14 December 2008

The United Arab Emirates concludes new air services arrangements with Romania, Qatar and Iran

The United Arab Emirates has concluded new air services arrangements with Romania (announced on 20 October 2008), Qatar (announced on 30 November 2008) and Iran (announced on 11 December 2008)(see previous post).

The latter two arrangements have capacity restrictions. Although that with Romania is described as "open skies" there is uncertainty about passenger capacity for fifth freedom services.

John Byerly speaks on US aviation negotiating approach

On 4 December 2008 John Byerly, the Deputy Assistant Secretary for Transportation Affairs at the US State Department gave a very good summary of the US approach to air services negotiations in a speech to an Airports Council International - North America (ACI-NA) International Aviation Issues Seminar.

11 December 2008

Canada negotiates new aviation agreement with the European Union

On 9 December 2008 Canada and the European Commission announced that they had completed the negotiation of a new air services agreement. The Commission's Q&A provides further details (see previous post).

An open exchange of third/fourth freedom rights would be followed by further exchanges of rights in three additional phases if there is a progressive opening up of airline investment opportunities. Phase two would provide for seventh freedom cargo opportunities, phase three for fifth freedom (beyond) opportunities and phase four for an exchange of cabotage rights.

Media coverage on 10 December included stories in the Globe and Mail, and the Star (HT to Aviation Law Prof Blog). On 9 December there were also stories in the Financial Post NEW and on CBC NEW.

09 December 2008

The fuel spot price "super spike" collapse

I have continued monitoring the Singapore spot prices of international bunker fuels (jet used in aircraft and residual fuel oil (RFO) used in ships) in US$ and NZ$. The following four graphs show the results for this decade including November 2008 (see previous post for data sources). The second and fourth of the graphs are indexed with a base on 100 in January 2000.


The term "super spike" in relation to oil price movements was reported on 21 May 2008 by the International Herald Tribune to have been used by a Goldman Sachs analyst, Arjun Murti, who was predicting that the price of oil could go as high as US$200 and would stay above US$100 into 2011. Bloomberg reported on 6 May 2008 that Murti first used the term "super spike" in March 2005.

Murti's latest views on the price of oil were covered in a 12 December 2008 post NEW on the Alphaville weblog from the Financial Times.

04 December 2008

Australian Government releases Aviation Green Paper

On 2 December 2008 the Australian Government released a Green Paper (discussion document) as part of the process of developing a National Aviation Policy. This is to be followed by the release of a White Paper next year (see previous post).

30 November 2008

Is the proposed UK ADP increase protectionism?

Okay, so how would we work out to what extent the proposed increase in the Air Passenger Duty (APD) is a “tax grab” and/or protectionism as some have alleged or could have environmental legitimacy (see previous post)?

Could we:
- take the distance and emissions of CO2 for a passenger travelling one-way London-Auckland in economy class from the International Civil Aviation Organization (ICAO) carbon emissions calculator at: http://www2.icao.int/public/cfmapps/carbonoffset/carbon_calculator.cfm which gives an answer of 18,335 Km generating about 1,341.73 Kg of CO2
- take the price of carbon emissions on 26 November 2008 from Point Carbon at: http://www.pointcarbon.com/ which gave a value of €15.70 per tonne
- do a conversion from Euros to Pounds giving £13.36 per tonne and multiple that by 1.342 tonnes
- and come up with £17.93 compared with the current Air Passenger Duty (APD) of £40, the proposed APD of £55 from 1 November 2009 and the proposed APD of £85 from 2010 (see: http://www.hmrc.gov.uk/pbr2008/pbrn20.pdf ) or do I misunderstand the basis of how HM Treasury arrived at the rates for this “green” tax?

New Zealand's recent treaty negotiations

Just about hidden away on the web site of the New Zealand Ministry of Foreign Affairs and Trade is the International Treaties List, a publication produced every six months that gives some details of all the treaties that the New Zealand Government is negotiating, concluding, ratifying or amending. This includes air services agreements.

The 61-page July 2008 edition on pages 59-60 refers to New Zealand's air services relationships with Canada, the European Union, the Philippines, South Africa, Sri Lanka, Turkey and the United Kingdom. It gives the dates of recent negotiations and also lists me as the official contact for these.

The Box

The BBC is following a shipping container around the world for a year and has a page for The Box complete with related stories and GPS tracking of its location.

The container started out in the UK with a shipment of Scotch whisky bound for China and is now headed for the USA full of consumer goods (HT to Transport Blog).

Rise in piracy

This year has seen increasing news reports of piracy, particularly off the coast of Somalia.

An excellent source of data for this growing problem is the International Chamber of Commerce's International Maritime Bureau which operates a Piracy Reporting Centre based in Malaysia. The Centre maintains a live piracy map of all such incidents around the world.

New Zealand Aviation Overview published

The New Zealand Ministry of Tourism this month published a 22-page New Zealand Aviation Overview bringing together data from a variety of sources.

EU Ministers grant EC mandate to negotiate new ASA with Lebanon

At their 9 October 2008 Transport, Telecommunications and Energy (TTE) Council meeting held in Luxembourg under the French Presidency, European Transport Ministers decided to grant the European Commission a mandate to open negotiations with Lebanon on a comprehensive Euro-Mediterranean air transport agreement.

UK plans sharp increases in Air Passenger Duty

In its Pre-Budget Update on 24 November 2008 the UK Government announced that it planned to increase its Air Passenger Duty (APD) and restructure it to move from two to four bands based on distance.

In his speech the UK Chancellor said:

"As the Government has demanded, aviation will now be included in the emissions trading scheme from 2012.

This is a major step towards achieving our environmental objective of reducing the impact of aviation on climate change.

It has enabled me to look again at our proposals for reforming air passenger duty.

Mr Speaker, last year, there was cross-party support for a reform of air passenger duty to a tax per plane.

As much as I am in favour of a bipartisan approach, it seems in this case not to have reached the right conclusion.

This proposal could harm the aviation industry at a time when it is facing huge problems.

So instead I have decided to reform APD into a four-band system ensuring those that travel further and have a larger environmental impact meet that cost.

