15^th TRANSPORTATION WORKING GROUP
Santiago de Chile, April 19 - 23,1999

TPT/WG/15/CT/SC/4.6

Third Meeting of Steering Committee on
More Competitive Transportation Industry (including Infrastructure)

Report on Air Services

PERU

REPORT ON AIR SERVICES BY PERU

PERU'S DELEGATES STATEMENT TO THE
15^TH TRANSPORTATION GROUP (AIR TRANSPRTATION)
MEETING FOR THE ASIA - PACIFIC COUNCIL

Santiago de Chile. April 21^st, 1999

IT'S MY HONOUR TO PRESENT TO YOU THE PERUVIAN AIR TRANSPORTATION POLICY AND ITS OBJECTIVES, INCLUDING ITS RELATIONS WITH THE MEMBERS OF THE ASIA - PACIFIC ECONOMIC COUNCIL (APEC). ADDITIONALLY, IT HONOURS US SINCE THIS IS THE FIRST TIME THAT PERU TAKES PART IN THE MEETINGS OF THE AIR TRANSPORTATION GROUP OF THIS COUNCIL.

PERU'S FOREIGN POLICY INCLUDES, WITHIN ITS MAJOR ISSUES, THE RELATIONSHIPS WITH APEC AND ITS MEMBER COUNTRIES. WITH RESPECT TO THIS POLICY, THERE HAS BEEN SINCE LONG AGO DIPLOMATIC AND COMMERCIAL RELATIONS WITH THE APEC MEMBER COUNTRIES OF ALL AMERICAS WESTERN COAST. WE HAVE INITIATED SINCE SEVERAL YEARS AGO A POLICY OF DIPLOMATIC AND COMMERCIAL OPENING WITH APEC MEMBER COUNTRIES, GEOGRAPHICALLY LOCATED IN THE ASIAN REGION. THIS OPENING WILL BE INCREASED ON A PROGRESSIVE-BASIS, BUT PERU CONSIDERS THIS SHOULD BE INCREASED TO MORE SIGNIFICANT LEVELS.

THIS COMMERCIAL RELATIONSHIP SHOULD GO BOTH WAYS TO REACH THE SEVERAL MARKETS THAT REQUIRE PRODUCTS FROM ONE AND OTHER PACIFIC REGION.

COMMERCIAL LINKS WITH THE COUNTRIES OF ALL AMERICAS WESTERN COAST ARE CONSOLIDATED, BUT THE FOCUS IS TO HAVE SIMILAR LINKS WITH APEC MEMBER COUNTRIES OF THE ASIAN REGION.

TOURISM AND EXTERNAL COMMERCE SHOULD RECEIVE THE MAJOR TRANSPORTATION SERVICES TO REACH THEIR TARGET PLACES ON TIME.

IT IS EVIDENT THAT CERTAIN TYPE OF GOODS SPECIAL OR PERISH, NEEDS TO BE CARRIED BY AIR AND THE TOURIST LOOKS FOR RAPIDNESS WHEN HE TRAVELS, WHICH CAN ONLY BE ACCOMPLISHED USING LAST GENERATION AIRPLANES WITH THE LONGEST FLIGHT RANGE.

FROM 1990 ON, A PROCESS OF LIBERALIZATION IN THE AIR TRANSPORTATION HAS BEGUN IN PERU, WITH ALL POSSIBLE ARRANGEMENTS GRANTED TO CREATE NEW DOMESTIC AIRLINES, ATTRACTING FOREIGN INVESTORS IN THE AIR TRANSPORTATION FIELD. THIS FITS TO THE PERUVIAN ECONOMIC POLICY THAT ALLOWS FOR THE CREATION OF A DOMESTIC AIRLINE HAVING 70% OF FOREIGN INVESTMENT AND 30% OF PERUVIAN INVESTMENT, WHICH EVIDENTLY IS INTERESTING FOR THOSE WHO WISH TO INVEST IN THIS FIELD.

AT THE SAME TIME, PERUVIAN ADMINISTRATION LOOSES AND THEN LIBERALIZES THE INTERNATIONAL AIR COMMERCIAL TRAFFIC TO OUR COUNTRY.

