Topic Author
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Cabotage Opinions?

Sun Sep 12, 2004 2:24 pm

Just wondering how you all feel about "Cabotage" rights here in the USA and if anyone knows how Republicans/Democrats stand on this very serious issue?
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RE: Cabotage Opinions?

Mon Sep 13, 2004 3:13 am

okay I'll bite....what is cabotage?
After Monday and Tuesday even the calendar says WTF...
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RE: Cabotage Opinions?

Mon Sep 13, 2004 5:19 am

It involves the foreign ownership of a corperation. The U.S. doesn't allow a corperations (or just airlines?) to be owned by more than 49% foreign investors.
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RE: Cabotage Opinions?

Mon Sep 13, 2004 11:36 am

Nope, that's not cabotage.

CABOTAGE is the freedom for foreign carriers to fly domestic routes within a foreign country. Currently, the only major allowed instance of Cabotage is found in the European Union. Any airline based in the EU is able to fly between any two points in the EU, whether it be domestic or transborder.

In terms of Cabotage as used in the US, a good example would be allowing British Airways to fly passengers from New York JFK to Atlanta, or Delta Air Lines flying O&D passengers from London to Manchester.

It doesn't necessarily have anything to do with foreign ownership, although the issues are often closely linked.


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RE: Cabotage Opinions?

Mon Sep 13, 2004 1:58 pm

At this point in time cabotage rights probably wouldn't be very helpful to our ailing majors. But, if you think about it, with code shares and alliances, many foreign airlines already serve domestic markets in the U.S.

Example: Airline B (Intl. Carrier) sells a ticket from LHR to DFW. But because of the Freedoms Airline B can only land in JFK. The passenger will just transfer at JFK and continue on to DFW on say, AA.

They get the benefits of domestic service, but they don't have to deal with the overhead of facilities and employees at DFW.

Is this the Delta House?

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