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.
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
overfly

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

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

Country Country
A B

LOAD REVENUE UNLOAD REVENUE

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

Country Country
A B

UNLOAD REVENUE LOAD REVENUE

TRAFFIC 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

Country Country Country Country

A B C D

LOAD REVENUE LOAD/UNLOAD LOAD/UNLOAD LOAD/UNLOAD

TRAFFIC REVENUE TRAFFIC REVENUE REVENUE
TRAFFIC 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)
Country Country Country
B A C

4TH FREEDOM 3RD FREEDOM

LOAD REVENUE LOAD/UNLOAD LOAD/UNLOAD

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

5TH FREEDOM

LOAD REVENUE LOAD/UNLOAD Carrier’s Own

TRAFFIC REVENUE TRAFFIC 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 X City Y Country
Country Country A
B B

CABOTAGE

LOAD REVENUE LOAD/UNLOAD Carrier’s Own

TRAFFIC REVENUE TRAFFIC Country
 “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 X City Y Country
Country Country A
B B

STAND ALONE
CABOTAGE

LOAD REVENUE LOAD/UNLOAD Carrier’s Own

TRAFFIC REVENUE TRAFFIC Country
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

• 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
Types of Liberalization

• Plurilateral Liberalization
– blocks of countries entering to
attempt 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 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