Flight freedom

By N.B. | WASHINGTON, DC

ON MONDAY representatives from the Singaporean and Jamaican governments met in London to sign a cabotage agreement—often referred to as an open-skies deal. These deals, which are perhaps best understood as the aviation equivalent of free-trade pacts, lower barriers to airlines operating in countries other than the ones in which they are based.

European readers may be confused. That's because the European Union, in its wisdom, extends cabotage rights to airlines from all member countries. A French airline can operate a domestic route between two Italian cities; an Italian airline can do the reverse. Ryanair, an Irish low-cost airline, flies between Sweden and Croatia.

Outside the EU, the situation is very different. In America, local airlines are protected by a bevy of rules, including restrictions on foreign ownership. But the most obvious one is a near-total ban on cabotage rights for foreign airlines. Ryanair is not simply forbidden from operating a flight between Dallas and Boston; it cannot even operate a flight between Dallas and Boston if the flight continues on to Dublin.

Slate's Matt Yglesias says this is silly, and suggests foreign competition could be a boon for air travellers in America, who have witnessed massive consolidation in the domestic industry in the years since the 9/11 terrorist attacks:

For example, right now Emirates doesn't fly to Philadelphia and also doesn't fly to San Jose presumably because neither of those cities is big enough to fill a jumbo flight to Dubai. And at the same time, no airline offers a direct flight from Philadelphia to San Jose. But perhaps a route that went San Jose - Philadelphia - Dubai would make sense for Emirates somewhat along the lines of their current JFK - Milan - Dubai route. Or there could be a San Diego - Houston - Dubai route that would allow Emirates to connect two cities it doesn't currently serve while offering some competition to United's current San Diego - Houston monopoly.

You don't have to look at the Gulf's aviation boom to see how silly America's cabotage rules are in practice. Toronto, for example, is the largest hub for Air Canada, an airline that offers flights to dozens of American cities. There's no real fear that Canadian planes are any less safe than American ones. Yet you can't use Air Canada to fly on a single ticket from an American city, via Toronto, to another American city. Air Canada's website won't even let you searchfor flights between two American destinations. It's bonkers.