26 April 2009
GAO provides an update on the recession's impact on US commercial aviation
In April 2009 the United States Government Accountability Office (GAO) released a 58-page report entitled Commercial Aviation - Airline industry contraction due to volatile fuel prices and falling demand affects airports, passenger and Federal Government revenues.
ICAO Diplomatic Conference looking to replace Rome Convention 1952
A diplomatic conference being held at the International Civil Aviation Organization (ICAO) in Montreal from 20 April to 2 May 2009 is examining the legal issue of compensation caused by aircraft to third parties from acts of unlawful interference or from general risks.
The two draft conventions being considered are intended to replace the Rome Convention 1952 and the Montreal Protocol 1978. Information on parties to these treaties is available from ICAO here. They have not been that widely adopted, with the main treaty having 49 parties and the protocol only 12 parties.
Neither Australia nor New Zealand are parties to the Rome Convention. In New Zealand this area of law is covered by an accident compensation scheme and s.97 of the Civil Aviation Act. In Australia the relevant law is the Damage by Aircraft Act 1999. Australia and Canada were parties to the Rome Convention but withdrew.
The two draft conventions being considered are intended to replace the Rome Convention 1952 and the Montreal Protocol 1978. Information on parties to these treaties is available from ICAO here. They have not been that widely adopted, with the main treaty having 49 parties and the protocol only 12 parties.
Neither Australia nor New Zealand are parties to the Rome Convention. In New Zealand this area of law is covered by an accident compensation scheme and s.97 of the Civil Aviation Act. In Australia the relevant law is the Damage by Aircraft Act 1999. Australia and Canada were parties to the Rome Convention but withdrew.
New arrangements for air services between Italy and Taiwan
Reports dated 22 April 2009 in the China Post and Taipei Times carry news from the Taiwan Civil Aeronautics Administration that new arrangements negotiated with Italy provided for new air routes, additional capacity and dual designation of airlines.
Japan opens up to Canada in air rights deal
Singapore and Malaysia agree on new air routes and increased capacity
On 14 April 2009 the Singapore Ministry of Transport announced that Malaysia and Singapore had agreed to new routes and increased frequency of air services opportunities for the airlines of their two countries under their bilateral air services agreement.
This followed an earlier 6 October 2008 announcement about the outcome of negotiations that created opportunities for the low-cost carriers of the two countries on three East Malaysia-Singapore routes.
This followed an earlier 6 October 2008 announcement about the outcome of negotiations that created opportunities for the low-cost carriers of the two countries on three East Malaysia-Singapore routes.
Options for extending domestic aviation security in New Zealand released
On 23 April 2009 the New Zealand Minister of Transport, Hon Steven Joyce, released a statement (including questions and answers) and a summary report of a domestic aviation security review that includes options for extending the screening of passengers on domestic flights by the Aviation Security Service to additional airports (see previous post).
No decision has yet been made by the New Zealand Cabinet.
No decision has yet been made by the New Zealand Cabinet.
Kuwait signs "open skies" agreements with Thailand and Brunei
On 22 February 2009 the Thai News Agency reported that Thailand had signed an "open skies" air services agreement with Kuwait.
On 14 April 2009 the Brunei Times reported that Brunei had signed an "open skies" air services agreement with Kuwait.
These moves follow the signing of "open skies" agreements between Kuwait and separately Singapore (see previous post), Cambodia, Laos and Myanmar last year (see 9 September 2008 report from Peanuts!).
On 14 April 2009 the Brunei Times reported that Brunei had signed an "open skies" air services agreement with Kuwait.
These moves follow the signing of "open skies" agreements between Kuwait and separately Singapore (see previous post), Cambodia, Laos and Myanmar last year (see 9 September 2008 report from Peanuts!).
Fiji negotiates air services arrangements with Hong Kong
The interim Fiji Government announced on 22 April 2009 that it has signed a Confidential Memorandum of Understanding with Hong Kong. This included the initialling of an Air Services Agreement (ASA).
Air Pacific (FJ), part owned by oneworld alliance member Qantas, is now planning to commence air services between Nadi and Hong Kong in December 2009. The announcement imples that Air Pacific will look to enter into a commercial arrangements with Cathay Pacific, also a member of oneworld.