I believe this will be effective in reducing emissions from aviation."

Details are contained in Chapter 7 of the 2008 Pre-Budget Report and a release from HM Revenue & Customs. The latter details the impact on travel to individual countries.

HM Treasury also released a 37-page response on the consultation it had done on moving from a per passenger to a per plane charge.

UK media coverage included that from:
Airline reaction came in media statements from:
ABTA - The Travel Association also commented.

The announcement came the day before New Zealand's New Prime Minister, John Key, met with UK Prime Minister, Gordon Brown.

NZ media coverage included that from:
Tourism is New Zealand's largest export earner and the UK is New Zealand's second largest visitor market.

Australian reaction was reported in The Age.

Belgium drops idea of taxing air passengers

On 7 November 2008 the Association of European Airlines (AEA) commented on the decision of the Belgian Government dropped its plan to impose a ticket tax on air passengers. The AEA noted similar moves in Denmark last year and in Malta this month.

Fiji Budget increases departure tax

The Fiji Times reported on 25 November 2008 that the 21 November 2008 Fiji Budget included an increase in departure tax to F$75 from 2009. The current level is $F40 per person and the increase is to come into effect on 1 January.

Irish Budget introduces Air Travel Tax

The Irish 2009 Budget announced on 14 October 2008 that an Air Travel Tax would be introduced from 30 March 2009. The general rate applying will be €10 per passenger with a lower rate of €2 for shorter air journeys (those under 300 kms). The tax will be payable by the appropriate airport authority to the Revenue Commissioners in respect of passengers departing from Irish airports. In effect the airport authority will collect the tax from the airlines.

Even before the official announcement, on 13 October 2008 Ryanair was reacting to accurate speculation about the tax and followed up with a further statement on 17 October.

Air New Zealand-owned A320 crashes into Mediterranean

Friday, 28 November 2008, was one of those days I dread. I usually check the web first thing in the morning and was horrified to see the early reports that an Air New Zealand-owned Airbus A320, in the process of being returned from XL Airways Germany, had crashed into the sea off France near Perpignan. I soon learnt that someone from our Civil Aviation Authority was suspected to be on board.

Air New Zealand has issued a series of media releases on the crash as have various official bodies (not all are available on the web yet).

Air New Zealand:

Incident 0829 28/11
Update 1438 28/11
Update 1724 28/11
Update 2146 28/11
Update 0600 29/11
Update 0900 29/11
Update 1328 29/11
Update 2030 29/11
Update 0807 30/11
Update NEW 1028 2/12
Update NEW 1328 2/12
Update NEW 1512 7/12
Update NEW 1528 13/1
Update NEW 1229 15/1
Update NEW 19/1
Update NEW 20/1
Update NEW 1449 20/1
Update NEW 22/1
Update NEW 23/1

Bureau d'Enquetes et d'Analyses (BEA):

Accident on approach to Perpignan 2008 27/11
Accident on approach to Perpignan 2008 NEW 3/12

Civil Aviation Authority of New Zealand:

CAA staff shocked by accident involving missing colleague NEW 28/11

New Zealand Prime Minister:

Statement on Air New Zealand plane crash 28/11

New Zealand Minister of Transport:

Government concerned for Air NZ & CAA staff on crashed Airbus
28/11

There is no point in speculating as to exactly what happened. That usually takes time to establish but I hope that the accident investigators are able to find some answers that we can learn from and that the investigation does not become entangled in judicial proceedings.

At the time of the crash, the aircraft was still on the German registry as D-AXLA, having not yet been handed back to Air New Zealand, but it had already been repainted in Air New Zealand colours. Seeing a photograph of the tail fin with the koru floating in the sea was particularly hard. The accident happened on the 29th anniversary of the Erebus tragedy, a day I still remember well. I was studying at Otago University in Dunedin then.

Rest in peace guys.

23 November 2008

New Zealand has a new Minister of Transport

Recently elected New Zealand Prime Minister John Key has appointed new list Member of Parliament Steven Joyce to be New Zealand Minister of Transport. Joyce took office on 19 November 2008 and replaces Annette King (now Deputy Leader of the Opposition), Harry Duynhoven and Judith Tizard. The latter two lost their seats in Parliament in the 2008 election.

The NZ Herald carried a profile of Joyce on 5 September 2008. He is a zoology and economics major with a business background, most recently as CEO of Jasons Travel Media and General Manager of the National Party.

In a new innovation there is now also a Minister of Infrastructure, Deputy Prime Minister Bill English.

Attempt underway to set around the world via the poles speed record

Tag Trans Polar 08 is currently attempting to beat an FAI 54 hours, 7 minutes and 12 seconds speed record set in 1977 by a Pan American B747SP for a circumnavigation of the globe via the North and South Poles.

The Bombardier Global Express aircraft touched down in Christchurch, New Zealand early this morning local time for only 31 minutes.

The planned routing is Farnborough-Whitehorse-Majuro-Christchurch-Punta Arenas-Sal-Farnborough. (HT to MRC Aviation which provides very good coverage of non-scheduled international operations through New Zealand.)

21 November 2008

ACCC draft decision rejects Air Canada/Air New Zealand commercial alliance

On 20 November 2008 the Australian Competition and Consumer Commission (ACCC) announced that it had reached a draft determination to reject an application from Air Canada and Air New Zealand to enter into a cooperation agreement for services between Australasia and North America that would involve revenue pooling. Qantas and Singapore Airlines made submissions on the application.

On 21 November 2008 The Australian carried a report by Steve Creedy on the draft determination and BusinessDay reported NEW a response from Air New Zealand.

Air New Zealand makes an interesting point about past ACCC approvals of the arrangements between Qantas and South African Airways on the Australia-South Africa route. It is also notable that by not fully liberalising its air services arrangements with countries such as Singapore and Canada, the Australian Government has blocked entry by potential competitors into the Australia-mainland USA market. It would seem that this has been deliberately done to protect the launch of V Australia into this market. However, a submission from the Australian Department of Infrastructure notes that Australia intends to enter into air services negotiations with Canada "in the near future."

