< PreviousICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION...................................................................................................................................................................50The ICAN 2016 event was held in Nassau, The Bahamas, from 5 to 9 December 2016.One notable trend is the conclusion of bilateral “open skies” air services agreements, which provide for full market access without restrictions on Third, Fourth and Fifth Freedom traffic rights, designation, capacity, frequencies, code sharing and tariffs. The first such agreement was concluded in 1992 between the Netherlands and the United States. Since then, an increasing number of Open Skies Agreements (OSAs) have been signed. As of September 2016, over 300 OSAs involving more than 150 States have been concluded. The United States leads with a total of 119 OSAs signed. An increasing number of countries have also signed OSAs with the European Union or one or more of its members.Regional liberalizationThe adoption of group approaches to liberalization is used as an alternative means to regulatory change and adjustment for many States, as evidenced by the conclusion of a substantial number of agreements and arrangements on a regional basis. The regional overviews below show that though all are at different stages of development and implementation, they have the common objective of liberalizing the market amongst the States concerned. More details and a full list of all multilateral and regional agreements are available with the online version of this publication.Africa In Africa, the following agreements, arrangements, commitments and/or programmes for liberalization of regional air transport services are currently in operation: • the Yamoussoukro Decision relating to the implementation of the Yamoussoukro Declaration concerning the liberalization of access to air transport markets in Africa (2000);• the Declaration on the Establishment of a Single African Air Transport Market (SAATM) (2015).The Yamoussoukro Decision (YD) of 2000 evolved from the Yamoussoukro Declaration of 1988. The YD deals with the liberalization of air transport market access. Its main objectives are to facilitate inter-African connectivity and to develop an inter-African network, removing obstacles, such as restrictions on traffic and limitations on capacity and frequency between city pairs, as well as designation of competent airlines. The YD gives eligible airlines of all African States an aviation space, fair and equal opportunities to compete based on a common set of harmonized rules and eligibility criteria. While the African States are in the process of implementing the YD in full, most notable progress was made at the sub-regional group level by, for instance, the BAG, CEMAC, COMESA and the WAEMU States:• the Banjul Accord for an Accelerated Implementation of the Yamoussoukro Declaration (1997) and the .............................................................................................................................................................................Bilateral Open Skies - 2016Agreement with the US onlyAgreements with both the US and 3rd countries Agreements with the 3rd countries onlySource: ICAOICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION.....................................................................................................................................................................51Multilateral Air Services Agreement for the Banjul Accord Group (BAG) (2004);• the Agreement on Air Transport of the Economic and Monetary Community of Central Africa (CEMAC) (1999);• the Regulations for the Implementation of Liberalization of Air Transport Services of the Common Market for Eastern and Southern Africa (COMESA) as part of its Air Transport Liberalisation Program (1999); • the Common Program on Air Transport of the West African Economic and Monetary Union (WAEMU) (2002). In 2011, the African Union (AU) presented the Agenda 2063; an ambitious plan for the socio-economic development and integration of the continent. The flagship project to create a Single African Air Transport Market (SAATM) provides a new and strong impetus for the further liberalization of African airspace. During the African Union Summit of 2014, the implementation of the YD was instrumental in achieving this goal. Early 2015 at the AU Assembly the Heads of States and Government signed the Declaration on the Establishment of a Single African Air Transport Market by 2017 and entrusted the African Union Commission (AUC) with leading and coordinating the implementation thereof. Furthermore, thirteen States have signed a Solemn Commitment to the Immediate Implementation of the YD towards the establishment of the SAATM and are urging other States to join them without delay. The AmericasIn America, the following agreements, arrangements, commitments and/or programmes for liberalization of regional air transport services are currently in operation:• the Decision on Integration of Air Transport of the Andean Community (CAN) (1991);• the Multilateral Air Services Agreement (MASA) of the Caribbean Community (CARICOM) (1998);• the Agreement on Subregional Air Services (Fortaleza Agreement) of the Southern Common Market (MERCOSUR) (1999); and• the Air Transport Agreement of the Association of Caribbean States (ACS) (2008).The limited number of States in North and Central America and the United States’ prominent presence in the area, as well as its early bilateral open skies policy, resulted in the region’s liberalization of air transport being arranged in bilateral agreements between the States concerned. Following the consolidation of the small airlines in the sub-region of Central America in the early 90s, separate but virtually identical open skies agreements with the US were concluded in 1997. In 1995, the US-Canada Aviation Agreement had already entered into force, based on most aspects of the open skies model. In South America and the Caribbean, regional air transport liberalization initiatives have resulted in the adoption of agreements by the Andean Community (CAN), the Caribbean Community (CARICOM) and the Southern Common Market (MECROSUR) between 1991 and 1999, and the Air Transport Agreement of the Association of Caribbean States (ACS) in 2008. All these initiatives aim to harmonize air transport policies and to liberalize the granting of traffic rights and market access. Asia and PacificIn Asia, the following agreements, arrangements, commitments and/or programmes for liberalization of regional air transport services are currently in operation:• the Agreement on the Establishment of Sub-regional Air Transport Cooperation among Cambodia, Lao People’s Democratic