Fijilive reported on 2 April 2009 that Air Pacific is exploring the possibility of codesharing on Noumea-based Aircalin after recently ceasing operating to Japan. This would require amending the Fiji-Japan ASA to allow for third-country code share and an intermediate point in Noumea.
Air Pacific (FJ), part owned by oneworld alliance member Qantas, is now planning to commence air services between Nadi and Hong Kong in December 2009. The announcement imples that Air Pacific will look to enter into a commercial arrangements with Cathay Pacific, also a member of oneworld.
Fijilive reported on 2 April 2009 that Air Pacific is exploring the possibility of codesharing on Noumea-based Aircalin after recently ceasing operating to Japan. This would require amending the Fiji-Japan ASA to allow for third-country code share and an intermediate point in Noumea.
16 April 2009
Should the government intervene more in the airline business?
Michael Swiatek has drawn my attention to an interesting set of postings on this subject in the Transportation Expert Blog of the National Journal (see previous post).
22 March 2009
UK CAA publishes comprehensive reports on VFR and transit air passenger traffic
In March 2009 the Economic Regulation Group of the United Kingdom Civil Aviation Authority (CAA) published a comprehensive 103-page report (1.03MB .pdf) on air passengers visiting friends or relatives (VFR).
Of particular interest to Australasian readers is Table 4.3 on page 75. The report comments:
"4.48 Compared with Table 4.2, the emigrant destinations are far less dispersed than the immigrant origins, with over 27% of UK emigrants in either Australia or New Zealand, and a further 23% in North America. 80% of the total emigrant population is estimated to reside in the top ten named countries. This compares to less than one half of the immigrant population coming from the top ten countries in Table 4.2.
"4.49 It should be noted that the extreme long haul nature of trips between the UK and Australasia means that frequent trips are less likely, despite its appeal as a holiday destination – even if fares were to fall, the journey time is still very significant. This, in part, may account for the higher VFR percentages on these routes – whilst VFR passengers may be tied to the destination and make repeated or annual return trips, holiday passengers may be less likely to make repeated trips of such length."
In November 2008 the UK CAA produced a 30-page report on connecting passengers at UK airports.
Other reports produced by the UK CAA that are of interest include one from January 2008 on recent trends in growth in UK air passenger demand and one from July 2007 on long-haul traffic titled Connecting Continents (3.8MB .pdf).
Of particular interest to Australasian readers is Table 4.3 on page 75. The report comments:
"4.48 Compared with Table 4.2, the emigrant destinations are far less dispersed than the immigrant origins, with over 27% of UK emigrants in either Australia or New Zealand, and a further 23% in North America. 80% of the total emigrant population is estimated to reside in the top ten named countries. This compares to less than one half of the immigrant population coming from the top ten countries in Table 4.2.
"4.49 It should be noted that the extreme long haul nature of trips between the UK and Australasia means that frequent trips are less likely, despite its appeal as a holiday destination – even if fares were to fall, the journey time is still very significant. This, in part, may account for the higher VFR percentages on these routes – whilst VFR passengers may be tied to the destination and make repeated or annual return trips, holiday passengers may be less likely to make repeated trips of such length."
In November 2008 the UK CAA produced a 30-page report on connecting passengers at UK airports.
Other reports produced by the UK CAA that are of interest include one from January 2008 on recent trends in growth in UK air passenger demand and one from July 2007 on long-haul traffic titled Connecting Continents (3.8MB .pdf).
Pacific Islands countries underwrite Air New Zealand operations to maintain direct links to LAX
In October 2008, with the price of jet fuel still near record levels, Air New Zealand made it clear that it would need financial support if it was to maintain what had become unprofitable air links between the Cook Islands, Samoa and Tonga, and Los Angeles (LAX)(see previous post).
On 24 November 2008 Radio New Zealand International reported that the Cook Islands Government had agreed to continue providing Air New Zealand with an underwrite for its RAR-LAX service.
