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Are U.S. based airlines allowed to fly domestically in foreign countries?? Japan, India? Even in Europe, there seems to be limits on what non-EU carriers can fly. I could be way off and please correct me if I am but it seems that this should be a 2 way street then. Why should the U.S. open it's skies if other countries don't?
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Yes, some US airlines have cabotage rights in Europe even though there is no reciprocal rights in the US. The EU has been trying for over 15 years to negotiate away all restrictions both ways but has been thwarted. The DOT is, in fact, in favour of these reforms and has recommended them many times. However, lobbying by the US Carriers in Congress has stopped the reform.
Some US consumers are having the wool pulled over their eyes. US Carriers run up huge losses during "lean" years and then offset these losses against their profits during the "good" years. This cycle minimizes the corporation tax they pay. You will find that US based airlines often place huge orders for aircraft, giving them capital expenditure allowances which they then offset against profits.
They are vehemently against competition and use "patriotic" arguments and raise fears about job losses to try to protecty themselves from real competition. This is ridiculous and the argument is no more valid than protection for any other industry including cars, clothing, raw materials, etc. The US is the second largest economy in the world.. it has the most to lose from protectionism and it is highly dependent on exports and cheap raw materials. Sooner or later you need to wake up and smell the coffee. The US airlines are screwing your royally...... and that is the reason you get such pisspoor service.