Paper 8: Cargo Operations and Management

Module-02: International Air regulations (Conventions and Organizations)

THE DEVELOPMENT TEAM

Principal Investigator Prof. S. P. Bansal Vice Chancellor, Indira Gandhi University, Rewari

Co-Principal Investigator Dr. Prashant K. Gautam Director, UIHTM, Panjab University, Chandigarh

Paper Coordinator Prof. S. P. Bansal Vice Chancellor, Indira Gandhi University, Rewari

Paper Co-Coordinator Dr. Amit Katoch Assistant Professor, UIHTM, Panjab University, Chandigarh

Content Writer Dr. Amit Katoch Assistant Professor, UIHTM, Panjab University, Chandigarh

Content Reviewer Prof. S. Kabia Chairman, Institute of Tourism and Hotel Management, Bundelkhand University, Jhansi

TERMS DESCRIPTION OF MODULE

Subject Name Tourism & Hospitality

Paper Name Cargo Operations and Management

Module No. 02

Module Title International Air regulations (Conventions and Organizations)

Objectives To understand the Conventions and Organizations related to Air cargo

Keywords Air cargo, business model, service attributes

TABLE OF CONTENTS

1. Learning Outcome

2. Introduction

3. International Organisations

3.1 or First global agreement (1929)

3.2 Chicago conventions

3.3

3.4 agreement

3.5 Convention for the Suppression of Unlawful Acts against the Safety of 1971(The Sabotage Convention or the )

3.6 Montreal convention 1999 (MC1999)

3.7 Annex 18

4. International Aviation Organisations

4.1 International Civil Aviation Organization (ICAO)

4.2 International Air Transport Association (IATA)

5. Summary

QUADRANT I

International Air regulations (Conventions and Organizations)

1. LEARNING OUTCOME OF THE MODULE

After completing this module, students will be able to about international organisations and organisations of aviation such as:

 Warsaw convention

 Chicago convention

 Freedoms of the Air

 Montreal convention

 Annex 18

 ICAO and

 IATA

2. Introduction

International air transport evokes considerable interest of many people those associated with ; and communities. The process and structure of international air transport regulation have three distinct venues — national, bilateral and multilateral. This module includes international conventions like Warsaw convention Chicago convention, freedoms of air and various other agreements such as Bermuda agreement, Montreal convention 1999 etc. Along with the trend of globalization and liberalization, international air transport has also undergone significant changes in the last decade. Hence, the following module also covers the description of important organisations like ICAO and IATA.

3. International regulations

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3.1 Warsaw Convention or First global aviation agreement (1929)

On October 12, 1929 the first international agreement governing aviation known as The Warsaw Convention was signed. Due to this convention passenger ticket check was made mandatory and liability law was widely implemented. In the history of aviation private air law in context to international luggage reached a peak in the initial years and soon after that after WWI flights were established that could carry passengers, mail and freight. In France, national laws were taken up in 1923 concerned with the liability in the carriage via airways. Such issue called for unification of law on a wide international level to prevent many conflicts.

The First International Conference on Air was conducted in Paris from 27 October to 6 November 1925 by the French Government who decided to form the Comité International Technique d' Experts Juridiques Aériens (CITEJA)which was an organization where continuation of the work of the Conference was handled by legal expertise. The Committee held sessions in the Royal Castle at Warsaw, Poland. On 12 October 1929, the Warsaw Convention took Unification of Rules Relating to International Carriage by Air as a private international law. Over the years, several

amendments, supplements, rules, and regulations had been added summing up the Warsaw Convention. 65 delegates from thirty-three nations attended this Conference. This Convention stated that all passengers need to have issued tickets, baggage checks, and certain limitations from the passenger’s liabilities.

During the extensive studies, ICAO council conducted a Diplomatic Conference held from 6 to 28 September 1955 at The Hague the Warsaw Convention was amended by some minor adjustments.