On 20 February 2009 the New Zealand Minister of Foreign Affairs, Hon. Murray McCully, announced in a speech that the New Zealand Government (through NZAID) had agreed to help the Samoan and Tongan governments with underwrites to maintain the TBU-APW-LAX air links.
On 18 March 2009 the Samoa Observer reported that the Cook Islands Government was concerned that the New Zealand Government was not also supporting it with its underwrite, together with comment from the New Zealand Minister of Foreign Affairs.
Government support for air services to remote communities is not unprecedented, with the United States having a comprehensive essential air service (EAS) programme, while Australia has a Remote Air Service Subsidy (RASS) scheme and in Europe there are public service obligation (PSO) air routes (Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes refers).
Air New Zealand has already been providing a weekly B737 service to tiny Niue with an underwrite.
On 24 November 2008 Radio New Zealand International reported that the Cook Islands Government had agreed to continue providing Air New Zealand with an underwrite for its RAR-LAX service.
On 20 February 2009 the New Zealand Minister of Foreign Affairs, Hon. Murray McCully, announced in a speech that the New Zealand Government (through NZAID) had agreed to help the Samoan and Tongan governments with underwrites to maintain the TBU-APW-LAX air links.
"... That means we need to be hard-headed in our focus on those initiatives that will contribute to sustainable economic growth.
"A good example is the provision of air services and shipping services - the arteries for tourism and trade.
"Recently the Samoan and Tongan governments requested support from the New Zealand government in retaining the Los Angeles link that is so vital to tourism traffic from the United States and Europe.
"We have agreed to an underwrite for the next year while we focus on longer-term solutions in this area.
"If we can't maintain the essential services that make trade and tourism possible, the rest of the debate is futile."
On 9 March 2009 Radio New Zealand International reported that on this development, quoting comments made by the New Zealand Prime Minister, Hon. John Key. On 10 March 2009 Radio New Zealand International reported on reaction from the Cook Islands Government.On 18 March 2009 the Samoa Observer reported that the Cook Islands Government was concerned that the New Zealand Government was not also supporting it with its underwrite, together with comment from the New Zealand Minister of Foreign Affairs.
Government support for air services to remote communities is not unprecedented, with the United States having a comprehensive essential air service (EAS) programme, while Australia has a Remote Air Service Subsidy (RASS) scheme and in Europe there are public service obligation (PSO) air routes (Council Regulation (EEC) No 2408/92 of 23 July 1992 on access for Community air carriers to intra-Community air routes refers).
Air New Zealand has already been providing a weekly B737 service to tiny Niue with an underwrite.
ECI paper on quantifying CO2 emissions from flights
A February 2009 paper, Calculating The Carbon Dioxide Emissions of Flights from Dr Christian Jardine of the Environmental Change Institute at Oxford University offers some interesting observations.
A key point is that, compared to CORINAIR (see previous post), the FAA's System for Assessing Aviation's Global Emissions (SAGE) data offers greater detail on the environmental performance of different aircraft types. This is essential if one is to take into account the significant technological progress that the aerospace industry is making.
A key point is that, compared to CORINAIR (see previous post), the FAA's System for Assessing Aviation's Global Emissions (SAGE) data offers greater detail on the environmental performance of different aircraft types. This is essential if one is to take into account the significant technological progress that the aerospace industry is making.
Lord Turner suggests flight rationing
In early February 2009 the Telegraph, the Daily Mail and the Financial Times Westminster weblog all carried stories reporting that the UK Government's Chairman of the Committee on Climate Change (CCC), Lord Turner, has raised the possibility that in future flying be rationed in order to cut greenhouse gas emissions.
On 1 December 2008 the CCC published its first report on Building a low-carbon economy – the UK’s contribution to tackling climate change. Chapter 8 covers International aviation and shipping.
The CCC is now writing an Aviation Report to be published in December 2009.
On 1 December 2008 the CCC published its first report on Building a low-carbon economy – the UK’s contribution to tackling climate change. Chapter 8 covers International aviation and shipping.
The CCC is now writing an Aviation Report to be published in December 2009.