06 November 2008

Air services arrangements between Saudi Arabia and the UK criticised

On 4 November 2008 the Telegraph reported on criticism from Sir Michael Bishop, who is selling his controlling share in bmi to Lufthansa, of new air services arrangements negotiated between the United Kingdom and Saudi Arabia in July.

Kuwait and Singapore reach "open skies" agreement

On 4 November 2008 the Civil Aviation Authority of Singapore (CAAS) announced that Singapore and Kuwait had concluded an "open skies" agreement. This takes the number of countries Singapore has "open skies" arrangements with to more than 30.

More direct transport links between Taiwan and the Mainland

On 4 November 2008 China Daily reported on the further opening of transport links between Taiwan and the Chinese Mainland following the signing of agreements between the mainland's Association for Relations Across the Taiwan Straits and the Straits Exchange Foundation (see previous post).

The permitted number of charter flights will be tripled to 108 per week and will be able to operate every day of the week (an agreement signed earlier this year permitted operations on only four days per week). New direct air routes will be introduced saving fuel and emissions as current flights are required to transit Hong Kong air space. Sixty direct cargo flights per month will also be possible.

Direct shipping links will be opened.

On 5 November 2008 Taiwan News carried a story on the negative impact the move is likely to have on Hong Kong.

05 November 2008

Cartograms of the US Presidential Election Results

For some excellent cartograms of the United States 2008 presidential election have a look at the work of Physics Professor Mark Newman and colleagues.

They have also done cartograms of the 2004 election.

The cartograms cover both state and county level results. The area of a state or county is based on its population or number of electoral votes rather than land area.

04 November 2008

Who to vote for?

A new weblog, Pundit, has a useful Election 2008 Party Quiz to help New Zealand voters decide which party best matches their views on the issues that are important to them.

It also links to the original US Presidential Quiz from Glassbooth.

My personal results? In New Zealand three parties are very close with a fourth not far behind and I still haven't finally decided which way my two votes will be cast on Saturday. As for US, I am glad I am not voting there because my quiz input on the issues results in an exact tie between McCain and Obama!

Anyway whether you are in the United States or New Zealand this week the most important thing is that if you are eligible you exercise your democratic right to vote. At times we may wish that we had a better system of selecting our governments, but a democratic system can only survive if we all support it.

And have fun watching the results roll in on the night.

31 October 2008

Outcome of IATA Istanbul Summit

On 26 October 2008 the International Air Transport Association (IATA) issued a Press Release on the outcome of its Agenda for Freedom Summit in Istanbul (see previous post). The opening Remarks of IATA Director General Giovanni Bisignani and the Summary of the Chairman, Jeff Shane, are also available.

Three key outcomes are stated to have emerged:
  • The participants asked IATA to continue to facilitate this discussion with a second meeting in early 2009 to turn the discussion into action.
  • They also asked IATA to facilitate the development of a multi-lateral statement of policy that would be a powerful tool expressing the common thinking and approach of the group of states.
  • Finally, the group agreed to spread best practices in liberalisation by making more openly available to all states the most liberal agreements that are being negotiated.
On 30 October 2008 The Economist carried a story on the outcomes.

US Department of Justice clears Delta takeover of Northwest

On 29 October 2008 the Antitrust Division of the United States Department of Justice issued a statement in effect clearing the way for the merger of Delta Air Lines and Northwest Airlines. The US$2.6 billion all-stock takeover has created the largest airline in the world. Reuters reported on the news.

EU Council finalises Directive to include aviation in ETS

On 24 October 2008 the Council of the European Union approved a directive bringing into law the inclusion of aviation in the European Union's Emissions Trading Scheme. A press release announced the decision (see previous post).

The United States Ambassador to the European Union, Kristen Silverberg, has written a letter to the European Commission dated 30 October 2008 reiterating US concerns.

Press releases reacting to the Council decision came from IATA, the Association of European Airlines (AEA) and the ELFAA.

EurActiv.com has a "links dossier" providing access to background on the aviation and emissions trading issue.

Political Party Transport Policies for the New Zealand Election

On 31 October 2008 the NZ Herald carried a story by Mathew Dearnaley headed "Transport a bandwagon everyone's happy to ride" and a table on the transport policies of the parties contesting the New Zealand General Election on 8 November 2008.

Policy.net.nz has a page on party transport policies.

28 October 2008

Treemaps

Panopticon has a fascinating demonstration gallery of its data visualisation software. As well as the financial data that one might expect and a few treemaps that you might not expect, for those interested in aviation there is a treemap of airliner crashes covering the period 1968-2008. This can be varied by airline and by aircraft manufacturer. The data source used is AirDisaster.Com.

26 October 2008

Aerolineas Argentinas to be expropriated?

Reuters is carrying a report dated 23 October 2008 that the Argentine Government is considering expropriating Aerolineas Argentinas. The government had been in talks to buy the airline (see previous post).

The airline is unusual in that it is foreign owned and controlled by Spanish interests, the Marsans group, probably giving many of Argentina's bilateral air services agreement partners the right to refuse to grant it operating authorisation. To my knowledge none have done so.

Air New Zealand reviewing services beyond RAR, TBU and APW to LAX

Television New Zealand and the Samoa Observer are carrying reports dated 26 October 2008 that Air New Zealand is seeking government subsidises if it is to continue its weekly services beyond Nuku'alofa, Apia and Rarotonga to Los Angeles.

The non-stop service between Rarotonga and Los Angeles is already subsidised by the Cook Islands government.

EC's Calleja addresses IAC

Against the background of the resumed air transport negotiations between the European Commission and the United States, on 23 September 2008 Daniel Calleja, the Director of Air Transport at the European Commission delivered a speech to the International Aviation Club in Washington DC.

Jetstar's New Zealand aspirations

On 24 October 2008 The Australian carried a report by Steve Creedy quoting the new Chief Executive of Qantas-subsidiary Jetstar, Bruce Buchanan, about the airline's aspirations for New Zealand operations.

It is becoming increasingly clear that the Boeing B787, with its size/range combinations, is likely to play a major part in New Zealand's aviation future.

