Monthly Newsletter issued by Dubai Civil Aviation Authority
Celebrating the 2 70th Anniversary of the Convention on International Civil Aviation
www.viadubaionline.com
Issue 19 December 2014
70th Anniversary of the Convention on International Civil Aviation
International Civil 3 Aviation Organization: Facilitating the States to connect the continents through aviation “70th Anniversary of 4 the signing of the Convention on International Civil Aviation� Liberalisation efforts undertaken during 70 years of the Chicago Convention
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Celebrating the history of civil aviation in Dubai
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ICAO Air Services 12 Negotiation Conference (ICAN) Aviation in Dubai 14 Strong Growth All The Way History in photos
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Special Edition
Message from the President In 2007, the functions of the Department of Civil Aviation were restructured. Accordingly, the Dubai Civil Aviation Authority (DCAA) was established as a regulatory body, by a decree of H.H. Sheikh Mohammed Bin Rashid AlMaktoum, Ruler of Dubai, on proclamation of law No. 21 of 2007, as amended by law No. 19 of 2010, to undertake development of Air Transport Industry in the Emirate of Dubai and to oversee all aviation-related activities.
Via Dubai is the official bilingual monthly newsletter of DCAA, designed to highlight the initiatives and developments in the aviation industry and act as a knowledge-sharing platform for all the stakeholders and aviation professionals.
General Supervision Mohammed Abdulla Ahli Coordinator Hanan Al Mazimi Executive Editor Mohammed Abdul Mannan Creative Manager Mohammed Al Jarouf E-mail: viadubai@naddalshiba.com Legal Disclaimer The views expressed in the articles are of the writers and not necessarily belong to DCAA. We take all reasonable steps to keep the information current and accurate, but errors can occur. The information is therefore provided as is, with no guarantee of accuracy, completeness or timeliness. The DCAA or Via Dubai does not warrant or assume any legal liability or responsibility for the quality, accuracy, completeness, legality, reliability or usefulness of any information. Via Dubai does not endorse or recommend any article, product, service or information mentioned in the newsletter. Any perceived slight of any person or organisation is completely unintentional.
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70th Anniversary of the Convention on International Civil Aviation
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t is a great pleasure to reminisce the achievements in the global civil aviation industry on the occasion of the 70th Anniversary of the Convention on International Civil Aviation and the 20th Anniversary of the International Civil Aviation Day. In response to an invitation extended by the Government of the United States during the tenure of President Franklin Roosevelt on 11th September 1944, representatives of 54 nations met in Chicago, the United States from 1st November to 7th December 1944. This conference has been convened with a view to “make arrangements for the immediate establishment of provisional world air routes and services” and “to set up an interim council to collect, record and study data concerning international aviation and to make recommendations for its improvement”. In addition the conference has also been invited to “discuss the principles and methods to be followed in the adaptation of a new aviation convention.” The conference, after exhaustive discussions and work, successfully concluded the Convention of International Civil Aviation (Chicago Convention) which also made provisions for the establishment of the International Civil Aviation Organization (ICAO) and two agreements called the International Air Transport Agreement and the International Air Services Transit Agreement. Notably, 52 States signed the Chicago Convention on 7th December 1944. This convention is considered as a Public International Law Treaty that has received wide acceptance globally with 191 States becoming parties to the Convention. The provisions of this convention and the immense contribution of the ICAO provided the necessary regulatory framework for the development of international civil aviation and to create and preserve friendship and understanding among the nations and peoples of the world. This fact is amply demonstrated by the work carried out through the ICAO General Assemblies and the several Air Transport Conferences held during the past 7 decades, at which the
Ahmed bin Saeed Al Maktoum conclusions and recommendations for future activities had been approved with consensus. The work of the ICAO in formulating the Standards and Recommended Practices (SARPS) covering a range of areas to ensure safe and secure operation of international civil aviation and its continues efforts to improve the SARPS to meet numerous challenges is commendable. ICAO has also taken several initiatives to contribute to the growth of international air transport through sharing the knowledge and the expertise amongst those involved in the aviation industry. Emirate of Dubai has worked closely with the ICAO in such initiatives which has shown tremendous progress through the years. Besides that, Dubai has developed the aviation infrastructure to provide necessary connectivity, facilities and other related services for the benefit of the global aviation industry and the travelling public. We are committed to continue with such contribution. At this juncture, I would like to extend my gratitude to all the States and the ICAO for their valuable contribution that has paved the way to develop the international civil aviation industry in a safe and secured manner for the benefit of the people around the world. In conclusion, I would like to pay my tribute to all those who have served ICAO for their valuable service and also congratulate HE Dr. Olumuyiwa Benard Aliu, President ICAO Council and its members, Mr. Raymond Benjamin, Secretary General and everyone at ICAO on this historic moment in celebrating the 70th Anniversary of the Chicago Convention.
Celebrating 70 Years of the Chicago Convention
Celebrating the 70th Anniversary of the Convention on International Civil Aviation
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t gives me great pleasure to send this message to the “Via Dubai” monthly newsletter, during the time the global aviation industry is celebrating the 70th Anniversary of the Convention on International Civil Aviation (Chicago Convention).
Sultan bin Saeed Al Mansoori, Minister of Economy and the Chairman, General Civil Aviation Authority, United Arab Emirates
The birth of the Chicago Convention is unique. It came during a time when the relationships amongst States were affected by In the area of international cooperation, the General Civil the Second World War. Aviation Authority plays an important role. It has been actively involved in fostering international and regional cooperation. I consider this convention as an important Public International Law instrument that brought every State under one umbrella The aviation infrastructure in the UAE have been built and with a view to develop international civil aviation and preserve operated with modern and efficient equipment’s. UAE friendship and understanding among the nations and the provides connectivity through its seven airports, with Dubai people of the world. The preamble to this convention has also International being ranked amongst the first three airports made reference to the desire of the parties to avoid friction and for passenger movements. The development of infrastructure to promote cooperation between the nations and the peoples demonstrates UAE’s commitment to facilitate global upon which the peace of the word depends. connectivity. The manner in which the several General Assemblies had been concluded under the stewardship of the International Civil Aviation Organization (ICAO), the contribution made by States at the Air Transport Conferences, the commitment of the Members of the ICAO Council, the work of the Air Navigation Commission, adherence of the Standards and Recommended Practices by the States, as formulated under the Chicago Convention etc., have amply demonstrated the contribution and commitment of States to work towards achieving the objectives of the Chicago Convention. It was on the invitation of the Government of the United States of America, 54 States met at the Stevens Hotel in Chicago from 1st November 1944 for a conference on civil aviation. The delegates to this conference worked for a period over a month to reach their goals, including the adaptation of the Convention on International Civil Aviation on 7th December 1944.
The UAE carriers have been providing innovative service and efficient connectivity to the traveling public by connecting the continents. Besides that, there are over 100 scheduled carriers operating to the airports in the UAE. We have always recognized the benefits of air transport liberalization. Accordingly, UAE has signed over 122 fully liberalized and/or open skies agreements with ICAO Member States. This amply demonstrates our liberal approach in the air transport industry. UAE has always demonstrated its commitment to ensure safe and secure environment in the aviation industry. Environmental protection and sustainable development are key elements of the UAE’s aviation policy.