IN THE LAST YEARS, PERU HAS SIGNED "OPEN SKIES" AGREEMENTS WITH THE NETHERLANDS, PANAMA AND UNITED STATES. BY NOW, WE ARE IN THE INITIAL STAGE OF NEGOTIATIONS FOR SIMILAR AGREEMENTS WITH OCEANIA COUNTRIES ALONG WITH AGREEMENTS WITH SEVERAL NATIONS THAT ALLOW FOR A MORE EXTENSIVE AIR TRAFFIC, WITH THE ARRANGING OF AIR CARGO TRANSPORTATION AS MAJOR CONCERN.

THE CIVIL AIR LAW, COMPLEMENTARY RULING PROVISIONS, AND PERUVIAN AIR REGULATIONS PROVIDE THE REQUIREMENTS FOR DOMESTIC AND INTERNATIONAL AIR COMMERCIAL OPERATIONS IN PERU, FOR WHICH THE OPERATORS MAY SUBMIT PERIODICALLY SUGGESTIONS THAT COULD BE VERY USEFUL.

THERE IS NO CONTROL OVER THE RATES IN THE DOMESTIC AND INTERNATIONAL AIR TRANSPORTATION, WHICH DEPENDS ON THE FLUCTUATION OF THE OFFERS MADE BY THE AIRLINES AND THE FREE MARKET. THIS HAS RESULTED IN BETTER SERVICES AND SCHEDULES COMPLIED. IT ALSO ENCOURAGES THE SIGNING OF COMMERCIAL AGREEMENTS BETWEEN THE AIRLINES THAT WISH TO OPERATE TO PERU, SUCH AS CODE SHARING, AIR NAVIGATION EQUIPMENT EXCHANGING, POOLS, ETC.

WHAT I REALLY MUST STRESS IS THAT PERU, BY BEING GRANTED WITH CATEGORY ONE OF THE THREE ESTABLISHED BY THE FEDERAL AVIATION ADMINISTRATION OF THE UNITED STATES OF AMERICA, MAINTAINS A PERMANENT CONTROL OVER THE OPERATION SAFETY, WITHIN THE STANDARDS DETERMINED BY THE INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO), TO PROTECT THE INDIVIDUALS AND AIR NAVIGATION EQUIPMENT, WHICH STRONGLY CONTRIBUTES TO AVOID INCIDENTS AND UNFORTUANTE ACCIDENTS.

MISTER PRESIDENT, MISTER DELEGATES:

BEING AWARE OF THE GEOPOLITICS WORLDWIDE, YOU WILL AGREE WITH ME THAT PERU CONTINUES WITH AND, IT CAN BE ASSURED, HAS ACQUIRED A MAJOR IMPORTANCE IN THE INTERNATIONAL AIR TRAFFIC, EITHER NORTH, SOUTH OR WEST, EAST, ETC.

PERU' S GEOGRAPHIC POSITION PLACES US IN THE CENTER OF THE AIR OPERATIONS WITHIN THE APEC MEMBER COUNTRIES. PERU IS ALSO COMMITTED TO BECOME A HUB OR DISTRIBUTION CENTER OF PASSENGERS AND CARGO, WITH ARRIVALS TO OTHER LATINAMERICAN COUNTRIES.

BY OTHER SIDE, SURVEYS DONE SHOW THAT THE ROUTE TO SOUTHWEST OF ASIA IS SIGNIFICANTLY SHORTER FROM LIMA, THROUGH OCEANIA, AVOIDING CONGESTIONS OF 4 AND 5 HOURS THAT COME OUT AT THE AIRPORTS IN LOS ANGELES, SAN FRANCISCO OR ANCHORAGE, ETC. IN SUCH ROUTE.

WITH MY PARTICIPATION, PERU WISHES TO CONFIRM ITS STRONG WILL OF ACCOMPLISHING THE BEST EFFORTS TO CONTRIBUTE TO THE APEC'S DEVELOPMENT, WHICH WILL BE AN IMPORTANT BENEFIT TO THE PEOPLE OF MEMBER COUNTRIES.

THANKS
Santiago de Chile, April 21^st.1999

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