CALR MODULE 1 PART 3 Flashcards
Some of the participants in the 1944 Chicago Convention accepted the principle that every state has complete and exclusive __________ over the airspace above its territory.
sovereignty
As such, no aircraft may operate over
and into a contracting member’s
territory or airspace without _______.
consent
It permits aircraft of a signatory State to fly over, or land for technical
reasons in, the territory of another signatory state;
International Air Services Transit Agreement
It allows the carriage of traffic between the State of Registration and another signatory state.
International Air Transport Agreement
What are the freedoms under International Air Services Transit Agreement
First and Second Freedom
It is the right or privilege, in respect of scheduled international air services, granted by one State to another State or States to fly across its territory without landing.
First Freedom
It is the right or privilege, in respect of scheduled international air services, granted by one State to another State or States to land in its territory for non-traffic purposes
Second Freedom
Other term for 1st Freedom
Overfly
Other term for 2nd Freedom
Technical Stop
It is the right or privilege, in respect of scheduled international air services, granted by one State to another State to put down, in the territory of the first State, traffic coming from the home State of the carrier
3rd Freedom
Other term for 3rd freedom
Set Down Traffic
It is the right or privilege, in respect of scheduled international air services, granted by one State to another State to take on, in the territory of the first State, traffic destined for the home State of the carrier
4th Freedom
It is the right or privilege, in respect of scheduled
international air services, granted by one State
to another State to put down and to take on, in
the territory of the first State, traffic coming
from or destined to a third State
5th freedom
ICAO characterizes all “freedoms” beyond the
Fifth as “_________” because only the first five
“freedoms” have been officially recognized as
such by international treaty.
so-called
the right or privilege, in respect of scheduled
international air services, of transporting, via
the home State of the carrier, traffic moving
between two other States
6th freedom
the right or privilege, in respect of scheduled international air
services, granted by one State to another State, of
transporting traffic between the territory of the granting State
and any third State with no requirement to include on such
operation any point in the territory of the recipient State, i.e
the service need not connect to or be an extension of any
service to/from the home State of the carrier
7th freedom
the right or privilege, in respect of scheduled international air
services, of transporting cabotage traffic between two points
in the territory of the granting State on a service which
originates or terminates in the home country of the foreign
carrier or (in connection with the so-called Seventh Freedom of
the Air) outside the territory of the granting State (also known
as “consecutive cabotage”).
8th freedom
the right or privilege of transporting cabotage
traffic of the granting State on a service
performed entirely within the territory of the
granting State (also known as “stand alone”
cabotage).
9th freedom
The government must first negotiate a treaty
level agreement with the destination country’s government before an airline can ______ international services to another country.
Such treaties are recognized bilateral air
services agreements.
operate
These are agreements between two countries that govern the commercial air transport services between them.
Bilateral Air Services Agreements (BASAs)
These are the routes airlines can fly, including cities that can be served within, between and beyond the bilateral partners.
Traffic rights
It is the number of flight that can be operated or passengers that can be carried between the bilateral partners
Capacity
It is the number of airlines the bilateral partners can nominate to operate services and the ownership criteria airlines must meet to be designated under the bilateral agreement. This clause sometimes includes foreign ownership restrictions.
Designation, Ownership and Control
8 process for negotiating and establishing agreements
Pre-Negotiation Consultation
Formal Negotiation
Agreement Drafting
Approval Process
Signing
Ratification
Implementation
Monitoring and Review
It is a set of rules and fees that govern the pricing and usage of air transportation services
These are typically created and approved by government regulatory bodies, and must be made available to the public
These can be complex, containing info on various components such as fuel surcharges, airport fees, and taxes.
Tariff
Airlines use _____ to set prices and establish terms and condition for their services
Tariffs
It is a fee charged
by airlines to cover the
rising cost of fuel.
Fuel Surcharge
Title of EO 219, s.1995
Establishing the domestic and international civil aviation liberalization policy
__________ shall be the lead
agency responsible for the initial negotiations leading to
the conclusion of the Air Services Agreements or similar
arrangements.
Department of Foreign Affairs
__________ shall be composed of
representatives from the
1. DFA (as Chairman),
2. Representatives of the Civil Aeronautics Board (CAB),
3. Representatives of the Philippine designated carrier(s)
and
4. Such other person(s) as may be authorized by the
President of the Philippines.
Philippine Negotiating Panel
the_____________ , through the CAB shall be the lead agency
involved in coordinating all necessary preparations.
