Pathfinder Foundation and Carnegie India organized a conference on connectivity. I was asked to speak on air connectivity, which I was happy to do, it being a rather neglected subject. The paper is still not ready for prime time, some of the data not having yet been provided by the Civil Aviation Authority of Sri Lanka. But here is the conclusion: There may be marginal possibilities for increasing passenger and freight movements between India and Sri Lanka through reforms in air travel and visa policies which could possibly be included in the proposed Economic and Technical Cooperation Agreement (ETCA). The construction of additional international airports, such as those in Jaffna and Trincomalee, where significant Sri Lankan Tamil populations live may also contribute.
While he was teaching at Cornell, Alfred Kahn noticed that airfares were lower and frequencies better in the San Francisco-Los Angeles route than in other route pairs in the US. The difference was that SF-LA were both in California and were thus outside the authority of the federal aviation regulatory agency. When President Carter appointed him to head the regulatory agency, he proceeded to abolish it. This was one of the main contributory factors to the spread of liberalization of network industries, including telecom, throughout the world. Kahn was former chairman of the Civil Aeronautics Board, and he presided over the deregulation of the airline industry — the dismantling of a system that regulated where airlines could fly and how much they could charge.