Chapter 3 Loosening the Straitjacket

  • Handley Stevens


After noting the significant change in US aviation policy brought about by President Carter’s deregulation of the US airline industry, this chapter chronicles the step-by-step liberalisation of Bermuda 2 under successive waves of negotiation between 1977 and 1988, dealing with one aspect of the market after another—tariffs, passenger charters, cargo charters, the number of US gateways offering transatlantic services, and capacity control. The two sides manage the downturn in demand associated with the recession of 1981–1982 without reversing the trend towards greater liberalisation, but it takes a robust intervention from Prime Minister Thatcher to persuade President Reagan to terminate an anti-trust investigation by the Department of Justice into the circumstances surrounding the collapse of Laker Airways. Time also has to be invested in the special features of the US-Caribbean market, a surprising sub-plot entailing the protection of Cayman Airways.



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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Handley Stevens
    • 1
  1. 1.LondonUK

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