Discriminatory and Unfair Practices and Unreasonable User Charges in International Aviation

Impediments to competition and unreasonable user charges continue to affect the ability of U.S. carriers to compete in international air transportation. These problems largely result from the pervasive involvement of foreign governments in international airline operations. U.S. international carriers are privately owned; whereas foreign international carriers are generally government-owned and financially supported. Although most of these international airlines are operated for profit, other objectives, such as increased tourism, foreign exchange earnings, and national security and prestige, affect international aviation operations. These problems can be addressed either through negotiations provided for in U.S. bilateral international aviation agreements or through recourse to U.S. legal remedies. Usually, the negotiation method is pursued. GAO feels that a more thorough and aggressive Government followup is needed. To be effective, such action may require more timely retaliatory actions, when justified, if a settlement cannot be negotiated. Specific unfair competitive practices are: (1) user charges at London's Heathrow airport which are excessive and discriminatory and, at $10,000 per landing, are the highest in the world; (2) Japan's noise charge still falls most heavily on B-747 aircraft, despite the fact that they make less noise than the Japanese domestic jets; (3) groundhandling activities in Italy are handled only by the Italians, resulting in a monopoly; (4) U.S. carriers are charged higher fuel prices in some airports; and (5) prohibitive restrictions on charter operations are still imposed on U.S. carriers in some countries. Poor records management by the carriers has hampered the eventual solution of these problems. A systematic record should be maintained of informal complaints, actions taken, and their resolution or current status.