Atlas of the Sky from the European Commission

The most comprehensive data sources for the global airline and airport industries usually come at considerable cost but there are some good free sources of information available.

One such source is the online Atlas of the Sky provided by the European Commission.

Airline On-Time Performance in New Zealand and across the Tasman

The New Zealand Ministry of Transport is now providing monthly reports of airline on-time performance on the main airline domestic routes and routes between New Zealand and Australia where there is more than one airline operating.

Airline Competition in Australia

For the last three years the Australian Competition and Consumer Commission (ACCC) has been required to produce quarterly reports on airline competition in Australia. These reports are available here.

Fifth Freedom operations around the world

Fifth freedom services involve the sale and carriage of passengers and or cargo by an international airline between two countries, neither of which is the home country of that airline.

Their exchange by governments was a contentious issue at the Chicago conference in 1944. They have subsequently been exchanged by governments on a limited basis in bilateral air services arrangements and more recently have been a key feature of "open skies" agreements.

Perhaps their value has diminished, however, with technology improvement as more fuel efficient airliners have become capable of flying longer and longer ranges thereby eliminating the need to make intermediate stops.

On 27 January 2023 Matt Graham of Australian Frequent Flyer published a very interesting list of the remaining fifth freedom operations around the world.

Parliamentary Annual Reviews of Air New Zealand

Since the New Zealand Government took a majority shareholding in Air New Zealand the company has been the subject of annual reviews by a parliamentary select committee. The following is a (draft) list of some recent reports:

• 2013/14 
• 2014/15 
• 2015/16 
• 2016/17 
• 2017/18 
• 2018/19 
• 2019/20
• 2020/21
• 2021/22 

ECJ Advocate General releases opinion on extension of EU ETS to cover international aviation

On 6 October 2011 the Court of Justice of the European Union (ECJ) issued a press release and non-binding legal opinion on the case (C-366/10) brought by the Air Transport Association of America and Others (see previous post).

Reaction from interested parties the same day included statements from:

• Air Transport Association (ATA)
• International Air Transport Association (IATA)
• Association of European Airlines (AEA)

Media coverage of the opinion and related reaction included:

• Financial Post reporting the Canadian Government position
• The Washington Post 
• The Economist 
• Air Cargo World 

While airline opposition might be expected, of much greater significance is the reaction of foreign governments.

As might be expected, the opinion has been of considerable interest to international law academics. Aviation Law Prof Blog from DePaul University in Chicago has been providing commentary and links to other work:

• Advocate General claims EU not bound by Chicago Convention
• Functional succession theory and ramifications of EU exemption from Chicago Convention
• Advocate General opinion charts new ground on extraterritorial jurisdiction over environmental issues
• Advocate General opinion finds no legal impediment to unilateral emissions action
• Does ETS constitute a tax? 

Australia concludes open air services agreement with Japan

On 30 September 2011 the Australian Minister of Infrastructure and Transport, Hon Anthony Albanese, announced that Australia had negotiated a new open air services agreement with Japan. For Australian airlines the arrangements include time-restricted access to Haneda airport in Tokyo and open access to Narita airport from 2013. While described as "open skies", some slot-related restrictions on access to these Tokyo airports remain for the time being. Also included are fifth freedom rights for Australian airlines beyond Japan to third countries.

On 16 August 2011 the Qantas group had announced that it will be entering into a new joint venture with Japan Airlines and Mitsubishi Corporation to establish Jetstar Japan. Although announced as a domestic operation, this new joint venture could qualify to use Japanese international air rights.

NZ Commerce Commission has a win in air cargo pricing court case

On 26 August 2011 the New Zealand Commerce Commission announced that it had won a procedural judgement in the High Court in its case against nine airlines (see previous post).

India's Comptroller and Auditor General Examines Air India

The Comptroller and Auditor General of India has recently released a Performance Audit of Civil Aviation in India. The audit commenced in September 2009 and the report was tabled in Parliament on 8 September 2011.

For me the most interesting part of the report was Chapter 5 which looks at India's bilateral air services arrangements during a period of fundamental change in India's international air transport policy. Of particular concern to the auditors was the extent of sixth freedom carriage by many of the foreign airlines serving India, notably from small city states. Sixth freedom carriage in this context involves a foreign international airline is carrying traffic between India and a third country via its home country. Seeking to limit such carriage is a traditional approach to air rights exchanges dating back to the 1946 Bermuda 1 arrangements between the UK and the USA (see previous post).

What I had not expected to see was the extent to which European carriers serving India have as high a proportion of sixth freedom carriage as airlines from the Gulf. An 18 September 2011 article in the Business Standard reports on the data.

