US Congress to ban US airlines participating in EU ETS?

On 20 July 2011 the US House of Representatives Transportation and Infrastructure Committee announced that it is intended to ban US airlines participating in the "illegal" coverage of international aviation by the European Union's Emissions Trading Scheme by means of a short, 5-section Bill.

GreenAir Online covers the development in a 21 July 2011 article, and includes reaction from MEPs.

Many such bills will not make it into law but the fact that this one has bipartisan support suggests that it should not be taken lightly. With key interests in both the United States and China (see previous post) both firmly opposed to the unilateral action being taken by the European Union, as Flightglobal journalist Will Horton has noted, this could get ugly.

New Zealand Government mandates air services negotiations in East Asia and South America

On 14 July 2011 the New Zealand Associate Minister of Transport, Nathan Guy, announced that New Zealand's air services negotiators had been issued with mandates for negotiations with up to 10 countries in East Asia and South America. China and Brazil were specifically named. These regions are seen as emerging markets with considerable growth potential. In addition, the prospect of Auckland (AKL) gaining a share of East Asia-South America traffic is referred to. The statement refers to the LAN-Cathay Pacific code share via Auckland (see previous post).

Auckland and Christchurch airports both made media statements welcoming the announcement.

On 15 July 2011 Flight Global (Will Horton) and Aviation Week (Adrian Schofield) covered the news. The latter noted that capacity restrictions applied under New Zealand's current air services agreements with China and Brazil.

A 21 July 2011 Air Transport Intelligence article by Will Horton notes the technology and alliance challenges Air New Zealand faces if it is to serve Brazil.

The Minister's media statement also announced the New Zealand had reached agreement with the Netherlands to remove restrictions on code sharing. This allows SkyTeam member, KLM, to code share to AKL via Guangzhou on the new China Southern operation (see previous post). KLM has been code sharing to New Zealand on Malaysia Airlines which is joining the oneworld alliance.

"Aerotropolis - The Way We'll Live Next" by John Kasarda and Greg Lindsay

I had expected that this book would be more of an academic work than what it is - largely one of business journalism - but it is well worth a read nonetheless.

Aerotropolis gives a good picture of the role that civil aviation is now playing in globalisation, and how airports have become central to modern economies and urban development.

Featured in the book are developments around:

• Incheon (ICN) - where a new city, Songdo, is being built
• Los Angeles (LAX) - where the airport had not been supported
• Dulles (IAD) - near Washington DC in a wealthy and growing part of Virginia
• Chicago (ORD) - where there were plans for an additional airport
• Memphis (MEM) and Louisville (SDF) - hubs for FedEx and UPS respectively
• Dallas Fort Worth (DFW) - hub for American Airlines
• Detroit (DTW) - second hub for Delta with links to Asia and looking to build a Detroit Region Aerotropolis
• Denver (DEN) - where a completely new airport was opened
• Amsterdam (AMS) - with its associated flower market
• Dubai (DXB), Abu Dhabi (AUH) and Doha (DOH) - with their competing global ambitions
• Bangkok (BKK) - where a new airport has been built on a swamp
• Hong Kong (HKG), Guangzhou (CAN) and Shenzhen (SZX) - vital to the success of manufacturing in the Pearl River Delta

For me, the book's coverage of developments in China was the most interesting, perhaps because it was the least familiar.

Memorable concepts from the book include:

• "Kasarda's Law of Connectivity: every technology meant to circumvent distances electronically ... will only stoke our desire to transverse [distance] ourselves."
• "Individual companies don't compete. Supply chains compete. Networks and systems compete."
• Marchetti's Constant

One piece of advice that is actually included late in the book. Use Google Earth while reading "Aerotropolis" to get an idea of the lie of the land around the airports being referred to.

Reviews of the book have appeared in:

• Kirkus Reviews 15 December 2010
• Bloomberg Businessweek 24 February 2011
• FT Magazine 25 February 2011
• Wall Street Journal 2 March 2011
• New York Times 4 March 2011
• The Independent 4 March 2011
• The Telegraph 13 March 2011
• The Guardian 19 March 2011
• Barnes and Noble Review 22 March 2011
• The Scotsman 27 March 2011
• The Enlightened Economist 28 April 2011
• London Review of Books 28 April 2011 
• History Books Review 27 May 2011
• Los Angeles Review of Books 30 May 2011

It is clear that civil aviation in general and the future that Kasarda outlines have their sceptics and this book is somewhat provocative.

An earlier 1 July 2006 article, Rise of the Aerotropolis, on the concept by Greg Lindsay appeared in Fast Company.

