AIR SERVICES
THINK PIECE II

A Think Piece for Identification of Further Steps to Liberalize Air Services

Submitted Jointly by Australia, Indonesia, Japan, Singapore and Viet Nam

1. Essential Factors for Consideration of "Further Steps"

From our point of view, consideration by TPT-WG for "identification of further steps to liberalize air services", which the economic leaders supported in their Declaration in Auckland, should be based on a realistic and comprehensive approach. We believe that only such an approach will allow us to reach the conclusion that is constructive and effective enough to facilitate more competitive, more efficient air services in the region.

In addition, attention must be paid to the fact that extensive discussions were held in this particular field among experts from member economies when Air Services Group adopted "Recommendation of 8 Options for More Competitive Air Services" in as recent as 1998. Consequently, we should take advantage of accumulation of the views or ideas which were exchanged or shared among the participants in the course of that process.

Moreover, it is also necessary to note that, according to the Declaration, such identification should be "in accordance with the Bogor Goals". Since the Bogor Declaration by economic leaders in 1994 called for steps to improve economic infrastructure including transportation "with the aim of contributing to sustainable development" of the region, the further steps to be identified by TPT-WG need to be consistent with this explicitly stated objective.

2. Requirements for "Further Steps"

In view of above, "further steps" should be subject to the following requirements:

  1. With a view to facilitating "deepening" of the eight options, any mechanism should be introduced so that further implementation of them will be ensured.
  2. In case where confusion exists as to what particular measures are within the coverage of each of the eight options, clarification should be made with regard to the definition of specific measures to be implemented.

    3. In addition, outside the existing coverage of the eight options, specification should be comprehensively conducted in order to pinpoint measures which are expected to significantly contribute to more competitive, more effective air services.

    With a view to facilitating the "widening" of the eight options, member economies should be encouraged to implement such newly defined measures as well as those additionally specified.

  3. The region is characterized by the diversity among the member economies in terms of degree of economic development, maturity of airline industry and constraints of infrastructure such as airports. The newly defined measures and additionally specified ones as described in 2) above should be implemented only when their implementation is accepted by all the member economies to be realistic in the light of such diversity.
  4. In accordance with the fundamental principle adopted by APEC, the implementation of the measures should be on a voluntary basis, as has been the case with the eight options.

3. Our Proposal for "Further Steps"

We propose to identify the following steps of two categories, which we believe meet each of the requirements described in 2. above, as "further steps".

  1. Steps for "Deepening"

    2. With regard to the measures which have not been sufficiently promoted despite being categorized as "High Priority" options, further implementation of them should be promoted by:

    A) identifying measures found not to have been sufficiently implemented based on the result of Australia's matrix research,

    B) renewing the agreement among member economies on the necessity to accelerate the measures' implementation, and

    C) introducing a mechanism under which achievements will be subject to regular reviews by member economies in order to encourage further implementation while ensuring the transparency.

  2. Steps for "Widening"

Within the coverage of the eight options, there are some measures the definitions of which are not clear enough to specify what actions are recommended for their implementation. For example, although it is recommended to "allow and facilitate the operation of both passenger and freight ad hoc services" in Option 6, this recommendation has not resulted in more transparent criteria for approvals on ad hoc charter operations or relaxation of such criteria.

Moreover, there seem to exist some measures which are not covered by any of the existing options but are expected to significantly contribute to more efficient air services in the region. In our view, such measures may include relaxation of restrictions on establishment and management of computer reservation system (CRS) by foreign airlines, relaxation of restrictions on repair and maintenance of aircraft by foreign airlines and simplification of custom procedures for air cargo.

Consequently, we believe it appropriate to pick up these measures as those newly defined or additionally specified, to recommend their implementation, and to add them to the measures to be subject to the mechanism described in 1) above.

 

This page was last updated on 17 May 2000

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