ABSTRACT
This chapter focuses on domestic operations to international air transportation. The chapter explores the history of international air transportation economic regulation instituted after World War II. It provides the reasons for increasing liberalization of world airline markets and the impact on airline competition, efficiencies, and management. The Chicago Convention established the International Civil Aviation Organization (ICAO), later an agency of the United Nations. ICAO is charged with developing and promulgating international aviation standards including licensing of airmen and aircraft, rules of the air, meteorology, aviation charts, telecommunications, air traffic services, and noise and emissions standards. With open or free skies in place in all the major aviation markets in the world, the US push to liberalize international air transportation has been proven successful over time. Coincident with the trend toward liberalization of international air transport markets, governments have moved to privatize state-owned airlines.
