Q:/S/C/W270A2-03.Pdf
S/C/W/270/Add.2 Page 403 PART H OWNERSHIP S/C/W/270/Add.2 Page 405 H. OWNERSHIP 1. Regulatory aspects 659. This section will discuss: (a) the different concepts associated with the term "ownership", and their interactions; (b) documentary limitations affecting the analysis of the issue; and (c) main regulatory developments. (a) The different concepts associated with the term "ownership" and their interaction 660. As explained in the compilation (paragraphs 7-9, pages 220-221), in the professional and academic aviation literature the term "ownership" is indifferently used to refer to three distinct concepts: (i) The designation policy through which a country attributes the rights to operate, either domestically or under a bilateral Air Services Agreement, to a given airline(s) (e.g. the US Department of Transportation granting traffic rights to American Airlines but not to Continental Airlines on a non-open- skies destination). Designation policies were used in the past both at the national level (e.g. before the 1979 deregulation, the US Civil Aeronautics Board would attribute the right to operate on a given city-pair to a given airline) and at the international level. They seem now to be confined mainly to the international arena with the marginal exception of public services contracts. (ii) The national investment/establishment regime for airlines, whether operating only domestic flights, only international flights, or both. The investment regime may cover also non-scheduled carriers and, in certain instances, general aviation/business aviation carriers. In cases where there is only one, publicly-owned airline, there may be no investment regime since none is needed.
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