Aero Politics

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a!r TRafFiC R!gHtS

Air Traffic Rights Also known as freedoms of the air

Set of commercial aviation rights granting a countrys airline(s) the privilege to enter & land in another countrys 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 ones own country to another


Right to carry passengers or cargo from another country to ones own

Right to carry passengers from ones 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 ones 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 ones own

CountryA

CountryB


UNLOAD REVENUE TRAFFIC

The Fifth Freedom Right to carry passengers from ones 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 ones 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 ones own country (The Seventh Freedom)

CountryB

CountryC

CountryA



5TH FREEDOM

Carriers Own Country

So-called Freedoms Right to carry passengers or cargo within a foreign country with continuing service to or from ones 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 ones 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

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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

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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

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Any Questions?

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Thank You

Aero Politics

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