Source: https://www.icao.int/PublishingImages/photo_3.jpg

3.2 Chicago conventions

The Chicago Convention, built the International Civil Aviation Organization (ICAO), a specialized agency of the UN charged with coordinating and regulating international . It establishes rules of airspace, aircraft registration and safety, assigned the rights given to the signatories in air travel and exempts air fuels in transit taxation.

Signed on December 7, 1944 in Chicago by 52 signatory states this document received the requisite 26th ratification (March 5, 1947) and was implemented on April 4, 1947 along with ICAO. In October ICAO became a specialized agency of the United Nations Economic and Social

Council (ECOSOC). The Convention has since been revised eight times (in 1959, 1963, 1969, 1975, 1980, 1997, 2000 and 2006).

In 2013, the Chicago Convention has 191 state parties coming under the location of Chicago. The Cook Islands, Switzerland, and United States of America also form an important part.

Some important articles of Chicago convention are:

Article 1: Every state has complete and exclusive sovereignty over airspace above its territory.

Article 3: Every other State must refrain from resorting to the use of weapons against civil aircraft in flight.

Article 5: The aircraft of states, other than scheduled international air services, have the right to make flights across state's territories and to make stops without obtaining prior permission. However, the state may require the aircraft to make a landing.

Article 6: (Scheduled air services) No scheduled international air service may be operated over or into the territory of a contracting State, except with the special permission or other authorization of that State.

Article 10: (Landing at customs airports): The state can require that landing to be at a designated customs and similarly departure from the territory can be required to be from a designated .

Article 12: Each state shall keep its own rules of the air as uniform as possible with those established under the convention, the duty to ensure compliance with these rules rests with the contracting state.

Article 13: (Entry and Clearance Regulations) A state's laws and regulations regarding the admission and departure of passengers, crew or cargo from aircraft shall be complied with on arrival, upon departure and whilst within the territory of that state.

Article 16: The authorities of each state shall have the right to search the aircraft of other states on landing or departure, without unreasonable delay...

Article 24: Aircraft flying to, from or across, the territory of a state shall be admitted temporarily free of duty. Fuel, Oil, spare parts, regular equipment and aircraft stores retained on board is also exempt custom duty, inspection fees or similar charges.

Article 29: Before an international flight, the must ensure that the aircraft is airworthy, duly registered and that the relevant certificates are on board the aircraft. The required documents are:

a) Certificate of Registration

b) Certificate of Airworthiness

c) Passenger names, place of and destination

d) Crew licences

e) Journey Logbook

f) Radio Licence

g) Cargo manifest

Article 30: The aircraft of a state flying in or over the territory of another state shall only carry radios licensed and used in accordance with the regulations of the state in which the aircraft is registered. The radios may only be used by members of the flight crew suitably licensed by the state in which the aircraft is registered.

Article 32: the pilot and crew of every aircraft engaged in international aviation must have certificates of competency and licences issued or validated by the state in which the aircraft is registered.

Article 33: (Recognition of Certificates and Licences) Certificates of Airworthiness, certificates of competency and licences issued or validated by the state in which the aircraft is registered, shall be recognised as valid by other states. The requirements for issue of those Certificates or Airworthiness, certificates of competency or licences must be equal to or above the minimum standards established by the Convention.

Article 40: No aircraft or personnel with endorsed licenses or certificate will engage in international navigation except with the permission of the state or states whose territory is entered.

Any license holder who does not satisfy international standard relating to that license or certificate shall have attached to or endorsed on that license information regarding the particulars in which he does not satisfy those standards.

