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Chapter 1:Introduction1

Ⅰ.Aviation and Globalization3

Ⅱ.Modern Mobility and National Interests6

Ⅲ.International Attractiveness as a Policy Goal8

Ⅳ.The Political Challenge9

Ⅴ.Key Definitions11

A.International Aviation12

B.National Interest13

1.National Interest from the Perspective of Security13

a.The Power Politics Perspective14

b.The Geopolitical View15

2.National Interest from the Perspective of Values15

a.The Political Leader's Perspective16

b.The Ideologist's Perspective16

c.Interest Groups and National Interest Formulation17

3.National Interest from a Global Safety and Prosperity Perspective18

a.The Global Safety and Health Perspective18

b.The Prosperity Focus-Considering the ' Wealth of Nations'19

4.The Diplomat's Perspective20

5.Summary:The Definition of National Interest to Be Used in This Book21

Ⅵ.National Interests in Aviation23

A.The Control of Airlift Issue24

B.Access to Mobility24

C.Quality Controls on Mobility and Access25

D.Maintaining the National Technical Team25

E.Overall Considerations25

Chapter 2:National Relationships and International Regulation27

Ⅰ.Economic Regulation and the Trade Policy Context28

A.Reciprocity30

B.MFN30

C.National Treatment31

D.Overall Considerations31

Ⅱ.Multilateral Agreements:The Chicago Convention32

A.Normative Goals of the Convention33

B.Treatment of Sovereignty and Territory34

C.Adaptability of the Convention36

D.Ultimate Scope of the Convention37

Ⅲ.The Bilateral Regulatory Tradition39

A.General Setting39

B.The Nine [or Should It Be Seven?] Freedoms41

1.First Freedom41

2.Second Freedom41

3.Third Freedom42

4.Fourth Freedom42

5.Fifth Freedom42

6.Sixth Freedom43

7.Seventh Freedom43

8.Eighth Freedom44

9.Ninth Freedom44

C.Bilateral Beginnings and the Bermuda I Agreement45

1.Designation46

a.General Considerations46

b.Bermuda I Designation Provisions47

2.Route Description47

a.General Aspects47

b.Bermuda I Route Provisions48

3.Capacity48

a.General Aspects48

b.Bermuda I Provisions48

4.Tariffs50

a.General Aspects50

b.Bermuda I Provisions50

D.The General Anatomy of Bilateral Air Services Agreements50

1.Introductory Provisions51

2.The Granting of Rights51

3.Designation and Revocation51

4.Compliance with National Laws52

5.Exemptions from Duties and Taxes52

6.User Fees52

7.Technical and Operational Standards and Control Procedures(including Safety and Security)53

8.Doing Business Issues53

9.Capacity53

10.Tariffs54

11.Route Rights54

12.Other(Newer) Economic Provisions54

13.Consultation and Arbitration54

14.Other Procedural Clauses55

Ⅳ.The Emerging Plurilateral Alternative55

Chapter 3:National Interest from a Producer Perspective57

Ⅰ.The Producer Interest 'Cartel Model' Bilateral Agreement58

A.Elements of the Cartel Agreement60

1.Basic Elements61

a.Bermuda Principles61

b.Predetermination of Capacity61

c.Discretionary Fifth Freedom Route Rights61

d.Limited Designation61

e.Airline-to-Airline Balancing of Results62

f.Pricing Coordination62

g.Disputes Resolution62

2.Enhanced Elements62

a.Airline-to-Airline Coordination Will Be Mandatory62

b.Exercise of Certain Traffic Rights Will Be Dependent on Airline Agreements62

B.The Successful Champion Exception?64

Ⅱ.Protectionism in National Legislation65

A.Exclusive Access to Traffic65

B.Capital Support and Investment Subsidies66

C.Operating Subsidies66

Ⅲ.Industrial Policies and International Aviation67

A.Implications of Aerospace Industrial Policy for Air Transport Policy69

Ⅳ.Infrastructure and Supporting Services70

A.Air Traffic Management70

B.Airports74

C.Situational Relationships between Airlines and Their Infrastructure Providers75