Republic, Myanmar and Viet Nam (CLMV) (1998) and the CLMV Multilateral Agreement on Air Services (2003);• the Memorandum of Understanding on Expansion on Air Linkages between the Indonesia, Malaysia and Thailand-Growth Triangle (IMT-GT) (1995);• the Memorandum of Understanding on Expansion of Air Linkages between Brunei, Indonesia, Malaysia, and Philippines - East ASEAN Growth Area (BIMP-EAGA) (2007);• the Association of Southeast Asian Nations (ASEAN) Multilateral Agreement on Air Services (MAAS) (2009), the ASEAN Multilateral Agreement on the Full Liberalization of Air Freight Services (2009) and the ASEAN Multilateral Agreement on the Full Liberalization of Passenger Air Services (MAFLPAS) (2011); and• the Implementation Framework of the ASEAN Single Aviation Market (ASAM) (2011)..............................................................................................................................................................................ICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION...................................................................................................................................................................52.............................................................................................................................................................................The ASEAN Single Aviation Market is expected to fully liberalize air travel between member States in the ASEAN region, allowing ASEAN countries and airlines operating in the region to directly benefit from the growth in air travel around the world, and also freeing up tourism, trade, investment, and service flows between member States. Since 1 December 2008, restrictions on Third and Fourth Freedoms between capital cities of member States for air passenger services have been removed, while full liberalization of air freight services in the region took effect from 1 January 2009. On 1 January 2011, full liberalization on Fifth Freedom traffic rights between all capital cities took effect, though some States have yet to accept specific protocols to the agreement. The achievement of open skies in the ASEAN region is one of the cornerstones for establishing an ASEAN Single Aviation Market (ASAM). The aim of the ASAM Implementation Framework is to further integrate air services liberalization, to enhance aviation safety and security and air traffic management, as well as to address economic elements such as ownership and control, tariffs, commercial activities, competition policy and consumer protection. The Air Transport Agreement between the ASEAN Member States and China was signed in 2010. Of the remaining big markets in Asia, China and India adopt a gradual and progressive approach in air transport liberalization, whereas Japan and the Republic of Korea apply a more liberal air transport policy with some constraints related to airport capacity. In the Pacific region, members of the Pacific Island Forum (2007) signed the Pacific Island Air Services Agreement (PIASA) to gradually integrate and liberalize air transport services in the region. Divided into three stages, the parties to the agreement wish to create an Internal Single Aviation Market among them. This is to be extended to a Full Single Aviation Market that will be open to Australia and New Zealand who both have liberalized their air transport markets by concluding and renegotiating bilateral and open skies agreements. New Zealand is also a party to MALIAT.Europe and North AtlanticIn Europe, the following agreements, arrangements, commitments and/or programmes for liberalization of regional air transport services are currently in operation:• the Single Aviation Market within the European Union (EU) (then the European Community); and • the Multilateral Agreement on the Establishment of a European Common Aviation Area (ECAA). The EU single market for air transport, which embraces not only the EU Member States but also Members of the European Civil Aviation Conference (ECAC), has fuelled significant growth in air transport within Europe, creating new jobs and delivering more choice and better value for consumers. The EU single market is underpinned by a common regulatory regime designed, amongst other things, to deliver market access and ensure that air carriers can compete on an open, non-discriminatory and fair basis. EU/ECAC Member States continue to explore means of further improving efficiency, competition, and quality within the single market, for example, through their work to develop a Single European Sky.The EU has pioneered a multilateral approach to liberalization through “horizontal” air transport agreements, designed to align Member States’ various bilateral Air Services Agreements (ASAs) with EU law and to extend access to the traffic rights available in those ASAs to all EU air carriers (“EU designation”). An increasing number of bilateral agreements include the EU designation clause, as well as revised provisions concerning the other areas where the EU has an exclusive competence. However, some major partners have shown reluctance to recognize the principle of EU designation.The EU has also created a “comprehensive” air transport agreement which replaces individual ASAs with a single, all-embracing, liberal, agreement between the EU as a whole and the partner country in question (such as the agreements with key aviation partners such as the US and Canada). Comprehensive agreements with neighboring countries have the long-term objective to establish a wider “Common Aviation Area”. When negotiating comprehensive agreements with partner countries, the EU and its Member States, including other ECAC Member States, seek also regulatory convergence and insist on safeguards for open and fair competition as a condition for agreeing on additional traffic rights. Negotiations involving a group of States (for example, between one or more States on one hand and a group of States on the other; and between two groups of States) and the involvement of regional economic integration organizations in air service negotiations have introduced a new dimension in international air transport regulation. The EU has been the most active in this ICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION.....................................................................................................................................................................53.............................................................................................................................................................................respect by, for example, concluding the Euro-Mediterranean Aviation Agreement between the EU, Morocco, Jordan and Israel and the Agreement