Prior the agreement, the U.S.-France market was the largest U.S. aviation market not governed by a bilateral agreement. It is the third most popular European destination for U.S. travelers. The lack of an agreement since 1993 stifled growth and prevented airlines from keeping pace with the public demand for greater competition and better service. The new agreement remedies this situation by establishing a framework for substantial growth in passenger and cargo services. Allows, during the five-year transition period, U.S. passenger airlines to add nine new daily services from the United States.
Removes limits on code-sharing services between U.S. and French airlines.
Code sharing, a marketing arrangement whereby one airline puts its code on the flight of another airline, has become an increasingly important way for carriers to provide seamless service to passengers. All other kinds of code sharing are open, with no limits on capacity, frequencies and cities served. Two alliances may immediately code share to France via third countries, with additional alliances added during the transition and a completely unrestricted regime thereafter. Lifts all restrictions on airline pricing initiatives in two years. Allows U.S. cargo airlines to sharply increase service and competition between France and the United States and points beyond.