chapter  2
52 Pages

The airline industry

Most national airlines depend for their livelihood on international traffic. Geographic and demographic factors justify significant domestic networks in only a few countries. The existence of so many different nationalities amongst the carriers of international traffic owes much to the bilateral bargaining process under which countries exchange route traffic rights with each other, in the form of air service agreements signed more or less as international treaties. In this process political considerations have often played a more important part than economic factors.