NATIONAL INTEREST AND INTERNATIONAL AVIATION

Chapter 1:Introduction 1

Ⅰ.Aviation and Globalization 3

Ⅱ.Modern Mobility and National Interests 6

Ⅲ.International Attractiveness as a Policy Goal 8

Ⅳ.The Political Challenge 9

Ⅴ.Key Definitions 11

A.International Aviation 12

B.National Interest 13

1.National Interest from the Perspective of Security 13

a.The Power Politics Perspective 14

b.The Geopolitical View 15

2.National Interest from the Perspective of Values 15

a.The Political Leader's Perspective 16

b.The Ideologist's Perspective 16

c.Interest Groups and National Interest Formulation 17

3.National Interest from a Global Safety and Prosperity Perspective 18

a.The Global Safety and Health Perspective 18

b.The Prosperity Focus-Considering the ' Wealth of Nations' 19

4.The Diplomat's Perspective 20

5.Summary:The Definition of National Interest to Be Used in This Book 21

Ⅵ.National Interests in Aviation 23

A.The Control of Airlift Issue 24

B.Access to Mobility 24

C.Quality Controls on Mobility and Access 25

D.Maintaining the National Technical Team 25

E.Overall Considerations 25

Chapter 2:National Relationships and International Regulation 27

Ⅰ.Economic Regulation and the Trade Policy Context 28

A.Reciprocity 30

B.MFN 30

C.National Treatment 31

D.Overall Considerations 31

Ⅱ.Multilateral Agreements:The Chicago Convention 32

A.Normative Goals of the Convention 33

B.Treatment of Sovereignty and Territory 34

C.Adaptability of the Convention 36

D.Ultimate Scope of the Convention 37

Ⅲ.The Bilateral Regulatory Tradition 39

A.General Setting 39

B.The Nine [or Should It Be Seven?] Freedoms 41

1.First Freedom 41

2.Second Freedom 41

3.Third Freedom 42

4.Fourth Freedom 42

5.Fifth Freedom 42

6.Sixth Freedom 43

7.Seventh Freedom 43

8.Eighth Freedom 44

9.Ninth Freedom 44

C.Bilateral Beginnings and the Bermuda I Agreement 45

1.Designation 46

a.General Considerations 46

b.Bermuda I Designation Provisions 47

2.Route Description 47

a.General Aspects 47

b.Bermuda I Route Provisions 48

3.Capacity 48

a.General Aspects 48

b.Bermuda I Provisions 48

4.Tariffs 50

a.General Aspects 50

b.Bermuda I Provisions 50

D.The General Anatomy of Bilateral Air Services Agreements 50

1.Introductory Provisions 51

2.The Granting of Rights 51

3.Designation and Revocation 51

4.Compliance with National Laws 52

5.Exemptions from Duties and Taxes 52

6.User Fees 52

7.Technical and Operational Standards and Control Procedures(including Safety and Security) 53

8.Doing Business Issues 53

9.Capacity 53

10.Tariffs 54

11.Route Rights 54

12.Other(Newer) Economic Provisions 54

13.Consultation and Arbitration 54

14.Other Procedural Clauses 55

Ⅳ.The Emerging Plurilateral Alternative 55

Chapter 3:National Interest from a Producer Perspective 57

Ⅰ.The Producer Interest 'Cartel Model' Bilateral Agreement 58

A.Elements of the Cartel Agreement 60

1.Basic Elements 61

a.Bermuda Principles 61

b.Predetermination of Capacity 61

c.Discretionary Fifth Freedom Route Rights 61

d.Limited Designation 61

e.Airline-to-Airline Balancing of Results 62

f.Pricing Coordination 62

g.Disputes Resolution 62

2.Enhanced Elements 62

a.Airline-to-Airline Coordination Will Be Mandatory 62

b.Exercise of Certain Traffic Rights Will Be Dependent on Airline Agreements 62

B.The Successful Champion Exception? 64

Ⅱ.Protectionism in National Legislation 65

A.Exclusive Access to Traffic 65

B.Capital Support and Investment Subsidies 66

C.Operating Subsidies 66

Ⅲ.Industrial Policies and International Aviation 67

A.Implications of Aerospace Industrial Policy for Air Transport Policy 69

Ⅳ.Infrastructure and Supporting Services 70

A.Air Traffic Management 70

B.Airports 74

C.Situational Relationships between Airlines and Their Infrastructure Providers 75