The auditors also focus in particular on the failure of the Indian Ministry of Civil Aviation to secure Dubai's agreement to a "change of gauge" provision. If this was considered important surely the Indian negotiators would have made it the price for agreeing to capacity increases for Emirates?

A 10 September 2011 report in the Indian Express covers the reaction to the report from the Ministry of Civil Aviation.

It would seem that India has no intention of seeking to wind back existing air services arrangements but one has to wonder what impact this report will have on future negotiations, particularly as there was a change of Civil Aviation Minister in India from Praful Patel to Vyalar Ravi in January 2011.

Air India recently had its application to join the Star alliance suspended (see 31 July 2011 media release) and there is now some doubt about its large order for new Boeing aircraft, including the B787.

In the 1960s Air India was one of the great airlines of the world with its wonderful Maharaja character. However, past failures to agree to replace older airliners has left the airline with a relatively old fleet.

Getting Paid by Gov't. for NOT Flying Passengers

A weblog post on Carpe Diem from a US economist, Mark Perry, about the Essential Air Service Program in the United States where they have a fiscal crisis, CARPE DIEM: Getting Paid by Gov't. for NOT Flying Passengers, caught my attention. For a mad moment I have been contemplating how I would answer his question: "... what is the best kind of airplane not to fly passengers on ..."

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.

US airlines case against EU ETS coverage heard by European Court of Justice

On 5 July 2011 the European Court of Justice (ECJ) heard a case (C-366/10) brought by the US Air Transport Association (ATA), American Airlines and United Continental Holdings against their inclusion the European Union Emissions Trading Scheme (EU ETS)(see previous post).

The ATA has published it oral argument and written observations here.

The Aviation Environment Federation issued a statement noting some of the arguments put in favour of the legality of extending coverage.

The hearing was covered 6 July 2011 articles in Air Transport World and Aviation Week.

An opinion on the case will be delivered by the Advocate General on 6 October 2011 with a final judgement to follow later.

Qantas and American Airlines seek approval for Joint Business Agreement

Just two days after interim US DOT approval of the alliance between Delta and Virgin Blue was announced (see previous post), oneworld alliance members Qantas and American Airlines on 12 May 2011 filed with the Australian Competition & Consumer Commission (ACCC) for approval of a Joint Business Agreement (JBA). (The reference for the parallel filing made with the US Department of Transportation is DOT-OST-2011-0111.)

On 16 May 2011 Qantas announced that it had commenced direct flights from Sydney (SYD) to American's major hub Dallas-Fort Worth (DFW) returning to SYD via Brisbane (BNE). Qantas uses its B747-400ER aircraft for this ultra-long-range operation. On 14 May 2011 Qantas ceased operating to San Francisco (SFO).

Interim approval was granted by the ACCC on 9 June 2011.

Virgin Blue alliance with Delta approved by US DOT

On 10 May 2011 the US Department of Transportation (DOT) announced that, after substantial changes had been made to the application (docket DOT-OST-2009-0155), it proposed to approve anti-trust immunity for an alliance between Delta Air Lines and Virgin Blue Airlines (see previous post).

This came after a 2 May 2011 announcement that the two airlines were expanding their code-share arrangements.

Note that on 4 May 2011 Virgin Blue announced that it was changing its name to Virgin Australia.

On 10 June 2011 the two airlines announced that they welcomed final US DOT approval of the alliance.

Royal Brunei ceasing operations to Auckland

On 21 June 2011 Royal Brunei Airlines (BI) announced that it is to cease operation to Auckland (AKL), Brisbane (BNE), Perth (PER) and Ho Chi Minh City (SGN) at the end of October 2011.

On 29 March 2011 Royal Brunei commenced operations to Melbourne which in future will be the only airport in Australasia that it serves.

Royal Brunei has been operating to New Zealand since 2003 under the "open skies" MALIAT.

No doubt the commencement of operations to AKL in early 2011 by four new airline operators from East Asia (see previous post) will have influenced Royal Brunei's decision to withdraw.

Alleged air cargo rate fixing case reaches court in New Zealand

The NZ Herald reported on court action taken by the Commerce Commission into alleged price fixing by nine international airlines serving the New Zealand market (see previous post) on:

9 May 2011 - "Airlines' price fix case starts in court"
11 May 2011 - "Air cargo cartel case opens in High Court"
12 May 2011 - "Qantas fined $6.5m for price fixing"
12 May 2011 - "Air NZ in court as price-fixing case gets under way"
13 May 2011 - "Qantas hit with record $6.5 million fine"
14 May 2011 - "Cartel case out of line, say airlines"

The Commerce Commission has made a number of media releases on the case:

20 March 2009 - "Commerce Commission procedure in accordance with standard best practice"
11 March 2011 - "Court of Appeal rules on use of confidentiality orders"
18 March 2011 - "Settlements in cartel case as Commerce Commission prepares for Court"
5 April 2011 - "$7.6 million imposed against two airlines in air cargo cartel case" - British Airways and Cargolux
20 April 2011 - "Commerce Commission narrows focus of air cargo cartel case before trial"
27 April 2011 - "Airlines' information request case resolved" - Singapore Airlines Cargo and Cathay Pacific
12 May 2011 - "Court awards highest penalty to date in price fixing" - this statement notes similar action taken in Australia, the United States, the European Union, Canada and South Korea

Air New Zealand has also issued related media statements:

18 March 2011 - in response to a Qantas media statement issued on the same day
20 April 2011

On 17 May 2010 the Australian Competition & Consumer Commission (ACCC) announced that it was taking action against Air New Zealand. On 18 May 2010 Air Transport World reported Air New Zealand's reaction.

On 11 November 2010 the NZ Herald reported that Air New Zealand had been dropped from similar action taken by the European Commission (see previous post).

Four additional airlines operating to New Zealand

In just the last four months four international airlines commenced operations to New Zealand and one started code sharing here. Well actually the story is a little more complicated than that.

China Airlines (CI) from Taiwan recommenced services after a decade. Its operation to Auckland (AKL) from Taipei (TPE) via Brisbane (BNE) started on 1 January 2011 (see previous post).

Jetstar Asia Airways (3K) from Singapore (SIN) started operating to AKL on 18 March 2011 in direct competition with Singapore Airlines (SQ) (see previous post). This is only the third long-haul route to New Zealand to have such direct competition on the same sector - the others are AKL-LAX (NZ and QF) and AKL-HKG (NZ and CX). Jetstar Asia is actually wet-leasing VH registered aircraft from Qantas subsidiary Jetstar (JQ) in Australia. However, Jetstar had to obtain a Foreign Air Operator Certificate from the New Zealand Civil Aviation Authority because the operation does not qualify to be covered by the mutual recognition of safety certification regime between Australia and New Zealand (see previous post). The new service is being provided under the MALIAT.

AirAsia X (D7) commenced operating to Christchurch (CHC) from Kuala Lumpur (KUL) on 1 April 2011 (see previous post). The airline is to be commended for persisting with the launch date despite the devastating Christchurch earthquakes.

China Southern Airlines (CZ) commenced operating from Guangzhou (CAN) to AKL on 9 April 2011 (see previous post). This is a major new non-stop addition to the set of long-haul air routes to New Zealand. The inaugural flight was welcomed by the Prime Minister John Key (he is also Minister of Tourism). The new service is being jointly promoted by the airline and Tourism New Zealand.

The excellent MRC Aviation blog has photographs of the new operations in New Zealand by CI, 3K, D7 and CZ.

Finally, Virgin Atlantic Airways (VS) from the UK commenced code sharing to New Zealand on Air New Zealand (NZ) operations on 27 March 2011 (see Air New Zealand announcement dated 12 January 2011).

The next announced airline to recommence operating to New Zealand should be United Airlines (UA) in 2012 after it takes delivery of the B787 (see previous post). United already code shares to New Zealand.

I maintain a list of international airlines that serve (and those that have served) New Zealand on my homepages.

New Zealand Prime Minister looks to sell down government shareholding in Air New Zealand

In a speech on 26 January 2011 the New Zealand Prime Minister announced that the Government was scoping the option of selling down its shareholding in Air New Zealand while still maintaining a majority of the equity.

On 28 January 2011 the Finance and State-Owned Enterprises Ministers released advice from the Treasury on the issue.

Air New Zealand buys stake in Virgin Blue group

On 20 January 2011 Air New Zealand announced that it had acquired a substantial shareholding in Australian airline, Virgin Blue. The following day it announced that it had taken a 14.9% stake.

Air New Zealand was subsequently required to sell down a small proportion of its new shareholding in Virgin Blue to ensure that the 49% cap on foreign owneership was not exceeded.

It is notable that Air New Zealand says that it is not seeking a seat on the Virgin Blue board. Although the two airlines are entering into a trans-Tasman alliance (see previous post) they will still be competing on services to some South Pacific islands.

China Airlines recommencing operations to Auckland

On 3 December 2010 China Airlines (CI) announced that it would be recommencing operations to Auckland (AKL) by extending its Taipei-Brisbane (BNE) service three times per week using A330-300 aircraft. The operation is due to restart on 1 January 2011.

Auckland International Airport had commented on the return of China Airlines in a media statement dated 30 November 2010.

A significant change that should boost the chances of success of the new air service is the decision of the New Zealand Government to grant people from the island of Taiwan visa-free access to New Zealand. A similar decsion by the United Kingdom Government has lead to a major boost in travel from Taiwan to the UK (see previous post).