UAE, with the cooperation from the local authorities and the aviation stakeholders will continue to with its contribution to foster friendship amongst States and Peoples of the world United Arab Emirates (UAE) is proud to be associated with through aviation and for the benefit of the traveling public. this Convention and the ICAO. UAE acceded to the Chicago Convection on 25th April 1972. I take this opportunity to Congratulate HE Dr. Olumuyiwa Benard Aliu, President ICAO Council and its members, Mr. It was elected as a member of the ICAO Council in 2007 Raymond Benjamin, Secretary General and the ICAO in and has been serving as a member of the Council since then. celebrating the 70th Anniversary of the Chicago Convention. UAE has strengthened its participation and the contribution towards the development of the global aviation industry in I also wish to thank HE Mohammed A. Ahli, Director many areas, such as, international cooperation, providing General, Dubai Civil Aviation Authority for his commitment new infrastructure and facilities to facilitate international air to dedicate its “Via Dubai” monthly magazine to pay tribute to transport, providing connectivity through its airlines, ensuring the drafters of the Chicago Convention and the ICAO for their safe and secure aviation industry, providing air navigation dedication and the contribution towards the global aviation services and protecting the environment. industry. 2
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Celebrating 70 Years of the Chicago Convention
International Civil Aviation Organization: Facilitating the States to connect the continents through aviation
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consider it a privilege to be associated with the celebration of the 70th Anniversary of the Convention on International Civil Aviation (Chicago Convention).
The Government of the United States, under the leadership of late Franklin Roosevelt, invited the allied powers and some of the neutral States to meet in Chicago for a conference on international civil aviation. Accordingly, 54 States, which included two observer nations, met at the Stevens Hotel in Chicago from 1st November 1944 and continued until 7th December 1944. On the 7th December the International Convention on Civil Aviation was adopted at this conference and was signed by 52 States. In addition, two agreements called the International Air Transport Agreement and the International Air Services Transit Agreement were also prepared as annexes to this convention.
Mohammed A. Ahli, Director General, Dubai Civil Aviation Authority
The Dubai Civil Aviation Authority (DCAA) have been working closely with the ICAO for several decades, supporting its activities in numerous ways. One of the major events in which the DCAA joined hands with the ICAO is the first Air Services Negotiation Conference (ICAN2008) held in Dubai in November 2008. This event, which was hosted by the Dubai Civil Aviation Authority, brought together 27 States from Africa, Asia, Europe, Middle East and North America.
On the 70th Anniversary of the Chicago Convention, the International Civil Aviation Organization (ICAO), being the In a short span of three days, they conducted more than 100 only global institution for international public aviation matters formal and informal bilateral meetings, which led to the conclusion or signing of over 20 agreements/arrangements. comes in the forefront. This number of participants and the outcome of this annual ICAO was formed by the provisions of the Chicago Convention, event have been improving every year. which was made up of an Assembly, a Council and such other bodies as may be necessary. The Convention also sets out Government of Dubai also came forward to support the ICAO the aims and objectives of the ICAO, which included, inter Global Symposium on Air Transport Liberalization which was held in Dubai in September 2006. alia, to develop principles and techniques for international air navigation and to foster the planning and development of This was the first such global event organized by ICAO international air transport, to ensure safe and orderly growth following the fifth Worldwide Air Transport Conference of international civil aviation globally, to encourage the held in 2003 with the intention of providing a forum to share development of airways, airports and air navigation facilities, liberalization experiences, exchange information and views on to promote safety of flight in international air navigation. trends and their impact and to learning about different policy options and approaches to liberalization. The Provisional International Civil Aviation Organization (PICAO) was born on 6th June 1945 and the permanent DCAA is committed to continue with its efforts to support organization came into force on 4th April 1947. the development of international civil aviation for the benefit of the people and to preserve friendship and understanding Since 1947, 38 Assembly Sessions have been held by the amongst nations, whilst bearing in mind the importance of ICAO and the PICAO’s conducted the first interim Assembly maintaining safe, secured and environment friendly aviation in 1946. industry. Amongst, ICAO’s contribution to develop international air transport, the Air transport Conferences play a major role. Following the ICAO Assembly resolution A21-25 adopted in 1974, ICAO held an air transport conference in 1977 to identify difficulties faced by the international air transport industry. Since then, ICAO has successfully concluded six air transport conferences. The 6th Conference was concluded last year with several recommendations in relation to international air transport.
I would like to take this opportunity to pay my tribute to the contribution made by all the States and the ICAO for the development of international air transport industry. I together with my staff congratulate HE Dr. Olumuyiwa Benard Aliu, President ICAO Council and its members, Mr. Raymond Benjamin, Secretary General and the energetic team at ICAO on this memorable day in celebrating the 70th Anniversary of the Chicago Convention. December 2014
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Celebrating 70 Years of the Chicago Convention
“70th Anniversary of the signing of the Convention on International Civil Aviation”
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xactly seventy years ago, representatives of 54 nations gathered in Chicago, at the invitation of the United States of America, to establish the principles and foundations for an exciting new era of international flight. These diplomats came together in what was then the Stevens Hotel in Chicago, and indeed in the very same ballroom where ICAO will convene for an Extraordinary Session of the ICAO Council on 8 December. The Resolution we will adopt at this meeting will focus on both the historic and future relevance of the Convention on International Civil Aviation, the landmark global agreement which is also known more commonly today as the “Chicago Convention” – the Convention that established the International Civil Aviation Organization (ICAO). Forged over 40 days and nights by the 54 diplomatic representatives who had gathered back in 1944 on behalf of their States, the Chicago Convention was in many ways a pioneering achievement. Adopted as it was during a period of terrible global conflict and sacrifice, its drafters had looked to our shared and common sky for a path to Dr. Olumuyiwa Benard Aliu, peace, and indeed for a new notion of what it meant at the President of the Council time for States to be sovereign. International Civil Aviation Organization The Preamble to the Chicago Convention still resonates with the drafters’ shared vision that the future development of international civil aviation could greatly help:
But even as we rejoice in our collective accomplishments, “to create and preserve friendship and understanding and in the historic contributions which have permitted among the nations and peoples of the world”. them, we are also acutely aware of the many challenges which now lay ahead of us. Furthermore, they sought to ensure that it would promote the cooperation which must exist between the world’s Key amongst these is the fact that the nations and peoples for a true and lasting peace to globally aviation sector will continue to grow exponentially in the endure. next decades, with air traffic set to double its passenger and flight capacity by 2030. Over the past seven decades, and with the Convention and its 19 Annexes to guide us, ICAO and its now 191 While this growth is welcome, and promises even greater Member States have made enormous progress in realizing contributions from air transport to the socio-economic this vision. Air transport is an essential component of our prosperity of our nations, it is also already placing global society, a powerful driver of economic, social and unprecedented pressure on all members of our community cultural development, and the safest and most efficient to maintain and enhance the safety, security and the mode of mass transportation ever created. efficiency of the global air transport system, all while reducing its environmental footprint. This is largely the result of the commitment of Member States to work diligently together, through ICAO and with There is also pressure to quicken the pace of liberalization other stakeholders, to faithfully implement the provisions and more effectively address the many issues now of the Chicago Convention and other complementary impacting the economic and commercial viability of global civil aviation legal instruments adopted by ICAO. modern air transport. 4
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Celebrating 70 Years of the Chicago Convention
List of Governments and Authorities to whom invitations were extended • • • • • • • • • • • • •
Afghanistan Australia Belgium Bolivia Brazil Canada Chile China Colombia Costa Rica Cuba Czechoslovakia Dominican Republic • Ecuador • Egypt
• El Salvador • Ethiopia • French Delegation • Great Britain • Greece • Guatemala • Haiti • Honduras • Iceland • India • Iran • Iraq • Ireland • Lebanon • Liberia
• • • • • • • • • • • • • • • •
Luxembourg Mexico Netherlands New Zealand Nicaragua Norway Panama Paraguay Peru Philippines Poland Portugal Saudi Arabia Spain Sweden Switzerland
• Syria • Turkey • Union of South Africa • Union of Soviet • Socialist Republics • Uruguay • Venezuela • Yugoslavia • The Danish Minister in Washington • The Thai Minister in Washington
