TRANSPORTATION SERVICES

LEARNING OBJECTIVES: TRACE THE EVOLUTION OFTRANSPORTATION AND

TRAVEL. DISCUSS THE HISTORICAL DEVELOPMENT OF

TRANSPORT SYSTEMS. EXPLAIN THE SELECTION OF TRANSPORT MODE. DISCUSS THE ROLE OF INTERNATIONAL RAIL

TRANSPORTATION. IDENTIFY THE REASONS FOR THE GROWTH AND

DECLINE OF SHIP TRAVEL. EXPLAIN THE IMPORTANCE AND SCOPE OF THE

BUS/MOTORCOACH INDUSTRY. ILLUSTRATE THE IMPACT OF PRIVATE CAR

OWNERSHIPON THE TOURISM INDUSTRY.

ENUMERATE THE DYNAMICS OF THE WORLWIDE CAR INDUSTRY.

DISCUSS THE ROLE OF THE AIRLINE INDUSTRY IN THE DEVELOPMENT OF TOURISM.

TRANSPORTATION AND TRAVEL EVOLUTION

TRANSPORTATION AND TRAVEL HAVE UNDERGONE MANY CHANGES. A REVIEW OF THE HISTORY OF TRANSPORTATION AND TRAVEL SHOWS THAT THEIR EVOLUTION TOOK SEVEN ERA’S.

>PRE-INDUSTIAL TRAVEL SYSTEM ERA.>EARLY-INDUSTRIAL TRAVEL SYSTEM

ERA.>MATURE-RAILWAY SYSTEM ERA.>EXPRESS-TRAVEL SYSTEM ERA.>AUTOMOBILE-BASED TRAVEL SYSTEM

ERA.>MODERN-TOURISM TRAVEL SYSTEM

ERA.>POST-MOBILITY ADJUSTMENT ERA.

HISTORICAL DEVELOPMENT OF TRANSPORT SYSTEM

The desire to travel is stimulated with the improvement in transportation.

TABLE 4. HISTORICAL DEVELOPMENT OF TRANSPORT SYSTEMYEAR MODE OF

TRANSPORTSPEED(MILES PER HOUR)

•600 BC CAMEL CARAVAN 8

1600 BC

CHARIOT 20

1784 AD FIRST ENGLISH MAIL COACH 10

1825 FIRST STEAM LOCOMOTIVE 13

1890 IMPROVED STEAM LOCOMOTIVE 100

1931 LAND SPEED RECORD(BLUEBIRD: SIR MALCOLM CAMPBELL)

1938 LAND SPEED RECORD (NAPIER-RAILTON CAR:JOHN COBB) 35

0

1938 PISTON AIRCRAFT 400

1952 UNITED STATES LINER FROM NEW YORK TO LE HAVRE 41

1958 JET-FIGHTER AIRCRAFT 1,300

1958 BOEING 7707 AND DC-8 AIRCRAFT 600

1961 SPACE SHIP (VOSTOK 1 ORBITING) 17,560

1967 ROCKET PLANE 4,534

1970 FIGHTER BOMBER (MIRAGE IV) 1,450

1970 COMMERCIAL AIRCRAFT-CONCORDE 1,320

1970 BOEING 747 625

SELECTION OF TRANSPORTATION MODETHERE ARE MANY REASON’S WHY

PEOPLE SELECT ONE TRANSPORTATION MODE OVER ANOTHER FOR THEIR BUSINESS AND PLEASURE TRIPS. THE MOST COMMON REASON ARE COST, TRAVELLING TIME, SAFETY, CONVINIENCE, COMFORT, AVAILABILTY, FREQUENCY OF TRIPS, GROUND SERVICES, TERMINAL FACILITIES AND LOCATION, STATUS AND PRESTIGE AND DEPARTURE AND ARRIVAL TIMES.