Source: https://people.hofstra.edu/geotrans/eng/ch3en/conc3en/img/airfreedom.png

3.3 Freedoms of the Air

The freedom of air are a group of formulized aviation rights which allows a country to either enter another countries airspace or land in it during emergency. This liberty was given in the Chicago Convention in 1944 in the Convention by International Civil Aviation. The United States demanded for a separate set of rights from other countries and wanted negotiation in their rights. The use of the terms "freedom" and "right" confer entitlement to operate international air services only within the scope of the multilateral and bilateral treaties (air services agreements) that allow

them. The first two freedoms mainly concern about commercial aircrafts in foreign airspace and other are about cargo mail and carrying people. All these are enumerated by international treaties in Chicago Convention Several Other Treaties are there but they are not officially recognized. Liberal open skies agreements often represent the least restrictive form of air services agreements and may include many if not all freedoms. They are relatively rare but examples include the recent single aviation markets in the European Union and between Australia and New Zealand.

Example

Freedom Description

1st The right to fly over a foreign A flight from Canada to Cuba, flown by country without landing. a Canadian , flying over the United States.

2nd The right to refuel or carry out A flight from the to maintenance in a foreign country Australia, flown by a British airline, with without embarking or a fuel stop in Singapore. disembarking passengers or cargo.

TRANSITRIGHTS

3rd The right to fly from one's own A flight from the United States to

country to another. Mexico, flown by a US airline.

4th The right to fly from another A flight from Mexico to the United country to one's own. States, flown by a US airline.

BASIC INTERNATIONAL SERVICE TWO COUNTRIES BETWEEN

5th The right to fly between two A flight from the United States to Hong foreign countries on a flight Kong, flown by a Hong Kong airline, originating or ending in one's own with a full stop in Vancouver. country. Passengers and cargo may board or disembark the flight in Vancouver, with no intention to continue the flight to

Hong Kong.

6th The right to fly from a foreign A flight flown from Germany to

country to another while stopping TRAFFIC RIGHTS BEYOND RIGHTS Mumbai, flown by an airline based in

in one's own country for Dubai, with a full stop in Dubai. non-technical reasons.

7th The right to fly between two A flight flown between Japan and foreign countries while not offering Taiwan, flown by an Australian airline. flights to one's own country.

8th The right to fly inside a foreign A flight flown between Fukuoka, Japan, country, continuing to one's own and San Francisco, USA, with a full stop country. in Tokyo, Japan. Passengers and cargo may board or disembark the flight in Tokyo, with no intention to continue the flight to San Francisco.

9th The right to fly inside a foreign A flight flown between Moscow, Russia, country without continuing to one's and St. Petersburg, Russia, flown by a own country. German airline.

CABOTAGE

The Chicago Convention drew up a multilateral agreement in which the first two freedoms, known as the International Air Services Transit Agreement (IASTA) or "Two Freedoms Agreement", were open to all signatories. As of mid-2007, the treaty was accepted by 129 countries.

First freedom

The first freedom is the right to fly over a foreign country without landing. It is only specific to a specific number of routes. As of the summer of 2007, 129 countries were parties to this treaty, including such large ones as the United States of America, India, and Australia. However, Brazil, Russia and Indonesia. IASTA allows each member country to charge foreign airlines "reasonable" fees for using its airports (which is applicable, presumably, only to the second freedom) and "facilities"; according to IATA, such fees should not be higher than those charged to domestic airlines engaged in similar international services.

Second freedom

The second freedom allows technical stops without letting any of the cargo come out. The most famous example of the second freedom is Shannon Airport (Ireland), which was used as a stopping point for most transatlantic flights until the 1960s, since Shannon Airport was considered the closest European airport to the United States.

Third and fourth freedom

The third and fourth freedoms mainly allow basic international services except details related to traffic such as the capacity of aircraft, the frequency of flights, the airlines permitted to fly and the airports permitted to be served. The difference between third and fourth is that the third refers to carry cargo or passengers to another country and fourth is to one’s own country. The third freedom is the right to carry passengers or cargo from one's own country to another.

Fifth freedom

The fifth freedom allows an airline to carry commodities from one place to another taking cargo from the foreign to host country. Fifth freedom flights were common between Europe and Africa, South America and the Far East. In some Asian countries only technical stops are allowed.

Sixth freedom

The sixth freedom allows to take cargo from one foreign country to another with one stop in the host country of airlines .Some countries do not allow such freedoms like China.

