ABSTRACT
The traditional approach to air services negotiations has been one steeped in mercantilist notions. Countries have emphasized access for their airlines to routes and capacity. Negotiations were excessively airline-centric – little attention was given to the passengers. Countries emphasized trading one route or rights for another. There has been an emphasis on not giving away rights – even though a country’s travellers may gain from liberalization, countries have been proud to claim that they did not give anything away. As a consequence, countries would only liberalize when pushed to by others. It is not surprising that there has been slow progress in airline liberalization at the international level. This remains the case for most regions other than the US and the EU. Even with the US and the EU, it is notable that open skies agreements have only just recently been concluded – this is in sharp contrast to trade in most other goods and services.
