Knowledge Gained on the Air Cargo Industry

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Table of Contents

Bilateral Agreements
Five Freedoms and other Agreements
References

Bilateral Agreements

Bilateral agreements on air cargo are international trade contracts between two states that regulate commercial provisions of air services
They are regarded as treaties, inter-governmental or executive conventions, or exchanges of diplomatic notes
According to Article 6 of the Chicago Convention of 1944, there is no transnational service required to operate in any contracting state (Abeyratne, 2018)
Transnational service is established only under specific permission/agreement with the contracting state
The transnational air services grant the rights for landing or flight without landing across a state’s territory
United States/European Union (US/EU) and the Multilateral Agreement on Liberalization of International Air Transportation (MALIAT) are two main multilateral agreements
EU uses Regulation 1008/2008 (Air Transport Regulations) as the primary document directing air cargo transportation within the Union
MALIAT was signed in 2001 between partnering states of Chile, Fiji, Brunei, New Zealand, Tonga, Samoa, the US, and Singapore (Fu & Yang, 2017)

Five Freedoms and other Agreements

First, Second, Third, Fourth and Fifth Freedoms make international air commerce possible
They include the allowance to land with passengers or cargo taken on board in the state native to the airline
They represent the right to perform transportation from and to the state native to the air company
The rights are granted depending on bilateral agreements between states
The Open Skies agreement is a bilateral contract between two nations that allows unlimited air travel between them
The Open Skies agreements prohibit governmental interventions in the commercial decisions made by the air cargo management (Contreras, 2017)
The US is pursuing Open Skies policy since 1992
The US finalized Open Skies agreements with 126 partners by 2019 (Contreras, 2017)
Chicago Convention regulates safety constraints
It requires the customs warehouses or free zones to issue comprehensive rules on safety
Federal Aviation Administration (FAA) also controls the safety issues
Customs and Border Protection (CBP) agency imposes regulations concerning international and domestic air cargo security
Transportation Security Administration (TSA) is another federal agency mandated with air transport security
Article 37 of the Convention of International Civil Aviation (CICA) requires countries to apply the procedures to freights moving by air, sea, and land

References

Abeyratne, R. (2018). Competition in air transport and equality of opportunity. Estey Journal of International Law and Trade Policy, 19, 85-106.

Contreras, J. M. T. (2017). An analysis of the open skies policy and its effects on the tourism industry in Mexico. Journal of Spatial and Organizational Dynamics, 5(4), 376-399.

Fu, X., & Yang, H. (2017). Airport–airline arrangements: An interpretive review of industry practices and recent studies. The Economics of Airport Operations, 6, 1-19.