Air navigation services- Air laws

BBA SEM 5
Prof. Subhashis Modak
Aviation regulations
• Chicago Convention
• The 9 freedoms of air
• Bilateral agreements
• Airline Deregulation
• Liberalization
• Open Skies
Chicago Convention
• The Chicago Convention was signed in December 1944 and has
governed international air services since then.
• the convention also has a range of annexes covering issues such as
aviation security, safety oversight, airworthiness, navigation,
environmental protection and facilitation 
ICAO ANNEXES
• Annex 1 – Personnel Licensing
• Annex 2 – Rules of the Air
• Annex 3 – Meteorological Service for International Air Navigation
• Annex 4 – Aeronautical Charts
• Annex 5 – Units of Measurement to be used in Air and Ground
Operations
• Annex 6 – Operation of Aircraft
ICAO ANNEXES
• Annex 7 – Aircraft Nationality and Registration Marks
• Annex 8 – Airworthiness of Aircraft
• Annex 9 – Facilitation
• Annex 10 – Aeronautical Telecommunications
• Annex 11 – Air Traffic Services – Air Traffic Control Service, Flight
Information Service and Alerting Service
ICAO ANNEXES
• 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: Safeguarding International Civil Aviation Against
Acts of Unlawful Interference
ICAO ANNEXES
• Annex 18 – The Safe Transport of Dangerous Goods by Air
• Annex 19 – Safety Management (Since 14 November 2013)
First Freedom
• The civil aircraft of one State has the right to fly over the territory of
another State without landing, provided the overflown State is
notified in advance and approval is given.
Second Freedom
• A civil aircraft of one State has the right to land in another State for
technical reasons, such as refueling or maintenance, without offering
any commercial service to or from that point.
Third Freedom
• An airline has the right to carry traffic from its State of registry to
another State.
Fourth Freedom
• An airline has the right to carry traffic from another State to its own
State of registry.
Fifth Freedom
• An airline has the right to carry traffic between two countries outside
its own State of registry so long as the flight originates or terminates
in its own State of registry.
Sixth Freedom
• An airline has the right to carry traffic between two foreign countries
via its own flag State of registry as a transit point. (Sixth freedom can
also be viewed as a combination of third and fourth freedoms secured
by the State of registry from two different countries).
Seventh Freedom
• An airline operating entirely outside the territory of its State of
registry has the right to fly into another State and there discharge, or
take on, traffic coming from, or destined to, a third State.
Eighth Freedom
• An airline has the right to carry traffic from one point in the territory
of a State to another point in the same State on a flight which
originates in the airline’s home State. (This right is more commonly
known as consecutive cabotage, in which domestic traffic is reserved
to domestic carriers).
Ninth Freedom
• An airline has the right to carry traffic from one point in the territory
of a State to another point in the same State. (This right is pure
cabotage).
Bilateral approach

• The Chicago Conference produced two multilateral documents to

exchange such rights – the Transit Agreement (exchanging First and

Second Freedom rights), and the Transport Agreement (exchanging the

first Five Freedoms).

