Wayurakul Control of International Air Transport in Thailand THE CONTROL OF INTERNATIONAL AIR TRANSPORT IN THAl LAND A Thesis submitted to the Faculty of Graduate Studies and Research of McGill University, Montreal, Canada, in candidacy for the degree of Master of Laws. by Wichitr Wayurakul, LL.B. Institute of Air and Space Law August, 1966. McGill University Montreal, Canada. @ l'Jichitr \<Jayuraku1 1967 i PREFACE l am greatly indebted to the Government of Thailand, in particular its Department of Aviation, for nominating me to a scholarship for advanced study in air and space law, and to the Government of Canada, especially the External Aid Office, for the award of this scholarship under the auspices of the Canadian International Development Assistance programs, which enabled me to devote my time to research work. This thesis was prepared at the Institute of Air and Space Law of McGill University, Montreal, Canada, during the academic year 1965/66 under the understanding supervision and guidance of Professor Ivan A. Vlasic, to whom l must express my deep gratitude and appreciation for the generous contribution of his time and his very valuable advice. l also wish to acknowledge my debt to Mr. Donald M. Barrett of Pan American World Airways Inc., New York, New York, USA, for encouraging me and providing me with necessary information on air law study; to Mr. J. W. S. Brancker of Consultair Ltd., Montreal, Canada, for kindly giving me sorne useful materials; to my colleagues at the Air Transport ii Control Division of the Department of Aviation, Bangkok, Thailand, for their continuous help in gathering documents and information; and to Dr. J. D. Grayson for critical suggestions on English usage. l am also Most grateful for the help given me by Mrs. June Kander, my fellow students at the Institute of Air and Space Law and Miss M. Scott, Librarian of the Law Library of McGill University, and her staff. It must also be indicated here that the views expressed in this thesis are entirely my own and do not necessarily represent or reflect the official views, opinions or policy of the Thai Government or any of its Ministries or Departments. w. w. Montreal August, 1966. iii \ '-- TABLE OF CONTENTS Preface i Abbreviations vi Introduction l CHAPTER l - CIVIL AVIATION IN THAILAND: ITS EVOLUTION AND LEGAL REGULATION 3 1. The Growth of Civil Aviation 3 (1) Before World War II 3 (2) After World War II 7 2. Government Control of Civil Aviation 14 (1) Constitutional Allocation of Authority 14 (2) Legislation 16 - Air Navigation - Air Transport - Different Interpretations (3) Government Organs and Their Responsibilities 24 (4) Organs responsible for Authorizing International Air Transport Operators 30 lv CHAPTER II - THAl LAND AND THE MMCING OF INTERNATIONAL AIR TRANSPORT LAW 34 1. Paris Conference, 1919 34 2. Chicago Conference, 1944 37 (l) ProposaIs 37 (2) Results 38 - Convention on International Civil Aviation - International Air Services Transit Agreement - International Air Transport Agreement - Standard Form of Agreement for Provisional Air Routes (3) The Chicago Agreements and Thailand 42 3. Post-Chicago Developments 44 (l) Bermuda Agreement 44 (2) Geneva Discussions of a Multilateral Agreement 45 CHAPTER III - BILATERAL ARRANGEMENTS TO WHICH THAILAND IS A PARTY 49 1. Organs responsible for Negotiation and Implementation of Bilaterals 50 (l) Negotiation 50 (2) Implementation 52 v \ '-- 2. Bilaterals concluded by Thailand: General Observation 53 3. Analysis of Provisions of Existing Bilaterals 59 (1) Aeronautical Authorities 59 .(2) Establishment and Inauguration of Services 62 - Granting of Rights - Inauguration of Services - Designation of Airlines Authorization (3) Substantial Ownership and Effective Control 6$ (4) Routes 71 (5) Capacity 7$ (6) Rates $4 (7) Sett1ement of Disputes S$ 4. Conclusion 91 Notes 94 Bibliography 120 Appendices 133 / { vi ABBREVIATIONS ALITALIA ALITALIA - Linee Aeree Italiane Art. Article B. E. Buddhist Era BOAC British Overseas Airways Corporation CAB Civil Aviation Board; Civil Aeronautics Board CAT Civil Air Transport Congo Congress CPA Cathay Pacific Airways Ltd. CSA Ceskoslovenske Statni Aerolinie N. P. Depit State Department of State Depit State Bull. Department of State Bulletin DLH Deutsche Luft Hansa Doc. Document Dom. Domestic ECAC European Civil Aviation Conference GARUDA P. N. Garuda Indonesian Airways Geo. Wash. L. Rev. George Washington Law Review GJAL Greater Japan Air Lines (Dai Nippon Air Lines) Harv. L. Rev. Harvard Law Review IATA International Air Transport Association vii ICAN International Commission for Air Navigation ICAO International Civil Aviation Organization ICAO Bull. ICAO Bulletin Int'l International Int'l Orge International Organization J. Ae. Soc'y India Journal of the Aeronautical Society of India J. Air L. & Com. Journal of Air Law and Commerce J. Ro. Ae. Soc'y Journal of the Royal Aeronautical Society JAL Japan Air Lines Company Ltd. KLM Royal Dutch Airlines LoN League of Nations LUFTHANSA Deutsche Lufthansa (1954) MAL Malaysian Airways Ltd. (formerly