And let us not lose sight of new developments such as the recent proliferation of remotely-piloted aircraft systems and the much-publicized sub-orbital flights, both of which may shortly become much more commonplace. As a community, we have a collective responsibility to ensure that all ICAO Member States and stakeholders keep pace with new technological advancements and that Standards set in the Annexes to the Chicago Convention are globally implemented in a harmonized manner. No country should be left behind and every passenger should have assurance of a safe, secure, efficient and reliable air transport service whatever his or her destination. But of course challenges are not new to aviation. What is different today, compared to seventy years ago, is that the world is more interdependent and interconnected than it has ever been. This has created a stronger link of mutual interest among States and the recognition that air transport functions to the great benefit of us all. I am confident therefore that through mutual cooperation and support among our Member States and industry stakeholders, we will maintain and sustain a strong aviation sector for future generations. Let us build then upon the greatness that visionaries such as Edward Warner, Albert Roper and the many others So, as we reflect together on our modern air transport with them in 1944 were able to achieve. A new and system, the bridges it has built for us and the prosperity unprecedented scale of global cooperation and trust has and development that we have realized by reaching out been the great legacy of their work and of the Convention to one another across them, let us not forget the founders they were able to achieve, and it is only on the basis of of the Convention, and more importantly the courage that these very same values that we will be able to realize, they had to dream of a different kind of world. together, our noblest and most enduring potential. December 2014
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Celebrating 70 Years of the Chicago Convention
Liberalisation efforts undertaken during 70 years of the Chicago Convention By Pablo Mendes de Leon Professor of Air and Space Law and Director of the International Institute of Air and Space Law, Leiden University, The Netherlands
1- Seventy years Chicago Convention (1944)
1.2 The conclusion of the Chicago Convention in 1944
1.1 Sovereignty in the air
Against this military background, different positions were taken at the conference preparing the Chicago Convention. The views of the United States and British delegations were diametrically opposed as to the regulation of the economic side of civil aviation. The United States insisted on maintaining the sovereignty of airspace, but, subject to that sovereignty, desired that restrictions on the economic operation of air services be kept to a minimum. For reasons pertaining to the protection of national safety and security, the British delegation agreed upon the point of sovereignty over airspace, but was strongly committed to regulation, in the economic field as well. The result was the confirmation of “complete and exclusive” sovereignty over national airspace. Thus, national airspace was de iure closed for foreign aircraft and their operators, that is, airlines operating international air services.
Knowingly, the Chicago Convention has been drawn up in 1944, which year marked the end of a major war. In order to protect the integrity and security of national airspace, the Chicago Convention starts with the unequivocal proclamation of the principle of sovereignty in the air designed to principally serve safety and security of international civil aviation. However, the sole reliance upon this principle would ultimately make the objectives of this Convention useless, and would undermine the legal force of all other provisions of the Convention, its Annexes as well as the subsequent bilateral and multilateral aviation treaties. Therefore, the principle of sovereignty only applies in so far as contracting States have not entered into international engagements in the exercise of their sovereign powers. These international engagements are aimed at promoting traffic, trade, in the more recent ones competition (see below), safety, security and the protection of the environment. Hence, the sovereignty of a State is subject to a dynamic evolution. Thus, in international aviation, the exercise of sovereignty is qualified and “re-qualified” according to arrangements between States, between States and international or regional organisations, and, in exceptional cases, between such organisations. Liberalisation of air services means, in this context, the withdrawal of States from the economic regulation of air services while creating a market environment and eliminating State controlled market behaviour of airlines by promoting their freedom to enter the market, price their services, introduce frequencies, mount capacities and engage into inter-airline arrangements pursuant to commercial considerations rather than pursuant to State dictated policy and trade arguments. Liberalisation of air services goes mostly but not always hand in hand with the privatisation of providers of such services.
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On 7 December 1944, 52 States signed the Chicago Convention,1 together with two agreements annexed to it, that is, the International Air Services Transit Agreement 2 and the International Air Transport Agreement. In November 2014, 191 States have ratified or acceded to the Convention. The Chicago Convention can be considered as the constitution of world-wide civil aviation. The Chicago Convention also establishes the International Civil Aviation Organization (ICAO) which is a specialised organisation of the United Nations. Regional Economic Integration Organisations (REIO’s) cannot become a party to this Convention unless it is amended 3. In 2011 the EU, a ‘REIO’, concluded a Memorandum of Cooperation with ICAO designed to create a framework for closer cooperation in the fields of safety, security, air traffic management and the environment.4 Nineteen Annexes have been added to the Convention including the (19th) Annex on Safety Management in 2014. They provide technical rules, comprising Standards and Recommended Practices, in implementation of
Celebrating 70 Years of the Chicago Convention
its Articles. As this contribution regards liberalisation and market access coming under economic regulation, I will not further discuss safety regulation made by ICAO.
1.3 The operation of international air services under the Chicago Convention In the economic field, the premise of sovereignty in the air is confirmed by Article 6 of the Chicago Convention, which states that “special permission” must be granted for the operation of scheduled international air services. Article 6 of the Chicago Convention provides that “no scheduled air service may be operated over or into the territory of a contracting State, except with special permission or other authorization of that State, and in accordance with the terms of such permission or authorization.” Traditionally, such “special permission” is given in bilateral air services agreements between States, opening each other’s national airspace for the operation of international air services. There are over 3000 bilateral air services agreements, regulating international air services world-wide. Therefore, each State is free to impose such limitations as it deems fit on the operation of airlines designated by a foreign State laid down in bilateral air services agreements. This provision (Article 6) provides for a ‘closed system’, that is, nothing is allowed in terms of operation of international air services unless it is specifically agreed upon between States in an international agreement whether on a bilateral, plurilateral or multilateral basis, as to which see section 2.5 below. International air law makes a distinction between ‘scheduled’ and ‘nonscheduled’ flights or services. The operation of non-scheduled services is subject to Article 5 of the Chicago Convention which draws up a more open regime in order to guarantee non-scheduled air traffic freedom and flexibility. Meanwhile the distinction between the operation of scheduled and nonscheduled services is fading away in the more developed air transport markets. Reference is made to the regulation of the EU internal air transport market 5, and the EU-US agreement on air transport. Both regimes apply to the operation of scheduled and non-scheduled services.
2-The development of the bilateral regulation of international air services 2.1 Underlying principles The bilateral regulation of international air services evolved over a period of many decades. Bilateral agreements now in force largely date from after the 1944 Chicago Conference and emerged as the preferred method for States to exchange commercial rights for air services and to agree on ways of regulating capacity, tariffs and other matters. Under bilateral air services agreements, the operation of air services were, and in some areas are still seen as the operation of a public service which should not be left to market principles as national, or ‘flag’ carriers such as Olympic Airways, Pakistan International Airlines, Air India, Aeromexico, Japan Airlines and many others had to be shielded from competition. Their survival was and still is deemed to be essential for the trade and economy of the States which designated them to operate the agreed international air services. In order to achieve the mentioned
policy objectives, the amount of traffic, pricing and other features of the operation of air services was predetermined by States parties to such bilateral agreements, and, in other instances, reviewed ex post facto by them on the basis of Origin and Destination (O/D) traffic statistics.
2.2 The traditional models : the Bermuda I and II agreements Among the post1944 bilateral air agreements, the most significant and influential to the development of international air transport regulation was the 1946 agreement between the United Kingdom and the United States, known as the Bermuda I Agreement. This agreement was the result of a compromise between the two broad approaches to the regulation of international air transport services that had emerged at the Chicago Conference and been left unresolved. At one extreme it was held that there should be no regulation of capacity or tariffs nor narrow definitions of routes. The opposite view was that capacity should be predetermined, tariffs regulated by an international agency and routes specified. Under the compromise agreement, tariffs were to be established by the airlines through the International Air Transport Association (IATA), subject to the approval of both parties. Capacity was to be determined by airlines subject to certain agreed principles and to possible joint review by the parties or their aviation authorities after a period of operation. Routes were specified. Many agreements of the ‘Bermuda’ type were subsequently signed by each of the original partners with other States, and by other pairs of States. The Bermuda Agreement thus became a model which predominated during the next four decades although a large number of agreements, while incorporating the Bermuda principles, also employed predetermination of capacity. Bilateral agreements produced a relatively stable and balanced regulatory foundation on which the international air transport system has sustained steady growth.