Department of Transportation and Communications
(DOTC)
The ____________ shall be composed of
representatives from
1. the CAB (as Chairman),
2. the Department of Foreign Affairs (DFA),
3. the Department of Trade and Industry (DTI),
4. the Department of Tourism (DOT),
5. the Philippine designated carrier(s) and
6. other person(s) as may be authorized by the Secretary
of Transportation and Communications
Philippine Consultation Panel
It amended EO 219
EO 32, s.2001
Further amended the EO 219
EO 296
The __________ shall be
responsible for the initial negotiations
(“Negotiations“) leading to the conclusion of
the relevant Air Services Agreements (ASAs). EO 28, s.2011
Philippine Air Negotiating Panel
title of EO 28, s.2011
Reorganizing the Philippine Air Negotiating Panel and the Philippine Air Consultation Panel
__________ shall be responsible for the succeeding negotiations of these ASAs or
similar arrangements (Consultation Talks). EO 28, s.2011
The Philippine Air Consultation Panel
The Chairman of the Consultation Panel may designate
other parties as observers but may appoint additional
members to the Consultation Panel only with the
approval of the ___________.
President or Executive Secretary
The end product of the negotiation is an ___________, which is a set of
agreements that defines the extent of air
traffic rights granted by treaty partners to one
another in terms of any or all of the five
freedoms of the air.
Air Services Agreement (ASA)
The Philippines has air services agreements
(ASAs) with various countries around the world,
which allow for the ________ of international
air services between the Philippines and other countries.
operation
The agreement designates the airlines
that are authorized to operate flights between the two
countries.
Designation of airlines
The agreement specifies the number of flights that
each designated airline is allowed to operate, as well as the
capacity (i.e., the number of seats) that each airline is allowed
to offer.
Capacity
The agreement sets out the specific
routes that designated airlines are allowed to operate between
the two countries.
Route / Traffic Rights
The agreement establishes the rules and regulations
for the pricing of air services between the two countries,
including the fares and fees that may be charged.
Tariffs
The agreement may include provisions
related to safety and security, such as requirements for
airline safety and security standards.
Safety and Security
Key areas that ASAs typically cover
Designation of airlines
Capacity
Route / Traffic Rights
Tariffs
Safety and Security
In the ASA, the ______ in terms of seats or flights in
each every air sector allowed the types of aircraft, the
frequency of flight, and even some extraneous items are
spelled out.
level of capacity
In ASA’s conclusion, the _________properly accepted during the Chicago Convention is commonly used. It is a one-
piece document produced by the convention that influences the degree of consistency among countries today in air service agreements.
Uniform format
It refers to the
extent to which a country’s policies and regulations allow
for free and open trade in a particular industry or sector.
Degree of liberalization
_______ is a concept of international
policy that calls for the liberalization of the
international aviation industry’s rules and
regulations, mainly commercial aviation, to
establish a free-market environment for the
airline industry.
Open Sky
Open Skies is not a single, well-defined concept; instead, it
refers to _________, such
as capacity deregulation and removal of price controls, which lead to less regulated airline services.
It is a strategy of opening up aviation markets, which can
be pursued on a bilateral, regional, or multilateral basis.
packages of several distinct policy aspects
It is an international agreement between
countries that liberalizes commercial aviation by removing
restrictions on air services between them. Under this agreement, airlines from the participating countries are
granted greater freedom to operate flights to and from each
other’s territories without government interference or
limitations.
Open Skies Policy or Open Skies Agreement
Key features of Open Skies Policy
Market Access
Capacity
Pricing and Competition
Fair Competition
Bilateral and Multilateral Agreements
Economic Benefits
Four degrees of liberalization
Bilateral Agreements
Open Skies
Multilateral Agreements
Complete Deregulation
Countries negotiate __________ with one another, which set out
the conditions for the operation of air services between the
two countries. These agreements may include restrictions on
capacity, routes, and fares.
bilateral air services agreements
Countries agree to a more liberalized bilateral air
services agreement that allows for greater market access
and fewer restrictions on capacity, routes, and fares.
Open Skies
Countries participate in regional or
global agreements that promote greater market access and
competition among airlines.
Multilateral Agreements
Countries remove all restrictions on
the provision of air services, allowing airlines to operate
freely without any government intervention or regulation.
Complete Deregulation
More liberalized
markets tend to _____________,
while more regulated markets may limit
competition and lead to higher fares.
promote greater competition,
lower fares, and increased choice for consumers
Open skies agreement provisions
Open Markets
Level Playing Field
Pricing
Co-operative Marketing Arrangements
Dispute Resolution
Open Skies Agreements are usually characterized by
the abandonment (wholly or partially) of restrictions relating to
routes, number of designated airlines, capacity, frequencies and
types of aircraft that may be operated;
Open Markets
Open Skies Agreements often include clauses
that permit airlines operating in parties’ countries to compete fairly
and equally.