Ⅴ.Supply Side Motivations Reviewed 77

Chapter 4:National Interest from a Consumer Perspective 79

Ⅰ.General Elements of Consumer and User Interest 80

Ⅱ.US Policy toward Consumer Interest and the Role of the Public Sector 82

A.Research and Development 84

B.Operation and Development of Infrastructure 84

C.Technical and Operational Quality Controls 85

D.Aviation Security Services and Controls 85

E.Proactive Regulation of Competition 85

F.Consumer and Environmental Protection 86

G.Permitting 87

H.Legislative Oversight 87

Ⅲ.A Micro-History of American Practice 88

A.Beginnings of International Air Services 89

Ⅳ.US Deregulation in International Markets:Open Skies Phase 1 93

Ⅴ.Open Skies Phase 2 96

Ⅵ.Elements of the Contemporary US Open Sky Model 98

A.The Preamble 99

B.Grant of Rights 99

C.Designation and Revocation 100

D.Safety and Security 101

E.Commercial Opportunities 101

F.User Charges 102

G.Fair Competition 103

H.Pricing(Tariffs) 103

I.Key Annex Provisions 105

Ⅶ.The FAA Role in Quality Control and Protecting National Interest 106

Chapter 5:National Interest from a Regional Perspective 113

Ⅰ.General Policy Issues of Regional Association 114

Ⅱ.National and Community Interests in Europe 116

A.Proportionality 118

B.Subsidiarity 118

C.Vacuum Abhorrence 119

D.My Space 119

E.Overall Considerations 119

Ⅲ.The Scope of EU Aviation Policy and Implications for International Relations 119

A.Snapshot 1:Strategic Implications of EC Rules on International Market Access 121

B.Snapshot 2:Community Slot Policy and International Implications 124

C.Snapshot 3:Issues Surrounding the Single European Sky 126

D.Snapshot 4:Paying for Siberia and the Issue of Freedom of Transit 131

E.Snapshot 5:Safety and Security Regulatory Procedures 134

1.Role of EASA 135

Ⅳ.International Negotiating Alternatives of the EU 137

A.The European Common Aviation Area(ECAA) 138

1.Elements of the Aviation Acquis 139

a.Market Access and Ancillary Issues 139

b.Air Traffic Management 140

c.Aviation Safety 140

d.Aviation Security 140

e.Environment 140

f.Social Aspects 140

g.Consumer Protection 141

h.Competition and State Aids 141

i.Other Legislation 141

2.Overall Considerations 141

B.The Open Aviation Area(OAA) 141

C.Comparing the OAA to the Classical Bilateral Model 143

1.MEN-Type Application to(at Least Some) Third Parties 144

2.Establishing Standards with Respect to Infrastructure 144

3.Industrial and Aviation Systems Cooperation 144

4.Competition Policy Standards 145

5.Consumer and Public Interest Standards 145

Chapter 6:National Interest and the North Atlantic Market 147

Ⅰ.The North Atlantic Context for Regulatory Convergence 148

A.The Political Class 151

B.Perceptions and Realities of American and European Similarities and Differences 153

Ⅱ.Market Structure and Competition Regulation 156

A.The Role of Effective Control 160

1.Long-Term Impacts of the Investment Issue 165

Ⅲ.National Infrastructure and International Market Access 166

A.Getting to Free Route Airspace on the North Atlantic 166

B.The London Airports Problem 168

Ⅳ.Conclusions:Convergence of National Interests on the North Atlantic? 173

Chapter 7:Global Threats to Aviation and National Interest 177

Ⅰ.Policies and Procedures:Recent History 180

Ⅱ.Public Sector Quality Controls,Is That the Question? 182

A.The Qualities at Issue 185

B.Defining the Elements of Quality Control:Six Possible Parameters 186

1.Relinquishing Anonymity 186

2.Accountability 187

3.Independent Oversight 187

4.Appellant Rights 187

5.Flexibility and Zen-Response 189

6.The Global and Local Network 189

Ⅲ.Relating Facilitation to Security 193

Ⅳ.Considering US-EU Pre-Clearance 194

Ⅴ.A Brief Consular Footnote 196

Chapter 8:The Way Forward 199

Ⅰ.Five Recommendations 201

A.Public Sector Services Standards 201

B.Infrastructure Policy:The Key Mobility Challenge 204

1.Performance-Based User Fees 207

2.Airport Slot Reservation Fees 207

3.Provider or Corporate Restructuring 208

C.State Aids:Whether and When Justified 210

D.Extending the Right of National Treatment to Commercial Air Transport 215

E.International Cooperation and Regulatory Convergence 217

Ⅱ.An Afterword on National Interest 220

Bibliography 223