TRAVEL BY TRAIN TRAINS STIMULATED TRAVEL WITHIN THE

UNITED STATES, CANADA, AND EUROPE IN 19TH AND 20TH CENTURIES. BRITAIN HAVE ITS FIRST ORGANIZED TRAIN TOUR IN 1841 WHEN THOMAS COOK ORGANIZED AN EXCURSION BETWEEN LEICESTER AND LOUGHBOROUGH. IN 1851, THREE MILLION ENGLISH MAN BOARDED THE TRAIN TO SEE THE GREAT EXHIBITION IN LONDON. THE TRAIN WAS INSTRUMENTAL IN STIMULATING THE DEVELOPMENT OF MANY SEASIDE RESORTS IN BRITAIN.

THE FIRST TRANSCONTINENTAL ROUTE IN THE UNITED STATES WAS COMPLITED IN 1869. WITH THE ADVENT OF THE STEAM LOCOMOTIVE IN 1825 UNTIL AFTER WORL WAR II, TRAVEL BY TRAIN BECAME THE PRIMARY MEANS OF MOVEMENT WITHIN THE UNITED STATES. DURING THE LATTER PART OF THE 1800s, AND THE FIRST PART OF THE 1900s, THE TRAIN CONNECTED MAJOR POPULATIONCENTERS AND POPULAR SPAS AND RESORT SUCH AS NIAGARA FALLS, LONG BEACH, SARATOGA, NEW JERSEY, AND LAS VEGAS. THIS DEPENDENCE ON THE TRAIN IS SHOWN IN THE DEVELOPMENT OF LAS VEGAS WHERE LARGE HOTELS WERE LOCATED DOWNTOWN, A SHORT DISTANCE FROM THE RAILROAD STATION THIS GAVE TOURISTS WHO ARRIVED BY TRAIN QUICK AND EASY ACCESS TO HOTELS AND CASINOS

A SURVEY FROM AMTRAK PASSENGERS SHOWED THAT TRAVELLERS FAVORED THE TRAIN FOR THE FOLLOWING REASONS:1.) SAFETY, 2.)ABILITY TO LOOK OUT OF THE TRAIN AND SEE THE INTERESTING THINGS ENROUTE,3.) ABILITY TO GET UP AND WALK AROUND, 4.) ARRIVING AT THE DESTINATION RESTED AND RELAXED, AND 5.) PERSONAL COMFORT.

THE NEGATIVE FACTORS OF RAIL TRAVEL ARE SLOWNESS IN REACHING THE DESTINATION, INFLEXIBLE DEPARTURE TIMES, AND LACK OF QUALITY IN FOOD SERVICES PROMOTIONS BY AMTRAK AND VIA REAL HAVE EMPHASIZED THE REST AND RELAXATION BENEFITS OF TAKING THE TRAIN. THEY HAVE ALSO POINTED OUT THAT THE DOWNTOWN-TO-DOWNTOWN ROUTING OF TRAINS SAVES THE TIME OF THE PASSENGERS.

ALTHOUGH THE IMPORTANCE OF RAIL TRAVEL WAS REDUCE DUE TO THE POPULARITY OF THE AUTOMOBILE AND AIRPLANE IN MANY COUNTRIES, RAILROADS ARE WORKING HARD TO IMPROVED THEIR FACILITIES TO ACCOMMODATE SUPER TRAINS WITH SPEEDS BETWEEN 150-250 MILES PER HOUR. THE FIRST SENSATIONAL RAIL ACCOMPLISHMENT AFTER WORLD WAR II WAS JAPAN’S SHINKANSEN OR BULOLET TRAINS WHICH TRAVEL AT SPEEDS GREATER THAN 140 MILES PER HOUR.THE BULLET TRAINS RUN NORTH AND SOUTH AND LINK MAJOR METROPOLITAN AREAS. THESE BEGAN OPERATIONS IN 1964 IN TIME FOR THE OLYMPICS IN JAPAN THEY MAKE THE RUN OF 550 MILES IN THREE HOURS AND TEN MINUTES FROM THE FORMER TIME OF 18 HOUR.

