EU-US open skies agreement: What is changed in the north transatlantic skies?

This article presents analysis of air service levels and competition dynamics in the transatlantic market before and after the EU-US Open Skies Agreement (OSA) signed in 2008. By comparing direct and connecting flights in a typical off-peak week, we investigate whether the EU-US OSA has led to more choices for transatlantic travelers. We examine the impact of the EU-US OSA on competition between carriers, alliances, and hub airports. The results show that the number of direct transatlantic connections and served airport pairsdecreased and only indirect competition increased.