The United States and The Netherlands have signed the latest in a recent series of pro-competitive international air transportation agreements.
The agreement, signed Friday night, significantly expands opportunities for low-cost scheduled and charter services into the Netherlands.
"It is a very significant deal that will allow us to test more of our free market theories in a substantial market and see how they work," Donald A. Farmer Jr., director of the Civil Aeronautics Board's Bureau of International Aviation, said yesterday.
Under the agreement, the Dutch agreed to accept any charter flights from the U.S. that meet current and future U.S. charter ruels and to accept scheduled flights as well at any fares set in the U.S. The U.S. in turn agreed to accept Dutch-originating flights on the same conditions. Most countries insist that charters originating from the U.S. meet the host country's rules - generally more stringent more - and that fares be approved by the host country also.
Farmer noted that the Dutch agreement will assure that The Netherlands will accept even the very liberal "public" charter proposed by the CAB. Under the new concept, the board would eliminate advance-purchase and roundtrip requirements and drop the minimum size for groups, thus allowing one person to book a charter.
There is no provision in the agreement on restricting capacity or numbers of flights for authorized services, as there is in the controversial British-US agreement signed last summer.
U.S. carriers get unlimited rights to fly beyond Amsterdam and to convert from one size aircraft to another there.
Under the agreement, KLM Royal Dutch Airlines, got the right to fly to Los Angeles and one other U.S. point to be named by them at a later date.