THEY PROVIDE A RIDE SO SMOOTH THAT A PASSENGER CAN LIVE A CUP OF TEA/COFFEE ON A WINDOW SILL AND NOT A DROP WILL SPILL. A COMPUTERIZED CONTROL CENTER FEEDS INFORMATION TO A LIGHTED BOARD THAT SHOWS THE LOCATION OF EVERY TRAIN AND THE CONDITIONS OF THE TRACK, SWITCHES, AND WIRES. STATION STOPS ARE AS SHORT AS 2 MINUTES AT INTERMEDIATE STATIONS, SO TRAVELERS MUST BE READY TO MOVE FAST. THE COMPUTER AUTOMATICALLY STOPS THE TRAIN IN CASES OF TROUBLE, ESPECIALLY AN EARTHQUAKE.AT THE PRESENT TIME, JAPAN HAS THE BEST RAILROAD SYSTEM IN THE WORLD, WITH 26,000 FAST AND EFFICIENT TRAINS SCHEDULE A DAY. JAPAN HAS PLANS FOR TRAIN SWTICH TRAVEL AT SPEEDS OF 300 MILES PER HOUR. THE JAPANESE RAIL SYSTEM IS HEAVILY SUBSIDIZED BY THE GOVERNMENT.

FRANCE HAS ITS OWN SUPER TRAIN, THE TRES GRAND VITESSE WHICH TRAVELS AT A SPEED OF 175 MILES PER HOUR BETWEEN PARIS AND LYONS AND PARIS AND MARSEILLES.

IN RUSSIA, THE TRANS-SIBERIAN RAILROAD, THE LONGEST IN THE WORLD(5,787 MILES) LINKS OUTLYING SIBERIAN INDUSTRIAL REGIONS AND MINING CENTERS WITH EUROPEAN-RUSSIA RAILROADS ARE IMPORTANT TO THE RUSSIAN ECONOMY. THE GERMANS HAVE A TEST TRACK DESIGNED TO CARRY PASSENGERS AT A SPEED OF 130-240 MILES.

TRES GRANDE VITESSE

THE POPULARITY OF THE TRAIN SYSTEM IN EUROPE HAS INCREASED NOT ONLY BECAUSE OF THEIR QUALITY AND EFFICIENCY, BUT BECAUSE OF THE USE OF THE EURAILPASS. IN 1939 IN NUMBER OF EUROPEAN COUNTRIES INTRODUCED THE EURAILPASS WHICH ALLOWED A TRAVELER TO USE IT FOR 2 MONTHS OF UNLIMITED SECOND-CLASS TRAVEL ON ANY OF THE RAIL SYSTEMS OF THESE COUNTRIES.

LATER, IT INCLUDED UNLIMITED FIRST-CLASS SERVICE OVER DIFFERENT PERIODS VARYING FROM 15 DAYS, TWENTY-ONE DAY, ONE MONTH, THREE MONTHS, WITH ACCESS TO MANY FERRY AND STREAMER ROOTS THEY ALSO INTRODUCED THE STUDENT EURAILPASS FOR SECOND CLASS TRAVEL. IT LESS EXPENSIVE THAN THE EURAILPASS AND IS GOOD ONLY IN 16TH CENTURIES.

TRAVEL BY SHIPTRAVEL BY SHIP PRECEEDED TRAVEL BY

TRAIN BUT IT WAS NOT ONLY UNTIL THE MIDDLE OF THE 19TH CENTURY THAT TRAVEL BY OCEAN LINERS BEGAN TO BECOME PERMANENTS. OCEAN LINERS USED TO PROVIDE AN IMPORTANT LINK TO PASSENGERS BETWEEN CONTINENTS. AT PRESENT, WATER TRANSPORT HAS TWO MAJOR ROLES IN TRAVEL AND TOURISM- FERRYING AND CRUISING.

