Despite an increasingly interconnected global economy, service decisions by international air carriers are hindered by limitations imposed by archaic air service agreements. The gradual move to Open Skies is welcome, but many countries still impose restrictions at a cost to the global economy.
InterVISTAS quantified the results of past and prospective air service liberalization. This included:
- identifying the impact of recent liberalization on competition, traffic growth, carrier behaviour and national economic benefits;
- developing a flexible and robust analytical model to allow quantification of benefits of liberalization for any country-pair, or groups of country-pairs; and
- promoting a more informed public debate on the historical and potential benefits of liberalization of air services agreements between countries.
This definitive study showed that the impact of liberalization would generate a 63% increase in traffic, 24.1 million jobs and US$450 billion in additional economic activity, an amount that is almost equal to the GDP of Brazil. The US Chief Air Negotiator, Mr. John Byerly, sent this study out to other air negotiators around the world to demonstrate the benefits of liberalization.