Aeronautical

Bachelor
Airline Regulation

Passenger Rights

Aircraft ownership protection

Airline Regulation

Passenger Rights

Aircraft ownership protection

Second World War - The dawn of modern commercial aviation

Air superiority
Air supremacy
Second World War - The dawn of modern commercial aviation

Air superiority What’s

Air supremacy
next?
Second World War - The dawn of modern commercial aviation

What’s
Chicago Convention 1944
next?
Set rules and technical standards for a PEACEFUL
international air transport

London Munich
By the end of the Second World War and with the creation of United
Nations a dedicated UN’s agency was created. ICAO
một cơ quan chuyên trách của UN

Chicago Convention 1944

Set rules and technical standards for a PEACEFUL

international air transport

What’s
next?

London Munich
 Annex 1 - Personnel Licensing
Annex 2 - Rules of the Air
Chicago Convention, Annex 3 - Meteorological Services
set the minimum Annex 4 - Aeronautical Charts
Annex 5 - Units of Measurement
technical international Annex 6 - Operation of Aircraft
standards for Annex 7 - Aircraft Nationality and Registration Marks
Annex 8 - Airworthiness of Aircraft
enabling international Annex 9 - Facilitation
air transport Annex 10 - Aeronautical Telecommunications
Annex 11 - Air Traffic Services
Annex 12 - Search and Rescue
Annex 13 - Aircraft Accident and Incident Investigation
Annex 14 - Aerodromes
Annex 15 - Aeronautical Information Services
Annex 16 - Environmental Protection
Annex 17 - Security
Annex 18 - The Safe Transportation of Dangerous Goods by Air
Annex 19 - Safety Management
Chicago Convention rules everybody in the industry. There’s no FAA nor
EASA, above Chicago Convention Annexes. All states are equal on the
eyes of ICAO and Chicago Convention
“One ring to rule
them all”
Chicago Convention
treats all signatory
members as equals
and give them equal
rights for developing
international air
connectivity

FREEDOMS
OF THE AIR
In fact, the
Freedoms of the
air are very tight
rất chặt chẽ
rules.

Between 1944 and

1978 the regulation
mind-set was
applied even to the
domestic routes
Some pals got a
good benefit out
of the tight
regulations

Like PAN AM who

got the US
monopoly on the
international
market
Source: Footage the Aviator, Alec Baldwing as Juan Trippe the CEO of PAN AM
Some pals got a
good benefit out
of the tight
regulations

Like PAN AM who

got the US
monopoly on the
international
market
Source: Footage the Aviator, Alec Baldwing as Juan Trippe the CEO of PAN AM
Overall airlines
got privileges to
agree on fare thoả thuận về giá vé
prices which
killed incentives giết chết sự khuyến khích về áp giá vé cao
for competing In the late 1940s, IATA started holding conferences to fix prices
and kept ticket for international air travel.

prices high IATA secretary J.G Gazdik stated that organization aimed to fix
prices at reasonable levels, with due regard being paid to the cost
of operations, in order to ensure reasonable profits for airlines.
Overall airlines
got privileges to
agree on fare That is what you call
prices which A CARTEL
killed incentives Those practices stopped in 2006, when the United States
for competing In the Department
late 1940s, of Justice
IATA adopted
started an order
holding withdrawing
conferences to fixthe
prices
antitrust
for international immunity of IATA tariff conferences
air travel.
and kept ticket
prices high IATA secretary J.G Gazdik stated that organization aimed to fix
prices at reasonable levels, with due regard being paid to the cost
of operations, in order to ensure reasonable profits for airlines.
How the de-regulation started?
Not many know but the seed started in California in 1949 long time before 1978
1949 Pacific Southwest 1978 – US Market deregulation
California 1967 Southwest – Texas
How the de-regulation continued?
European Union joined the deregulation path in 1992 after it was the turn for Asia and
the rest of the world
90’s 2000’s
 đường bay không sinh lời
And now that the market is god… What do we do with those non profitable
routes in isolated areas where non airline wants to go anymore?
khu vực biệt lập

The Essential Air Service (EAS) program was put into place to
guarantee that small communities that were served by
certificated air carriers before airline deregulation maintain a
minimal level of scheduled air service.
trợ cấp
This is generally accomplished by subsidizing two round trips a
day with 30- to 50-seat aircraft, or additional frequencies with
aircraft with 9-seat or fewer, usually to a large- or medium-hub
airport.
And now that the market is god… What do we do with those non profitable
routes in isolated areas where non airline wants to go anymore?

Public Service Obligations (PSOs)

In case no air carrier is interested in operating the route on

which the obligations have been imposed, the Member State
concerned may restrict the access to the route to a single air
carrier and compensate its operational losses resulting from
the PSO. The selection of the operator must be made by public
tender at Community level.
compensate: đền bù
Airline Regulation

Passenger Rights

Aircraft ownership protection

Imagine you’re a French passenger in 1920 flying on a British plane from
Paris to London. At landing in London, there’s a runway excursion and your
trượt dài trên đường băng
plane crash.
You survived, you are injured, you cannot work, you lost your
valuable luggage.
kiện
You want to sue the airline:

• The airline is British ruled by British Law

• The crash happened in UK but the take-off was in France
• You are French
• You bought your flight in France under French Law
• The airline did not give you any paper when you paid for your
flight you don’t have how to proof that you were on the plane
• You know that you will get more money if you sue the airline in
UK rather than in France
Imagine you’re a French passenger in 1920 flying on a British plane from
Paris to London. At landing in London, there’s a runway excursion and your
plane crash.
You survived, you are injured, you cannot work, you lost your
valuable luggage.

