aeropolitics

AEROPOLITICS

a!r TRafFiC R!gHtS

Air Traffic Rights

• Also known as freedoms of the air

• Set of commercial aviation rights granting a country’s airline(s) the privilege to enter & land in another country’s airspace

Five Freedoms Agreement

• International Air Transport Agreement

• encompasses the first five freedoms

• came about due to the Chicago Convention where US called for a standardized set of separate air rights which may be negotiated between states/countries.


• Right to overfly a country without landing

• Right to stop in a country for refueling or maintenance on the way to another, without transferring passengers or cargo

• Right to carry passengers or cargo from one’s own country to another


• Right to carry passengers or cargo from another country to one’s own

• Right to carry passengers from one’s own country to a second country, and from that country to a third country

The First Freedom

• Right to overfly a country without landing

CountryA

CountryB

overfly

The Second Freedom

• Right to stop in a country for refueling or maintenance on the way to another, without transferring passengers or cargo

CountryA

CountryB

TECH STOP

The Third Freedom

• Right to carry passengers or cargo from one’s own country to another

CountryA

CountryB

UNLOAD REVENUE TRAFFIC

LOAD REVENUE TRAFFIC

The Fourth Freedom

• Right to carry passengers or cargo from another country to one’s own

CountryA

CountryB


UNLOAD REVENUE TRAFFIC

The Fifth Freedom• Right to carry passengers from one’s own country to a second country, and from that country to a third country

CountryA

CountryB

CountryC

CountryD


LOAD/UNLOAD REVENUE TRAFFIC



“So-called Freedoms”• Right to carry passengers or cargo from a second country to a third country by stopping in one’s own country (The Sixth Freedom)

CountryB

CountryA

CountryC




4TH FREEDOM 3RD FREEDOM

“So-called Freedoms”• Right to carry passengers or cargo between two foreign countries without continuing service to one’s own country (The Seventh Freedom)

CountryB

CountryC

CountryA



5TH FREEDOM

Carrier’s Own Country

“So-called Freedoms”• Right to carry passengers or cargo within a foreign country with continuing service to or from one’s own country (Eighth Freedom)

City XCountry

B

CountryA



CABOTAGE


City YCountry

B

“So-called Freedoms”• Right to carry passengers or cargo within a foreign country without continuing service to or from one’s own country (Ninth Freedom)

City XCountry

B

CountryA



STAND ALONE CABOTAGE


City YCountry

B

AEROPOLITICS

dEgReE oF L!bErAliZaTIoN

Understanding Liberalization

• Liberal economic theory holds that FREE MARKETS allocate resources most efficiently and lead to greater output

• Despite this, a lot of industries are regulated -- one such industry is the Airline Industry

Understanding Liberalization

• Can be explained by the following:– hegemonic stability theory– globalization thesis– state of the national economy– state centered– societal-dominant

Types of Liberalization

• Unilateral Liberalization– can be logically pursued by two categories of countries: • CATEGORY 1 - include those countries too poor to afford setting up their own airlines

• CATEGORY 2 - include those with so little population but so rich in resources, able to establish world-class airlines and airports that can tap global marketplace.


• Bilateral Liberalization– achieved a high acceptance among countries

– much easier and convenient platform– two countries agree to mutually exploit economic opportunities existing between two countries


• Plurilateral Liberalization– blocks of countries entering to attempt implementation of a liberal environment among the members.• ASEAN• UE• APEC


• Multilateral Liberalization– a lot of entities involved in the negotiation process

– although quite difficult, proponents of open skies have not abandoned this concept


• Progressive Liberalization– most common form of liberalization– negotiating parties proceed to identify economic opportunities in each other and determines the level of air traffic in terms of factors that can be generated by their economies.

Conclusion

• Domestic in the worlds largest air service market ultimately drove the logic of the global

• 40% of international market is open

• air service are determined on a bilateral basis

• momentum of the liberalization may slow down

AEROPOLITICS

VaLuE of a FLaG cArRiEr

FLAG CARRIER refers to:

• A transportation company that is registered in a given state

• A state-run, state-owned or state-designated transport company or organization specifically showing the state flag apparent for public view

What is its IMPORTANCE?

• Legacy of a country• Impacts employment and households• Self-respect, moral courage and political will

• National Security• In cases of Emergencies

AEROPOLITICS

GlOBaL !nDuStRy AsSoCiAtIoNs

Role of the GIAs

• Become the impartial intermediary and coordinator of the member airlines.

• Must not allow itself to become the tool of the giants in the suppression of the weak

• For common ground and unbiased interest resolution

ICAO• International Civil Aviation Organization

• adopts standards and recommended practices concerning air navigation, prevention of unlawful interference and facilitation of border-crossing procedures

ICAO

• Defines protocols for air accident investigation followed by transport safety authorities

• Originally has 26 members; at present most all airlines are members of ICAO

• Headquarters: Quartier International of Montreal, Canada

IATA• International Air Transport Association

• An international trade organization of airlines formed after WW2 in Havana, Cuba

IATA Goals

• Promote safe, scheduled and inexpensive air transport for the benefit of all nations of the world

• supply all means necessary for the cooperation of the airline companies

• Cooperate with ICAO

IATA

• Initially had 57 members from 31 nations

• Today, over 270 members from more than 140 nations

• Headquarters: Montreal, Quebec, Canada

AAPA• Association of Asia-Pacific Airlines

• Regional aviation organization established at the collective initiative of the airlines within the Asia-Pacific region

AAPA

• Organized in mid-1960s with PAL spearheading its establishment

• Objective: collection, analysis and dissemination of data on the airline industry to members and interested outside organizations

• activities similar with that of IATA

Civil Aeronautics Board• Agency charged with the power to regulate the economic aspect of air transportation

• Composed of the Secretary of Transportation and Communications as Chairman, the Assistant Secretary of ATO as VC, the Commanding General of the PAF and two presidential appointees as members

CAB Objectives/Functions• Development & utilization of air potential

• encouragement & development of air transportation

• Regulation to assure the highest degree of safety and foster sound economic conditions

• Licensing of domestic & international airlines

Air Transportation Office

• Tasked with the technical aspects of Civil aviation and is headed by an Assistant Secretary of the DOTC

• Has undergone several name changed through the years.

ATO Functions• Establish & prescribe rules & regulations for the inspection & registration of all aircraft

• Establish & prescribe corresponding rules & regulations for the enforcement of laws governing air transportation

• Administer & operate the Civil Aviation Training Center (CATC)

ATO Functions• Determine, fix and/or prescribe charges and/or rated pertinent to the operation of laws governing air transportation

• Operate & maintain national airports, air navigation and other similar facilities in compliance to ICAO

AEROPOLITICS

Any Questions?

AEROPOLITICS

Thank You

aeropolitics

Documents

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