WTO Secretariat study focuses on plurilateral air services agreements

The World Trade Organization (WTO) Secretariat has been continuing its study of air services agreements (treaties) as part of the background for the review held every five years of "developments in the air transport sector" (see previous post). This includes the most comprehensive coverage of plurilateral/regional air services agreements that I have yet seen. The reference number for the latest work that has been made public is S/C/W/270/Add. 2. It can be found in multiple parts for download by searching the WTO web site. The site has a page on Air transport services that provides easy access to the relevant documents.

As well of being of relevance to negotiators, this latest study should also be of considerable interests to academics and students working in the international air transport field.

I was able to help the Secretariat track down the full texts of some of the plurilateral agreements, including the MALIAT and the PIASA.

European Commission includes Air New Zealand in alleged cargo price fixing probe

A 28 December 2007 story by Steve Creedy in the Australian reports that Qantas and Air New Zealand are two of many airlines (others include AC, CX, and SQ) under investigation by competition authorities with respect to global cargo price fixing.

European Parliament and separately Environment Ministers propose rules to include international aviation in EU emissions trading scheme

Both the European Parliament (13 November 2007) and the Council of the European Union Environment Ministers (20 December 2007) have been formally considering a controversial proposal to include aviation under the EU's emissions trading scheme. Each has reached a first reading position and these must now be reconciled. The Aviation and climate change page of the European Commission's DG Environment provides links to the key documents.

New Zealand proposes to include domestic aviation in emissions trading scheme

A proposed new emissions trading scheme announced in late 2007 that is planned for New Zealand would cover domestic aviation along with all other domestic transport modes. The New Zealand Government has set up a web site on New Zealand's climate change solutions that gives details. Special provisions are proposed for major jet fuel purchasers.

How to deal with greenhouse gas emissions from international aviation is the subject of separate, ongoing consideration by ICAO.

Academics look to EC-US air transport liberalisation Stage Two

A 20 November 2007 post on Aviation Law Prof Blog links to an interesting 26-page draft paper produced by an experts working group looking at the forthcoming second stage of the EC-US air services negotiations. This exercise is being conducted under the auspices of the International Aviation Law Institute in Chicago and the International Institute of Air and Space Law at Leiden.

Japan-Thailand air services arrangements liberalised?

A 7 August 2007 release from Japan's Ministry of Foreign Affairs announced that route amendments have been made to the Japan-Thailand air services arrangements.

I have seen an unofficial report with further details but nothing official or in the news media in English.

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.

Malaysia and Singapore negotiate to allow LCCs on Singapore - Kuala Lumpur route

On 21 November 2007 Bernama reported that Malaysia and Singapore were about to negotiate new air services arrangements that would allow their low-cost carriers (LCCs) to start serving the Kuala Lumpur-Singapore air route for the first time.

Aviation emissions a key issue at the ICAO Assembly

It was expected that how to address the environmental impact of aviation emissions (dealt with under Agenda Item 17) would be the key controversial issue for the International Civil Aviation Organization (ICAO) 36th Assembly held in Montreal from 18 to 28 September 2007 (see previous post) and so it proved to be.

A paper presented at the Assembly details the outcome of the deliberations on this issue. The European Union member states made a formal statement of reservation and issued a media statement. On 28 September 2007 ICAO released a media statement on the outcome.

Interestingly Jeffrey N. Shane from the United States was in the chair for the Assembly. Aviation Week reported on 4 December 2007 that he will be leaving the Department of Transportation where he is Under Secretary for Policy in 2008.

Hong Kong and India expand air services opportunities

On 19 December 2007 the Indian Government announced that, following talks held in New Delhi on 17-18 December, it had reached agreement on revised air services opportunities with Hong Kong that include an expanded exchange of fifth freedom rights.

Specific mention is made in the statement of the possibility of Indian carriers code sharing with Air New Zealand via Hong Kong.

