The subject of cabotage is both multifacetted and controversial. For a long time, states jealously reserved the right to carry domestic traffic for their own airlines and aircraft. Indeed, this right is closely linked with the sovereignty of a state and the exercise of this sovereignty over carriage between points located within the territory of that state. At present, a less conservative stance is taken. The subject of cabotage is no longer excluded from international aviation discussions, because states have adopted a more economically oriented approach towards air transport. In this monograph, the author first examines the historical and legal background of the concept of cabotage and subsequently analyzes state practice, developments in the United States and, more in particular the EEC on the subject. The consequences of changes of sovereignty in Germany, Eastern Europe and Hong Kong are discussed. He concludes that the present regime as laid down in the Chicago Convention should be adapted to a changing environment in international civil aviation. Such a new regime should take into account that fact that air transport is gradually being considered as an economic or commercial activity, and that operation of this activity should not be hampered by national boundaries. This book should be of interest not only to teachers and students of international air transport law, but also to aeronautical authorities, aircraft manufacturers, airport authorities and international organizations.