ABSTRACT
Most international air transport services continue to be subject to the terms of bilateral air services agreements between countries. Widely differing attitudes have been apparent though between countries in terms of how far each has been prepared to go in liberalising their international air transport services. The US has been at the forefront of this drive to liberalise. After being the first country to deregulate its domestic market, it has persuaded more than 50 of its bilateral partners to date to agree "Open Skies" deals. The discrimination against foreign airlines from other EU countries lies at the heart of the European Commission's aim that future bilateral negotiations with third countries should be undertaken at Community level and not by individual EU states. Within the EU, Community based carriers are able to acquire full ownership of airlines based in other EU states. The strategy of acquiring carriers based in the EU has not proved to be a success for Swissair Group.