Four airlines call for global approach to aviation emissions
A new industry coalition, the Aviation Global Deal (AGD) Group, which brings together Air France/KLM, British Airways, Cathay Pacific, Virgin Atlantic and airport operator BAA, is calling for CO2 emissions from international aviation to be included in a new global climate deal.
Australia and the Philippines expand air services arrangements
On 19 March 2009 the Australian Minister for Infrastructure announced that Australia and the Philippines had agreed to expand their air services arrangements. This includes a substantial increase in available capacity.
A 17 March 2009 report in the Philippine Daily Inquirer gives some further details of the outcome of the negotiations that were held in Canberra.
A 17 March 2009 report in the Philippine Daily Inquirer gives some further details of the outcome of the negotiations that were held in Canberra.
New Zealand Monthly Economic Review from the Parliamentary Library
Amongst the research papers produced by the New Zealand Parliamentary Library is a good Monthly Economic Review.
As well as giving key economic indicators, the eight-page March 2009 issue features Arthur Okun's misery index.
As well as giving key economic indicators, the eight-page March 2009 issue features Arthur Okun's misery index.
Danish top visa-free entry to other countries
On 5 March 2009 The Economist carried a chart showing some countries ranked by how many other countries their citizens had travel visa free access to.
This index was compiled by Henley & Partners and their fuller listing is also available online. Denmark ranks number one while New Zealand ranks eighth equal with Singapore.
This index was compiled by Henley & Partners and their fuller listing is also available online. Denmark ranks number one while New Zealand ranks eighth equal with Singapore.
Graphics on the state of the global airline industry
The November/December 2008 issue of Foreign Policy included two pages of graphics partially illustrating the state of the global airline industry entitled Prime Numbers: Change Is in the Air from William Swelbar at MIT.
"Binge flying"
A 27 February 2009 article Aviation - The need for green sky thinking in Ethical Corporation contains a reference to an expression that I have only heard used recently - "binge flying". It quotes this expression being used by Greenpeace UK.
In a 10 May 2007 post, Wordage attributes the phrase to Rough Guides founder, Mark Ellingham, and links to a 6 May 2007 Guardian article Travel: the new tobacco.
Given that some attribute the origins of Ryanair's success to transporting Londoners to visit the pubs of Dublin, Ireland for the weekend, perhaps the expression is appropriate to that kind of flying.
In a 10 May 2007 post, Wordage attributes the phrase to Rough Guides founder, Mark Ellingham, and links to a 6 May 2007 Guardian article Travel: the new tobacco.
Given that some attribute the origins of Ryanair's success to transporting Londoners to visit the pubs of Dublin, Ireland for the weekend, perhaps the expression is appropriate to that kind of flying.
Where is the world's economic centre of gravity?
An interesting paper from Jean-Marie Grether and Nicole Mathys in Switzerland entitled Is the World’s Economic Center of Gravity Already in Asia? and dated August 2008 locates the world's current economic centre of gravity off the north coasts of Norway and Russia.
The bad news for New Zealand is that Auckland is the most distant major city (with more than one million inhabitants) in the world from the economic centre. The vaguely promising news for New Zealand is that the economic centre is slowly moving closer.
As for Iceland, even without its recent economic collapse, the centre has been moving away to its north east since the mid 1970s.
The bad news for New Zealand is that Auckland is the most distant major city (with more than one million inhabitants) in the world from the economic centre. The vaguely promising news for New Zealand is that the economic centre is slowly moving closer.
As for Iceland, even without its recent economic collapse, the centre has been moving away to its north east since the mid 1970s.
Progress at ICAO on addressing climate change?
On 18 March 2009 GreenAir reported on and linked to papers from the most recent meeting of the International Civil Aviation Organization's Group on International Aviation and Climate Change (GIACC) held in February 2009.
One further GIACC meeting is to be held on 25-27 May 2009 before the UNFCCC Copenhagen Summit in December 2009.
One further GIACC meeting is to be held on 25-27 May 2009 before the UNFCCC Copenhagen Summit in December 2009.
08 March 2009
The start of the Iditarod dog race in Alaska - Standard Poodles banned!
The 2009 Iditarod dog race is just starting in Alaska with Reuters reporting competitor numbers down because of the recession. The Anchorage Daily News provides comprehensive coverage.