Global Financial Crisis Impacting on New Zealand Visitor Arrivals

For some months now I have been getting rather gloomy about New Zealand's international visitor numbers. Having been hit by a supply shock in the form of rising jet fuel prices, airlines are now being hit by a demand shock and those that plan to survive will need to make some tough decisions. Those people that wish to see aviation emissions reduced and aircraft grounded may be in luck the way things are going, in the short term at least.

The September 2008 New Zealand International Visitor Arrivals:
  • Australia 82,317 down 2.6%
  • UK 10,580 down 5.3%
  • USA 9,131 down 11.6%
  • Canada 2,139 up 12.0%
  • China 5,497 down 33.2%
  • Korea 4,577 down 30.7%
  • Japan 6,486 down 22.1%
The total number was down by 6.6%.

Will the recent dramatic fall in the value of the NZ$ start to have a positive impact in some of these markets?

The NZ Ministry of Tourism does a good monthly analysis of this data in a Commentary and its Tourism Leading Indicators Monitor. I look at the provisional numbers that come through every Friday and at my work we also have the raw data direct from Statistics NZ. The NZ Ministry of Transport is the only one that gets the airline-by-airline statistics as, unlike in Australia for example, here they are regarded as commercially sensitive.

Fuel hedging by Air New Zealand

As well as hedging their foreign exchange exposure, volatility in the price of jet fuel leads to airlines hedging to achieve a degree of certainty about their costs going forward. Air New Zealand publishes its position here on its web site every quarter.

The latest announcement has just been covered in a story dated 24 October 2008 by Denise McNabb from The Independent. Given the dramatic fall in the price of oil, it is quite interesting. There have recently been some painful losses for the latest quarter announced by airlines in the United States as a result of having to mark to market their fuel hedging.

A data series and graphs on the Singapore jet fuel spot price are available from the US Energy Information Administration (see previous post). I have installed a widget giving the price of crude oil in US$ on the left hand side of this weblog.

Deadline for Canada-EU air services negotiations

On 17 October 2008 during the visit of the French and European Commission Presidents to Quebec City the Prime Minister of Canada Stephen Harper announced that he "... welcomed the decisive progress toward the negotiation of a comprehensive air transport agreement between Canada and the EU. He, along with EU leaders, directed negotiators to conclude the agreement by November 30, 2008. This agreement will improve connections between markets and create new opportunities for the air sector."

Back on 29 May 2008 the Canadian Minister of Transport noted that there had by then been three rounds of negotiations. The first round was held in Brussels on 27-28 November 2007 (Canadian statement)(see previous post).

25 October 2008

US domestic air transport deregulation 30 years later

This week saw the thirtieth anniversary of the economic deregulation of the US domestic airline industry under the Carter Administration.

To mark the occasion on 23 October 2008 the Antitrust Division of the US Department of Justice held a Workshop on Airline Competition at which some of the leading academics in the airline field presented papers (HT to Aviation Law Prof Blog).

Also marking the occasion were three articles complete with commentaries in the Summer 2008 issue of the Houston Law Review and a short article, Why You Hate to Fly, by Evan Sparks in The American magazine.

Bill Swelbar from MIT has four postings on his weblog:
The second posting finishes with an intriguing comment: "In the future, look to the horizon for the new competitive battleground. It will be more about Auckland than Amarillo. It really will."

To cap it off Kieran Daly noted that, one of the biggest beneficiaries of deregulation, Southwest had just announced its first quarterly loss in 17 years as a result of having to mark to market its fuel hedging.

I remember in the 1980s reading that the airline industry was proving to be less contestable than the advocates of economic deregulation had thought it would be. The industry certainly has had a bumpy ride from a financial perspective but consumers have enjoyed huge benefits. I continue to have an open mind as to whether the economic policy advisers and regulators, of which I am one here in New Zealand, have it right. The above links point to plenty of food for thought.

IATA Agenda for Freedom Summit in Istanbul

IATA is meeting back in Istanbul on 25-26 October 2008, this time with officials from 15 governments (Australia, Brazil, Canada, Chile, the European Commission, India, Mauritius, Morocco, Panama, Singapore, Switzerland, Turkey, the United Arab Emirates, the United States of America and Vietnam) in an Agenda for Freedom Summit to discuss ways of freeing up the government-imposed economic restrictions that international airlines operate under.

The Baltic Dry Index sinks

On 24 October 2008 Bloomberg reported that the Baltic Dry Index (BDI) has fallen 90% since May 2008 (see chart). On 16 October 2008 the Financial Times carried a story on this drop.

The BDI measures the cost of chartering large bulk ships and is regarded as a leading indicator of global economic activity. Back on 24 October 2003 an article by Daniel Gross in Slate described it as the best economic indicator you've never heard of.

With such developments as this and the fall in the price of oil maybe the world is getting smaller again (see previous post).

Gongoozling

An article published by The Economist on 18 September 2008 increased my vocabulary. I had never come across the word Gongoozler before. It seems that it is the canal equivalent of a train or plane spotter.

These days what is left of the UK canal network is maintained by British Waterways. I have been to the National Waterways Museum in Gloucester.

The US concludes "open skies" agreements with Armenia, Laos and Vietnam

On 7 October 2008 the US Department of Transportation announced that the United States had concluded a new "open skies" agreement with Armenia, and "open skies" with Vietnam with respect to cargo-only air services. An "open skies" agreement with Laos was announced by DoT on 3 October 2008.

This brings to 94 the number of "open skies" relationships that the United States has reached. Note that ICAO has 190 Contracting States so the US is now just under half way through all the possible "open skies" relationships that it could have.

A sea of red - following the US stock markets

Some time ago I linked from my Economics home page to the SmartMoney.com Map of the Market. It is what is called a treemap and shows a map of US equities with the area for an individual company varying by market capitalisation and the colour by whether the stock has risen or dropped in price.

I recently came across a much more comprehensive data visualisation source, FINVIZ.com (HT to information aesthetics). Currently it presents a gloomy picture but perhaps points to some buying opportunities for those that are contrarian. To quote Warren Buffett in an opinion piece in The Times on 19 October 2008: "Be greedy when other are fearful and be fearful when others are greedy."