Don’t Worry
You want to sue the airline:

• The airline is British

• The flight was between France and UK
•
Even for a lawyer this
The crash happened in UK but the take-off was in France
•
•
could be a complicate
You are French
You bought your trip in France
• case today
The airline did not give you any paper when you paid your ticket
you don’t have how to proof that you were on the plane
• You know that you will get more money if you sue the airline in
UK rather than in France
Warsaw 1929 convention was the first step to address the challenges of
protecting passengers on international flights

1. Defines "international carriage" and the convention's scope of applicability

2. Sets rules for documents of carriage
3. Sets rules for the air carrier's liability and limitations thereof
4. Sets rules for legal jurisdiction
5. Mandates carriers to issue passenger tickets; buộc hãng hàng không đó phải xuất vé chứng minh vận chuyển mình
6. Requires carriers to issue baggage checks for checked luggage;
7. Creates a limitation period of two years within which a claim must be brought (Article 29); and
8. Limits a carrier's liability to something close to 23.000 USD dollars of today
Warsaw 1929 convention was updated, modified by different additional
treaties. To simplify and unify the regulation, Montreal Convention 1999
was signed.

The Montreal Convention 1999 (MC99) establishes airline liability in the case of:
1. Death or injury to passengers,
2. as well as in cases of delay, thống nhất tất cả các chế độ điều ước quốc tế khác nhau về trách nhiệm của hãng hàng không đã

3. damage or loss of baggage and cargo. được phát triển một cách ngẫu nhiên từ năm 1929.
4. It unifies all of the different international treaty regimes covering airline liability that had
developed haphazardly since 1929.
5. MC99 is designed to be a single, universal treaty to govern airline liability around the world.*
trách nhiệm pháp lý

Source: https://www.iata.org/en/policy/smarter-regulation/mc99/
Besides Montreal, you have different domestic regulations

Europe One of the most comprehensive laws on passenger rights. As well as saying what care passengers
EC 261 should expect, it names the amount of compensation airlines must pay — between €250 and
€600 — delayed flights over 3 hours, flight cancellations less than 14 days in advance, and in cases
of denied boarding.
US US laws regarding passenger rights are not as extensive as European or other international laws.
If you are denied boarding due to overbooking in the US you could be entitled to up to $1,350
compensation.
Brazil Where an airline has failed to care for their passengers, Brazil’s Consumer Code allows passengers
ANAC to claim compensation for the inconvenience — which could be up to R$5,000 (960 USD)
Resolution
Nº 400
Montreal The Montreal Convention also helps passengers who experience problems with checked-in luggage
on flights, allowing them to reclaim up to €1,200 when bags are damaged, lost, or delayed by the
airline.
Source:
Airline Regulation

Passenger Rights

Aircraft ownership protection

What is an
aircraft
lessor?
bên cho thuê
 cho thuê
Imagine that you are a small Vietnamese leasing company and that you
leased your aircraft to an airline in Colombia. The airline got bankrupted.
The judge will try to recover some money . . .

What assets I can sell

to get employees and
taxes paid?

Colombian judge
You tried to convince the judge to let you take your aircraft as it is not part
of the airline assets. The judge will apply the Colombian law. The aircraft
stays in Colombia for many years before you can get it back

What assets I can sell I don’t care if that’s is your

aircraft. It stays here and I act
to get employees and
according to the Colombian
taxes paid? Law

Colombian judge
Luckily someone thought about our Colombian judge and many other judges in the
world and created the 2001 Cape Town Convention
thưa quý toà
I don’t care if that’s is your Your honour, the aircraft it’s registered as mine in
aircraft. It stays here and I act a database recognized by the Colombian law and
according to the Colombian many other States. I’m entitled to get back my
có quyền
Law aircraft ASAP

“It is estimated, based on World Bank

Electronic interest
registration system
Colombian judge
data, that the mean worldwide thời gian trễ thực
thi hợp đồng
contract enforcement delay is 10
months. The ratification of the
Convention and the Protocol reduces
this delay to 2 months”
ICAO
And why it is so important for the airlines ?

Cost savings
chủ nợ = lessor
• The Convention and Protocol are intended to reduce risks for creditors, and consequently, the
borrowing costs to debtors, through the resulting improved legal certainty.
để đảm bảo tính pháp luật, sẽ có chi phí đi vay cho các con nợ -> sự chắc chắn về mặt pháp lý được cải thiện.

• This promotes the granting of credit for the acquisition of more modern and thus more fuel-efficient
aircraft.

• The airlines of States that adopt the Convention and the Protocol may receive a ten percent (10%)
discount on export credit premiums.

• For example, it was calculated that the adoption of the Convention will enable Australian airlines to
save $330,000 on the purchase of a new ATR 72 and $2.5 million on the purchase of an Airbus A380
Conclusion

• Modern Air Transport it’s based on a set of, commercial and technical rules that
secures a harmonized way of working world wide this includes:

• How Aircraft are build, operate and maintain from an safety and
airworthiness point of view.
• How airlines needs to develop their commercial activities
• How passengers rights needs to be respected
• How aircraft ownership needs to be ensured.