What role did Paris and Chicago Conventions play in cultivating cooperation on the standardization of international air service regulation and operations?
The sky above the ground did not interest the policymakers before the invention of air vehicles. The entrance of aircraft in the world consequently led to several issues that concerned the sovereignty of the space above the earth and the regulations of use of the airspace. Paris Convention of the year 1919 and Chicago Convention of the year 1944 set became the first major sets of regulations in terms of airspace. In the year 1919, several countries, among which there were the United States, Brazil, Greece, Italy, France, Japan, Poland and others, signed a convention that had a title “Convention Relating to the Regulation of Aerial Navigation”. The major rules of this convention included the following principles (Duhaime, 2009):
Necessary registration of aircraft in one state;
Prohibition to carry weapons and explosives;
Recognition of the sovereignty principles of the airspace, etc.
It is important to mention that it was the time of war, and major issues had relations to the military actions around the world. Paris Convention made a good start for the further development of aircraft and airspace rules, but one of the problems with this set of regulations was that several major players on the world arena, such as China, Russia, and Germany, did not become the members of this convention (Duhaime, 2009).
Chicago Convention, which is also known as “the Convention of International Civil Aviation” became an addition to the first convention of 1919, and it reformulated the same principles of sovereignty of the airspace, outlining the major points of the purposes of aircraft movements and of the permissions and restrictions concerning the traffic (Duhaime, 2009). In such a way, Paris and Chicago Conventions became, so to say, the founders of the airspace regulations and policies, setting out the laws and raising the awareness about the necessity of appropriate airspace use.
What role did the United States and The United Kingdom have in establishing the structure of air service agreements worldwide? How did the signing of Bermuda I contribute to the growth of air service agreements?
Bermuda Agreement of the year 1946 signed by the US and EU made the start to the pattern of regulations in the aircraft sector of business. This agreement underlines three major points of the aircraft movement. Those points included (1) capacity principles, (2) designation, which required aircrafts to follow the established, or the required route, (3) and pricing policies. In such a way, those two countries became the first ones to discuss those principles, which significantly contributed to the airline management and to the understanding of the structure of this management. In addition, Bermuda Agreement outlines a base for the future agreements in air service business in terms of capacity, price and designation, because particular cases required particular agreements (Airlines.org).
What impact has the domestic deregulation and liberalization of the US and EU markets played in shaping the approach to the current international regulatory framework?
Deregulation and liberalization of the US and EU markets implies the fact that the control over the airspace moved from the hands of politicians and policymakers to the hands of the industry, or, in other words, to the hands of the market. Deregulation of the airline market became a significant event within the industry, though many claim that it was only a partial deregulation, as there is still government control over airlines. Still, even nowadays this sector still feels the outcomes of deregulation, because the number of regulations has grown, and a new segment, low-cost airlines, appeared in the market. Low-cost airlines now start to challenge “the legacy airlines that were in existence before deregulation, such as United, Continental, Delta, etc.” (Smith & Cox).
What is the difference between foreign ownership and cabotage rights? Why are these elements such a big issue in international air service?
Cabotage rules imply the fact that the foreign vehicles cannot come to another country and performs the movements of the habitants within the territory of the entered country. In other words, cabotage regulations mean that foreign aircrafts cannot cross the border to another country with commercial purposes to transport the passengers from this country around the territory of this state. Foreign ownership, in turn, implies the regulation that the citizen of the country should perform the actual control of the aircraft of this country. In such a way, while cabotage rules concentrate on the cross of the borders by foreign countries, foreign ownership regulation concentrates on the nationality principles, e.g. who is the controller and the owner of the air vehicle within the country (Aopa.org).
What is the significance of the Phase I Open Skies Agreement signed between the US ad EU in 2008 and the Phase II signed in 2010?
Phase I and Phase II of Open Skies Agreement between the US and EU served as an expansion to the cargo and international passengers flights. In fact, Open Skies Agreement with EU contributed to the increase in international trade and in the level of international tourism. Moreover, the fact that the level of trade started to grow, the number of employment opportunities has increased, the countries have experiences the growth of productivity and of economy in general. The thing is that, though both EU and the US market have gone through deregulation, this agreement eliminated the interference of government in the commercial aspect of airline sector, which created more opportunities in terms of pricing policies, capacity or routes for the aircraft owners and for the consumers (State.gov).
Why are domestic and international agreements important to airline management?
Airline management plays an essential role in many aspects of the world economy. In a modern world, many transactions, whether with travel or commercial purposes, go through the airline services. Domestic and international agreements set out necessary rules not only for the aircraft companies, but also to all the organization that are involved in the process of airline management. Those regulations and laws help to avoid any problems connected with range of various aspects, starting from the rights to carry passengers and continuing further to the permission of entering this or that airspace territory, etc. With the existence of domestic and international agreements, airline management worldwide has a possibility of efficient performance and further successful activities.
References
Cabotage and Aviation Rules Relating to Cabotage on International Flights. (2008, February 26). Retrieved January 22, 2016, from http://www.aopa.org/Flight-Planning/Cabotage
Duhaime, L. (2009, September 28). Convention on International Civil Aviation, the Chicago Convention 1944. Retrieved January 22, 2016, from http://www.duhaime.org/LegalResources/InternationalLaw/LawArticle-667/Convention-on-International-Civil-Aviation-the-Chicago-Convention-1944.aspx
Glossary of Airline Terminology: Bermuda I Agreement. (n.d.). Retrieved January 22, 2016, from http://airlines.org/glossary/bermuda-i-agreement/
Open Skies Agreements. (n.d.). Retrieved January 22, 2016, from http://www.state.gov/e/eb/tra/ata/
Smith, F. L., & Cox, B. (n.d.). Airline Deregulation. Retrieved January 22, 2016, from http://www.econlib.org/library/Enc/AirlineDeregulation.html