CRUISES ARE MORE OF A VACATION

EXPERINCE THAN A TRANSPORTATION MODE. THE ROMANCE OF CRUISING HAD BEEN STRONGLY PROMOTED AND WAS AIDED VERY MUCH BY THE POPULAR TELEVISION PROGRAM, LOVE BOAT . CRUISES ARE DIVIDED INTO THREE TYPES DEPENDING ON THE DURATION OF THE TRIPS. SHORT CRUISES ARE ONE WEEK OR LESS. INTERMEDIATE-LONG CRUISES LAST ONE TO FOUR WEEKS AND LONG CRUISES GO AROUND THE WORLD AND TAKE ONE TO THREE MONTHS.

CRUISE SHIP

o SHORT DURATIN CRUISES ARE MORE POPULAR BECAUSE THEIR REQUIRE LESS VACATION TIME AND ARE LESS EXPENSIVE. OTHER REASONS ARE TRAVELERS CAN SATISFY THEIR DESIRE TO EXPERINCE NEW ENVIRONMENTS AND SEE NEW CULTURES AND STILL BRING WITH THEM THE COMFORT, SAFETY AND CONVINIENCE OF HOME. IN ADDITION THERE IS NO CHANGING OF HOTELS, AIRPORTS, FOOD AND BEDS, WHICH MAY CAUSE SLEEPLESSNESS AND OTHER PROBLEMS.

CRUISE SHIP MAYBE DIVIDED INTO LARGE VESSELS WHICH CAN ACCOMMODATE 180 OR MORE PASSENGERS AND SMALL VESSELS WHICH CARRY LESS THAN 100 PASSENGERS. THEY ARE CALLED MINI-CRUISES OR ULTRA-YACHTS. AT PRESENT, THE TREND IS TOWARDS LARGE VESSELS. RECENTLY, THE TYPICAL SHIP WAS BUILT TO CARRY 850 TO 1,250 PASSENGERS BUT NOW THE AVERAGES CAPACITY OF A NEW SHIP IS 2,000 PASSENGERS.

THE LARGE CRUISE SHIPS OFFER A WIDE ARRAY OF SERVICES AND AMENITIES TO GUEST, MOST OF WHICH ARE PACKAGED INTO THE CRUISE. ACCOMODATIONS ONBOARD VARRY FROM ROOMS FOR 3-4 PERSONS TO LAVISH STATEROOMS. THE ROOMS ARE AIRCONDITIONED AND PRIVATE BATHS.

A CRUISE SHIP IS BOTH FLOATING HOTEL AND RESORT BECAUSE THE GUESTS ARE HOUSED, FED, AND ENTERTAINED. FOOD IS OFFERED THROUGHOUT THE DAY FROM SEVEN-COURSE MEALS TO THEMED-EVENT DINNERS. CRUISE SHIP ALSO PROVIDE ALMOST CONTINUOS ENTERTAINMENT WHICH INCLUDE CHARM CLASSES, LANGUAGE LESSONS, DANCE CLASSES, BRIDGE, TABLE TENNIS, AEROBICS, JOGGING AND SHUFFLEBOARD. MANY SHIPS NOW HAVE FULLY-EQUIPPED GYMS, HEALTH SPAS, AND AN ATHLETIC COUNSELOR. CRUISE DIRECTORS PLAN ACTIVITIES AND ENTERTAINMENT FOR THE PASSENGERS WHICH MAYBE FULL-SCALE MUSICAL PRODUCTIONS, LIVE ENTERTAINMENT WITH WELL-KNOWN PERFORMERS, DISCOS, BINGO, GAMBLING,

COURSES IN SELF-IMPROVEMENT AND THE LIKE. FOR MANY PASSENGERS, THE NUMEROUS OPPORTUNITIES TO SOCIALIZE ON A CRUISE VACATION IS ONE OF ITS MAJOR ATTRACTIONS PASSENGERS WHO PREFFER A LESS ACTIVE TYPE OF VACATION CAN RELAX BY THE POOL OR ONDECK AND ENJOY THE WARM CLIMATE AND BEAUTIFUL SUNSETS.