2.3 Towards more liberal regimes In the 1970s and 1980s various States adopted more liberal policies for the regulation of international air transport ( see section 2.4 below). As a consequence, new liberal bilateral agreements were concluded, generally characterised by a removal of capacity restraints, greatly reduced government involvement in tariff matters, increased market access and the ability of each party to name more than a single airline to use that access. Since the 1990s liberalisation has expanded, both under new or revised bilateral agreements and under new arrangements. Such other arrangements include collective regulation by groups of States and might also include the possible use of new types of agreements not yet devised. 6 Clearly, the traditional concepts of ‘predestination’ and division of market shares cause incompatibilities with competition law regimes as those proceed from an open market in which services and goods can be freely offered and sold, and which market is regulated by - ex post facto - competition rules applying to the conduct of airlines in a market environment. This tension is explained by the ICAO Secretariat in the following statement: “Furthermore, the traditional approach in many bilateral agreements favouring airline cooperation on issues like capacity and pricing is squarely at odds with competition laws that strictly prohibit price fixing, market division and other collusive practices by market competitors.” 7 December 2014
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Celebrating 70 Years of the Chicago Convention
2.4 The introduction of ‘Open Skies’ In 1979, the US started its ‘Deregulation’ policy which it applied to the US domestic market to begin with, whereas the - then - EEC, 8 now EU, introduced a market oriented regime for the operation of intra-EU air services in the period from 1987 to 1993 when the internal air transport market was completed. On the international level, the US concluded its first ‘Open Skies’ agreement with the Netherlands in 1992. The term ‘Open Skies’ indicates a shift from the traditional exchange of traffic rights towards a system under which regulation of competition forms the core element. The US uses the term ‘Open Skies’ to designate a liberal approach towards the operation of international air services. The term therefore is more of a marketing tool than a legal concept. Parties to an Open Skies agreement have to translate the policy into legal terms. As will be seen below, such terms may - be it slightly - vary from one agreement to another. However, the approach is the same.
Open Skies agreements contain the following liberal elements: •
Freedom of each country’s airlines to operate air transport services between any point or points in the countries of the contracting parties, including to intermediate and beyond points, subject to a third state’s approval, and to customs, technical, operational or environmental restrictions.
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Multiple designation of airlines
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No capacity limitations
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Subject to government intervention designed to prevent monopolies, predatory pricing and artificially low prices due to government subsidies, freedom with respect to pricing
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Promotion of liberalisation in the field of charter flights, cargo and Computer Reservation Systems
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Performance of own support functions at airports located in the territory of the other party.
The exercise of the above rights is subject to local rules regarding safety, customs, security, and the environment. Also, slot scarcity can place restrictions on the exercise of traffic rights. An ‘Open Skies’ regime does not mean that all elements falling under economic regulation of international air transport services are liberalised under the agreement. The following restrictions remain, or may be made subject to further negotiation:
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national ownership and control clauses for designated air carriers;
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in many cases, seventh freedom operations, that is, the operation of international air services which are not linked to the home base of the carrier operating them, for instance, the operation of a Paris – New York flight v.v. by Emirates, which flight is not linked to Dubai;
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‘cabotage’, or the operation of domestic air services in the territory of the other country;
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The provision of commercial opportunities in the other country, including the requirement that code sharing may have to be based on the possession of traffic rights for all partners;
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The allowance of (wet-) leasing arrangements;
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Restrictions pertaining to currency remittance.
Neither the Open Skies policy, nor the subsequent Open Skies agreements, make provision for the conduct of a converged or harmonised competition policy, or make reference to agreements, which provide for co-operation between competition authorities. This omission is the more prominent as the freedom to operate air services internationally is dependent on applicable competition regimes. Moving from ex ante regulation of the operation of international air services, as exemplified by the Bermuda I and Bermuda II Agreements, to ex post regulation of the freedom granted to such services, implies application of competition regimes, which are designed to remedy anticompetitive practices. Thus, the application of competition regimes play a special role in ‘Open Skies’ regimes. Hence, competition authorities have taken the above international air transport regime into account when judging air transport cases. For instance, the EU Commission reduced the fines on the colluding airlines by 15 percent in the Airfreight cartel case because of the existence of the “general regulatory environment.” 9 In their appeal procedures, a number of EU and non-EU airlines argue that the allegedly illegal conduct “was supervised and effectively required by government agencies.” 10
2.5. ‘Plurilateralism’ in the 21st century The EU has promoted a regime for the operation of international air services which had to get rid of bilateral restrictions, and take into account EU-based principles pertaining to the freedom of establishment and operation of air services under market principles, that is, governed by the application of a competition law regime rather than predetermined economic regulation as laid down in the above Bermuda I and especially Bermuda II Agreements. While the most used and traditional vehicle for the operation of international air services is the bilateral air services agreement as discussed in sections 2.1 and 2.2 above, the EU also uses the ‘plurilateral’ model, that is, an agreement between a number of States on a regional basis, as exemplified by the EU-US of 2007 as amended in 2009, and the EU-Canada of 2009 Agreements on air transport. Moreover, the EU launched the Horizontal Agreements (HA) that are negotiated by the Commission on behalf of EU Member States, in order to bring existing bilateral air services agreements between EU Member States and a third country in line with EU law, in particular the EU law on the freedom of establishment. Some of these agreements contain a clause governing competition. An example of such a HA is the one concluded between the - then - EC and the United Arab Emirates (UAE) on ‘certain aspects of air services’ on 30 November 2007. The Preamble of this agreement specifies that it is not designed to increase the total volume of air traffic between the EU and the UAE, or to affect the balance between EU air carriers and UAE air carriers, or to prevail over the interpretation of existing provisions of air services agreements between EU States and the UAE.
Celebrating 70 Years of the Chicago Convention
The agreement dictates that behaviour of designated airlines should be compatible with competition rules as laid down in there (Art. 6). Prohibited behaviour regards: 1. the adoption of agreements between undertakings, decisions adopted by associations of undertakings or concerted practices that prevent or distort competition; 2. reinforcement of the effect of any such agreement, decision or concerted practice;
Convention also regards the operation of air services as a ‘public service’ which each State should be entitled to operate as discussed in section 2.1 above. However, ‘fair competition’ is in my view not the same as ‘free’ competition; market conditions on the global market place should be fair, by avoiding ‘unreasonable competition’ so as to avoid ‘waste of resources’ and loss of investments.
3.2 The involvement of ICAO with ‘fair competition’
3. Delegation to private economic operators the responsibility of engaging in such anti-competitive practices.
ICAO is studying the subject and makes proposals, for instance in the ‘Template Air Services Agreement’ 11 in which it puts forward, in Article 15 on ‘Fair Competition, a ‘step by step’ approach taking into account the stage of development of its Member States, that is:
The agreement does not forbid the abuse of a dominant position, and does not address State aid. Even more importantly, there are no enforcement provisions; hence it is assumed that this is left to the competent aeronautical authorities of the EU States listed in the Annex and those of the UAE. As far as we know and can see this provision - on competition - has not been applied or enforced.