The race commemorates the transport of urgent medical supplies to Nome in 1925 following an outbreak of diphtheria in the days before bush flying. A web site, Balto's True Story, has more details.
One interesting fact about the race is that in 1989, 1990 and 1991 a competitor, John Suter, raced a team of Standard Poodles and achieved credible results. The breed was subsequently banned perhaps more for image reasons than anything else? Blatant discrimination?!? Okay, I have to concede that their fur coats are probably not as well suited as the "northern" breeds and dogs have died out in the cold on this very testing race.
The race commemorates the transport of urgent medical supplies to Nome in 1925 following an outbreak of diphtheria in the days before bush flying. A web site, Balto's True Story, has more details.
One interesting fact about the race is that in 1989, 1990 and 1991 a competitor, John Suter, raced a team of Standard Poodles and achieved credible results. The breed was subsequently banned perhaps more for image reasons than anything else? Blatant discrimination?!? Okay, I have to concede that their fur coats are probably not as well suited as the "northern" breeds and dogs have died out in the cold on this very testing race.
ICAO safety audit results
In recent years the International Civil Aviation Organization (ICAO) has been conducting audits of the aviation safety administrations of its member states under its Universal Safety Oversight Audit Programme (USOAP).
As part of ICAO's Flight Safety Information Exchange some of the ICAO audit results are now being made available on the web (works best with MS Internet Explorer) and there are also Audit Result Charts that allow you to see at a glance how the various safety administrations around the world measure up with respect to the level of implementation of the critical elements of a safety oversight system.
This follows a similar program of International Aviation Safety Assessments UPDATED (IASA) conducted by the US Federal Aviation Administration (FAA).
The European Commission publishes a list of airlines banned within the EU NEW.
As part of ICAO's Flight Safety Information Exchange some of the ICAO audit results are now being made available on the web (works best with MS Internet Explorer) and there are also Audit Result Charts that allow you to see at a glance how the various safety administrations around the world measure up with respect to the level of implementation of the critical elements of a safety oversight system.
This follows a similar program of International Aviation Safety Assessments UPDATED (IASA) conducted by the US Federal Aviation Administration (FAA).
The European Commission publishes a list of airlines banned within the EU NEW.
Australia grants Qatar access to SYD
The Sydney Morning Herald reported on 7 March 2009 that Qatar has managed to negotiate with Australia immediate access to Sydney (SYD) for Qatar Airways. Further details were announced UPDATED by the Australian Minister for Infrastructure on 12 March 2009.
Qatar had originally be granted access to a number of other Australian cities, including Melbourne, but Qatar Airways had not used these rights (see previous post).
Meanwhile Singapore Airlines is reportedly continuing to feel frustrated by Australia's international air transport policy.
Qatar had originally be granted access to a number of other Australian cities, including Melbourne, but Qatar Airways had not used these rights (see previous post).
Meanwhile Singapore Airlines is reportedly continuing to feel frustrated by Australia's international air transport policy.
25 February 2009
Interim Report from BEA into Air New Zealand-owned A320 crash
On 24 February 2009 the French Bureau d'Enquetes et d'Analyses (BEA) released an Interim Report (English version) into the 27 November 2008 A320 crash (see previous post).
On 25 February 2009 Air New Zealand released a media statement NEW commenting on the interim report.
On the same day the New Zealand Herald has an article NEW that includes a report of comments from the New Zealand Transport Accident Investigation Commission NEW (TAIC) and another article NEW that includes comments from the New Zealand Air Line Pilots' Association NEW (NZALPA).
On 25 February 2009 Air New Zealand released a media statement NEW commenting on the interim report.
On the same day the New Zealand Herald has an article NEW that includes a report of comments from the New Zealand Transport Accident Investigation Commission NEW (TAIC) and another article NEW that includes comments from the New Zealand Air Line Pilots' Association NEW (NZALPA).
24 February 2009
Great circle distances data from CEPII
I have been using great circle distances for some work on both the environmental impact of aviation and to illustrate the growth in and pattern of international air transport to and from New Zealand.