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

The Hong Kong SAR is independent from Beijing with respect to exchanging air services opportunities.

Canada and Singapore reach new air services agreement

The Canadian Government announced on 7 November 2007 that it had negotiated a new air transport agreement with Singapore. Although creating new opportunities, the Canadian Airports Council noted that the new agreement is not a "open skies" one.

Twelve months prior to this announcement a 6 November 2006 story in The Vancouver Sun gave the Vancouver Airport perspective.

Singapore Airlines resumes lobbying for rights beyond Australia

On 15 December 2007 The Australian reported that Singapore Airlines has recommenced lobbying for trans-Pacific fifth freedom rights between Australia and the US. This follows the election of a new Labor Government in Australia on 24 November 2007.

Singapore already has the necessary rights from the US, both being signatories of the "open skies" MALIAT.

EC seeks mandate to negotiate air services agreement with Israel

On 20 November 2007 the European Commission announced that it is requesting a mandate from the Council to negotiate a comprehensive EU-Israel Euro-Mediterranean aviation agreement "providing for gradual market opening and a high level of regulatory convergence in the areas of aviation safety, security, air traffic management, competition, state aid, environmental and consumer protection and research."

Canada and European Commission commence negotiation of a comprehensive air services agreement

The European Commission announced that on 27-28 November 2007 in Brussels it commenced negotiating a broad aviation agreement with Canada.

EC to negotiate comprehensive air services agreement with Jordan

After their 29-30 November/3 December 2007 meeting the Council of the European Union announced (see p.40) that Transport Ministers had granted the European Commission a mandate to negotiate a comprehensive Euro-Mediterranean Aviation Agreement with Jordan. The Commission had sought a negotiating mandate in 2004.

Airline carbon emissions calculator takes account of aircraft types

My attention was recently drawn to an Airline Carbon Emissions Calculator from Travel Analytics that not only takes account of the aircraft type being used but also, among other factors, the seating configuration of the airline you might be flying on and its typical load factors.

Fuel burn by aircraft type information comes from the 2006 version of the EMEP/CORINAIR Emission Inventory Guidebook (see Group 8). This data includes both LTO and cruise fuel burn rates.

The calculations are not perfect - for example, I suspect that it does not take into account indirect routings caused by airspace restrictions or typical wind patterns that can lead to significant directional flight time differences - but it is a significant improvement over some of the simplistic calculators that are available.

CAPA report on air services liberalisation in the APEC region

A January 2007, 129-page report drafted by the Centre for Asia Pacific Aviation (CAPA) for APEC entitled "Liberalisation of Air Services in the APEC Region, 1995-2005" has been made public and is now available for download.

The results need to be read with a note of caution - not all relevant air services arrangements were available to the authors for analysis.

Pacific Blue starts domestic services within New Zealand

On 12 November 2007 Australian-owned Virgin Blue subsidiary Pacific Blue Airlines (NZ) Limited commenced domestic air services in New Zealand between Auckland, Wellington and Christchurch using new B737-800 aircraft (see also previous post).

I attended the welcoming ceremony for the first two flights at Wellington Airport (WLG).

Air New Zealand to provide B747 for biofuel testing

On 28 September 2007 Air New Zealand announced that it would be joining with Boeing and Rolls Royce to trial the use of a second-generation biofuel in one of its B747-400 aircraft.

United Kingdom forward programme for possible bilateral air services talks

The UK Department for Transport publishes a list of possible negotiations and when dates are scheduled gives these too. The 1 November 2007 update indicates that this month the UK was looking to hold talks with Jamaica, Thailand and Mauritius.

The Philippines and New Zealand sign new air services agreement

On 21 November 2007 in Singapore the Philippines and New Zealand signed their first air services agreement. The New Zealand Prime Minister Helen Clark, who together with the President of the Philippines witnessed the signing, has announced UPDATED some of the details of the new arrangements.

News media coverage of the new arrangements has appeared in the Manila Times and Sun Star Manila.