• CRUISE ENTHUSIASTS PREFER THIS TYPE OF VACATION BECAUSE IT COMBINES FRESH AIR, PLENTY OF GOOD FOOD, A VARIETY OF ACTIVITIES AND VISITS TO EXOTIC PLACES

CRUISES ARE PROMOTED AND SOLD ON THE BASISI ON HEALTH, RECREATION AND PLEASURE. THEME CRUISES ARE POPULAR SUCH AS CULINARY CRUISES, HISTORICAL VOYAGES TO LESS KNOWN PLACES, STOCK MARKET SEMINARS, MOVIE FESTIVALS, MUSIC FESTIVAL AS WELL AS CRUISES DEVOTED TO ARTS, GOLF, ASTROLOGY, TENNIS, PHOTOGRAPHY, BEAUTY COUNSELING.

THE CRUISE INDUSTRY IS LARGELY OWNED BY EUROPEAN COMPANIES WHICH ARE LOCATED IN DENMARK, NORWAY, HOLLAND, ITALY, GERMANY, GREAT BRITTAIN, AND GREECE. ALTHOUGH THE CRUISE SHIP INDUSTRY IS NOT A U.S. INDUSTRY IN TERMS OF OWNER SHIP, SEVERAL UNITED STATES AND AMERICAN TERRITORY CITIES SERVE AS MAJOR PORTS OF CRUISE SHIPS.

THE TOP PORTS ARE: MIAMI, NEW YORK, SAN JUAN, PORT EVERGLADES,LOS ANGELES, SAN FRANCISCO, SEATTLE, AND NEW ORLEANS.

THE CARRIBEAN IS THE WORLDS LARGEST CRUISE DESTINATION. CRUISE PASSENGERS FOR DESTINATIONS WITHIN THE CARRIBEAN COMPRISE 50% OF TOTAL VISITOR ARRIVALS.

OTHER MAJOR CRUISE DESTINATIONS INCLUDE THE MEDITERRANEAN, SCANDIVANIA, ALASKA, AND THE PACIFIC.

CRUISES ARE ANNOUNCE SEVERAL MONTHS BEFORE THE DEPARTURE AND ARE ALSO SOLD MOSTLY BY TRAVEL AGENTS AS PACKAGES THE FLY/CRUISE PACKAGE HAS GROWN IN POPULARITY BECAUSE IT COMBINES THE SPEED AND EFFICIENCY OF JET TRAVEL WITH THE RELAXING, ROMANTIC ATTRIBUTE OF CRUISE SHIPS.

YOUNGER PEOPLE PREFFER THE 3-7 DAY CRUISES. OLDER PEOPLE TAKE CRUISES OF 7DAYS OR LESS. THE ELDERLY USUALLY JOIN THE ROUND-THE-WORLD CRUISE. CRUISE PASSENGERS TEND TO BE REPEAT COSTUMERS. ONE THEY EXPIRIENCE A CRUISE, THEY BEGIN PLANNING FOR NEXT. LIKE DESTINATION RESORTS, CRUISE LINES HAVE SUCCESSFULLY THEIR OWN LOYAL REPEAT CLIENTELES WITH AN AVERAGE OF 30-40% OF TOTAL PASSENGERS VOLUMES.

ANOTHER ROLE OF THE SHIP TRAVEL IN TOURISM IS FERRYING OR THE USE OF FERRY BOATS. THIS ARE USED IN THE ENGLISH CHANNEL, THE IRISH SEA, THE HEBRIDEAN ISLANDS OF SCOTLAND, THE NORTH SEA, THE MARITIME PROVINCES AND BRITISH COLOMBIAN COAST IN CANADA AND ON THE GREAT LAKES.