My usual source for this data is Great Circle Mapper. However, recently I came across some data files of geodesic distances produced by the CEPII (a research center in international economics based in Paris, France), primarily for use in trade gravity modelling.
My usual source for this data is Great Circle Mapper. However, recently I came across some data files of geodesic distances produced by the CEPII (a research center in international economics based in Paris, France), primarily for use in trade gravity modelling.
The European Commission's Observatory of the Air Transport Market
A very useful source of information on civil aviation developments is the annual and topical reports produced on aviation for the European Commission. These are described as an Observatory of the Air Transport Market. They give a write up of aviation developments with a focus on developments within Europe but also with the wider global context well covered.
This is one of those cases where there is a trade off between detail and timeliness, with the former winning out in this case. The 222 page Annual Report 2007 was finalised in December 2008.
They were originally produced by the Department of Air Transport at Cranfield University but this is now done by the German Aerospace Center (DLR).
The two 2008 topical reports are on Fuel and Air Transport (completed before the collapse of the oil price "super spike"), and Airline Business Models.
This is one of those cases where there is a trade off between detail and timeliness, with the former winning out in this case. The 222 page Annual Report 2007 was finalised in December 2008.
They were originally produced by the Department of Air Transport at Cranfield University but this is now done by the German Aerospace Center (DLR).
The two 2008 topical reports are on Fuel and Air Transport (completed before the collapse of the oil price "super spike"), and Airline Business Models.
Canada-European Union Air Transport Agreement text
As a consequence of the need to gain Council of the European Union approval, the full texts of the Air Transport Agreement between Canada and the European Community and its Member States, and the related Memorandum of Consultation are now available (see previous post).
The new arrangements are relatively complex, providing for a phase in of "hard" rights dependent on Canada's policy progress on permitting foreign investment in its airlines.
The Agreement is also unusual in that it contains articles on Environment (Article 18) and Labour Matters (Article 19).
The new arrangements are relatively complex, providing for a phase in of "hard" rights dependent on Canada's policy progress on permitting foreign investment in its airlines.
The Agreement is also unusual in that it contains articles on Environment (Article 18) and Labour Matters (Article 19).
22 February 2009
Cost-benefit analysis of aviation security
On 19 February 2009 the Dominion Post reported on a review of domestic aviation security in New Zealand dating from July 2008 that had recently been released to it under the Official Information Act. This review followed the attempted hijacking of a commuter aircraft in which the two pilots were seriously injured.
Commenting on this report and the review, Liberty Scott has posted that what is needed is a full benefit-cost assessment.
What this might involve was the subject of a Round Table on Security, Risk Perception and Cost-Benefit Analysis held by the Paris-based International Transport Forum (ITF) on 11-12 December 2008 at which the following discussion papers were presented:
I was fortunate enough to be able to visit the flight decks of a number of airliners while on long-haul journeys before increased security sadly made this impossible.
Commenting on this report and the review, Liberty Scott has posted that what is needed is a full benefit-cost assessment.
What this might involve was the subject of a Round Table on Security, Risk Perception and Cost-Benefit Analysis held by the Paris-based International Transport Forum (ITF) on 11-12 December 2008 at which the following discussion papers were presented:
- Toward Risk-Based Aviation Security Policy by Robert Poole from the Reason Foundation
- Economic Impact Analysis of Terrorism Events: Recent Findings and Methodological Advances by Gordon, Moore and Richardson from CREATE, University of Southern California
- Rational Behaviour, Risk Aversion - High Stakes for Society by Palma from France
I was fortunate enough to be able to visit the flight decks of a number of airliners while on long-haul journeys before increased security sadly made this impossible.
A critical look at rail transport in New Zealand
A 19 February 2009 presentation by Dave Heatley, a research fellow at the New Zealand Institute for the Study of Competition and Regulation takes a critical look at rail transport in New Zealand. It is certainly thought provoking and has generated considerable debate on the frogblog weblog run by the Green Party.
Liberty Scott has highlighted this presentation in a 19 February 2009 post and summarises what he describes as "some simple myths about rail."
Liberty Scott has highlighted this presentation in a 19 February 2009 post and summarises what he describes as "some simple myths about rail."