We negotiated the text over two rounds in Wellington and Manila. Just prior to the second round the New Zealand delegation visited Clark, the former USAF base 80km north of Manila.

Revised arrangements to cover Japan-Taiwan air services

An "official" 1 November 2007 report announced that revised air services arrangements have been reached. The revision was completed with an exchange of letters between Taiwan's Association of East Asian Relations and Japan's Interchange Association, the two non-governmental organizations set up by the two countries to handle bilateral affairs in the absence of diplomatic ties. On 2 November 2007 the Taipei Times reported on the new arrangements.

One implication of the new arrangements is that the JAL and ANA subsidiaries that operated services from Japan to Taiwan will be absorbed back into their parent airlines.

Spain and the United Arab Emirates negotiate new ASA

On 25 October 2007 Spain and the United Arab Emirates (UAE) initialled a new air services agreement.

Mongolia to join MALIAT on cargo-only basis

Mongolia has deposited an Instrument of Accession, the first stage in joining the "open skies" Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT). Mongolia is seeking to join for cargo air services only, something that is now possible under Article 15 bis of the Agreement.

Caribbean Ministers sign San Juan Air Transport Accord

On 25 October 2007 Aviation Week reported that Caribbean Ministers at a Caribbean Tourism Organization meeting in San Juan have signed an Air Transport Accord that includes a commitment to updating air services arrangements in the region by 30 September 2008.

On 27 October 2007, however, the Bahama Journal reported that in the Bahamas at least the Accord does not have total support.

PIASA enters into force following ratification by Niue

The Pacific Islands Forum Secretariat web site indicates that the Pacific Islands Air Services Agreement UPDATED (PIASA) entered into force on 13 October 2007 following ratification by a sixth Pacific Islands country, Niue.

The initial parties to the PIASA are the Cook Islands, Nauru, Niue, Samoa, Tonga and Vanuatu (see also previous posting on 16 May 2007).

Airbus A380 enters service with first flight by SQ to SYD

25 October 2007 finally saw the delayed entry into service of the Airbus A380. The first flight was by Singapore Airlines from Singapore (SIN) to Sydney (SYD). This historic event received considerable media coverage, including in the Australian and the Telegraph.

On 27 October 2007 the Telegraph reported on an aspect of the A380's environmental impact, its emissions.

Notable in the public comments about the aircraft, however, are how relatively quiet it is.

Earlier in the month while about to leave Manila I saw an A380 prototype landing there.

Oberstar addresses the International Aviation Club in Washington DC

On 23 October 2007 Hon. James Oberstar, the Chairman of the House Transportation and Infrastructure Committee, delivered a speech to the International Aviation Club of Washington DC. Amongst the issues he covered were restrictions on foreign control of US airlines and the European Commission's proposal to include international aviation in its emissions trading scheme.

Australia and the United States to hold "open skies" negotiations

On 29 September 2007 Australia (Hon. Mark Vaile) and the United States of America announced their intention to begin the negotiation of an "open skies" air transportation agreement with the aim of concluding it in early 2008.

A 1 October 2007 Sydney Morning Herald article by Scott Rochfort looks at some of the implications.

Singapore and the UK announce new "open skies" air services agreement

On 3 October 2007 Singapore and the United Kingdom announced that they have concluded a new "open skies" air services agreement to come into effect in March 2008. Notable features include no restrictions on fifth freedom rights (including for Singaporean airlines unrestricted rights to serve the UK-US market), and exchanges of seventh freedom and cabotage rights.

In practical terms, constraints on slots at London Heathrow will be a factor in the extent to which Singapore Airlines will be able to take advantage of the opportunities that will be available.

Japan and United States expand air services arrangements

A 14 September 2007 Financial Times article carried by MSNBC reports on a limited expansion in the air services arrangements between Japan and the United States of America. This is the first amendment to the arrangements since 1998.

