4 ms·

Why is there a requirement for only flying from/to the airline's country? What is stopping any airline from simply opening fully owned subsidiaries in every co

by devit 7y ago

Why is there a requirement for only flying from/to the airline's country? What is stopping any airline from simply opening fully owned subsidiaries in every country they want to fly from/to? Or alternatively effectively doing the same by leasing their aircraft on a hourly basis to another airline from the desired country?

ulfw 7y ago
Country’s ownership laws, branding, cost of doing business. I can add numerous more reasons.
nikanj 7y ago
Regulatory capture
- rswail 7y ago
  Not sure how this is regulatory capture, given that the treaty was signed when most airlines were a government monopoly and frequently government owned. So this is more about protecting a local facility.
pintxo 7y ago
> What is stopping any airline from simply opening fully owned subsidiaries in every country they want to fly from/to? Historically countries would have their own airlines (more or less state owned) and thus the regulatory framework is build around ensuring monopoly rights for the one (today multiple) local airlines. A subsidiary fully owned by a foreign entity would under this framework not to be considered local. I can only give some example for Germany. Lufthansa, the local carrier, uses a special kind of stock ("Vinkulierte Namensaktien") [1], where each owner is actually tracked (citizenship, name, ...) and everyones ability of buying shares is subject to Lufthansa validating that with this change in ownership, the company will still be majority owned by Germans. [1] https://de.wikipedia.org/wiki/Vinkulation https://de.wikipedia.org/wiki/Vinkulation
Marazan 7y ago
A fully owned subsidiary would (depending on the laws of the country) not be considered 'local'. See complicated tracking of ownership of European Airlines to meet local ownership requirements.
- joking 7y ago
  At least any European airline can operate on any part of Europe. One of the problems with brexit, is that with the merge of British Airways and Iberia, Iberia may lose the rights to take of from Madrid for all their latam flights.

by devit 7y ago

ulfw 7y ago

Country’s ownership laws, branding, cost of doing business. I can add numerous more reasons.

nikanj 7y ago

Regulatory capture

rswail 7y ago
Not sure how this is regulatory capture, given that the treaty was signed when most airlines were a government monopoly and frequently government owned. So this is more about protecting a local facility.

pintxo 7y ago

> What is stopping any airline from simply opening fully owned subsidiaries in every country they want to fly from/to? Historically countries would have their own airlines (more or less state owned) and thus the regulatory framework is build around ensuring monopoly rights for the one (today multiple) local airlines. A subsidiary fully owned by a foreign entity would under this framework not to be considered local. I can only give some example for Germany. Lufthansa, the local carrier, uses a special kind of stock ("Vinkulierte Namensaktien") [1], where each owner is actually tracked (citizenship, name, ...) and everyones ability of buying shares is subject to Lufthansa validating that with this change in ownership, the company will still be majority owned by Germans. [1] https://de.wikipedia.org/wiki/Vinkulation https://de.wikipedia.org/wiki/Vinkulation

Marazan 7y ago

A fully owned subsidiary would (depending on the laws of the country) not be considered 'local'. See complicated tracking of ownership of European Airlines to meet local ownership requirements.

joking 7y ago
At least any European airline can operate on any part of Europe. One of the problems with brexit, is that with the merge of British Airways and Iberia, Iberia may lose the rights to take of from Madrid for all their latam flights.