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A ‘Traditional’ approach under which designated airlines “shall have a fair opportunity to operate” the agreed services;
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A ‘Transitional’ Approach following which the designated airlines should have a “fair and equal opportunity to compete” on the agreed services, and the Parties agree to “eliminate all forms of discrimination or unfair competitive practices adversely affecting the competitive position of a designated airline of the other party;”
3-The management of ‘fair competition’
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A ‘Full Liberalisation’ Approach, pursuant to which the designated airlines must have “a fair competitive environment under the competition laws of the Parties.”
3.1 The marginal regulation of competition under the Chicago Convention As said, the Chicago Convention does not encompass economic regulation of international air transport which it leaves to agreement between States pursuant to the provisions of Article 6 of this convention. Thus, the notions of ‘market’, competition or freedom of establishment of airlines are not dealt with in that convention. In the 21st century, the operation of air services ought to be based on ‘fair competition’ between airlines. This is at least the viewpoint of principal jurisdictions including those of the US and especially the EU, whereas ICAO, as to which see further below, is studying the subject. The following principles of the Chicago Convention may help to underpin ‘fair competition’: •
States party to the Chicago Convention must ensure that international air transport services are operated “on the basis of equality of opportunity” and “soundly and economically” (Preamble).
•
ICAO must “prevent economic waste caused by unreasonable competition” (Art. 44(e)) which may occur in the event of the introduction and maintenance of excess capacity resulting from free, and uncontrolled entry into the market, urging qualified operators to resort to inefficient practices and eventually to their disappearance from the market.
•
ICAO should also “insure that the rights of contracting States are fully respected and that every contracting State has a fair opportunity to operate international airlines.”
Admittedly, these principles may be used to support ‘fair’ rather than ‘unreasonable’ let alone ‘unrestricted’ competition as the Chicago
During the ATConf/6 a number of interesting statements were made by delegations, and the ICAO Secretariat, affecting the subject of this essay. I summarise the positions adopted by ICAO, the EU, the US and the Arab States below. •
The ICAO Secretariat confirmed that unilateral actions are not conducive to the sound and orderly development of international air transport;
•
The ICAO Secretariat observes and recommends the following:
1.
‘Fair’ competition must be ensured by “appropriate safeguard measures”;
2. The establishment of ‘Fair Competition’ clauses and cooperation between competition authorities and ‘core principles on fair competition’ are encouraged. 12 •
The EU has explained “Basic Principles of Fair Competition” as follows:
1. The EU suggests an “efficient competition law” regime, including “strict State aid rules applicable to undertakings under the jurisdiction of the State concerned”; 2. It favours independent authorities for competition and air transport matters, working under a regulatory framework recognising separation of regulatory, enforcement and policy functions. 13 •
The US put forward the following views:
1. It supports ‘fair competition’ but has less far going views on how to achieve this as compared with the EU;
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Celebrating 70 Years of the Chicago Convention
2. ‘Fair competition’ should be implemented internationally through cooperation between competition authorities; 3. ICAO should be mandated to acquire knowledge on the subject. 14 •
Arab States appear to reject further action geared to manage ‘fair competition’ while promoting ‘open, free, undistorted and fair competition’ and standing “fully committed to the elimination of all forms of anti-competitive practices”. They also argue that:
1. Current instruments of ICAO suffice to satisfy the above goals; 2. Unilateral measures and remedies should be avoided. 15
The 38th General Assembly of ICAO broadly endorsed the above recommendations from ATConf/6. While not all Member States share this view, it would seem that ICAO has embraced the concept of ‘fair competition’, and urged its States to view it as “an important general principle in the operation of international air services”.16 The same Resolution calls on the ICAO Council to monitor developments on ‘fair competition’ by updating policies and guidance materials, and serve as a forum for the exchange of information.
At the same time, it seems that the point of no return has been reached and that, step by step, States, jurisdictions and operators must agree on how to proceed from here, as the establishment of an agreement between States regarding the operation of scheduled international air services is the underlying principle of the Chicago Convention which principle is based on the premise of ‘sovereignty in the air’. There are no signs on the wall that this starting point will be changed for the benefit of a more open economic regime agreed upon multilaterally, for instance, in the World Trade Organisation (WTO). Hence, States must continue to reach agreement on how to operate international air services “soundly and economically” as dictated by the Preamble of the Chicago Convention of 1944, which appears to be still very much alive, and not subject to criticism or change. In that spirit, we celebrate its 70th birthday, and congratulate the drafters with their achievements. Thus, I pay tribute not only to them, but also the Mr. Mohammed A. Ahli, Director General of the Dubai Civil Aviation Authority, for taking this timely and appropriate initiative.
1
4-Concluding remarks During his speech to the China Civil Aviation Development Forum, held in Beijing on 10 may 2007, entitled “ICAO - Leading Aviation through Challenging Times”, Dr. Taïeb Chérif, Secretary General of ICAO commented that, “as positive as liberalisation is, we must ensure that it unfolds according to universally accepted principles.” In that context, reference was made to the “guiding principles endorsed in the Chicago Convention” and the general policy framework for liberalisation developed by ICAO through the worldwide air transport conferences, in 1994 and 2003 respectively.17 The Secretary General noted the phenomena of globalisation and commercialisation of air services, as underpinned by the creation of multi-national alliances and cross border investment in the airline industry so as to achieve economies of scale and scope. In conclusion, he stressed the need for cooperation between States and global stakeholders. 18 Absent a global understanding of ‘core principles’ defining it, the meaning of ‘fair competition’ has yet to be determined while reference has been made to common points of explaining it. I believe that it is generally, and wisely, agreed that conflicts between applicable competition law regimes and bilateral air agreements should be avoided whereas ICAO’s engagement with the gathering and analysis of competition laws and enforcement actions worldwide should be promoted. This, in turn, would require intensified cooperation between competition authorities on a bilateral, regional or multilateral level. So far, ICAO appears to study, and support the establishment of ‘core principles’ affecting ‘fair competition’. It seems to me that the long path from the Bermuda I and II agreements to an open market regime is a challenging one as the undertaking is as complex as multifaceted. For instance, to propose ‘fair competition’ is one thing; to define it is another as jurisdictions spread out over the world have different ideas on it. There is no global competition law regime whereas there still are a number of States which consider that the operation of air services should be subjected to public service and State managed trade principles as alluded to in in section 2.1, above.
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3 4 5 6 7 8 9 10
11 12 13
14 15 16 17 18
Convention on International Civil Aviation, Chicago, 7 December 1944. Originally, 55 States were invited by the United States Government to the Chicago Conference. See, on the establishment of the Chicago Convention, D. Goedhuis, Problems of Public International Law 81(11) Recueil des Cours 205–307 (1952); H.A. Wassenbergh, Post-War International Civil Aviation Policy and the Law of the Air (1962); P.S. Dempsey, Public International Air Law (2008) International Air Services Transit Agreement, Chicago, 7 December 1944, also known as the Two-Freedoms Agreement, and the International Air Transport Agreement, Chicago, 7 December 1944, also known as the Five Freedoms Agreement. See Art. 92, 93 and 93bis in conjunction with Art. 94 of the Convention http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L: 2011:232:0002:0007:EN:PDF See EU Regulation 1008/2008 on the establishment of the EU internal market See below, sections 2.4 and 2.5 ATConf/6-WP/4 at 4.4 The European Economic Community, the predecessor of the European Union (EU) Case COMP/39258, EU Commission Decision of 11 September 2010 (unpublished) See, Cases T-43/11, Singapore Airlines and Singapore Airlines Cargo v. Commission, and Case T-46/11 Deutsche Lufthansa v. EU Commission See: http://www.icao.int/Meetings/AMC/MA/ICAN2009/ templateairservicesagreements.pdf See, ATConf/6-WP/3 and ATConf/6-WP4 See, ATConf/6-WP 51, ATConf/47-IP/4, and “European Priorities for the Economic Regulation of International Air Transport” in A38-WP/63 See, ATConf/6-WP/62 See, ATConf/6-WP/32 See, ICAO Resolution AG 38/14 – Appendix A/Section II See footnote 1, and footnote 5 below As published on www.icao.int/icao/en/osg/osg_2007_China_ en.pdf visited on 18 April 2008
Celebrating 70 Years of the Chicago Convention
Celebrating the history of civil aviation in Dubai Dubai Civil Aviation Authority joined hands with Empost to issue three postal stamps that reflect the three eras that converged the wonderful journey of civil aviation in Dubai from the creek to a twin-airport city and takings its airlines, Emirates and flydubai, to greater heights besides other areas of the aviation industry.