Level Playing Field
Open Skies Agreements typically allow carriers much greater
pricing flexibility than the more traditional Air Service Agreements
(ASAs) they replace.
Pricing
carriers are allowed
to enter into code-sharing and/or leasing arrangements with airlines
of countries which are parties to the agreement
Co-operative Marketing Arrangements
Open Skies Agreements typically include
procedures for resolving differences that may arise during the
currency of the agreement;
Dispute Resolution
A _______________, also known simply as
codeshare, is a business arrangement, common in the aviation industry, in which two or more airlines publish and market the same flight under their own airline designator and flight number (the “airline flight code”) as part of their published timetable or schedule.
Codeshare Agreement
What is it called when a flight is operated by one airline
administrating carrier or operating carrier
The term “_________” refers to the identifier used in a flight schedule,
generally the two-character IATA airline designator code and flight
number.
code
Open Skies Agreement may be __________
multilateral, regional or bilateral
some Open Skies Agreements
allow airlines of a member country to operate pure cargo services
between another member country and a third country, without
insisting on a stop in the cargo carriers home country.
Optional 7th Freedom Cargo Rights:
The exchange of traffic rights and routes with other countries shall
be based on (a) the National Interest which shall include value for the
Philippines in terms of promoting international trade; foreign
investments and tourism, among others; and on (b) the reciprocity
between the Philippines and other countries.
The Civil Aeronautics
Board (CAB) shall determine “national interest” taking into
consideration the larger interest of the country, especially the users
of air services.”
Limits coverage to major airports
EO 219
Air access to the DMIA and SBIA is hereby declared as a development
route.
The increase in commercial air cargo access to the DMIA and
SBIA shall be regarded as an enhancement of trade and
investment opportunities for the Philippines.
EO 253
The Clark Development Corporation is hereby included as a member of
the Philippine Air Negotiating Panel.
DMIA may apply for a
waiver of any restriction or limitation on capacity, type of aircraft of
non-cabotage traffic rights imposed by the relevant ASA on their right
to operate such air services.
EO 500
Foreign air carriers designated by states with an ASA with the
Philippines that has not been granted the specific right to operate
passenger, cargo or combination services to and from DMIA and SBIA, may apply for 3rd and 4th freedom traffic rights to DMIA and SBIA
without restriction or limitation on capacity or type of aircraft;
the CAB shall lift the limitations on 3rd and 4th freedoms and on type
of aircraft as may be contained in said ASAs, only with respect to their
operations to DMIA and SBIA;
EO 500-A
Reorganization of Philippine Air Negotiating Panel and Philippine Air Consultation Panel
EO 28
the Philippine Air Panels may
offer and promote third, fourth, and fifth freedom right to
the country’s airports other than the Ninoy Aquino
International Airport (NAIA) without restriction as to
frequency, capacity and type of aircraft, and other
arrangements that will serve the national interest as may be
determined by the CAB.”
EO 29
As of 2002, the number with which the Philippines have existing ASAs
stood at ____ countries worldwide.
51
Only ___ countries have
designated carriers to operate in the Philippines.
33
The exchange of traffic rights with other countries shall be based on what?
National Interest and Reciprocity between ph and other countries
6 Values of a National Flag Carrier
National Security and Defense
Prestige and Representation
Economic Development
Strategic Access and Connectivity
Emergency Response and Humanitarian Aid
Control and Regulation
A national flag carrier can play a
crucial role in ___________ by providing
transportation services for military personnel, equipment, and
supplies.
National Security and Defense
A national flag carrier represents
the country on the international stage and serves as a symbol of
national identity and pride.
Prestige and Representation
A national airline can contribute to
economic development by promoting tourism, facilitating trade
and investment, and creating jobs in the aviation sector and
related industries.
Economic Development
A national flag carrier
provides strategic access and connectivity to key domestic and
international destinations, including underserved or remote areas
that may not be economically viable for private airlines.
Strategic Access and Connectivity
a national airline can mobilize quickly to provide emergency response
and humanitarian aid, including the evacuation of citizens from
affected areas and the transport of relief supplies and medical
personnel.
Emergency Response and Humanitarian Aid
Having a national flag carrier allows the
government to exercise control and regulation over the aviation
industry, ensuring compliance with safety standards, security
protocols, and regulatory requirements.
Control and Regulation
It is defined by Business Dictionary as airline or ship-line registered under the laws of a country whose government gives it a partial or total monopoly over
international routes.
Flag Carrier
_________ defined Flag Carrier an airline that is
or was owned by a government, often with the name of the
country in its name.
Cambridge Dictionary
Airlines that offer low fares but eliminate all non-essential services such as complimentary food, in flight entertainment systems and business class seating
No Frills Airline