Air Service Agreements Flashcards
Three critical aspects of international transport.
- Trade of air traffic rights;
- Control of fares and freight tariffs;
- Control of the capacity offered.
ICAO
International Civil Aviation Organisation
What do the freedoms of the air refer to?
The right that an airline from a given state may enjoy with respect to another state or states.
First Freedom of the Air (First Freedom Right)
Right or privilege granted by a state B to the airline from state A to fly across its territory without landing.
Example: an aeroplane of KLM can fly over the airspace of Morroco.
Second Freedom of the Air (Second Freedom Right)
Right or privilege granted by a state B to the airline from state A to land in its territory for non-traffic purposes (e.g. to land for maintenance or refuel, referred to as a technical stop)
Example: an aeroplane from KLM can request a technical stop in a Morrocan airport if facing technical problems while flying.
Third Freedom of the Air (Third Freedom Right)
Right or privilege granted by state B to the airline from state A to enplane, in the territory of the first state, revenue traffic destined for the home state of the carrier.
Example: an AC from KLM can transport people from the Netherlands to an airport in Morocco.
Fourth Freedom of the Air
Right or privilege granted by a State B to the airline from State A to enplane, in the territory of the first state, revenue traffic destined for the home State of the carrier.
Example: an airplane from KLM can transport people from an airport in Morroco that has their destination in The Netherlands.
Fifth Freedom of the Air
Right or privilege granted by a State B to the airline from State A to deliver and enplane, in the territory of the first state, revenue traffic coming from or destined to a third state, State C, as part of a continuing flight originating or terminating in its home country.
Example: an airplane from KLM can land in an airport in Morroco and continue the flight to the USA, transporting people from Morroco to an airport in the USA, and vice-versa.
Sixth Freedom of the Air
Right or privilege granted to the airline from State A to transport, via the home state of the carrier, revenue traffic moving between two other states, State B and State C.
This right is a natural consequence of the combination of the Third and Fourth Freedom rights and provides the basis for international ’hubbing’ operations.
Example: an airplane from KLM can transport passengers from Morroco to the USA, provided that that KLM makes us of a Dutch airport to connect the flights from Morroco and to the USA
Seventh Freedom of the Air
Right or privilege granted by a State B to the airline from State A to transport revenue passengers between this State B and any other state, State C, with no requirement to include in such operation any point in the territory of the carrier state.
Example: an airplane from KLM can transport passengers from Morroco to the USA, and vice-versa,
without visiting any airport in The Netherlands
Eighth Freedom of the Air
Right or privilege granted by a State B to the airline from State A to transport revenue passengers between between two points in the territory of State B, on a service originated or terminating in the home state of the carrier (’consecutive cabotage’).
This freedom is equivalent to the combination of the Third and Ninth freedoms of the air. The ’cabotage’
concept refers to the fact that domestic revenue traffic is transported between two or more points
in one foreign country.
Example: an airplane from KLM can start an service in the Netherlands, fly to an airport in the Atlantic Coast of the USA, and emplane passengers from this airport to another airport in the Pacific Coast of the USA.
Ninth Freedom of the Air
Right or privilege granted by a State B to the airline from State A to transport revenue passengers between two points in the territory of State B, with no requirement to
include in such operation any point in the territory of the carrier state (’pure cabotage’ or ’stand alone cabotage’).
Example: an airplane from KLM starts an air service from an airport on the Atlantic Coast of the USA, emplaning passengers from this airport to another airport in the Pacific Coast of the USA.
Which Freedoms are rarely granted?
Seventh, Eighth, Ninth
Example: intra EU market has all nine Freedoms
Traditional ASA’s
Bilateral ASA’s based on the first four freedoms and conceived under the concept of reciprocity of equal and fair exchange of rights. The earliest example is the “Bermuda I” agreement, signed in 1946 between the USA and the UK. Many of these types of agreements reflect protectionist attitudes, being rigid in terms of the capacity to be offered, fares and the (equal) number of airlines designated. At the same time, these ASAs rarely involve the Fifth Freedom.
Open Market
Bilateral ASA’s that followed the liberalisation trend initiated in the USA in the late seventies. These agreements usually allow multiple ’designated’ airlines, have no restriction in terms of frequency and involve the Fifth and Sixth Freedom of the air. Prices are ruled by the country of origin of the flights and fares proposed by airlines can only be blocked if it is disapproved by both nations. The earliest example of an open market ASAs is the agreement signed between the USA and the Netherlands, in March 1978.