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Celebrating 70 Years of the Chicago Convention
ICAO Air Services Negotiation Conference (ICAN) By Mohammed A. Ahli, Director General, Dubai Civil Aviation Authority
H.E. Mohammed A. Ahli was presented with a ICAO scroll in recognition of his initiative to host the first ICAN Conference in Dubai in 2008 during ICAN 2011 held in Mumbai, India
T
he concept of ‘ICAO Global Market Place for negotiations of Air Service Agreements’ was put forward by the ICAO Secretariat in 2003 at the Fifth Worldwide Air Transport Conference (AtConf/5) in order to discuss how International Civil Aviation Organization (ICAO) could facilitate and assist States in the liberalization process. ICAO has developed the concept of ‘one stop shop’ approach as a solution, to avoid the need to travel and conduct numerous negotiations which could be a heavy burden financially, on the States. After having discussions with ICAO’s Air Transport Bureau, Dubai Civil Aviation Authority (DCAA) decided to take up the challenge to host the first ICAO Air Services Negotiation Conference (ICAN) in Dubai and made the offer to ICAO. Accordingly, signaling the birth of ICAN, ICAO held the first conference in Dubai in 2008. This conference brought delegates from 27 states from Asia, Africa, Europe, Middle East and North America. In a short span of three days these States conducted more than 100 formal and informal meetings (an average of four meetings per delegation) which led to the conclusion and signing of 20 agreements making the concept a reality. Besides the negotiating meetings, the conference provided for networking opportunities that helped to open doors to future cooperation and cordial relations amongst States.
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facilitated negotiations and speedy conclusions of Air service Agreements and/or the Memoranda of Understanding between States. The following statements made in relation to ICAN meetings amply demonstrate the affection and the importance placed on the concept. “World economies have been changing rapidly. It has been increasingly clear that, Air Service Agreements are undergoing improvements to keep in line with changes, as they are the fundamental elements of the Air Transport Industry. The importance of these agreements manifest, when one realizes the tremendous impact they have on international trade and tourism. It is this very reason that, Dubai Civil Aviation Authority has taken a step forward in hosting this conference, to provide States a perfect platform.” HH Sheikh Ahmed bin Saeed Al Maktoum, ICAN 2008, Dubai, United Arab Emirates “As a result of its success and the requests of the participating States, ICAO has decided to continue to hold this conference in different regions on a regular basis.” Mrs. F. Odutola, Director Air Transport Bureau on behalf of the ICAO Secretary General, ICAN 2009, Istanbul, Turkey
Based on the success of this event and the request of States, ICAO decided to continue to hold the event on a regular basis in various regions. The success of ICAN is reflected in number of States participating at the subsequent events. The diagram below will demonstrate its success and the popularity amongst States.
“ICAN brings tremendous cost saving to States. From our own experience, the cost of hosting the ICAN in Jamaica was approximately the same amount as would be required for our delegation to do one trip to Asia for bilateral negotiations. ” Director General of the Jamaica Civil Aviation Authority (JCAA) Colonel Oscar Derby, ICAN 2010, Montego Bay, Jamaica
The concept of ICAN has facilitated the States to overcome impediments in negotiating bilateral air service agreements on individual basis and also in finding suitable venue or timing. The concept of ICAN also had the advantage of the technology, namely, in exchanging matters relating to negotiations electronically, which
“Aviation plays an important role in the economic development process of countries. Flying is no longer the prerogative of a few privileged, but an option for an increasingly broader section of society. Airlines could be goodwill Ambassadors to bring nations and peoples together. For this innovative and flexible business modules
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Celebrating 70 Years of the Chicago Convention
may be evolved, enabling greater connectivity between countries to promote people to people contacts, as well as trade and business. To achieve this, governments must continually negotiate new bilateral treaties, to allow for and expand access to new and emerging markets for their carriers. ICAN provides a very convenient and essential platform, for a large number of States to negotiate these bilateral agreements quickly, efficiently and with saving of time and expenditure. The World Air Transport Conference 2003 paved the way for this efficient system of air services negotiations, and I compliment ICAO leadership for promoting ICAN successfully in partnership with host countries.” Her Excellency the President of India, Shrimati Pratibha Devisingh Patil at the Inauguration of ICAN 2011, Mumbai, India
will be dealt with during these procedures will bring benefit to the aviation sector globally.” Minister Ms. Dipuo Peters, MP at ICAN 2013, Durban, South Africa. “Without the centralizing aspect of the ICAN Framework these talks would have been much more logistically and financially burdensome for States. HE Raymond Benjamin, Secretary General ICAO, ICAN 2014, Bali, Indonesia The success and the benefits reaped from ICAN led to the ICAO Assembly adopting the Resolution A37-20 in 2010 which encourage States to utilize the ‘ICAO Global Market Place for negotiations of Air Service Agreements” concept and to benefit from this unique ICAO innovation.
“Obviously, this level of growth will require the conclusion first services agreements among the greater number of states, a process that can sometimes be time consuming and expensive with no guaranty of success, this is what makes ICAN so practical and cost effective.” Mr. Roberto Kobeh Ginzalez, President of ICAO, ICAN 2012, Jeddah, Saudi Arabia
The immense contribution and the role played by the ICAO Secretariat and the Air Transport Bureau are commendable. It’s efforts to facilitate ICAO Member States to further their aero political relationship and also to bring benefit to the traveling public whilst contributing to sustainable development of air transport has proved to be a tremendous success.
“Given the critical role that aviation plays in the world economy and the importance of creating a better world for our generation and generations to come, we are confident that the negotiations that
There isn’t an iota of doubt that, ICAN has come to stay as a regular ICAO event and DCAA is proud to have been the first to host the ICAN conference.
ICAN PARTICIPATION Year & Venue
2008
2009
2010
Dubai,
Istanbul,
UAE
Turkey
Montego Bay, Jamaica
Participating States
27
52
Meetings held
100
Agreements and other arrangments signed Participants
2011
2012
Mumbai, Jeddah,
2013
2014
Durban
Bali
India
Saudi Arabia
South Africa
Indonesia
38
64
62
73
78
200
200
340
350
486
550
20
60
60
120+
130+
458
500+
106
200
160
350
350
400+
500+
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Celebrating 70 Years of the Chicago Convention
Aviation in Dubai
Strong Growth All The Way Three of Dubai’s greatest assets are its Open Skies policy, enhanced air connectivity through its ariports and two award-winning airlines –Emirates and flydubai, which has helped place the UAE firmly on the world aviation map. Mohammed Abdul Mannan takes us on Dubai’s amazing journey.