Malayan Airways Ltd.) No. Number PAA Pan American World Airways Inc. PAL Philippine Air Lines Inc. para. Paragraph PICAO Provisional International Civil Aviation Organization POAS Pacifie Overseas Airlines (Siam), Ltd. viii Pub. Publication QANTAS Qantas Empire Airways Ltdo RAL Royal Air Lao Reg. Registration SAC Siamese Airways Company, Ltd. SAFE Braathens South American & Far East Airtransport Sect. Section Sess. Session SWISSAIR Swiss Air Transport Company Ltd. TAAS Trans-Atlantic Airlines (Siam), Ltd. TAC Thai Airways Company, Ltd. TAI Compagnie de Transports Aériens Intercontinentaux THAl Thai Airways International Ltd. TWA Trans World Airlines Inc. UAA United Arab Airlines UBA Union of Burma Airways UK United Kingdom UN United Nations US United States USA United States of America UTA Union de Transports Aériens Va. L. Rev. Virginia Law Review v.v. vice versa l INTRODUCTION It has been universally recognized since the end of World War l that every state has complete and exclusive sovereignty over the airspace above its territory. Therefore, it may grant or refuse to aircraft of other states the right to fly into its airspace. Attempts were made by nations to agree on a multilateral basis for the exchange of air transport rights, but no common solution was reached. Bilateral negotiations between nations have become the only means of obtaining in foreign countries the appropriate rights for scheduled international air services. Although Thailand is a small country and has only two small air carriers, it has entered into bilateral negotiations with several states and concluded as many as twenty bilateral air transport agreements. This thesis deals with the exercise of jurisdiction over the control of international air transport by the Government of Thailand. Special attention is drawn to the bilateral agreements which it concluded with foreign governments. The work consists of three chapters. Chapter Ideals with the evolution and legal regulation of civil aviation in Thailand. 2 It introduces as factual background the development of civil aviation, starting with the first power flight. It also discusses the application of national legislation to international air transport, the constitutional allocation of authority and the responsibilities of various government organs. Chapter II covers the control of international air transport in retrospect, as well as Thailand's participation in the making of international air transport law. Bilateral air transport agreements concluded by Thailand are noted in Chapter III. The differences in clauses and phraseology used in the existing bilaterals and the problem of the implementation of such bilaterals are also examined. 3 CHAPTER l CIVIL AVIATION IN THAILAND: IT3 EVOLUTION AND LEGAL REGULATION 1. The Gro~~h of Civil Aviation (1) Before Wor1d War II Ear1y in the twentieth century Thai1and considered it necessary to estab1ish its air power. Three officers of the Ministry of Defence were sent to France in February of 1912 to 1earn how to f1y airp1anes. During the years 1912-1913 Thailand ordered 7 airplanes: 3 Breguets and 4 Nieuports. On December 29, 1913, the first f1ight was made in Bangkok and was found to be satisfactory. In February of 1915, one Nieuport-type airplane was bui1t in Thailand by Thai engineers and of local materials. A Breguet-type plane was a1so bui1t and its first f1ight on May 24, 1915, was successful. A new type of airplane was designed by an officer of the Ministry of Defence and was built in 1927. Its first f1ight was successfu11y made on June 23 of that year. Many airplanes of this type were put into service during the fo11owing years. 4 Air transportation in Thailand started when an arm of the Ministry of Defence was assigned to operate air transport services. An experimental air mail service began operation on February 17, 1920. Three air mail flights were made in the same year, but on different routes. On June l, 1922, the first air transport service was operated in the Northeast on the route Nakhon Ratchasima (known as Korat)-Roi Et-Ubon Ratchathani (known as Ubon).l In 1923 a new route, Nakhon Ratchasima-Roi Et-Udon Thani (known as Udorn)-Nong Khai, was opened. In 1924 a civil unit of the Ministry of Defence was established to operate air transport services. Its headquarters were located at Nakhon Ratchasima. Six years later the Nakhon Ratchasima- Roi Et-Ubon Ratchathani service was suspended, since the railway already served Ubon. More than twenty airfields were built in aIl parts of the country during these years. In July of 1931, the Aerial Transport Company, Limited was established to extend the regular air transport services started nine years earlier. It operated under control of the Ministry of Commerce and 5 ( Communications.2 Three pilots were loaned from the Ministry of Defence. The Company served major cities throughout the country. It also provided air extensions to the Thai railway system. The Company was operated by Thai citizens only. It did not owe its existence to any sort of connection with a foreign airline.