SHORT DURATION SITE SEEING CRUISE SHIP ATTRACTIONS ARE ABUNDANT IN NORTH AMERICA THESE CRUISES LAST FOR ONE DAY OR EVEN AS SHORTER LENGTH OF TIME

TRAVEL BY AUTOMOBILETHE REAL INVENTOR OF THE AUTOMOBILE WAS CARL BENZ, OF MANNHEIN, GERMANY. 1885-1886, HE COMBINED THE BICYCLE AND THE INTERNATIONAL-COMBUSTION ENGINE AND DESIGNED THE COMPLETE VEHICLE ENGINE CONSISTING OF THE ENGINE, CHASSIS AND TRANSMISSION. THEN CAME HENRY FORD WHO, IN 1908, PRODUCED HIS MODEL T-CAR BUILT WITH AN ASSEMBLY TECHNIQUE FOR MASS PRODUCTION.

THE PRICE OF THE MODEL T-CAR DECREASE FROM $825 IN 1908 TO $260 IN 1925 THE AUTOMOBILE INDUSTRY GREW RAPIDLY. HOWEVER IT WAS ONLY AFTER WORLD WAR II THAT THE POPULARITY OF THE AUTOMOBILE INCREASED SIGNIFICANTLY.

THE CAR RENTAL BUSINESS IS A WORL WIDE INDUSTRY. FOUR COMPANIES DOMINATE THE U.S. MARKET WITH 85% MARKET SHARE. THESE ARE HERTZ, AVIS, BUDGET, AND NATIONAL. THIS FOUR COMPANIES ALSO REPRESENT THE “BIG-4” WITHIN THE INTERNATIONAL MARKETS

SOME CAR RENTAL FIRMS HAVE ADDED CELLULAR CAR TELEPHONES FOR BUSINESS TRAVELLERS. ANOTHER AMENITY IS GIVING COMPUTERIZED DRIVING INSTRUCTIONS TO COSTUMERS. IN ORDER TO OVER COME LOW PROFITS OR LOSSES, AUTO RENTAL COMPANIES HAVE EMPLOYED NUMBER OF DIFFERENT STRATEGIES SUCH AS HIGHER PRICES, FLAT-FREE COMMISIONS FOR TRAVEL AGENTS AND MILEAGE LIMITATIONS.

TRAVEL BY BUS/MOTORCOACH

BUS TRAVEL IS THE MOST FLEXIBLE AND ECONOMICAL FORM OF TRANSPORTATION. IN THE UNITED ATES. BUSES WERE FIRST USE TO CARRY PASSENGERS INTERCITY IN THE EARLY 1900s.

MOTORCOACH TOURS USUALLY LAST FIVE TO SIX DAYS AND ARE LIMITED TO A PARTICULAR GEOGRAPHICAL AREA. THE TWO PRINCIPLE MARKETS FOR CHARTER AND TOUR SERVICES ARE SCHOOL-AGE CHILDREN AND SENIOR CITIZENS OTHER MARKETS INCLUDE INTERNATIONAL VISITORS. GAMBLING TOURS BY MOTORCOACH TO THE CASINO CENTERS OF LAS VEGAS, RENO, AND ATLANTIC CITY ARE VERY POPULAR.

TRAVEL BY AIRTHE AIRPLANE HAD A REVOLUTIONARY IMPACT ON TOURIST FROM WORLD WAR II ONWARD, THE HISTORY OF AIR TRANSPORTATION CAN BE DIVIDED INTO THREE PARTS.•PRE-WORLD WAR II •WORLD WAR II•POST-WORLD WAR II

ON DECEMCER 17, 1903, THE WRIGHT BROTHERS TOOK A FLIGHT ON A BEACH IN NORTH CALORINA WHICH LASTED 12 SECOND WITH A DISTANCE OF 120 FEET. IN 1927, THE AIR INDUSTRY DEVELOPED REGULARLY-SCHEDULED PASSENGER TRIPS BETWEEN BOSTON AND NEW YORK. OTHER GOVERNMENTS HELP THIS GROUP IN THE 1920s BY SUDSIDIZING AIR COMPANIES.

