Jonam T.
Valeza / T168
Air Traffic Rights/Freedoms of the Air
•Set of commercial aviation rights granting a
country’s airline(s) the privilege to enter & land in
another country’s airspace
Five Freedoms Agreement
•International Air Transport Agreement
•encompasses the first five freedoms
•came about due to the Chicago Convention
where US called for a standardized set of
separate air rights which may be negotiated
between states/countries.
Five Freedoms Agreement
•Right to overfly a country without landing
•Right to stop in a country for refueling or
maintenance on the way to another, without
transferring passengers or cargo
•Right to carry passengers or cargo from one’s
own country to another
Five Freedoms Agreement
•Right to carry passengers or cargo from another
country to one’s own
•Right to carry passengers from one’s own
country to a second country, and from that country
to a third country
The First Freedom
•Right to overfly a country without landing
The Second Freedom
•Right to stop in a country for refueling or
maintenance on the way to another, without
transferring passengers or cargo
The Third Freedom
•Right to carry passengers or cargo from one’s
own country to another
The Fourth Freedom
•Right to carry passengers or cargo from another
country to one’s own
The Fifth Freedom
•Right to carry passengers from one’s own
country to a second country, and from that country
to a third country
“So-called Freedoms”
•Right to carry passengers or cargo from a
second country to a third country by stopping in
one’s own country (The Sixth Freedom)
“So-called Freedoms”
•Right to carry passengers or cargo between two
foreign countries without continuing service to
one’s own country (The Seventh Freedom)
“So-called Freedoms”
•Right to carry passengers or cargo within a
foreign country with continuing service to or from
one’s own country (Eighth Freedom)
“So-called Freedoms”
•Right to carry passengers or cargo within a
foreign country without continuing service to or
from one’s own country (Ninth Freedom)
AEROPOLITICS
dEgReE oF L!bErAliZaTIoN
Understanding Liberalization
•Liberal economic theory holds that FREE
MARKETS allocate resources most efficiently and
lead to greater output
•Despite this, a lot of industries are regulated --
one such industry is the Airline Industry
Understanding Liberalization
•Can be explained by the following:
–hegemonic stability theory
–globalization thesis
–state of the national economy
–state centered
–societal-dominant
Types of Liberalization
•Unilateral Liberalization
–can be logically pursued by two categories of
countries:
•CATEGORY 1 - include those countries too poor
to afford setting up their own airlines
•CATEGORY 2 - include those with so little
population but so rich in resources, able to
establish world-class airlines and airports that can
tap global marketplace.
Types of Liberalization
•Bilateral Liberalization
–achieved a high acceptance among countries
–much easier and convenient platform
–two countries agree to mutually exploit economic
opportunities existing between two countries
Types of Liberalization
•Plurilateral Liberalization
–blocks of countries entering to attempt
implementation of a liberal environment among
the members.
•ASEAN
•UE
•APEC
Types of Liberalization
•Multilateral Liberalization
–a lot of entities involved in the negotiation
process
–although quite difficult, proponents of open skies
have not abandoned this concept
Types of Liberalization
•Progressive Liberalization
–most common form of liberalization
–negotiating parties proceed to identify economic
opportunities in each other and determines the
level of air traffic in terms of factors that can be
generated by their economies.
Conclusion
•Domestic in the worlds largest air service
market ultimately drove the logic of the global
•40% of international market is open
•air service are determined on a bilateral basis
•momentum of the liberalization may slow down
AEROPOLITICS
VaLuE of a FLaG cArRiEr
FLAG CARRIER refers to:
•A transportation company that is registered in a
given state
•A state-run, state-owned or state-designated
transport company or organization specifically
showing the state flag apparent for public view
What is its IMPORTANCE?
•Legacy of a country
•Impacts employment and households
•Self-respect, moral courage and political will
•National Security
•In cases of Emergencies
AEROPOLITICS
GlOBaL !nDuStRy AsSoCiAtIoNs
Role of the GIAs
•Become the impartial intermediary and
coordinator of the member airlines.
•Must not allow itself to become the tool of the
giants in the suppression of the weak
•For common ground and unbiased interest
resolution
ICAO
•International Civil Aviation Organization
ICAO
•Defines protocols for air accident investigation
followed by transport safety authorities
•Originally has 26 members; at present most all
airlines are members of ICAO
•Headquarters: Quartier International of
Montreal, Canada
IATA
•International Air Transport Association
IATA Goals
•Promote safe, scheduled and inexpensive air
transport for the benefit of all nations of the world
•supply all means necessary for the cooperation
of the airline companies
•Cooperate with ICAO
IATA
•Initially had 57 members from 31 nations
•Tasked with the technical aspects of Civil
aviation and is headed by an Assistant Secretary
of the DOTC
•Has undergone several name changed through
the years.
ATO Functions
•Establish & prescribe rules & regulations for the
inspection & registration of all aircraft

•Today, over 270 members from more than 140 •Establish & prescribe corresponding rules &
nations regulations for the enforcement of laws governing
air transportation
•Headquarters: Montreal, Quebec, Canada
AAPA
•Administer & operate the Civil Aviation
Training Center (CATC)
•Association of Asia-Pacific Airlines ATO Functions
AAPA
•Determine, fix and/or prescribe charges and/or
•Organized in mid-1960s with PAL spearheading rated pertinent to the operation of laws governing
air transportation
its establishment

•Objective: collection, analysis and dissemination
of data on the airline industry to members and
interested outside organizations
•Operate & maintain national airports, air
navigation and other similar facilities in
compliance to ICAO

•activities similar with that of IATA

Civil Aeronautics Board

•Agency charged with the power to regulate the

economic aspect of air transportation

•Composed of the Secretary of Transportation

and Communications as Chairman, the Assistant
Secretary of ATO as VC, the Commanding
General of the PAF and two presidential
appointees as members
CAB Objectives/Functions

•Development & utilization of air potential

•encouragement & development of air

transportation

•Regulation to assure the highest degree of

safety and foster sound economic conditions

•Licensing of domestic & international airlines

Air Transportation Office