Liberalization Freedoms Flag Carrier

Jonam T. Valeza / T168 Air Traffic Rights/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

•Right to carry passengers from one’s own country to a second country, and from that country to a third country “So-called Freedoms”

•Right to carry passengers or cargo from a

•International Air Transport Agreement

second country to a third country by stopping in one’s own country (The Sixth Freedom) “So-called Freedoms”

•encompasses the first five freedoms

•Right to carry passengers or cargo between two

•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. Five Freedoms Agreement

•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 Five Freedoms Agreement

•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 The Second Freedom

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

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

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

foreign countries without continuing service to one’s own country (The Seventh Freedom) “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) “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) 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. Types of Liberalization

•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

•Bilateral Liberalization

•A state-run, state-owned or state-designated

–achieved a high acceptance among countries

transport company or organization specifically showing the state flag apparent for public view What is its IMPORTANCE?

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

•Legacy of a country

opportunities existing between two countries Types of Liberalization

•Impacts employment and households

•Plurilateral Liberalization

•Self-respect, moral courage and political will

–blocks of countries entering to attempt

•National Security

implementation of a liberal environment among the members. •ASEAN •UE •APEC

Types of Liberalization

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

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

•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

•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 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

market ultimately drove the logic of the global

Montreal, Canada IATA

•40% of international market is open

•International Air Transport Association

•air service are determined on a bilateral basis

IATA Goals

•Promote safe, scheduled and inexpensive air

•Tasked with the technical aspects of Civil

transport for the benefit of all nations of the world

aviation and is headed by an Assistant Secretary of the DOTC

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

•Has undergone several name changed through

•Cooperate with ICAO

the years. ATO Functions

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 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

•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