R
ight from the day the open skies policy was launched in July 1937 following the signing of Dubai Commercial Air Agreement by Sheikh Saeed bin Maktoum and T. Hickinbotham, Political Agent of His Majesty’s Government, that facilitated the movement of aircraft of Imperial Airways through Dubai, the Emirate of Dubai has been a significant player in the growth and development of civil aviation in the United Arab Emirates (UAE) since its formation in 1971. The progressive policies of Father of Dubai, Sheikh Rashid bin Saeed Al Maktoum, and his successors and their vision about the contribution of aviation to the socio-economic growth of the region in general and the Emirate of Dubai in particular, has seen the aviation industry gaining strength and expanding in a way that amazes the world. Dubai’s first airport Dubai has grown in its stature on the world aviation map by posting impressive growth rates and ambitious expansion drive for its aviation industry since opening its first airport in 1960 which was capable of handling aircraft up to the size of a DC-3. It was located on a vast expanse of a wasteland some four kilometers from what was then the edge of the city of Dubai. In 1963, it had its first asphalt runway and it accommodated nine airlines serving a total of 20 destinations in 1969. Around the time Emirate of Dubai became a member of the UAE federation, the airport grew into a three-storey terminal building, a new control tower, additional taxiways, lengthening of the runway, extension of aprons, airfield lighting and landing instrument. On 23rd December 1980, Dubai Airport became an ordinary member of the Airports Council International (ACI). In May 2006, more than 250 senior aviation executives from 35 countries gathered in Hong Kong to witness the signing of the historic agreement on the Integration of Asia with Pacific Region of Airport Council International (ACI). This was followed by the Joint Regional Assembly of Asia Pacific wherein, Mohammed A. Ahli, the then Operations Director of Dubai’s Department of Civil Aviation, was elected as the first Vice President of the Joint Region with Max Moore Wilton, Chairman and Chief Executive Officer of Sydney Airport Corporation, as the President. The Regional Merger, initiated by Mohammed A. Ahli, covered 60 percent of the world population encompassing 478 airports in 50 countries covering Middle East, Subcontinent, former CIS countries, North East and South East Asia, Oceania, Pacific Island Nations, Vancouver, San Francisco and Hawaii, handling over one billion passengers, 30 million tonnes of freight and nine million aircraft movements.
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The integration facilitated sharing resources, new technologies and management experience across the two regions further cementing the airports’ role as an engine of economic growth. In April 1984, the second runway, equipped with the latest meteorological, airfield lighting and instrument landing systems to give the airport a Category II classification, was opened. In 1988, passenger throughput at the airport increased to 4.3 million and it more than doubled in a decade to 9.7 million by 1998, the year in which it opened Terminal 2, increasing the airport’s capacity by two million passengers per annum. The opening of Sheikh Rashid Terminal, marked the start of a new chapter in Dubai’s aviation history. Built as part of the first phase of the general expansion project at a cost of AED2 billion, the terminal increased the airport’s capacity from 10 million to 23 million. In 2002, Dubai International was ranked the second fastest growing airport in the world according to ACI traffic statistics. The facility handled around 18 million passengers in 2003 and was established as the aviation hub of the Middle East. Work began on Concourse A, the world’s first-purpose built A380 facility for Emirates’ superjumbo fleet. Terminal 2 underwent a major refurbishment for the launch of flydubai, Dubai’s own budget airline. Dubai Airports opened the much-awaited Dubai International Terminal 3 in 2008 for the exclusive use of Emirates Airline. The flawless opening of the world’s largest single terminal not only expanded Dubai International’s capacity to 60 million but won the airport accolades from passengers and the aviation industry worldwide.
Celebrating 70 Years of the Chicago Convention
Passenger throughput surpassed the 40 million mark with traffic reaching 40.9 million in 2009, and Dubai International became the world’s fastest growing airport and found itself it the top 50 major aviation hubs.
Al Maktoum International Dubai Airports opened the first phase of Al Maktoum International at Dubai World Central (DWC) for cargo operations in June 2010. Dubai International became the second busiest airport for international passengers with 57.6 million passengers in 2012. Alongside, work started on Concourse D, the new home to the more than 100 airlines that serve Dubai. In 2013, Concourse A was opened, boosting capacity at Dubai International to 75 million. The year also saw the opening the passenger operations from the Al Maktoum International Airport, placing Dubai on the list of 50 cities having two international airports within their urban conurbations. In 2014, the Dubai International Airport is expected to handle 70 million passengers and is well on its way to grab the title of the world’s busiest airport for international passengers in 2015.
Emirates – An incredible success story The story of Dubai’s flagship carrier, Emirates Airlines, whose success is intertwined with the rapid development of Dubai, is nothing but fascinating.
take advantage of Dubai’s open-skies policy. The airline has recorded an annual profit in every year since its third in operation. With a fleet of more than 230 aircraft, the airline currently fly to over 140 destinations in more than 80 countries around the world, and its network is expanding constantly. Over 1,500 Emirates flights depart Dubai each week on their way to destinations on six continents. In 2001, Emirates demonstrated its confidence in the industry’s future growth by announcing the largest order in aviation history, valued at US$15 billion. A staggering 58 new aircraft, a mix of Airbus and Boeing, were to join the rapidly expanding fleet. In 2005, Emirates announced the largest-ever order for the Boeing 777 family of aircraft - 42 in all – in a deal worth US$9.7 billion. At the 2006 Farnborough Air Show, Emirates signed a Heads of Agreement for 10 of Boeing’s new 747-8F aircraft, to be powered by General Electric’s GEnx jet engines, in a deal worth US$3.3 billion. At the Dubai Airshow in November 2007, Emirates announced a historic civil aviation aircraft order when it signed contracts for 120 Airbus A350s, 11 A380s, and 12 Boeing 777-300ERs, worth an estimated US$34.9 billion in list prices. The first A350 will be delivered to Emirates in 2015.
On 25th October 1985, Emirates flew its first routes out of Dubai with just two aircraft—a leased Boeing 737 and an Airbus 300 B4. Emirates has evolved into a globally influential travel and tourism conglomerate.
During 2010, in line with the airline’s strategic growth plan, Emirates significantly increased its order for new aircraft. In June at the Berlin Airshow, Emirates announced an order for an additional 32 Airbus A380s and in July at the Farnborough Airshow, 30 more Boeing 777-300ERs were ordered. The combined value of these orders is US$13.4 billion.
Though wholly owned by the Government of Dubai, Emirates has grown in scale and stature not through protectionism but through competition— competition with the ever-growing number of international carriers that
In 2011 at the Dubai Airshow, Emirates placed the single largest aircraft order in dollar value in Boeing’s history when it requested an additional 50 777-300ERs, worth approximately US$18 billion.
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Celebrating 70 Years of the Chicago Convention
The airline is currently the world’s largest operator of both the Airbus A380 and Boeing 777.Emirates orderbook stands at more than 280 aircraft, with a total value of approximately US$138 billion as of November 2014. In combination with what is already one of the youngest and one of the most modern fleets in worldwide commercial aviation, this commitment to the future reflects its goal to develop Dubai into a comprehensive, global, long-haul aviation hub. In the financial year 2013/2014, Emirates carried 44.5 million passengers and 2.25 million tonnes of cargo. Emirates expect to fly 70 million passengers in 2020.
flydubai- another success story Similarly, Dubai’s own budget carrier, flydubai, is helping enhance the connectivity between Dubai and various parts of the world. From the beginning, flydubai has been dedicated to making travel simpler, more relaxing and more affordable. The company was officially set up in March 2008 by the Government of Dubai. In June that year, flydubai announced its arrival by placing an order for 50 Boeing 737-800 NG aircraft at the Farnborough Airshow. In May 2009, the first aircraft arrived and on 1 June made its inaugural commercial flight to Beirut. By the end of that first month flydubai was also flying to Amman, Damascus and Alexandria. As more aircraft were delivered, flydubai increased the number of routes, flying daily to cities across the GCC, Middle East, North Africa, Indian Subcontinent, Asia and Central & Eastern Europe. flydubai has built a network of 86 destinations, 54 of which were previously underserved from Dubai. It has established a fleet of 42 new NextGeneration Boeing 737-800 aircraft and operates more than 1,100 flights a week across the Middle East, GCC, Africa, Caucasus, Central Asia, Europe and the Indian Subcontinent. It has placed orders for 111 Boeing single-aisle jets. It plans to fly to 100 destinations by 2020.
