1990 - the average of the fares declined by 30 , inflation rate included Although fares were declining even before the deregulation (since the cost of inputs of the industry were on the decline , it was more dramatic 5 years after the implementation of the Act . In 1995 , fares were on the decline , about 40 of the average fare in 1980 - standard year . Consumers (a year

It was also noted that productivity had increased after 2 years of implementation of the said act . Since restrictions were removed , prices of fares were free-flowing in the airline industry . Airline companies could always adjust the fare rates of travel based on consumer demand and inflation rate . Since restrictions on airplane size had been removed , airlines could easily built or buy airplane that have a weight load greater than the normal , allowing them to adjust travel fares based on the number of seats available . In 1977 , the average number of seats was 136 .9 . In 1988 , the average was 153 .1 . The percentage increase became more marked when after ten years , the increase was 52 .6 , and after 12 years 61

The Open Skies Treaty was ratified on January 1 , 2002 by almost 30 States Parties . The aim of the said treaty was to establish units of unarmed observation aircraft to all the territories of the participant countries . Each country 's territory will be declared open to observation to all member countries . The originator of the treaty was Pres Eisenhower during the Cold War . When the Soviet Union refused to sign the treaty , the treaty was put in a state of inhibition until the time of President Bush in 1989 . Although originally a military...