Seventh freedom

It is the right to carry passengers or cargo between two foreign countries without any continuing service to one's own country. On 2 October 2007, the United Kingdom and Singapore signed an agreement that allowed unlimited seventh freedom rights from 30 March 2008, along with a full exchange of other freedoms of the air.

Eighth freedom

Allowance to carry cargo from one point to another in one single country. It was usually prevalent in countries like New Zealand, Switzerland and China.

Ninth freedom

The right to carry passengers or cargo within a foreign country without continuing service to or from one's own country.

Source:http://www.bermuda-online.org/aviationstampconstellationJanuary1946.jpg

3.4 Bermuda agreement

Bermuda is a bilateral agreement between the US and the UK in 1946 at Hamilton, This added three more freedoms to the two granted in the 1944 Chicago convention. The 5th freedom granted the right to pick up cargo and/or passengers from another country for flight to and discharge at any point outside of that country and the home country.

During World War II, transatlantic air service between Britain and America was limited to Boeing 314 service between Baltimore and Foynes, which Pan American World Airways had begun in July 1939. British Overseas Airways Corporation (BOAC) also flew the route using three Boeing 314s purchased from . The Bermuda Agreement arose in the wake of the Chicago Conference of 1944, where the United States and United Kingdom disagreed about economic control of international air transport.

Prior to the Bermuda Agreement, the United States signed bilateral aviation agreements with several other European countries (Ireland, Norway, Sweden and Denmark), and had signed a multilateral Transport Agreement with several European and Latin American countries, but service to and from the United Kingdom had to be negotiated with the British government on an ad hoc basis.

Source:http://slideplayer.com/slide/5709493/18/images/24/The+Montreal+Convention+of+1971.jpg

3.5 Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation 1971 (The Sabotage Convention or the Montreal Convention):

The Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation (sometimes referred to as the Sabotage Convention or the Montreal Convention) is a multilateral treaty by which states agree to prohibit and punish behaviour which may threaten the safety of civil aviation.

The Convention does not apply to customs, law enforcement or military aircraft, thus it applies exclusively to civilian aircraft.

The Convention criminalises the following behaviour:

1) Committing an act of violence against a person on board an aircraft in flight if it is likely to endanger the safety of the aircraft; 2) destroying an aircraft being serviced or damaging such an aircraft in such a way that renders it incapable of flight or which is likely to endanger its safety in flight; 3) placing or causing to be placed on an aircraft a device or substance which is likely to destroy or cause damage to an aircraft; 4) destroying or damaging air navigation facilities or interfering with their operation if it is likely to endanger the safety of aircraft; 5) communicating information which is known to be false, thereby endangering the safety of an aircraft in flight; 6) attempting any of 1–5; and 7) Being an accomplice to any of 1–6.

3.6 Montreal convention 1999 (MC1999)

The Montreal Convention (formally, the Convention for the Unification of Certain Rules for International Carriage by Air) is a multilateral treaty adopted by a diplomatic meeting of ICAO member states in 1999. It amended important provisions of the Warsaw Convention's regime concerning compensation for the victims of air disasters. The Convention attempts to re-establish

uniformity and predictability of rules relating to the international carriage of passengers, baggage and cargo.

Under the Montreal Convention, air carriers are strictly liable for proven damages up to 100,000 special drawing rights (SDR), a mix of currency values established by the International Monetary Fund (IMF).Where damages of more than 113,100 SDR are sought, the airline may avoid liability by proving that the accident which caused the injury or death was not due to their negligence or was attributable to the negligence of a third part.

