According to recent research, European consumers can find far better deals on airfare than can North American consumers. This is despite the fact that Europe has significantly higher taxes and fees on air travel.
Why?
In 1997, the EU instituted an “open-skies” policy, resulting in more routes, more airline competitors, and lower fares. The open-skies policy lowers airfares by creating a single aviation market among all member countries. The increased competition leads to greater choice and lower fares. The airline market in North America is more regulated than in the EU, and as a result, both the U.S. and Canada currently prohibit foreign-owned airlines from offering domestic flights.
While the United States and the EU signed an open-skies agreement in 2007, foreign airlines still do not have full access to the U.S. internal market. The U.S. retains some of the most restrictive laws on the foreign ownership and operation of airlines in the world, starving its airlines of capital and limiting their options for recovery, growth, and participation in a rapidly globalizing industry.
So what do you think? Should U.S. and Canadian policymakers follow Europe’s example and establish a true open-skies agreement? Or, more realistically, should the Canadian government pursue an open skies agreement with Europe on its own? In which case, I’m catching my next flight to Europe from Vancouver.
Here’s some more travel news you can use:
Spirit Airlines is attempting to cash in on the media frenzy surrounding Tiger Woods by running a 10-second online ad promoting its “Eye of the Tiger Sale” – which features a tiger that crashes an SUV into a fire hydrant.
It seems a little disconcerting (and tasteless) that an airline would be touting a fare sale with the depiction of a crash scene. However, the ads are drawing some attention online and from a number of media outlets, including The Huffington Post, the Orlando Sentinel and E! Online – so perhaps it’s “mission accomplished” by the airline?
The USA Today reports that, “this is certainly not the first time Spirit has courted controversy with its advertisements. Just last week, a Spirit press release touted a ‘We’re no Virgin’ fare sale, clearly aimed at rival Virgin America’s new service from Spirit’s Ft. Lauderdale base.”
And in case you’re wondering, the Eye of the Tiger Sale is offering fares from $9 each way.
Here’s some more travel news you can use:
BTW – If you’re planning to stay at a NYC hotel (or any hotel) you should be tracking prices with Yapta before you book. That way you’ll know when prices drop and you can save big!