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Freedoms of the Air and Open Skies Policy

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Cara Ramos

on 21 February 2011

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Transcript of Freedoms of the Air and Open Skies Policy

Freedoms of the Air
and
Open Skies Policy Freedoms of the Air These are sets of commercial aviation rights granting a country's airline(s) the privilege to enter and land in another country's airspace. Formulated as a result of disagreements over the extent of aviation liberalization in the Convention on International Civil Aviation of 1944, (known as the Chicago Convention) the United States had called for a standardized set of separate air rights which may be negotiated between states but most of the other countries involved were concerned that the size of the U.S. airlines would dominate all world air travel if there were not strict rules. Types of Freedom the right to fly over a foreign country, without landing there 1 Toronto - Mexico City, overflying the United States For Example the right to refuel or carry out maintenance in a foreign country on the way to another country 2 For Example London City - New York JFK, with an aircraft that needs to be refueled in Shannon, Ireland. 3 the right to fly from one's own country to another carrying passengers from
Toronto to Chicago as a Canadian company 4 the right to fly from another country to one's own carrying passengers from Chicago to Toronto as a Canadian company 5 the right to fly between two foreign countries during flights while the flight originates or ends in one's own country a Canadian company flies from Toronto to Chicago, picks up passengers there, then continues to Mexico City 6 the right to fly from a foreign country to another one while stopping in one's own country for non-technical reasons a U.S. company flying passengers from Toronto to Mexico via Chicago 7 the right to fly between two foreign countries while not offering flights to one's own country a European airline that offers flights between Canada and the U.S. without offering any to Europe 8 the right to fly between two or more airports in a foreign country while continuing service to one's own country Cathay Pacific flights from Hong Kong to Penang via Kuala Lumpur 9 the right to fly inside a foreign country without continuing service to one's own country a US airline that offers flights that originate and terminate inside the United Kingdom
(all European airlines may use this right within the EU countries) Open Skies Policy These are international policy concept which calls for the liberalization of rules and regulations on international aviation industry most especially commercial aviation - opening a free market for the airline industry. Primary Objectives  to liberalize the rules for international aviation markets and minimizes government intervention the provisions apply to passenger, all-cargo and combination air transportation and encompass both scheduled and charter services; or  to adjust the regime under which military and other state-based flights may be permitted. For open skies to effect, a bilateral (and sometimes multilateral) Air Transport Agreement has to be concluded between two or more nations. In a bilateral agreement, the contracting states may allow the airlines of the contracting parties to bring passengers and cargoes to a third country or pick up passengers and cargoes from the host country to the home country of the airline or to a third country in which the contracting states has existing open skies agreement. A bilateral air transport agreement is a contract to liberalize aviation services, usually commercial civil aviation, between two contracting states. It allows the airlines of both states to launch commercial flights that covers the transport of passengers and cargoes of both countries. In a bilateral agreement, the contracting states may allow the airlines of the contracting parties to bring passengers and cargoes to a third country or pick up passengers and cargoes from the host country to the home country of the airline or to a third country in which the contracting states has existing open skies agreement. Key Open Skies Provision Most of the existing civil agreements include No restrictions on international route rights; number of designated airlines; capacity; frequencies; and types of aircraft. Free Market Competition Pricing determined by market forces A fare can be disallowed only if both governments concur — "double-disapproval pricing" — and only for certain, specified reasons intended to ensure competition. Fair and equal opportunity to compete: All carriers — designated and non-designated — of both countries may establish sales offices in the other country, and convert earnings and remit them in hard currency promptly and without restrictions. Designated carriers are free to provide their own ground-handling services — "self-handling" — or choose among competing providers. Airlines and cargo consolidators may arrange ground transport of air cargo and are guaranteed access to customs services. User charges are non-discriminatory and based on costs; computer reservation system displays are transparent and non-discriminatory. Cooperative marketing arrangements Designated airlines may enter into code-sharing or leasing arrangements with airlines of either country, or with those of third countries, subject to usual regulations. An optional provision authorizes code-sharing between airlines and surface transportation companies. Provisions for dispute settlement and consultation Includes procedures for resolving differences that arise under the agreement. Liberal charter arrangements Carriers may choose to operate under the charter regulations of either country. Safety and Security Each government agrees to observe high standards of aviation safety and security, and to render assistance to the other in certain circumstances. Optional seventh freedom all-cargo rights Provide authority for an airline of one country to operate all-cargo services between the other country and a third country, via flights that are not linked to its homeland. Treaty on Open Skies The Treaty on Open Skies entered into force on January 1, 2002, and currently has 34 States Parties The treaty is designed to enhance mutual understanding and confidence by giving all participants, regardless of size, a direct role in gathering information about military forces and activities of concern to them. Open Skies is one of the most wide-ranging international efforts to date promoting openness and transparency of military forces and activities. The 34 States Parties to the Open Skies Treaty are:

Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway,Poland, Portugal, Romania, Russian Federation, Slovak Republic, Slovenia, Spain, Sweden, Turkey, Ukraine, United Kingdom, and United States. Canada and Hungary are the depositories of the treaty in recognition of their special contribution to the Open Skies process. "Depository" countries maintain treaty documents and provide administrative support. Source: Wikipedia End of Presentation Thank You! :)
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