The agreement allows carriers to operate between any point in either country without restriction, plus guarantees open entry and unrestricted capacity and frequency on all routes. However, bilateral changes are only a part of the answer toward encouragement of global airline alliances, aviation experts say. There is probably no real reason why the American airline industry should be treated differently than other businesses, Mathias said. Multi-national companies are not new. The airlines are finally becoming more like typical businesses where economics are not governed by geographical boundaries.
Analysts point to continued government ownership of airlines as another obstacle to globalization.
As long as governments own or heavily subsidize their state carriers, they have no incentive to see that carrier's identity submerged into a global line. The trend is in place, however, for privatization of national carriers. British Airways and Japan Air Lines were privatized five years ago. Australian carrier Qantas in September merged with Australian Airlines and plans are underway for the combined company to be privatized. Thai Airways last spring began selling shares to the public and other governments, including Germany, are publicly indicating a desire to privatize their national airlines.