Ⅴ.Supply Side Motivations Reviewed77

Chapter 4:National Interest from a Consumer Perspective79

Ⅰ.General Elements of Consumer and User Interest80

Ⅱ.US Policy toward Consumer Interest and the Role of the Public Sector82

A.Research and Development84

B.Operation and Development of Infrastructure84

C.Technical and Operational Quality Controls85

D.Aviation Security Services and Controls85

E.Proactive Regulation of Competition85

F.Consumer and Environmental Protection86

G.Permitting87

H.Legislative Oversight87

Ⅲ.A Micro-History of American Practice88

A.Beginnings of International Air Services89

Ⅳ.US Deregulation in International Markets:Open Skies Phase 193

Ⅴ.Open Skies Phase 296

Ⅵ.Elements of the Contemporary US Open Sky Model98

A.The Preamble99

B.Grant of Rights99

C.Designation and Revocation100

D.Safety and Security101

E.Commercial Opportunities101

F.User Charges102

G.Fair Competition103

H.Pricing(Tariffs)103

I.Key Annex Provisions105

Ⅶ.The FAA Role in Quality Control and Protecting National Interest106

Chapter 5:National Interest from a Regional Perspective113

Ⅰ.General Policy Issues of Regional Association114

Ⅱ.National and Community Interests in Europe116

A.Proportionality118

B.Subsidiarity118

C.Vacuum Abhorrence119

D.My Space119

E.Overall Considerations119

Ⅲ.The Scope of EU Aviation Policy and Implications for International Relations119

A.Snapshot 1:Strategic Implications of EC Rules on International Market Access121

B.Snapshot 2:Community Slot Policy and International Implications124

C.Snapshot 3:Issues Surrounding the Single European Sky126

D.Snapshot 4:Paying for Siberia and the Issue of Freedom of Transit131

E.Snapshot 5:Safety and Security Regulatory Procedures134

1.Role of EASA135

Ⅳ.International Negotiating Alternatives of the EU137

A.The European Common Aviation Area(ECAA)138

1.Elements of the Aviation Acquis139

a.Market Access and Ancillary Issues139

b.Air Traffic Management140

c.Aviation Safety140

d.Aviation Security140

e.Environment140

f.Social Aspects140

g.Consumer Protection141

h.Competition and State Aids141

i.Other Legislation141

2.Overall Considerations141

B.The Open Aviation Area(OAA)141

C.Comparing the OAA to the Classical Bilateral Model143

1.MEN-Type Application to(at Least Some) Third Parties144

2.Establishing Standards with Respect to Infrastructure144

3.Industrial and Aviation Systems Cooperation144

4.Competition Policy Standards145

5.Consumer and Public Interest Standards145

Chapter 6:National Interest and the North Atlantic Market147

Ⅰ.The North Atlantic Context for Regulatory Convergence148

A.The Political Class151

B.Perceptions and Realities of American and European Similarities and Differences153

Ⅱ.Market Structure and Competition Regulation156

A.The Role of Effective Control160

1.Long-Term Impacts of the Investment Issue165

Ⅲ.National Infrastructure and International Market Access166

A.Getting to Free Route Airspace on the North Atlantic166

B.The London Airports Problem168

Ⅳ.Conclusions:Convergence of National Interests on the North Atlantic?173

Chapter 7:Global Threats to Aviation and National Interest177

Ⅰ.Policies and Procedures:Recent History180

Ⅱ.Public Sector Quality Controls,Is That the Question?182

A.The Qualities at Issue185

B.Defining the Elements of Quality Control:Six Possible Parameters186

1.Relinquishing Anonymity186

2.Accountability187

3.Independent Oversight187

4.Appellant Rights187

5.Flexibility and Zen-Response189

6.The Global and Local Network189

Ⅲ.Relating Facilitation to Security193

Ⅳ.Considering US-EU Pre-Clearance194

Ⅴ.A Brief Consular Footnote196

Chapter 8:The Way Forward199

Ⅰ.Five Recommendations201

A.Public Sector Services Standards201

B.Infrastructure Policy:The Key Mobility Challenge204

1.Performance-Based User Fees207

2.Airport Slot Reservation Fees207

3.Provider or Corporate Restructuring208

C.State Aids:Whether and When Justified210

D.Extending the Right of National Treatment to Commercial Air Transport215

E.International Cooperation and Regulatory Convergence217

Ⅱ.An Afterword on National Interest220

Bibliography223