International Civil Aviation Organization

Presented by:

European and North Atlantic Office

Challenges in the Air Transport SectorEuromed Aviation Project

Air Transport Seminar Amman 17 and 18 October 2007

Christoph Kaupat

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

Air Transport Tradition

- Bilateralism

- Protectionist approaches

- Equality of opportunity

- Balancing of benefits

- Reciprocity

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

Modern Trends

Internal Forces:

- Liberalization

- Privatization

- Globalization

- Regionalization

- Transnational ownership

External Forces:

- Financial Impacts

- Constant Change

- Restructuring

- Threats

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

Key regulatory issues in liberalization

- Market access

- Freedoms of the Air

- Traffic Rights

- Airport slots

- Environmental rules

- Privatization, Ownership and control

- Fair competition and safeguards

- Alliances

- Dispute resolution

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

Sustainability of carriers

- Sustainability and state aid

- Essential services and small markets

- Preferential measures for developing countries

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

Other regulatory issues

- Consumer rights

- Transparency

- Product distribution

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

ICAO work on …

- Safeguard mechanism

- Mechanism for fair competition participation

- Dispute settlement “up to Ministerial level”, Mediation

- Ownership and control

- Codesharing

- CRS Code of Conduct

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

Air services agreements

More than 3,000 bilateral air servicesMore than 3,000 bilateral air servicesagreements between States.agreements between States.

Since 1995:Since 1995:

600 agreements600 agreements 70% with liberalization measures70% with liberalization measures

85 “open skies”85 “open skies”

85% of States involved in liberalization85% of States involved in liberalization 65% involved in full market access 65% involved in full market access

arrangementsarrangements

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

The GATS and Air Transport

Limited coverage

Liberalization mission

Current review (2000)

Prospects for expansion

Cross sectoral negotiating

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

MEDA-Region Developments

- Arrival of Lo-cost Carriers

- Armed conflicts

- Serious Efforts to enhancesafety and security in operations

- Substantial Investments into infrastructure

ICAO EUR/NATOffice

Challenges in the Air Transport Sector 17 and 18 October 2007

Future Cooperation with the region

European Union EUROMED Aviation Project

Infrastructure investments

Bilateral air services agreements

ICAO Universal Safety Oversight Programme

COSCAP

Technical Co-Operation Programme

- END -

Thank you for your attention