Next air services negotiating priorities for the United States

On 31 March 2011 Air Transport World reported US Assistant Secretary for State Jose Fernandez as saying that the next air services negotiation priorities for the United States are China, the Dominican Republic, Mexico and Russia.

Chinese concern about EU ETS covering international aviation

On 22 March 2011 Air Transport World reported opposition from the major Chinese airlines to the inclusion of international aviation in the European Union's emissions trading scheme (US airlines have similar concerns - see previous post). It will be very interesting to see what position China's Government adopts.

Australia and China expand route and capacity opportunities for their airlines

On 8 March 2011 the Australian Minister for Infrastructure and Transport announced that Australia had signed a Memorandum of Understanding on air services with China expanding passenger seat capacity and route opportunities for the international airlines of the two countries. Australia continues to seek an "open skies" agreement with China.

ASEAN moves towards a Single Aviation Market

I have been trying to disentangle the progress being made by the 10 member states of the Association of Southeast Asian Nations (ASEAN) towards an ASEAN Single Aviation Market (ASAM) by 2015 and related engagement with dialogue partners. What follows are some key source documents.

On 11 November 2010 in Brunei ASEAN Transport Ministers jointly announced progress towards "open skies".

This included signing the ASEAN Multilateral Agreement on the Full Liberalisation of Passenger Air Services (MAFLPAS). This has a Protocol 1 [link?] and a Protocol 2.

This new agreement extends the 2009 ASEAN Multilateral Agreement on Air Services (MAAS), which does not cover all international airports within ASEAN.

The MAFLPAS also compliments the 2009 ASEAN Multilateral Agreement on the Full Liberalisation of Air Freight Services (MALAFS).

Also signed in Brunei on 12 November 2010 was a Memorandum of Understanding on ASEAN's Air Services Engagement with Dialogue Partners. This is designed to ensure that priority is given to committing to the ASEAN internal air transport market ahead of any air transport agreements with ASEAN's dialogue partners.

Australia has funded two major research projects through the ASEAN-Australia Development Cooperation Program (AADCP) focusing on the ASEAN air transport market that also provide useful background on other regional efforts around the world:

• Developing ASEAN's Single Aviation Market and Regional Arrangements with Dialogue Partners (2008) by Thomas, Stone, Tan, Drysdale and McDermott (Executive Summary and Abstract) (Project No. 07/003)
• Strategic Directions for ASEAN Airlines in a Globalizing World (Project No. 04/008)
  Overview
  Competition and Consumer Protection Policy
  The Emergence of Low Cost Carriers in South East Asia
  Ownership Rules and Investment Issues
  Development of Principles for the Implementation of Subsidies and State Aid 

Earlier research included:

• Preparing ASEAN for Open Skies (2004) by Monash International

As reported by The China Post on 9 May 2010 Indonesia does not seem to have bought into the 2015 deadline for ASAM. This is reflected in its lack of ratifications by some member states to the key ASEAN air transport agreements.

In an earlier post I noted that progress was being made towards an ASEAN agreement with China. The Air Transport Agreement (Protocol 1) was announced in Brunei on 12 November 2010. The Agreement is limited to an exchange of third/fourth freedom rights with officials to pursue an exchange of fifth freedom rights. However, given the size of the two air transport markets and their expected rapid growth in coming decades this may turn out to be the beginnings of one of the major global moves towards air transport liberalisation, akin to the economic deregulation of the air transport markets within the United States and the European Union.

India too has been working towards a closer air services relationship with ASEAN announcing on 7 November 2008 an aviation cooperation framework.

I am still looking for a good write up of what has been happening within ASEAN but see some parallels in the staged approach to the deregulation of the air transport market adopted by the European Union and the Pacific Islands.

SkyTeam member China Southern Airlines to operate to Auckland

On 12 December 2010 Auckland International Airport issued a media statement welcoming the announcement that China Southern Airlines (CZ) is to commence operating from Guangzhou to Auckland from March 2011, initially via Melbourne three times per week with A330-300 aircraft.

This announcement together with the announcements that China Airlines (CI) and Aerolineas Aerolineas (AR) will be joining the SkyTeam global airline alliance means that this third allinace will be establishing a more substantial presence in the New Zealand market. Currently the only SkyTeam member airline operating to New Zealand is Korean Air (KE).

China starting to make available the texts of its air services agreements

In the English language part of its web site, the General Administration of Civil Aviation of China (CAAC) has started to make available the texts of China's air services agreements.