• The former has been widely adopted, while the latter has received few

ratifications.
 Bilateral Policy
• The failure to agree on commercial issues at Chicago led
to the bilateral negotiation of traffic rights.
• Thus, bilateral air transport agreements have become the
principal vehicle for implementing the rights conferred to
States under Articles 1 and 6 of the Chicago Convention
to authorize international scheduled air services to, from
and through their territory.
• Today, there are more than 2,500 bilateral air transport
agreements between nearly 200 States.
Bilateral Criteria
Early bilateral air transport agreements typically addressed several
issues:
(1) entry (designation of carriers and routes);
(2) carrier nationality;
(3) capacity;
(4) rates;
(5) discrimination and fair competition; and
(6) dispute resolution
The Booming Sector
•  jets were integrated into the market in the late 1950s and early
1960s, the industry experienced dramatic growth. By the mid-1960s,
they were carrying roughly 100 million passengers and by the mid-
1970s, over 200 million Americans had traveled by air.
• This steady increase in air travel began placing serious strains on the
ability of federal regulators to cope with the increasingly complex
nature of air travel.
The Problem of Regulations
• Domestic commercial airline industry was extensively regulated by
the Civil Aeronautics Board (CAB)
• CAB governed which airlines could serve which routes, determined
which airlines were certified to enter the market, and restricted
mergers among airline companies. Set the fare structure for the
industry
• Civil Aeronautics Board (CAB), determining the routes each airline
flew and overseeing the prices they charged.
• Turning point was the Airline Deregulation Act, approved by Congress
on October 24, 1978
Airline deregulation
• Airline deregulation is the process of removing government-imposed
entry and price restrictions on airlines affecting, in particular, the
carriers permitted to serve specific routes.
• In the United States, the term usually applies to the 
Airline Deregulation Act of 1978. A new form of regulation has been
developed to some extent to deal with problems such as the
allocation of the limited number of slots available at airports.
Airline deregulation
• Refers to government ceding control over certain aspects of the air
industry to the airline corporations.process of removing entry and
price restrictions on airlines affecting, in particular, the carriers
permitted to serve specific routes.
• United States was one of the first countries to officially deregulate
airlines through the Airline Deregulation Act of 1978.
Effects of airline deregulation
• Lower Fares, More Travel, Frequent Flier Programs
• The airlines were deregulated in stages from 1979 - 1984, and at each
step of the way, the net result was cheaper fares and more people
traveling.
• More free market environment was defined in the Airline
Deregulation Act of 1978
• New airlines sprung into life Went a bit 'wild and crazy'
• Airlines scrambled to open up new routes
• Airlines saw a rapid growth in this phase.
Effects of airline deregulation
• Airlines Benefitted enormously
• Huge growth in air travel
• Essential Air Service to smaller towns
• Airlines adding new routes
• Subsequent growth of regional carriers
Four waves of change since deregulation
• First period was the expansion of the traditional airlines, and the
growth of the new 'hub and spoke' model, which filled planes and
made it more convenient for people to travel to more destinations.
• The second period was a counterbalancing growth in point to point
services, largely by new carriers.
• Third period saw the growth of regional jet services by regional
carriers, filling in the 'gaps' of the major airline's schedules.
• Fourth period- At present -many things that used to be included in a
ticket's price now being charged extra or no longer being offered at
all. At the same time, there is a reduction in airlines.
Positive impacts of deregulation
• Impacts of deregulation on us are profound and positive. The results are most
significant in the following catagories.
• Result 1 : Airfares Dropped
Airfares today are almost three times cheaper than they were in
the late 1970s
• Result 2 : Air Travel Increased
Twice as many flights and three times as many people traveling, compared to the
1970s.
Airlines fly to more destinations
There is another dimension to the growth in air travel. Individual airlines could
now offer service to more places. For example, American Airlines flew to only 39
destinations prior to deregulation. Now it flies to 260 different locations - six times
more than before.
Positive impacts of deregulation
• Acquired miles can be redeemed for free air travel; for other goods
or services; or for increased benefits, such as travel class upgrades,
airport lounge access or priority bookings.
• Next time you earn miles on your Visa card, and next time you
redeem your miles for an upgrade or a free ticket, ……………Thank
Deregulation.
Negative Impacts
• Many existing airlines either have went bankrupt, liquidated, or
merged with other airlines while many new airlines entered the
market
• Labor saw a 10% decline in earnings following deregulation
• Aggressive cost-cutting measures amid financial losses and
bankruptcies have had a toll on labor- management relations and
customer service.
• Airport congestion was not seen as a predictable outcome ( Traffic
Growth outpaced infra development)
The Difference.
Airline Liberalisation
• Liberalization - ‘frees an industry from the state’s control over prices,
entry and exit’
• Airline Liberalisation
Freedom of entry/exit - Freedom on capacity –Freedom on fares -
Freedom of operations - COMPETITION
Open Sky Policy
• Was the basis for the creation of the ‘open skies’ agreement with full
traffic rights everywhere in the community
• Freedom in entry and exit
• At any capacity
• At any route
• At any rate determined
Modern Bilateral Air Transport Agreements
• Entry (Carrier and Route Designation)
• Carrier Nationality
• Pricing
• Capacity/Frequency
• Discrimination/Fair Competition
• Dispute Resolution
• Security
• Cargo
Open Sky Bilateral
(1) Open entry on all routes;

(2) Unrestricted capacity and frequency on all routes;

(3) Unrestricted route and traffic rights, that is, the right to operate
service between any point . . . including no restrictions as to
intermediate and beyond points, change of gauge, routing flexibility,
co-terminalization, or the right to carry Fifth Freedom traffic;
(4) Double-disapproval pricing in Third and Fourth Freedom markets;
(5) Liberal charter arrangement
(6) Liberal cargo regime
Open Sky Bilateral

(7) Conversion and remittance arrangement (carriers would be

able to convert earnings and remit in hard currency promptly
and without restriction);
(8) Open code-sharing opportunities;
(9) Self-handling provisions (right of a carrier to
perform/control its airport functions going to support its
operations);
• https://www.youtube.com/watch?v=thqbjA2DC-E – freedoms of air
video
• https://www.youtube.com/watch?v=yqF5Cp6Y2yo – early days of
aviation
Thank you!!!!
https://www.lucintel.com/top-five-airline-companies-2013.aspx
Double disapproval means that airlines can reduce fares on routes
between countries so long as both nations do not disapprove.