The global ratification of MC99 is an industry priority. MC99 gives consumers better protection and compensation and facilitates faster air cargo shipments, while airlines enjoy greater certainty about the rules affecting their liability. Universal ratification of MC99 by States will provide significant benefits to all parties:

 Passengers will benefit from fairer compensation and greater protection. Shippers and those involved in the air cargo supply chain will benefit from the ability to make claims without the need for expensive and time consuming litigation. They will also be able to replace paper documents of carriage, such as Air Waybills, with electronic versions, thus facilitating faster and more efficient trade.  IATA and FIATA (representing freight forwarders worldwide) are working collaboratively to promote such adoption by states worldwide. The IATA-FIATA position paper (see below) explains how MC99 will help develop trade.  Finally, airlines will benefit from greater certainty about the rules governing their liability across their international route network. IATA is thus advocating for the urgent ratification of MC99 by all remaining states.

MC99 also establishes the legal framework that allows airlines to make use of electronic documentation for shipments, thereby reducing costs and increasing efficiency.

Source: https://www.icao.int/secretariat/PostalHistory/annex_18_the_safe_transport_of_dangerous_goods_by_air_fichiers/image002.jpg

3.7 Annex 18

Annex 18 deals with the "Safe Transport of Dangerous Goods by Air". In general it sets down broad principles but one of the Standards requires that dangerous goods are carried in accordance with the Technical Instructions for the Safe Transport of Dangerous Goods by Air (the “Technical Instructions”). States are required by Annex 18 to have inspection and enforcement procedures to ensure that dangerous goods are being carried in compliance with the requirements.

Annex 18 deals with the Safe Transport of Dangerous Goods by Air and sets down board principles; one of the Standards, however, requires that dangerous goods be carried in accordance with the Technical Instructions for the Safe Transport of Dangerous Goods by Air (the "Technical Instructions"). States are required by Annex 18 to have inspection and enforcement procedures in place to ensure that dangerous goods are being carried in compliance with the requirements.

The Technical Instructions contain a comprehensive set of requirements; among other things, they provide for the classification of dangerous goods and list these goods. The list identifies those goods which:

a) Are forbidden under any circumstances b) Are forbidden on both passenger and cargo aircraft in normal circumstances but could be carried in exceptional circumstances subject to exemption by the States concerned c) Are forbidden on passenger aircraft but permitted on cargo aircraft in normal circumstances;

d) Are permitted on both passenger and cargo aircraft in normal circumstances. The Technical Instructions require that all dangerous goods be packaged and, in general, restrict the quantity per package according to the degree of hazard and the type of aircraft (i.e. passenger or cargo to be used. There is generally no restriction on the number of packages per aircraft. The Technical Instructions also give the packing methods to be used and the packaging’s permitted, together with the specifications for those packaging’s and the stringent testing regime that must be followed. There are also requirements for the markings and labels for packages and the documentation for consignments.

4. International Aviation Organisations

Source:https://www.icao.int/environmental-protection/PublishingImages/ICAO-logo_Web-MS-Office.png

4.1 International Civil Aviation Organization (ICAO)

In 1944 International Civil Aviation Organization (ICAO) a UN specialized agency was established to manage the administration and governance of the Convention on International Civil Aviation. The organisation has 192 member nations and reached consensus on international civil

aviation Standards and Recommended Practices (SARPs) as well as the airline policies to support a safe, efficient, secure, economically sustainable and environmentally responsible civil aviation sector. The Annual Report of the Council of ICAO provides the world aviation community with comprehensive insight into the programmes, activities and achievements of the Organization in support of its mission as defined by the Convention on International Civil Aviation, namely, the safe and orderly development of international civil aviation.

Convention on International Civil Aviation

The Convention on International Civil Aviation (also known as Chicago Convention), was signed on 7 December 1944 by 52 States. Pending ratification of the Convention by 26 States, the Provisional International Civil Aviation Organization (PICAO) was established. It functioned from 6 June 1945 until 4 April 1947. By 5 March 1947 the 26th ratification was received. ICAO came into being on 4 April 1947. In October of the same year, ICAO became a specialized agency of the United Nations linked to Economic and Social Council (ECOSOC).

