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11th April 2007, 01:12 AM

"Jack Hamilton" <jfh@acm.org> wrote:
> But still, someone else could build a ship in the US and sail there,
> right?

Yes. Then the PSA would be irrelevant. Cabotage laws (like the PSA) are
designed to protect domestic carriers from foreign competition; thus, while
a 100% US passenger ship operation is free to service just US ports, the PSA
prohibits a foreign-flagged ship from doing so. There are similar
protections of air carriers, e.g., while it would make perfect sense for
Nippon Airways to fly from LAX to Honolulu to Tokyo and vice versa, the law
prevents them from competing with US-based carriers on that mainland-island
domestic leg.

11th April 2007, 01:12 AM	#3 (permalink)
Diana Ball Guest Posts: n/a Classified Rating: % ()	SS United States "Jack Hamilton" <jfh@acm.org> wrote: > But still, someone else could build a ship in the US and sail there, > right? Yes. Then the PSA would be irrelevant. Cabotage laws (like the PSA) are designed to protect domestic carriers from foreign competition; thus, while a 100% US passenger ship operation is free to service just US ports, the PSA prohibits a foreign-flagged ship from doing so. There are similar protections of air carriers, e.g., while it would make perfect sense for Nippon Airways to fly from LAX to Honolulu to Tokyo and vice versa, the law prevents them from competing with US-based carriers on that mainland-island domestic leg.