Peter Gordon on "Food Miles"

UK-based New Zealand chef Peter Gordon has written a well researched article in the Independent on the "food miles" debate.

The key message is that just because produce may have travelled further one should not assume that the environmental impact of its production and distribution is higher.

Canada and New Zealand negotiate new "Blue Sky" air transport agreement

On 7 September 2007 New Zealand Prime Minister Helen Clark announced UPDATED the negotiation of a new "Blue Sky" air transport agreement between New Zealand and Canada following a meeting with her Canadian counterpart. Some further details are given in a media statement by the Canadian Ministers of Transport and International Trade.

We negotiated the new agreement in Vancouver, British Columbia.

Air New Zealand is to commence non-stop flights between Auckland and Vancouver in November 2007.

Dubai Aerospace Enterprises bid for Auckland International Airport Limited hits turbulence

On 31 August 2007 Bloomberg reported that a $5.6 billion bid announced on 23 July 2007 for Auckland International Airport Limited (AIAL) by Dubai Aerospace Enterprise Limited (DAE) had run into further difficulties. AIAL released a media statement on the latest developments. The NZ Herald reported in depth on 1 September 2007 and the Herald on Sunday of 2 September 2007 carried commentary written by Fran O'Sullivan.

The day the proposed deal was announced the Leader of the New Zealand First Party, Rt Hon Winston Peters (who is also the Minister of Foreign Affairs) made a media release reacting to the proposal. On 8 August 2007 the NZ Herald reported on comments made by the Trade Minister, Phil Goff.

The 22 July 2007 Merger Implementation Agreement between DAE and AIAL has some interesting provisions relating to Tourism Growth and air services, in particular by Emirates, in an attached Co-operation Agreement (see section 4).

India and Malaysia liberalise air services arrangements

On 16 July 2007 the official Government of India Press Information Bureau announced that air services negotiations held between India and Malaysia on 12-13 July 2007 had lead to the signing of a Memorandum of Understanding that provides for a major opening up of air routes between the two countries, cargo services, code sharing and multiple designation.

A 19 July 2007 report in the International Herald Tribune provides background.

Australia and South Korea negotiate additional air service opportunities

On 27 August 2007 Australian Minister for Transport, Mark Vaile, announced that Australia has concluded new air services arrangements with South Korea. As well as a passenger capacity increase, all restrictions on the operation of freighter services have been removed and restrictions on the ability of both countries' airlines to access intermediate and beyond point hub markets have been reduced.

Further anti-trust action against British Airways

A 26 August 2007 article in the Sunday Telegraph gives a detailed account of the further anti-trust difficulties that British Airways is now in, involving price fixing of both cargo and passenger fuel surcharges, the latter with Virgin Atlantic and other airlines.

Philippines looking to hold air services negotiations with New Zealand and Singapore

An August 2007 story in the Manila newspaper, the Business Mirror, reports that the Philippines is looking to hold air services negotiations with New Zealand and Singapore in the near future.

Pacific Blue to start domestic operations in New Zealand

On 23 August 2007 details were announced by Brett Godfrey of domestic services to be operated by New Zealand-based Virgin Blue subsidiary, Pacific Blue. The initial operations will be on the AKL-WLG-CHC triangle commencing on 15 November 2007 with further destinations to follow. The aircraft to be used is the 180-seat Boeing 737-800.

With the airline being Australian-owned, this is a rare example of a cabotage service.

Air New Zealand responded almost immediately by dropping some of its fare levels. Pacific Blue will also be competing against Qantas subsidiary, JetConnect, which trades under the Qantas brand name.

I attended the launch in Wellington.

European paper on environment issues for ICAO Assembly

On 9 July 2007 the European Commission released a European working paper, "A comprehensive approach to managing aviation's environmental impacts," to be presented by Portugal at the triennial International Civil Aviation Organization (ICAO) Assembly (see previous post).

The 36th session of the Assembly is to be held in Montreal from 18 to 28 September 2007.