The market capitalisations of the major US airlines are now so small that they are actually quite hard to find on this visualisation tool - do not expect to find them in the S&P 500 view - look in the Full view in the Services block on the right near the bottom under "Maj".

12 October 2008

09 October 2008

Fiji to join the PIASA

On 7 October 2008 the Fiji Interim Government announced that Fiji intends to join the Pacific Islands Air Services Agreement (PIASA)(see previous post).

Given Fiji's central geographic location in the South Pacific and its past concerns about air services liberalisation, this is a significant announcement.

28 September 2008

Canada reaches "Blue Sky" agreement with Dominican Republic

Canadian Ministers Cannon and Fortier announced on 5 September 2008 that Canada has reached a "Blue Sky" air transport agreement with the Dominican Republic.

India to sign new air services agreement with the Maldives

On 18 September 2008 the Indian Government announced that it had approved the signing of a new air services agreement (ASA) with the Maldives. The draft ASA includes a move to multiple designation and permits third-country code-sharing but retains the traditional "substantial ownership and effective control" provision.

Airline perspectives on Philippines air transport policy

On 28 September 2008 the Manila Times carried a special report quoting the views of Philippine Airlines and Cebu Pacific about international air services policy and negotiations.

The two Congos sign a new air services agreement

Afrique en ligne carries a report dated 25 September 2008 on the signing of a new air services agreement between DR Congo and Congo-Brazzaville.

Common Values - Why Kiwis and Canucks get along so well?

The World Values Survey web site has an interesting Cultural Map of the World (see below) by Political Studies Professors Ronald Inglehart and Christian Welzel that organises countries by the values their people hold.


This seems to provide a partial explanation as to why I, as a New Zealander, feel more at home in Canada than England or even Australia and enjoy visiting Switzerland and Austria.

What would be fascinating to see is such a map done for the values held by people in individual states in the USA, particularly California and New York compared with the Mid West and Deep South.

I have seen a similar map graphing the relationship between trust and economic performance by Harrison and Huntington (2000) in "The Origin of Wealth" by Eric Beinhocker (Figure 18-1 on page 433 - also see previous post).

Most of New Zealand's air services agreements are now online

I have been through the New Zealand Treaty Series documents currently available at http://www.nzlii.org/nz/other/mfat/NZTS/ and extracted out the links to those on air services (see recent post) and civil aviation. Clearly what has been posted is a work in progress with a significant number of air services-related treaties still to be added (notably those covering New Zealand's air services relationships with European countries, the most recent ones and the MALIAT, which has its own web site) and there is no indication of the current status of individual treaties - many have been superseded.

Also take heed of the usual note of caution - to fully understand the opportunities available to international airlines in an air services relationship you also need to look at the related Memorandum of Understanding. In New Zealand these are held by the Ministry of Transport and are not available on the web.

On my home pages I have a list of virtually all the air services agreements (but not the amendments) with their year of signature and that gives some indication of those treaties that are no longer current. The following treaties are in date order of publication in the Treaty Series.

New Zealand Air Services Treaties Online

Exchange of Notes between New Zealand and France constituting an Agreement regarding the Exchange of Air Traffic Rights in the South Pacific [1949] NZTS 9

Air Transport Agreement between the Government of New Zealand and the Government of the French Republic [1968] NZTS 3

Exchange of Letters between the Government of New Zealand and the Government of France extending the Air Transport Agreement of 9 November 1967 [1971] NZTS 17

Agreement between New Zealand and Japan for Air Services, with Exchange of Notes [1980] NZTS 7

Agreement between the Government of New Zealand and the Government of the Republic of Nauru concerning Air Services, with Route Schedule [1980] NZTS 10

Exchange of Notes constituting an Agreement to amend the 1961 Air Services Agreement between New Zealand and Australia [1982] NZTS 7

Exchange of Notes constituting an Agreement between the Government of New Zealand and the Government of the Commonwealth of Australia amending the Agreement relating to Air Services of 25 July 1961 [1983] NZTS 19

Exchange of Notes amending the Agreement between the Government of New Zealand and the Government of Western Samoa for Air Services between and beyond their Respective Territories of 23 June 1978 [1984] NZTS 16

Exchange of Letters between the Government of the Republic of Nauru and the Government of New Zealand constituting an Agreement to Amend the Air Services Agreement 1980 [1984] NZTS 17

Agreement between the Government of New Zealand and the Government of Canada on Air Transport, with Annex and Exchange of Notes [1985] NZTS 4

Agreement between New Zealand and the Argentine Republic for Air Services [1985] NZTS 5

Agreement between the Government of New Zealand and the Government of the Cook Islands concerning Air Services [1986] NZTS 9

Exchange of Letters constituting an Agreement between the Government of New Zealand and the Government of the Republic of Nauru to amend the Route Schedule of the Air Services Agreement of 5 August 1980 [1987] NZTS 20

Air Services Agreement between the Government of New Zealand and the Government of the Kingdom of Thailand, with Annex [1987] NZTS 23

Air Transport Agreement between the Government of New Zealand and the Government of the Republic of Indonesia, with Annex [1988] NZTS 4

Exchange of Letters constituting an Agreement between the Government of New Zealand and the Government of the Cook Islands amending the Agreement concerning Air Services [1988] NZTS 8

Agreement between the Government of New Zealand and the Government of the Republic of Vanuatu concerning Air Services (with Annex) [1989] NZTS 4

Exchange of Notes constituting an Agreement between the Government of New Zealand and the Government of Japan amending the Agreement for Air Services [1989] NZTS 5

Exchange of Notes constituting an Agreement between the Government of New Zealand and the Government of the Kingdom of Thailand Amending the Air Services Agreement [1989] NZTS 6

Agreement between the Government of New Zealand and the Government of Solomon Islands concerning Air Services (with Annex) [1990] NZTS 2

Agreement between the Government of New Zealand and the Government of Niue concerning Air Services [1990] NZTS 3

Exchange of Notes constituting an Agreement between the Government of New Zealand and the Government of the United Kingdom of Great Britain and Northern Ireland amending the Agreement concerning Air Services [1991] NZTS 1

Agreement between the Government of New Zealand and the Government of Hong Kong concerning Air Services [1991] NZTS 7