Foundation of the International Civil Aviation Organization

The consequence of the studies initiated by the US and subsequent consultations between the Major Allies was that the US government extended an invitation to 55 States or authorities to attend, in November 1944, an International Civil Aviation Conference in Chicago. Fifty-four States attended this Conference end of which a Convention on International Civil Aviation was signed by 52 States set up the permanent International Civil Aviation Organization (ICAO) as a means to secure international co-operation a highest possible degree of uniformity in regulations and standards, procedures and organization regarding civil aviation matters. At the same time the International Services Transit Agreement and the International were signed.

The most important work accomplished by the Chicago Conference was in the technical field because the Conference laid the foundation for a set of rules and regulations regarding air navigation as a whole which brought safety in flying a great step forward and paved the way for the application of a common air navigation system throughout the world.

How it works

In ICAO the Convention of International Civil Aviation held in December 1944 in Chicago had each contacting state as a party. The President as Dr. Olumuyiwa Benard Aliu from Nigeria and the Secretary General Dr. Fang Liu.

The Assembly, had representatives from all Contracting States, meeting every three years. It to detail works, policies, triennial budget, choosing new heads of council for the coming years. The Council is assisted by the Air Navigation Commission (technical matters), the Air Transport Committee (economic matters), and the Committee on Joint Support of Air Navigation Services and the Finance Committee.

The Secretariat, headed by a Secretary General, is divided into five main divisions: the Air Navigation Bureau, the Air Transport Bureau, the Technical Co-operation Bureau, the Legal Bureau and the Bureau of Administration and Services. In order that the work of the

ICAO also allies with the World Meteorological Organization (WMO), the International Telecommunication Union (ITU), the Universal Postal Union (UPU), the World Health Organization (WHO), the World Tourism Organization (UNWTO) and the International Maritime Organization (IMO) and several NGO’s.

Source:http://c8.alamy.com/comp/D9T9FJ/iata-international-air-transport-association-logo-flag-symbol-icon-D9T9FJ.jpg

4.2 International Air Transport Association (IATA)

The International Air Transport Association (IATA) is the trade association for the world’s airlines, representing some 275 airlines or 83% of total air traffic. IATA is headed by Alexandre de Juniac, Director General & CEO since September 2016.

Vision: To be the force for value creation and innovation driving a safe, secure and profitable air transport industry that sustainably connects and enriches our world.

Mission: IATA’s mission is to represent, lead, and serve the airline industry.

Representing the airline industry: They improve understanding, Sensible regulation, and increase in profitable outcome.

Leading the airline industry: Provides all kinds of convenience and luxury with reduced costs and efficient services for over 70 years.

Serving the airline industry: They help airlines to operate safely, securely, efficiently, and economically under clearly defined rules. Professional support is provided to all industry stakeholders with a wide range of products and expert services.

Priorities of IATA

Safety-Safety is the primary priority for IATA where IATA Operational Safety Audit (IOSA) is the main organization. It is also been considered mandatory in several countries. 2012 was considered as the safest year by aviation.

Security- Security is equally important due to the existence of heavy threats as well as possibility of attacks.

Simplifying the Business- Simplifying the process of business by electronic tickets e-tags, web check in etc.

Environment- IATA members and all industry stakeholders have agreed to three sequential environmental goals:

1) An average improvement in fuel efficiency of 1.5% per annum from 2009 through 2020

2) A cap on net carbon emissions from aviation from 2020 (carbon-neutral growth) 3) A 50% reduction in net aviation carbon emissions by 2050 relative to 2005 levels.

Services- IATA provides diverse kinds of services related to aviation and simplifying the business.

6. Summary:

Air transportation is a major industry in its own right and it also provides important inputs into wider economic, political, and social processes. International Transport Organizations and air regulations play an important role in its operations at both national and international level. They help in highlighting the important issues and then solving them in light of all nations, rather than focussing on some or individual countries.

But, apart from their role, it is important to do timely developments within the individual nations based on them. And at the same time to help the poor, underprivileged and least developed economies by not only being empathetic to them, but supporting them through technology, education and training their human resource.