Unfortunately it seems some subsequent amendments, for example with New Zealand where the route schedule has been liberalised (see previous post), have yet to be made available. A work in progress?

ASEAN-China air transport agreement close?

On 29 October 2010 Channel News Asia reported from Hanoi comments by Singapore's Prime Minister Lee that he expected an ASEAN-China Air Transport Agreement to be concluded next month.

Lee also suggested that ASEAN should be pushing for 'open skies' within the ASEAN region. On 27 April 2010 the Business Mirror reported comments from a Philippines official that only one unnamed country had yet to agree to a Multilateral Agreement for the Full Liberalisation of Passenger Air Services (MAFLPAS).

ASEAN already has a 2009 Multilateral Agreement on Air Services, which allows unlimited flights between capital cities by the airlines of member states, and a 2009 Multilateral Agreement on the Full Liberalisation of Air Freight Services.

Australia expands air services arrangements with China

On 14 February 2010 the Australian Minister for Infrastructure, Hon Anthony Albanese, announced a phased increase in seat capacity (by 70%) and traffic rights in its air services arrangements with China.

No detail is given as to what new points beyond Australia Chinese airlines will be able to operate to but one might speculate that they involve New Zealand.

Influenza epidemic almost halting Chinese outbound travel

The China Daily reported on 16 May 2009 that as a consequence of the influenza epidemic outbound travel from China is collapsing even to destinations that have not been affected.

Tourism New Zealand is commenting on the rapidly developing impact on the New Zealand tourism industry (see, for example, this release dated 20 May 2009).

Taiwan and China agree to "regular" flights across the Strait

On 26 April 2009 Xinhua reported on the outcome of negotiations held that day between ARATS and SEF. The new air services arrangements change the status of flights from charter (non-scheduled) to regular (scheduled) from two Taiwanese airports, increase flight frequencies from 108 to 270 per week, introduce new air routes between Taiwan and the Chinese mainland, and increase the number of mainland points that may be served by six to 27 (see previous post).

On 24 April 2009 the China Post had reported that the Taiwanese negotiators had been seeking 375 flights per week.

On 1 May 2009 the Taipei Times reported on the implications for the allocation of these rights between Taiwanese airlines.

On 14 May 2009 China Daily reported comments from Hong Kong-based Cathay Pacific (CX) on the implications of the deal for the airline.

On 15 May 2009 the Taipei Times reported that the negotiators had yet to agree to an exchange of overflight (first freedom) rights that would allow Taiwanese airlines to overfly the Chinese mainland enroute to Europe.

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).

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.

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:

• The official web site of the Beijing 2008 Games
• Television New Zealand's Olympics pages
• NZ Herald's Olympics pages
• stuff.co.nz Olympics pages
  
• NBC Olympics
• Yahoo!7 Olympics pages from Australia
  
• BBC Sport's Olympics pages
• International Olympic Committee
  

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.

Charter flights between the Chinese mainland and Taiwan to increase

On 13 June 2008 Xinhua reported on the signing of an agreement between two NGOs, the mainland's Association for Relations Across the Taiwan Straits (ARATS) and the Taiwan-based Straits Exchange Foundation (SEF), that will see charter flights between the Chinese mainland and Taiwan substantially increased.

India and China exchange fifth freedom rights

On 20 March 2008 India announced that, following negotiations in New Delhi on 19-20 March 2008, India and China reached an understanding exchanging fifth freedom rights.

The Economic Times reported on 21 March 2008 that this will allow Jet Airways to operate beyond Shanghai to San Francisco.

New Zealand secured open air services arrangements with Switzerland

The Annual Report of the New Zealand Ministry of Transport for the year ended 30 June 2007 tabled in Parliament has on page 34 a brief report on New Zealand's progress in air services negotiations during the year.

During the year New Zealand "Secured open air services arrangements with Switzerland, finalised new arrangements with China and continued efforts to secure more open air services arrangements with other parties, including Canada, the European Union, Turkey, South Africa and the Philippines. Agreement was reached with Japan to permit the operation of B777 aircraft on routes to Japan."

This is the first time that news of the revised arrangements with Switzerland has been made public.

Separate public announcements have already been made on recent new air services arrangements with Canada, China and the Philippines.

China and Hong Kong agree to new opportunities for their airlines

The International Herald Tribune in an Associated Press story published on 27 December 2007 details new opportunities created following air services negotiations between China and Hong Kong. Xinhua also ran a story about the new Memorandum of Understanding.

An official press release was issued by the Hong Kong Government's Transport and Housing Bureau.