Exchange of Notes constituting an Agreement between the Government of New Zealand and the Government of the Republic of Fiji amending the Agreement between New Zealand and Fiji concerning Air Services of 26 April 1979 [1992] NZTS 5

Exchange of Notes constituting an Agreement between the Government of New Zealand and the Government of Thailand to Amend the Air Services Agreement, as amended in 1989 [1992] NZTS 16

Air Transport Agreement between the Government of the Russian Federation and the Government of New Zealand [1993] NZTS 2

Exchange of Letters constituting an Agreement between the Government of New Zealand and the Government of Japan concerning Amendments to the 1980 Air Services Agreement [1993] NZTS 8

Agreement between the Government of New Zealand and the Government of the Republic of Korea for Air Services between and beyond their Respective Territories (with annex) [1993] NZTS 11

Agreement between the Government of New Zealand and the Government of the People's Republic of China relating to Civil Air Transport [1993] NZTS 14

Exchange of Letters amending the Agreement between the Government of New Zealand and the Government of Western Samoa for Air Services, as Amended by Exchange of Notes of 2 July 1984, and further amended by Exchange of Notes of 31 August 1990 (with Annex) [1993] NZTS 16

Agreement between the Government of New Zealand and the Government of Papua New Guinea on Air Services [1994] NZTS 2

Exchange of Notes constituting an Agreement amending the 1978 Agreement between the Government of New Zealand and the Government of Western Samoa for Air Services between and beyond their Respective Territories (with Annex) [1994] NZTS 7

Agreement between the Government of New Zealand and the Government of the Sovereign Democratic Republic of Fiji on Air Services [1994] NZTS 27

Air Transport Agreement between the Government of New Zealand and the Government of the Republic of Chile [1995] NZTS 15

Exchange of Letters between the Government of New Zealand and the Government of Japan amending the Agreement for Air Services of 1980 [1995] NZTS 20

Agreement between the Government of New Zealand and the Government of Macau on Air Services [1996] NZTS 8

Exchange of Notes between the Government of Hong Kong and the Government of New Zealand amending the Air Services Agreement of 22 February 1991 [1996] NZTS 20

Agreement between the Government of New Zealand and the Government of the Republic of India relating to Air Services [1997] NZTS 10

Agreement between the Government of New Zealand and the Government of the Republic of South Africa on Air Services (with route schedule) [1997] NZTS 13

Air Services Agreement between the Government of New Zealand and the Government of the Republic of Singapore [1997] NZTS 14

Air Transport Agreement between the Government of New Zealand and the Government of the United States of America [1997] NZTS 19

Exchange of Letters Constituting an Amendment to the Agreement between New Zealand and Japan for Air Services signed at Auckland on 18 January 1980 [1998] NZTS 6

Exchange of Letters amending the Route Schedule of the Air Services Agreement between the Republic of Argentina and New Zealand done 13 December 1985 [1998] NZTS 8

Air Services Agreement between the Government of New Zealand and the Government of Malaysia [1998] NZTS 9

Agreement between the Government of New Zealand and the Government of the Federative Republic of Brazil on Air Services, with Annex [1998] NZTS 16

Air Services Agreement between the Government of New Zealand and the Government of His Majesty the Sultan and Yang-Di-Peertuan of Brunei Darussalam [1999] NZTS 5

Agreement between the Government of New Zealand and the Government of the United Arab Emirates on Air Services [1999] NZTS 22

Air Services Agreement between the Government of New Zealand and the Government of the Cook Islands [2000] NZTS 1

Exchange of Notes between the Government of New Zealand and the Government of the Republic of Indonesia constituting an Agreement amending the Air Transport Agreement of 27 May 1988 [2000] NZTS 12

Air Services Agreement between the Government of New Zealand and the Government of Ireland [2000] NZTS 14

Air Services Agreement between the Government of the United Mexican States and the Government of New Zealand [2000] NZTS 22

Air Services Agreement between New Zealand and the Kingdom of Denmark [2001] NZTS 2

Air Services Agreement between New Zealand and the Kingdom of Norway [2001] NZTS 3

Air Services Agreement between New Zealand and the Kingdom of Sweden [2001] NZTS 4

Air Services Agreement between the Government of New Zealand and the Government of the Kingdom of Tonga [2002] NZTS 1

Air Transport Agreement between the Government of New Zealand and the Austrian Federal Government [2002] NZTS 6

Exchange of Notes to Amend the Agreement Between the Government of New Zealand and the Government of Japan Relating to Air Services [2002] NZTS 56

Agreement between the Government of New Zealand and the Government of Australia Relating to Air Services [2003] NZTS 13

Agreement between the Government of New Zealand and the Government of the Socialist Republic of Viet Nam on Air Services [2004] NZTS 7

Civil Aviation-Related Treaties Online

Australian - New Zealand Agreement 1944 [1944] NZTS 1 – note paragraphs 17 to 23.

Agreement between the Government of New Zealand and the Government of Western Samoa concerning Civil Aviation, with Annex [1973] NZTS 3

Exchange of Letters between the Government of New Zealand and the Government of Fiji constituting an Agreement concerning the Contribution by the Government of New Zealand toward the Improvement in the Financial Situation and in the Reorganisation of Air Pacific Ltd [1975] NZTS 11

Exchange of Notes amending the Agreement of 20 March 1970 relating to Certificates of Air Worthiness for Imported Aircraft [1979] NZTS 10

Agreement on Civil Aviation between the Government of New Zealand and the Government of the Cook Islands [1986] NZTS 6

Exchange of Letters constituting an Agreement between the Government of New Zealand and the Government of Niue relating to Civil Aviation [1986] NZTS 10

23 September 2008

Air Vanuatu restructuring?

The Government of Vanuatu still has a web site up for the proposed restructuring of Air Vanuatu. Expressions of Interest were due by 7 March 2008. I have not seen any progress reports.

The same consultants, International Finance Corporation (a member of the World Bank Group), advised the Government of Samoa on the future of Polynesian Airlines which lead to its downsizing and the creation of Polynesian Blue in 2005.

