Summary

Of the 95 million passengers who flew on scheduled flights between the United States and the rest of the world in 1995, nearly 11.5 million flew to or from the United Kingdom, making it the largest U.S. aviation trading partner overseas. Because of the size of this market and the fact that the United Kingdom is a key gateway to Europe, Africa, and the Middle East, U.S. airlines strongly desire greater access to London's Heathrow Airport. In recent years, however, the Department of Transportation (DOT) has had limited success in negotiating increased opportunities for U.S. airlines at this airport. This testimony discusses (1) how limited U.S. leverage affects current negotiations with the United Kingdom and (2) the importance of data and economic analysis in strengthening DOT's negotiating position and options to improve the negotiating process.