AS THE AIRLINE INDUSTRY GREW, THE MORE THE TRAVEL INDUSTRY DEPENDED ON IT. CRUISE LINES, RENTAL CAR COMPANIES, AIRPORT HOTELS, AND GROUND TRANSPORTATION OPERATORS DEPENDED ON THE AIRLINE INDUSTRY TO GENERATE THE BULK OF THE BUSINESS. NUSINESS TRAVEL AND INTERNATIONAL TOURISM ARE DEPENDENT ON IT. THE IMPETUS OF AIR TRAVEL TO PEOPLE TRAVELING ON BUSINESS IS ITS TIME SAVING ADVANTAGE: FOR THE PLEASURE TRAVELLER, IS IT THE AFFORDABLE PRICE THAT HAS THE GREATEST IMPACT.

FIRST FREEDOM: THE RIGHT OF AN AIRLINE TO OVERFLY ONE COUNTY

TO GET TO ANOTHER. SECOND FREEDOM: THE RIGHT OF AN AIRLINE TO LAND IN ANOTHER

COUNTY FOR A TECHNICAL STOP OVER(FUEL, MAINTENACE, ETC.)BUT DOES NOT PICK UP OR DROP OFF TRAFFIC.

THIRD FREEDOM: THE RIGHT OF AN AIRLINE, REGISTERED IN COUNTRY X, TO DROP OFF TRAFFIC FROM COUNTRY X TO COUNTRY Y.

FOURTH FREEDOM: THE RIGHT OF AN AIRLINE, REGISTERED IN COUNTRY X, TO CARRY TRAFFIC BACK TO COUNTRY X FROM COUNTRY Y.

FIFTH FREEDOM: THE RIGHT OF AN AIRLINE, REGISTERED IN COUNTRY X, TO COLLECT TRAFFIC IN COUNTRY Y AND FLY ON TWO COUNTRY Z, SO LONG AS THE FLIGHT EITHER ORIGINATES OR TERMINATES IN COUNTRY X.

SIX FREEDOM: THE RIGHT OF AN AIRLINE, REGISTERED IN COUNTRY X TO CARRY TRAFFIC TO A GATEWAY-APPOINT IN COUNTRY X-AND THEN ABROAD. THE TRAFFIC HAS NEITHER ITS ORIGIN NOR ULTIMATE IN COUNTRY X.

SEVEN FREEDOM: THE RIGHT OF AN AIRLINE, REGISTERED IN COUNTRY X, TO OPERATE ENTIRELY OUTSIDE OF COUNTRY X I CARRYING TRAFFIC BETWEEN TWO OTHER COUNTRIES.

EIGHT FREEDOM: THE RIGHT OF AN AIRLINE, REGISTERED IN COUNTRY X, TO CARRY TRAFFIC BETWEEN ANY TWO POINT IN THE SAME FOREIGN COUNTRY: ALSO KNOWN AS CABOTAGE.

AIRLINE REGULATION

AIRLINE DEREGULATION IN 1978, THE U.S. CONGRESS PASSED THE

AIRLINE DEREGULATION ACT OF 1978 WHICH PROVIDED FOR THE GRADUAL PHASING-OUT OF THE CIVIL AERONAUTICS BOARD(CAB) AND REMOVED MANY OF THE REGULATIONS GOVERNING AIR CARRIER ROUTES AND FARES. BEFORE 1978, THE CAB SET AIRLINE FARES ACCORDING TO ROUTE DISTANCES AND THE INDUSTRY’S AVERAGE . BY THE END OF 1982, ALL OFFICIAL CONTROLS AND DOMESTIC U.S. AIR FARES WERE ABANDONED. TODAY, NO AIRLINE HAS EXCLUSIVE RIGHT TO ANY MARKET IN THE UNITED STATES.