Japan negotiates new air services arrangements with Singapore

The Civil Aviation Authority of Singapore (CAAS) announced on 19 September 2008 that Japan and Singapore have reached agreement on expanded air services arrangements. This included an expanded exchange of fifth freedom rights and a major capacity increase for Singaporean airlines into Tokyo that will also allow services into Haneda airport. The negotiations took place in Singapore on 17-18 September.

21 September 2008

Australia and Bangladesh negotiate new air services arrangements

On 27 August 2008 the Australian Minister for Infrastructure, Hon Anthony Albanese, announced that Australia has signed a Memorandum of Understanding with Bangladesh that will provided for air services between the two countries by their airlines.

Oceanic Voyages report from the ADB

Last year the Asian Development Bank (ADB) based in Manila published a three-volume report, Oceanic Voyages: Aviation and Shipping in the Pacific Region. The report is full of case studies and is now available online.

The focus is on the international transport challenges facing the Pacific Islands with their small markets and vast distances. The aviation volume was drafted by the Centre for Asia Pacific Aviation and the shipping volume was drafted by Meyrick and Associates.

Aviation reports from the US Government Accountability Office

Amongst the many recent reports and testimony produced by the United States Government Accountability Office (US GAO - described as the investigative arm of Congress) there are a couple that I found to be of particular interest:
The focus is on the US domestic air transport market but the report is of wider relevance.
The GAO notes that its is "... currently undertaking ... a study of the EU emissions trading system and its potential impact on U.S. airlines, and other issues relating to aviation and climate change."

A couple of years ago the GAO commented on the idea of reregulating the US airline industry:

20 September 2008

Reasons why The End of Aviation is not nigh

In response to the article that appeared in New Republic, on 1 September 2008 Kieran Daly posted on his Unusual Attitude weblog five reasons why not (see previous post).

19 September 2008

New Zealand National Freight Demands Study released

On 18 September 2008 a National Freight Demands Study was released. The study gives a comprehensive picture of the movement of goods around New Zealand and should provide a sounder basis for transport policy and planning.

18 September 2008

Air Pacific review hearings

In stories on 2 September and 5 September 2008 the Fiji Times reported that task force hearings on Air Pacific are under way.

On 1 August 2008 the Office of the Attorney General announced that around 30 public submissions had been received.

What the task force is interested in was outlined in a call for submissions issued by the Fiji Government (see previous post).

17 September 2008

APEC Port Services Network

The APEC Port Services Network now has its own web site that carries industry news.

Plan for air traffic management progress in Europe

A new Flight Efficiency Plan (.pdf) released on 9 September 2008 by IATA, Eurocontrol and CANSO is aimed at reducing aviation fuel consumption within Europe.

The Plan gives some quantification of potential emissions reductions but could have been clearer in summarising the total reductions thought to be achievable.

Canada's treaties

There is now a new web site for Canada's treaties, including its air transport agreements - search under the subject "Air" (see previous post). It is maintained by the Canadian Department of Foreign Affairs and International Trade.

Venezuela-United States air services dispute

On 12 September 2008 Aviation Week carried a story about a developing dispute between Venezuela and the United States. An issue is the interpretation of the 1953 bilateral Air Transport Agreement between the two countries.

Back on 24 February 2006 USA Today reported on a previous related dispute.

16 September 2008

The price of jet fuel

With the price of oil back below US$100 per barrel, today I completed the following graph. I was particularly interested to see what the picture was with respect to monthly movements in the price of jet fuel measured in New Zealand dollars.

I used monthly jet fuel spot prices from the Energy Information Administration of the US Department of Energy (see previous post). The exchange rate data set I used came from the Reserve Bank of New Zealand.

ASPIRE and the "perfect" flight

Air New Zealand has cooperated with Airways New Zealand and the US Federal Aviation Administration to carry out a B777-200ER flight to San Francisco (SFO) that departed on 12 September 2008 from Auckland (AKL) to demonstrate what is now possible using advanced air traffic management technology and procedures to achieve a reduction in fuel consumption and aircraft emissions.

The NZ Herald reported on 15 September 2008 that the flight achieved a 4% reduction in fuel consumption.

The flight was part of the Asia & South Pacific Initiative to Reduce Emissions (ASPIRE) that also involves Air Services Australia.

14 September 2008

New Zealand 2008 General Election date announced

On Friday, 12 September 2008 the Prime Minister announced that the next New Zealand General Election will be held on Saturday, 8 November 2008 so it is time for New Zealanders to check that they are enrolled with Elections New Zealand.

Those Kiwis overseas might like to have a look at the web site Every Vote Counts, a non-partisan campaign to reach New Zealanders offshore and encourage them to participate.

Canada's next federal election will be on 14 October and the Presidential election in the United States is on 4 November so there is plenty going on to keep election watchers interested.

11 September 2008

New Zealand beats Australia in the Olympics medal tally

The per capita statistics from NationMaster has New Zealand at #11 just ahead of Australia at #12 on the all-time Summer Olympics medal tally (see previous post).

It is not just that New Zealand beat Australia, with 116 countries listed it is that New Zealand just beat Australia that I find so interesting.

Herman from Belgium (producer of a brilliant set of small flags that I use) also has a table setting out the recent results (for 2008 he combines Beijing and Torino).

Remembering John Lozowsky on 9/11

Another 9/11 anniversary comes around here in Wellington and I am taking a moment to remember John Lozowsky, one of the two New Zealand citizens killed that terrible day in 2001 (see my first post).

31 August 2008

John McCain chooses Alaska Governor Sarah Palin

A few weeks ago I mentioned to a friend who follows US politics that he should read up about Alaska Governor Sarah Palin as a likely vice presidential running mate for the 2008 Republican presidential candidate, Senator John McCain. I wasn't caught by surprise when she was selected late last week. This lady has a fascinating personal story that is now getting extensive media coverage.

At least one blog had been supporting her for months.

The aviation angles? Her husband Todd has a private pilot licence, owns a Super Cub manufactured in 1958 and registered N8149D, and they have a daughter called Piper. As was the case with Democratic vice presidential candidate Senator Joseph Biden, the first clue as to who McCain might have picked came from those who follow business jet movements. John McCain, of course, was a US Navy pilot.