16 February 2009
Singapore reaches "open skies" agreement with Oman
In a media statement on 11 February 2009 the Civil Aviation Authority of Singapore (CAAS) announced that Singapore has negotiated an "open skies" type air services agreement with Oman (Straits Times report).
15 February 2009
A thesis covering regional "open skies" arrangements - SAM, MALIAT and PIASA
A collection of theses from students of the internationally renowned Institute of Air and Space Law at McGill University in Montreal, Canada is available online.
One that has just attracted my attention is that completed in 2003 by Sean McGonigle for his LLM entitled Comparative regulation of air transport in the Asia-Pacific region.
This thesis focuses on the Australia-New Zealand Single Aviation Market (SAM) Arrangements, the Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT) and the Pacific Islands Air Transport Agreement (PIASA).
Having participated in the negotiation of all three air services arrangements as a member of the New Zealand delegation, I will be interested to read what Sean has to say.
One that has just attracted my attention is that completed in 2003 by Sean McGonigle for his LLM entitled Comparative regulation of air transport in the Asia-Pacific region.
This thesis focuses on the Australia-New Zealand Single Aviation Market (SAM) Arrangements, the Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT) and the Pacific Islands Air Transport Agreement (PIASA).
Having participated in the negotiation of all three air services arrangements as a member of the New Zealand delegation, I will be interested to read what Sean has to say.
06 February 2009
Air New Zealand ceasing round-the-world freighter service
Air Cargo World has reported that Air New Zealand is to cease its round-the-world B747-400F service (the aircraft has been wet leased from Atlas) from the end of March 2009. The routing of the current service, which started in 2005, is Auckland-Melbourne-Shanghai-Frankfurt-Chicago-Auckland (see previous post).
On 22 January 2009 Qantas announced that it would be routing a once-weekly B747F service from New York and Chicago to Melbourne via Auckland (AKL).
On 22 January 2009 Qantas announced that it would be routing a once-weekly B747F service from New York and Chicago to Melbourne via Auckland (AKL).
The economic importance of aviation
There have been a number of reports published with the aim of convincing decision makers, opinion leaders and the general public of how significant aviation is now to our economic and social well being. These include:
- The Economic Impact of Civil Aviation on the U.S. Economy (October 2008) from the US FAA
- The economic and social benefits of air transport 2008 by Oxford Economics for ATAG
- Aviation Economic Benefits (July 2007) from IATA working with InterVISTAS
- Economic benefits of aviation (November 2004) from BAA
Oberstar's Airline Anti-Trust Bill
On 3 February 2009 Chairman of the US House of Representatives Transportation and Infrastructure Committee James Oberstar introduced an Airline Anti Trust Bill H.R. 831 UPDATED (HT to Aviation Law Prof Blog). See GovTrack to follow the progress of this bill which has been referred to the House Judiciary Committee.
The Bill has already attracted some comment:
One has to wonder what impact this move will have on the already commenced second phase of the EU-US air services negotiations.
The relevant current legislation that give the US Department of Transportation the power to grant anti-trust immunity is contained in sections 41308 and 41309, Title 49, United States Code. New Zealand has similar legislation in Part 9 of the Civil Aviation Act.
The Bill has already attracted some comment:
- The Wall Street Journal's The Middle Seat Terminal blog
- Trans World Blog
- Aviation Law Prof Blog NEW
One has to wonder what impact this move will have on the already commenced second phase of the EU-US air services negotiations.
The relevant current legislation that give the US Department of Transportation the power to grant anti-trust immunity is contained in sections 41308 and 41309, Title 49, United States Code. New Zealand has similar legislation in Part 9 of the Civil Aviation Act.
Dunedin international air services cut to one per week for winter
On 2 February 2009 Air New Zealand announced that it was also reducing its international flights from Dunedin Airport (DUD) to one per week in June and July (see recent post).
Prime Minister John Key, who is also New Zealand's Tourism Minister, was reported in the Otago Daily Times on 5 February 2009 as saying that he would: "continue to try to work with Air New Zealand on maintaining and re-establishing services."
