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Mishan, E.J. �ed.) �1994) Cost±Benefit Analysis:An
Informal Introduction, 4th edn, London and New
York: Routledge. �Covers the benefit±cost analysis
including the conceptual frame and empirical
illustrations.)
Schmid, A.A. �1989) Benefit±Cost Analysis:A Political
Economy Approach, Boulder, CO and London:
Westview Press. �Examines the benefit±cost
analysis in public decision making.)
Smith, S.L.J. �1995) `Benefit±cost analysis', in
Tourism Analysis:A Handbook, 2nd edn, Harlow:
Longman, 284±95. �Summarises the key features
of the method.)
benefits
MARJA PAAJANEN, FINLAND
The term `benefits' refers to anything someone
receives that has perceived value. Benefits of the
tourism experience may be in the form of
psychosocial benefits to the individual, such as a
satisfying experience. Benefits of tourism to a
community may be in the form of environmental,
psychological, social, cultural or economic
gains or impacts. These benefits may be realised
by the entire community or distributed to individual
groups or business firms.
Bermuda 1
CHRISTINE J. CLEMENTS, USA
International aviation is based on the absolute
sovereignty of a nation over the airspace above its
territory. This was established through the Paris
Convention of 1919. Sovereignty is exercised
through control over the `freedoms of the air' or
transit privileges which regulate air traffic across
national borders. This concept was defined as a
principle of air law in the Chicago Convention on
International Civil Aviation in 1944, when representatives
of fifty-two countries met to consider the
future of international aviation. The Chicago
conference reinforced the notion of national
sovereign control over airspace similar to the way
in which countries exercise control over territorial
seas.
The Chicago conference adopted a Form of
Standard Agreement for Provisional Air Routes as
a model for future bilateral agreements. However,
this was superseded by the air service agreement
�ASA) negotiated between the UK and the USA in
1946, called Bermuda 1 �the location of the
negotiations). This became the accepted model
for the next thirty years, although increasing trends
towards liberalisation are now reflected in more
recent ASAs.
The main characteristics of Bermuda 1 are that
governments, not airlines, negotiate the terms of
the agreement; government authorities of each
country have the right to designate carriers; the
designated carriers of the two countries have
discretion to set capacity; the routes and designation
of carriers authorised to operate on those
routes are identified in the agreement; and fares
are set by the International Air Transport
Association �IATA) and require the approval of
the participating governments.
Following the Bermuda 1 format, bilateral ASAs
usually have three components. The first is the Air
Service Agreement. Through its articles, the
agreement specifies arrangements for setting fares
and capacity levels, customs duties, transfers and
airport charges, and other technical details. Second
is the schedule of routes. This details traffic rights
and specific routes and airports to be served by
the designated airline�s) of each country. Finally, the
Memorandum of Understanding �or Exchange of
Notes in Agreed Minutes) clarifies points in the
principal ASA and may be confidential to preserve
commercial or national interests.
Further reading
Bermuda 1 53
Dempsey, P. �1987) Law and Foreign Policy in
International Aviation, New York: Transnational
Publishers. �Provides the background to current
developments on this subject.)
Hanlon, P. �1996) Global Airlines:Competition in a
Transnational Industry, Oxford: Butterworth
Heinemann. �Presents an overview of international
airline operations.)
International Civil Aviation Organisation �1994)
`The evolution of the air transport industry',