The United Arab Emirates concludes new air services arrangements with Jordan and Nigeria

The United Arab Emirates has concluded new air services arrangements with Jordan (announced on 3 July 2008) and Nigeria (announced on 30 July 2008)(see previous post).

The End of Aviation?

The New Republic has a thought-provoking article, "The End Of Aviation", dated 27 August 2008 by Bradford Plumer.

I have greater faith in technological solutions to civil aviation's current fossil-fuel challenge but it is clear that the aerospace and airline industries must adapt and do so quickly.

17 August 2008

Iran and the Philippines conclude first air services agreement

On 7 August 2008 Fars News Agency reported that Iran and the Philippines have concluded their first air services agreement. This was also reported in Manila Times story on the same day.

16 August 2008

New Zealand Minister of Tourism comments on Thai Airways' Auckland service

On 13 August 2008 the Bangkok Post reported comments by the New Zealand Minister of Tourism, Hon Damien O'Connor, on the possibility that Thai Airways International may reroute its current non-stop Bangkok-Auckland flights via Australia (see previous post).

14 August 2008

Official Australian tourism forecasts

Australia's official tourism forecasts are published twice yearly, the latest being produced in August 2008.

It is interesting to compare these with the latest New Zealand forecasts (see previous post). The Australian forecasts are predicting 0.0% inbound growth in 2008 before rising 3.3% in 2009. Outbound growth from Australia is expected to be strong - 9.9% in 2008 and 8.0% in 2009.

Tourism Australia also publishes good information on Australia's aviation markets, including market share and historical seat capacity data.

10 August 2008

Airline seat capacity reducing from East Asia to New Zealand but trans-Tasman competition increasing

Thai Airways was reported in the Wall Street Journal to be considering routing its non-stop Bangkok-Auckland operations via Australia.

On 26 July 2008 the Star reported that Malaysia Airlines plans to use smaller aircraft on its services to Australia and New Zealand. It is temporarily reducing capacity to Auckland by one flight per week for a month.

On 7 August 2008 the China Post reported that EVA Airways would be suspending its operations to Auckland from 1 September 2008 and Tourism New Zealand would be closing its Taipei office.

By way of background, in 2006 Garuda ceased services from Denpasar to Auckland, and Air New Zealand ceased operations to Singapore when it extended its Hong Kong services to London and commenced services to Shanghai.

On a more positive note for seat capacity to New Zealand, on 18 July 2008 Air New Zealand commenced non-stop operations to Beijing, and Pacific Blue has announced that it will be commencing trans-Tasman services on both the Melbourne-Auckland (from 22 September 2008) and Sydney-Auckland (from 14 October 2008) routes. Emirates is reported in the NZ Herald on 8 August 2008 to be planning to introduce the A380 on services to Auckland from 1 February 2009 and increase the size of aircraft it operates to Christchurch. Royal Brunei has started operating daily to Auckland via Brisbane.

It would be hard to find many examples around the world where so many airlines are competing as on the main trans-Tasman routes.

Eric Beinhocker on complexity economics

I have recently finished the book The Origin of Wealth - Evolution, Complexity and the Radical Remaking of Economics by Eric D. Beinhocker from McKinsey & Company. For those interested in some provocative, non-conventional - some might say leading edge - thinking about economics, it is well worth a read.

I was intrigued to find that the key ideas in the book are neatly summarised in a presentation UPDATED (.pdf) given by the author in April 2007 that is on the UK Cabinet Office web site.

New air services arrangements signed by Kenya and Congo

On 1 August 2008 it was reported from Brazzaville that Congo and Kenya had signed a new air services agreement.

The great QANTAS safety record myth

Three recent QANTAS aviation safety "incidents", including a very serious one near Manila on 25 July 2008 when a large part from the fuselage of a B747-400 was lost but fortunately no one was injured, have yet again seen misreporting in the non-aviation news media about the safety record of the airline. For example, Bloomberg fell for this myth in a 25 July 2008 story - "Qantas, which has never had a fatal plane accident in its 87-year history, ..."

As a historian this bugs me and I was intrigued to find that someone has put an article on Wikipedia with the facts, listing the airline's fatal accidents.

An Australian Transport Safety Bureau media release dated 30 July 2008 provides an update on the B747 depressurisation incident.

QANTAS has yet to lose a jet aircraft hull and I hope it never does.

A US legal perspective on the EU plan to include international aviation in its ETS

On 7 February 2008 New York-based attorney Stephen Stegich presented a 21-page paper on the European Union emissions trading scheme (EU ETS) and aviation.

Although there have been developments since it was presented (see previous post), the paper provides good background on the issues involved and touches on the legal differences between the EU and others who question the legality of what the EU is planning to do.

Trial New Zealand resident departures chart

I have now completed a second Google Motion Chart. It is on New Zealand Resident Departures for the current top 30 markets and covers the period 1983-2004.

To see the animation click on Gadget1 - see top left - and then press the play button. Roll your mouse pointer over individual bubbles to see the market names. Click on them to produce a label. With the trace box (right centre) selected, click on a bubble and press play (bottom left) for a year-by-year view of changes (click on the bubble again to deselect). Multiple bubbles can be selected.

I used data on great circle distances from Auckland airport (AKL)(from Great Circle Mapper) for the X axis, real GDP per capita on a PPP basis (from Gapminder) for the Y axis and New Zealand resident departure numbers (from Statistics NZ Table 3.01) for the bubbles. Note that the market concerned is where New Zealand residents have declared that they will be spending the most time on their trip - their country of main destination. (See previous post.)

08 August 2008

Beijing Olympics 2008

The 2008 Summer Olympic in China are underway so it is time to have a few links to follow the sporting action. But first some great Olympics-related interactive graphics are available from the New York Times, such as a bubble chart on the medals awarded at every modern summer Olympics (click on the bubbles).

Now for some links:
With more and more people turning to the web for their news and entertainment I am expecting great things from creative web designers.

As for the aviation connection, on 18 July 2008 Air New Zealand started operating non-stop services from Auckland to Beijing.