International Regulation of Air Transport II
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Washington University Law Review Volume 1950 Issue 4 January 1950 International Regulation of Air Transport II A. J. Thomas Jr. Southern Methodist University Follow this and additional works at: https://openscholarship.wustl.edu/law_lawreview Part of the Air and Space Law Commons Recommended Citation A. J. Thomas Jr., International Regulation of Air Transport II, 1950 WASH. U. L. Q. 536 (1950). Available at: https://openscholarship.wustl.edu/law_lawreview/vol1950/iss4/3 This Article is brought to you for free and open access by the Law School at Washington University Open Scholarship. It has been accepted for inclusion in Washington University Law Review by an authorized administrator of Washington University Open Scholarship. For more information, please contact [email protected]. WASHINGTON UNIVERSITY LAW QUARTERLY INTERNATIONAL ECONOMIC REGULATION OF AIR TRANSPORT II A. J.THOMAS, JR. BILATERAL Am TRANSPORT AGREEMENTS Since there has been failure to adopt a multilateral treaty pro- viding for the exchange of international routes and air services by the members of the community of nations, the bilateral agree- ment between the governments of two states has been rsorted to in order to gain transit rights and rights to operate air trans- port services by the airline companies of one state into the terri- tory of the other state. These bilateral agreements have been of either a general or specific nature although the vast majority have fallen into the latter category. 110 A general agreement sets forth n conditions to be followed, but merely grants to the com- mercial air carriers of each country concerned a mutual freedom to establish and operate international air transport services. For example, the United States-Colombian Agreement of 1929111 per- mitted air transport operations of the United States to fly and land along both coasts of Colombia, while Colombian air ser- vices were granted such rights along the coasts of the United States and in the Canal Zone. The specific agreement grants the privilege to air carriers of each contracting nation to operate into the territory of the other, but, in addition, sets forth conditions and restrictions to be obeyed in the operation of such international air services. Route designations to be fol- lowed to and from each country are generally outlined. In the more recent agreements the point of departure in a con- tracting state, intermediate points, destination in the terri- troy of the other contracting state, and points beyond are all specified with exactness.112 At times, however, the air stops have not been described in such detail, but it has only been stated in the agreement that a reasonably direct route should 110. See LiSSITZYN, op. cit. supra note 19, at 379; TOMBS, op. Cit. supra note 2, at 113. 111. State Dept. Press Release, Feb. 23, 1929, see Lissitzyn, id. at 388. 112. See, for example, the elaborate routing schedule in the Bermuda Agreement signed between the United States and Great Britain, Treaties & Other International Act Series 1507 (Dep't of State 1926). Washington University Open Scholarship ECONOMIC REGULATION OF AIR TRANSPORT be followed between the two states. 113 Some countries have re- quired any route agreement signed to contain conditions accruing to their own advantage as in the case of Ireland. This nation requires that any carrier operating on an international trunk route thruogh its territory shall make Shannon airport its first and last European port of call."1 4 In most instances in connection with routing arrangements reciprocal concessions or substan- tially reciprocal concessions are made by the contracting states. One type of agreement is that wherein strictly recriprocal rights are granted on a designated route between the two states. 1115 For example state A and state B might agree that authorized air carriers of each state should be accorded rights of transit, non- traffic stop, as well as the right to pick up and discharge traffic on a route between city X in A and city Y in B; in both direc- tions. A nation like the United States with air carriers operating to the far corners of the globe would find such an agreement of little value, but requires an agreement which not only permits it to operate to a point or points within one nation but also to points beyond, along the international trunk routes which its airlines traverse. Therefore, a second type of air transport agreement has emerged wherein each state grants to the air car- riers of the other authority to conduct air transport operations within its territory which is a part of a trunk operation beyond its boundaries. The United States-Peruvian Agreement" 6 ex- emplifies this type of agreement. There it is provided: Airlines of the United States of America, designated in conformity with the present agreement, are accorded rights of transit and of nontraffic stop in and through the terri- tory of the Republic of Peru as well as the right to pick up and discharge international traffic in passengers, cargo, and mail at Lima, Talara, Chiclayo and Arequipa on the follow- ing routes via intermediate points in both directions: The United States and/or the Canal Zone to Talara, Chiclayo, Lima and Arequipa; and beyond Peru to points in Chile and Bolivia or beyond. Airlines of the Republic of Peru, designated in conformity 113. Interim Agreement Between the United States and Treaties and Other International Acts Series 1576 (Dep't of State 1945). 