Flag carrier: Difference between revisions
→List of national flag carriers: Air France |
reference for US definition of flag air carrier/Fly America Act |
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airlines. The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These bilateral aviation agreements may specify rights awardable only to locally registered airlines, forcing some governments to jump-start airlines to avoid being disadvantaged in the face of foreign competition. Some countries also establish flag carriers for [[nationalism|nationalist]] reasons, or to aid the country's economy, particularly in the area of tourism. |
airlines. The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These bilateral aviation agreements may specify rights awardable only to locally registered airlines, forcing some governments to jump-start airlines to avoid being disadvantaged in the face of foreign competition. Some countries also establish flag carriers for [[nationalism|nationalist]] reasons, or to aid the country's economy, particularly in the area of tourism. |
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In many cases, governments would directly assist in the growth of their flag carriers typically through subsidies and other fiscal incentives. The establishment of competitors in the form of other locally registered airlines may be prohibited, or heavily regulated to avoid direct competition. Even where privately-run airlines may be allowed to be established, the flag carriers may still be accorded priority, especially in the apportionment of aviation rights to local or international markets. |
In many cases, governments would directly assist in the growth of their flag carriers typically through subsidies and other fiscal incentives. The establishment of competitors in the form of other locally registered airlines may be prohibited, or heavily regulated to avoid direct competition. Even where privately-run airlines may be allowed to be established, the flag carriers may still be accorded priority, especially in the apportionment of aviation rights to local or international markets. In the United States, for example, funding for international travel is restricted to "US flag air carriers" under the [[Fly America Act]].<ref>[http://www.wright.edu/rsp/faact.html Guidelines for International Travel Paid for by the Government.] Wright State University.</ref> |
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In recent decades, however, many of these airlines have since been [[corporatization|corporatised]] as a [[public company]] or a [[state-owned enterprise]], or completely [[privatization|privatised]]. The aviation industry has also been gradually [[deregulation|deregulated]], particularly in the [[United States]] and in the [[European Union]]. This has rendered the designation of "flag carriers" less important than it was in the past. |
In recent decades, however, many of these airlines have since been [[corporatization|corporatised]] as a [[public company]] or a [[state-owned enterprise]], or completely [[privatization|privatised]]. The aviation industry has also been gradually [[deregulation|deregulated]], particularly in the [[United States]] and in the [[European Union]]. This has rendered the designation of "flag carriers" less important than it was in the past. |
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The legacy of flag carriers can still be seen by the restrictions in international air travel through [[bilateral]] in 1945 ([[Bermuda Agreement|Bermuda I]]) but revised in 1977 ([[Bermuda II]]) to redress the balance of air service advantage by limiting the number of airlines which could operate on certain routes |
The legacy of flag carriers can still be seen by the restrictions in international air travel through [[bilateral]] in 1945 ([[Bermuda Agreement|Bermuda I]]) but revised in 1977 ([[Bermuda II]]) to redress the balance of air service advantage by limiting the number of airlines which could operate on certain routes. The mass media may also routinely uses the term to loosely refer to any dominant airline in a country, or in reference to legacy state carriers even long after their privatisation.<ref>[http://www.timesonline.co.uk/article/0,,630-2381868,00.html Fight and flight instinct of national carrier - Times Online<!-- Bot generated title -->]</ref> |
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==List of national flag carriers== |
==List of national flag carriers== |
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==External links== |
==External links== |
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*[http://www.wright.edu/rsp/faact.html Wright State University] Sample Federal funds usage for air carriers. |
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*[http://www.iata.org International Air Transport Association] Organisation formerly responsible for managing air services agreements and international fares. |
*[http://www.iata.org International Air Transport Association] Organisation formerly responsible for managing air services agreements and international fares. |
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Revision as of 19:14, 28 September 2008
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 | This article possibly contains original research. (January 2008) |
A flag carrier refers to a transportation company, such as an airline or shipping company, that is locally registered in a given country. They may be state-run, state-owned or state-designated companies or organisations with preferential rights or privileges accorded by the government. Flag carriers may be known as such due to maritime law requiring all aircraft or ships to display the state flag of the country of their registry.[1]
A flag carrier (if it is an airline) may also be known as a national airline or a national carrier, although this can have different legal meanings in some countries. In the United States for example, a national carrier (or airline) must have an annual operating revenue between $100 million and $1 billion.
Background
The term "flag carrier" is a legacy of the time when countries established state-owned airline companies. Governments then took the lead due to the high capital costs of establishing and running airlines. The heavily regulated aviation industry also meant aviation rights are often negotiated between governments, denying airlines the right to an open market. These bilateral aviation agreements may specify rights awardable only to locally registered airlines, forcing some governments to jump-start airlines to avoid being disadvantaged in the face of foreign competition. Some countries also establish flag carriers for nationalist reasons, or to aid the country's economy, particularly in the area of tourism.
In many cases, governments would directly assist in the growth of their flag carriers typically through subsidies and other fiscal incentives. The establishment of competitors in the form of other locally registered airlines may be prohibited, or heavily regulated to avoid direct competition. Even where privately-run airlines may be allowed to be established, the flag carriers may still be accorded priority, especially in the apportionment of aviation rights to local or international markets. In the United States, for example, funding for international travel is restricted to "US flag air carriers" under the Fly America Act.[2]
In recent decades, however, many of these airlines have since been corporatised as a public company or a state-owned enterprise, or completely privatised. The aviation industry has also been gradually deregulated, particularly in the United States and in the European Union. This has rendered the designation of "flag carriers" less important than it was in the past.
The legacy of flag carriers can still be seen by the restrictions in international air travel through bilateral in 1945 (Bermuda I) but revised in 1977 (Bermuda II) to redress the balance of air service advantage by limiting the number of airlines which could operate on certain routes. The mass media may also routinely uses the term to loosely refer to any dominant airline in a country, or in reference to legacy state carriers even long after their privatisation.[3]
List of national flag carriers
| This table possibly contains original research. (January 2008) |
The chart below lists airlines considered to be a "flag carrier", either by designation as a national airlines either officially or based on history and whether it is state-owned.
Notes
- ^ flag carrier definition
- ^ Guidelines for International Travel Paid for by the Government. Wright State University.
- ^ Fight and flight instinct of national carrier - Times Online
- ^ Aerolíneas Argentinas pasa a manos del Estado
- ^ a b c d e f SAS is partly owned by the governments of Denmark, Norway and Sweden, and is the flag carrier for all three nations.
- ^ Before the transfer of Hong Kong from Britain to China in 1997, the aircraft of Cathay Pacific flew the British Union Flag (See photograph).
- ^ In November 18, 1987, the government stake for JAL (which was then 34%) was completely sold off, and JAL was compeletely privatized. See Japan Airlines Corporation Company Profile and Japan Airlines International Co. Ltd. Company Profile.
- ^ "LOT Corporate Information". PLL LOT. 2007. Retrieved 2007-10-01.
- ^ http://www.flytap.com/World/en/Company/TAPGroup/
- ^ China Airlines used to fly the flag of the Republic of China until 1995.
- ^ Jat Airways is currently in process of privatisation. Aeroflot is the most likely company to get a share in ownership.
- ^ Participaciones significativas - Iberia
- ^ UAE: Etihad Airways is owned by the government of Abu Dhabi, a constituent emirate of the UAE.
- ^ UAE: Emirates Airline is owned by the government of Dubai, a constituent emirate of the UAE.
External links
- International Air Transport Association Organisation formerly responsible for managing air services agreements and international fares.