Canadian carrier strategies and the 1995 open skies agreement

Raymon J. Kaduck

Journal of Air Transport Management, 1997, vol. 3, issue 3, 145-153

Abstract: The Canada-US Open Skies agreement of 1995 fundamentally changed the transborder market in air services, liberalizing the conduct of air transport in the world's largest trading relationship. Using the Putnam two-level game model, this paper traces the development of the agreement through the failed 1991–1992 bilateral negotiation to the Elliot-Kaplan ‘Framework’ talks of 1995 which led to the breakthrough agreement. The paper focuses on how the changing strategies of Canadian Airlines International and Air Canada helped make the agreement possible. These strategies were affected by the resolution of the Gemini computer reservation system dispute, globalization, and technological change following the introduction of the Canadair Regional Jet. The paper then discusses how the rival airlines have adapted to the changing environment, including the significance of charter conversions, code-sharing and intransit preclearance.

Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:3:y:1997:i:3:p:145-153

DOI: 10.1016/S0969-6997(97)00022-7

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