Table 1.

Main features of US bilateral air service agreements.

Pre-1978 bilateral air service agreements		1978–1991 Open market bilaterals		Post-1991 Open Skies bilateral
		US airlines	Foreign airlines
Market access	Only to specified points	From any point in the US to specified points in foreign countries	Access limited to a number of US points	Unlimited
	Limited 5th freedom rights granted to US carriers	Extensive 5th freedom rights granted		Unlimited 5th freedom rights
	Charter rights not included		Unlimited charter rights
		7th Freedom rights not granted
		Cabotage not allowed
Designation	Single – some multiple		Multiple
	Airlines must be “substantially and effectively controlled” by nationals of designated state
Capacity	Capacity agreed or shared 50:50. No capacity/frequency controls in liberal bilaterals, but subject to review		No frequency or capacity controls
		Break of gauge permitted in some agreements		Break-of-gauge rights granted
Tarrifs	Approval by both governments (double approval) or as agreed by IATA	Double disapproval (filed tariffs operative unless both governments disapproval) or country of origin rules		Free pricing
Code sharing	Not part of bilateral			Code-sharing permitted