Dubai Civil Aviation Authority His Highness Rashid Bin Saeed Al Maktoum, Ruler of Dubai, by Decree dated 18th March 1971, prior to the creation of the United Arab Emirates, announced the establishment of a Government Department in the Emirate of Dubai known as the Department of Civil Aviation. The Department, under the direction of the ruler, was assigned with the task to oversee all civil aviation matters and to implement the laws and regulations in Dubai. In addition, it had to supervise the implementation of the convention between Government of Dubai and the UK-headquartered IAL on the management of Dubai International Airport. On 30th September 2007, the Ruler of Dubai, Mohammed bin Rashid Al Maktoum, by Law No. 21 of 2007, established the Dubai Civil Aviation Authority (DCAA), with a legal personality and financial
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and administrative independence. The above Law No. 21 of 2007 was amended by Law No. 19 of 2010. The Dubai Civil Aviation Authority (DCAA) is committed to provide boundless support to the growth of the aviation industry in Dubai, while maintaining the highest standards of safety and security in the aviation industry by adhering to the Standards and Recommended Practices (SARPs) adopted by the International Civil Aviation Organization (ICAO), and standards issued under the Federal Laws or Regulations. This reflects the vision of leadership of the United Arab Emirates and the vision of His Highness Sheikh Mohammed bin Rashid al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to achieve a comprehensive and sustainable development in various strategic sectors to ensure prosperity and sustainable growth. In order to ensure sustainable growth of the aviation industry in the Emirate of Dubai and support its economy, DCAA formulated the DCAA 20132015 Strategy which also reflects the Dubai Aviation Sector Strategy and the Dubai Airports Strategic Plan 2020 that will support the future of the aviation industry, including the national carriers. It will also promote the aviation industry’s contribution to Dubai’s GDP and improve the integration amongst its key stakeholders. The DCAA strategy covers five main pillars that influence the outcome of the aviation sector: Growth, Capacity, Sustainability, Customer, and Capability. Its main focus is to support Dubai’s competitiveness level and enhance the growth of numbers in passenger and cargo at Dubai International Airport and Al Maktoum International Airport in Dubai World Central (DWC), as well as facilitating the expansion of the designated airlines in the Emirate of Dubai by securing aero political rights through multilateral and/ or bilateral air service agreements or understandings with other countries, whilst encouraging airlines of those countries to use airports in the emirate of Dubai. The Dubai Civil Aviation Authority, based on the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has been in the forefront, supporting and assisting international Civil Aviation Organization (IACO) in conducting conferences, symposiums in the region. In pursuance of this vision, DCAA sponsored a global symposium conducted by the ICAO, ICAO Global Symposium on Air Transport
Celebrating 70 Years of the Chicago Convention
its lead and remain competitive and profitable. It has multi-phase expansion plans up its sleeves. A latest study suggests that the overall economic impact of both aviation and tourism related activities in Dubai will rise to US$53.1 billion in 2020 and hit US$88.1 billion by 2030 and will support 1,194,700 jobs. By 2020, as Dubai expects to welcome over 20 million visitors for Expo 2020, it is estimated that Emirates will fly 70 million passengers, Oxford Economics said.
Liberalization, in 2006, a first of its kind to be held outside Montreal. It was a great success with about 400 participants attending the symposium. DCAA took up the challenge to host the first Air Services Negotiation Conference (ICAN/2008) in November 2008 demonstrating its commitment to contribute to the development of the international civil aviation.
The future belongs to Dubai Over the past half a century, the Dubai International Airport handled over 400 million passengers. Between 2003 and 2013, the airport recorded an average annual growth of 15 per cent, far above the global averages. The aviation industry in Dubai has remained in the midst of spectacular growth, both on the grounds and in the air. In line with the Dubai government’s vision of increasing the GDP contribution of aviation to 32 per cent by 2020 and transforming Dubai into the global aviation hub for the 21st century, massive investments are being pumped to expand the facilities. Dubai will spend US$32 billion on expanding Al Maktoum International to handle over 200 million people annually next decade, roughly triple the current level of passenger traffic through the emirate. His Highness Sheikh Mohammed bin Rashid Al Maktoum had approved designs for the second phase expansion of the Al Maktoum International. Dubai International Airport is on track to open Concourse D, which will be connected to an existing terminal by an automated train, in the first quarter of next year. The fourth concourse is part of a wider US$7.8 billion expansion programme designed to boost the airport’s capacity to over 100 million passengers annually by 2020. It is focused on acquiring the latest technologies and enhancing the capabilities. DCAA forecasts aircraft movements for both airports, Dubai International and Al Maktoum International, rising to 665,000 in 2020. Dubai Air Navigation Services (DANS) which provides Air Traffic Control (ATC) at the airports is devising various programmes to maintain
The report said projects to support the six month mega-event in Dubai are already underway. “This includes a sizeable increase in airport capacity, which encompasses expansion of airspace, airfield, stands and terminal areas to allow Dubai International to accommodate 60 per cent more aircraft stands by 2015, and service 90 million passengers by 2018. By 2020, Dubai International is estimated to receive 126.5 million passengers, almost 30 per cent higher than its original 2010 assessments.” The report said Emirates, Dubai Airports and the aviation sector as a whole contributed US$26.7 billion to the Dubai economy in 2013, which was almost 27 per cent of Dubai’s gross domestic product, or GDP, and supported a total of 416,500 jobs accounting for 21 per cent of the emirates’ total employment. His Highness Sheikh Ahmed bin Saeed Al Maktoum, President of DCAA, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, said: “Dubai’s success stems from a clear vision, careful planning, and collaborative execution. It is no accident that we are a global aviation hub today. It has taken us years to build up the critical competencies and infrastructure that we have today, and we now have a solid base on which to further develop.” “We will continue to take a consensus-based approach to infrastructure investment, embrace open competition, and focus on opening up and connecting markets through efficient operations. At the end, we want Dubai to be the top choice for international travellers and traders — as a destination, and as a transport hub,” he added. According Oxford Economics, one of Dubai’s greatest assets is its enhanced connectivity. In 2013, Oxford estimated that passengers could connect from Dubai to 25 cities (or 81 per cent of world cities) with populations of over 10 million people. Overall, Dubai had direct passenger flight connections to 149 cities with populations of over one million people, creating potential export markets of over 916 million people, or 13 per cent of the world’s population. Cargo tonnage handled in Dubai between1990-2013 grew on average of 13.5 per cent per year, compared to global average trade volumes of 5.6 per cent per year. Taking into account its excellent track record and its preparations for a better future, there is no doubt that Dubai will continue flying high with everyone contributing towards its journey of success.
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Celebrating 70 Years of the Chicago Convention
History in photos
Font page of the original version of the Chicago Convention 1 November 1944 – Opening Session of the Chicago Conference in the Grand Ballroom of the Stevens Hotel, Chicago
Certification of the authenticity
From the Chicago Convention
Final plenary Session in the Grand Ballroom of the Stevens Hotel - 7 December 1944 Photos: Courtesy - International Civil Aviation Organisation
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Celebrating 70 Years of the Chicago Convention
Preamble to the Convention on International Civil Aviation (original version)
7 December 1944 – Agreements signed at the end of the Chicago Conference in the Grand Ballroom of the Stevens Hotel, Chicago.
From left to right: Kia-Ngau, China; Lord Swinton, United Kingdom; Adolf A. Berle Jr., Assistant Secretary of State, U.S.; H.J. Symington, Canada, and Max Hymans, France.
1 November 1944 – Opening Session of the Chicago Conference in the Grand Ballroom of the Stevens Hotel, Chicago.
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