on the Liberalization of International Aviation
~ Will the 2nd Stage of EU-US Aviation Negotiations Bring About True Liberalization
It has been about 60 years since the Chicago Convention, the Convention on International Civil Aviation, was agreed upon in 1944. Despite the dramatic growth in the past and its sure path to further growth in the future, international air transport is still governed by the international rules which originated from the thoughts and situations during and immediately after WWII. The Chicago Regime has placed very strict quantitative limits on international air travel. Leaving details of the rules to bilateral negotiations, the Chicago Regime produced the very inconvenient reality in which rules for international air services, which should be universal by right, differ from one bilateral agreement to another. The Chicago Regime not only loses out on the merit of market economy where the most efficient survives in competition, but it also fosters various forms of protectionism based on the bilateral agreements. It is clear that the Chicago Regime is outdated.
The future development of the EU-US agreement, covering the two largest aviation markets in the world, has a potential to bring about large-scale changes to the current framework of international aviation. The 1st stage of the EU-US agreement takes a traditional open skies agreement a step further. The agreement is unique because it has a multilateral nature as it was conducted among the US and each EU member state. However, issues such as the liberalization of ownership and control of carriers have been left for the 2nd stage of negotiations. There is much to be seen on whether the 2nd stage of negotiations, scheduled for May 15-16 in Slovenia, will bring about true liberalization, moving from traditional exchange of traffic rights to full liberalization in trade and from government-controlled economy to market economy.
This seminar points out the problems of the Chicago Regime and explores ways to resolve these problems, thereby facilitating various international discussions including the 2nd stage of negotiations between the EU and the US on how a new regime on international aviation should be.
OPENING REMARKS & POLICY RECOMMENDATIONS ON THE CHICAGO CONVENTION
President, Japan International Transport Institute
Former EU Commissioner for Competition
CEO, British Airways
Senior Vice President, All Nippon Airways, International & Regulatory Affairs and Facilities
Visiting Professor, Cranfield University (UK)
Non-Executive Director of easyJet and of Hyderabad International Airport (India)
Senior Attorney, Legal Department, Airline Pilots Association
Director of External Affairs and Route Development, Virgin Atlantic Airways
Managing Director, International and Regulatory Affairs, United Airlines
Civil Aviation Counsellor, Fresair
Vice President, ANA Strategic Research Institute Co., Ltd.
Professor, Graduate School of Public Policy, University of Tokyo