Glossary of Airline Terminology

Open Skies Agreement

To open markets further and increase carrier flexibility, U.S. government policy, beginning with the 1992 agreement between the United States and the Netherlands, has been to negotiate open skies agreements that introduce a number of more liberal concepts to the bilateral regime. The most significant provisions of open skies agreements include: unlimited designations, unrestricted capacity and frequencies, totally open route descriptions (third, fourth, fifth, sixth freedoms), unrestricted operational flexibility, fair and equal opportunity to compete, double-disapproval pricing, open cooperative marketing arrangements (code sharing, blocked space, leasing) and liberal charter arrangements (Belgian rules).

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