114. Agreement Between the United States and Ireland, Executive Agreement Series 460 (Dep't of State 1945). 115. See TOMBS, op. cit. supra note 2, at 113. 116. Agreement Between the United States and Peru, Treaties & Other International Acts Series 1587 (Dep't of State 1946). https://openscholarship.wustl.edu/law_lawreview/vol1950/iss4/3 538 WASHINGTON UNIVERSITY LAW QUARTERLY with the present agreement, are accorded rights of transit and of nontraffic stop in and through the territory of the United States of America and in and through the Canal Zone as well as the right to pick up and discharge interna- tional traffic in passengers, cargo, and mail at Washington, D. C., New York, N. Y., and the Canal Zone on the follow- ing route via intermediate points in both directions: From Peru via the Canal Zone and Havana, Cuba, to Washington, D. C., and New York,1 N. Y.; and beyond the United States to Montreal, Canada.2 T Again a nation may grant to the air carriers of one nation the privilege to operate an air service to and beyond its territory on a route while the airlines of the first nation may be extended the privilege to fly to the other nation but not beyond its territory. The United States Agreement with Switzerlandl8 so provides. It reads: Airlines of the United States of America... are accorded rights of transit and non-traffic stop in Swiss territory, as well as the right to pick up and to discharge international traffic in passengers, cargo and mail at Geneva (or other suitable airport) on the following route: The United States, over a North Atlantic route to Ireland and thence to Paris and Switzerland, and beyond to Italy, Greece, and the Near and Middle East, via intermediate points; in both directions. Airlines of Switzerland authorized under the present agree- ment are accorded rights of transit and non-traffic stop in the territory of the United States of America, as well as the right to pick up and discharge international traffic in passengers, cargo and mail at New York, on the following route: Switzerland, via intermediate points (non traffic stops) to New York; in both directions.'" As to the privileges of operations over the route by the air carriers, these, too, are of a substantially recriprocal nature, al- though the agreement may provide for all five freedoms of the air on the international route, or only a portion of them. Again certain points on a route may be designated as non-traffic stops only, while others may be designated open to all five freedoms. Traffic limitations may be established in the agreement specify- ing the number of frequencies to be operated or capacity allow- able. Provisions requiring sufficient traffic stops in order to offer reasonable commercial services for traffic to and from a con- 117. Id. at 7. 118. See note 113 supra. 119. Id. at 5. Washington University Open Scholarship ECONOMIC REGULATION OF AIR TRANSPORT tracting country may be inserted, as well as provisions with respect to tariffs, reservations of cabotage, 120 and the like. By 1940 the United States was a party to a number of bilateral air transport agreements with other nations,121 but many of our operating rights along international routes were not acquired by government to government bargaining, but rather because of negotiations by an airline company itself with a foreign gov- ernment through whose territory the operation was to be con- ducted. In the pioneering days of international air transport, Pan American Airways was encouraged by the United States 122 Government to negotiate agreements with various countries. By this process Pan American obtained operating rights in Latin America, in the Pacific areas, in Africa, and in Europe. This type of direct negotiation for air transport privileges by the air carrier concerned with a foreign nation had one advan- tage in that the negotiating air carrier's government under the terms of such agreement was usually not bound to grant recipro- cal privileges or rights to the air carriers of the granting nation, although this was not always the case, for some such private agreements entered into were contingent upon a grant of recipro- cal rights by the government of the negotiating company.