Note that while Air New Zealand is currently majority government owned it is not a State-Owned Enterprise (SOE). Its shares are traded on the stock exchanges in New Zealand and Australia. As well as majority ownership, the government retains a limited degree of control through the Kiwi Share (see the company's Constitution for details).
For those interested in studying the recent declines in trans-Tasman passenger traffic out of some of New Zealand's provincial airports a good source for trans-Tasman city-pair data is the Australian Bureau of Infrastructure, Transport and Regional Economics.
Prime Minister John Key, who is also New Zealand's Tourism Minister, was reported in the Otago Daily Times on 5 February 2009 as saying that he would: "continue to try to work with Air New Zealand on maintaining and re-establishing services."
Note that while Air New Zealand is currently majority government owned it is not a State-Owned Enterprise (SOE). Its shares are traded on the stock exchanges in New Zealand and Australia. As well as majority ownership, the government retains a limited degree of control through the Kiwi Share (see the company's Constitution for details).
For those interested in studying the recent declines in trans-Tasman passenger traffic out of some of New Zealand's provincial airports a good source for trans-Tasman city-pair data is the Australian Bureau of Infrastructure, Transport and Regional Economics.
01 February 2009
"Alarming" decline in international air cargo movement
On 29 January 2009 the International Air Transport Association (IATA) reported that December 2008 saw a massive 22.6% drop in air cargo movement compared with the same period in 2007.
The regional numbers indicate that the sharp drop is global. Although the drop in the Middle East and Africa was smaller, the hardest hit region was Asia/Pacific with a 26% drop.
The Economics team at IATA produces some very good data and commentary on what is currently impacting the global aviation industry. It makes for sobering reading. See, for example:
Note that IATA estimates that 35% of international trade by value moves by air. The percentage for New Zealand is significantly lower, partly a consequence of our geographic isolation and export product mix.
The regional numbers indicate that the sharp drop is global. Although the drop in the Middle East and Africa was smaller, the hardest hit region was Asia/Pacific with a 26% drop.
The Economics team at IATA produces some very good data and commentary on what is currently impacting the global aviation industry. It makes for sobering reading. See, for example:
Note that IATA estimates that 35% of international trade by value moves by air. The percentage for New Zealand is significantly lower, partly a consequence of our geographic isolation and export product mix.
Hamilton to lose Air New Zealand international services
On 30 January 2009 Air New Zealand announced that it is to cease its remaining international air services from Hamilton Airport (HLZ) on 25 April 2009.
In commenting on the decision to the NZ Herald Glen Sowry from Air New Zealand noted that a factor for the declining business has been the improved road link to Auckland. A new interchange at Manukau City that will make road travel to Auckland International Airport from the south even quicker is currently under construction. The new government is committed to further extending the Waikato Expressway.
International air services from Hamilton were inaugurated in 1994 by Kiwi Travel Air Charters (it subsequently became Kiwi Travel International Airlines before ceasing services in 1996).
Air New Zealand withdrew international services from Palmerston North Airport (PMR) in 2008.
In commenting on the decision to the NZ Herald Glen Sowry from Air New Zealand noted that a factor for the declining business has been the improved road link to Auckland. A new interchange at Manukau City that will make road travel to Auckland International Airport from the south even quicker is currently under construction. The new government is committed to further extending the Waikato Expressway.
International air services from Hamilton were inaugurated in 1994 by Kiwi Travel Air Charters (it subsequently became Kiwi Travel International Airlines before ceasing services in 1996).
Air New Zealand withdrew international services from Palmerston North Airport (PMR) in 2008.
27 January 2009
ACCC final decision rejects Air Canada/Air New Zealand commercial alliance
On 27 January 2009 the Australian Competition & Consumer Commission (ACCC) issued its final decision and a statement announcing that it was rejecting the application from Air Canada and Air New Zealand to enter into a close commercial alliance (see previous post).
Air New Zealand has released a statement NEW reacting to the decision.
Reports on the decision have appeared in:
Air New Zealand has released a statement NEW reacting to the decision.
Reports on the decision have appeared in:
- the NZ Herald
- the Sydney Morning Herald NEW
25 January 2009
Container rates for Asia to Europe hit zero
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