between the EU and the WAEMU on certain aspects of air services. Middle EastThe Agreement on the Liberalization of Air Transport of the Arab League States (2007), formalizing the Intra-Arab Freedoms of the Air Programme (2000), is currently in operation.The Agreement on Liberalization of Air Transport between the Arab States, more commonly known as the Damascus Agreement, was developed through the Arab Civil Aviation Commission (ACAC) in 2004. The Damascus Agreement provides for unlimited Third, Fourth and Fifth Freedom rights between points in the signatory States. However, since its entry into force in 2007, only eight states have accepted the agreement. Several key countries in the area such as Egypt and Saudi Arabia have not done so.Multilateral or Plurilateral LiberalizationMost international air services operate under bilateral or regional regimes, but some agreements in plurilateral form exist (i.e. an agreement amongst a few like-minded States but open for others to join).The Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT), also known as the Kona “Open Skies” Agreement, was concluded in 2000 by five like-minded members of the Asia-Pacific Economic Cooperation (APEC): Brunei, Chile, New Zealand, Singapore and the United States. MALIAT entered into force in the following year, and was subsequently joined by Peru (withdrew in 2005), Samoa, Tonga, Cook Islands, and Mongolia (cargo-only). The International Air Services Transit Agreement (IASTA), which entered into force in 1945, provides for the multilateral exchange of rights of overflight and non-traffic stops for scheduled air services among its Contracting States. The Agreement is a cornerstone of multilateralism in air transport. The number of States which are parties to IASTA is 130 (as of August 2013), but about one-third of ICAO Contracting States, including several with large land masses, remain outside the Agreement. The General Agreement on Trade in Services (GATS) of the World Trade Organization (WTO) contains an annex on air transport currently covering three so-called "soft" rights, namely aircraft repair and maintenance, selling and marketing of air transport, and computer reservation system (CRS) services. ICAO has maintained an active interest in the evolution of trade in services negotiations and the reviews conducted by the WTO's Council for Trade in Services with a view to considering the possible further application of the agreement in the sector. This remains of major significance as a precursor to the negotiations on the further possible extension of the GATS coverage to air transport.In 2013, the ICAO Assembly requested that the Organization “develop and adopt a long-term vision for international air transport liberalization”, including examination of international agreements to liberalize market access, air cargo services, and air carrier ownership and control. An ICAO working group is currently analyzing these issues and it is expected that a draft report will be submitted to the ICAO Council for approval during 2017.Unilateral Liberalization In addition to the progress of liberalization at the bilateral, regional and other levels, there has been a shift of regulatory approach taken at the national level, from detailed regulation of airline operations to relying more on market forces. Liberalization policies and measures adopted by States vary widely in terms of their coverage and application. Interesting examples include:• The Philippine airline industry was deregulated in 1995 by eliminating certain restrictions on domestic routes and frequencies, but cross-border routes were left to be operated under bilateral agreements and on the basis of reciprocity. In March 2011, Executive Order 29 authorized the Civil Aeronautics Board (CAB) and the Philippine Air Negotiation and Air Consultation Panels “to pursue more aggressively a liberalization policy in international aviation” and to “offer and promote Third, Fourth, and Fifth Freedom rights to the country’s airports other than the Ninoy Aquino International Airport (NAIA) without restriction as to frequency, capacity and type of aircraft, and other arrangements that will serve the national interest as may be determined by the CAB”. This policy will assist in 2016 plans to develop the Clark International Airport (CRK), which is only 17.6% utilized, as an alternative airport to decongest air traffic at the Ninoy Aquino International Airport.ICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION...................................................................................................................................................................54.............................................................................................................................................................................• China has in the past decade pursued a “proactive, progressive, orderly and safeguarded” approach in opening up its market access for international transport. A pilot step in the gradual liberalization of the Chinese civil aviation industry is the creation of an entirely open aviation policy for Hainan Province. China’s second largest island at its south tip is rich in tourism but depends on resources outside the island. Because air transport was insufficient to satisfy the demands of economic development, the General Administration of Civil Aviation of China (CAAC) opened up Third, Fourth and Fifth Freedom rights in Hainan Province to all domestic and overseas airlines in 2003, and even granted limited cabotage rights to certain cities in China. The CAAC imposed, on a unilateral basis, no restrictions on routes and frequencies and did not request reciprocal rights.• Chile's commercial air policy aims at ensuring that the country has the best air connectivity, irrespective of the nationality of the air carrier operating these flights. This policy promotes a minimum amount of intervention from the authority in commercial matters and fully opens the skies to all States on a reciprocal basis, including cabotage. As a result of this policy, Chile currently has open skies agreements with more than 40 States. Another result of this policy has been the positive development of the air transport industry in Chile on an entirely private basis, without State support. • Although India adopted an open skies policy for air cargo in 1990, international civil aviation remained dominated by bilateral agreements specifying not only routes and destinations but also restricting frequency and capacity. In 2005, the country signed an open skies agreement with the US and other more liberal agreements exist with the South Asian Association for Regional Cooperation (SAARC). In 2016, the government of India decided to allow open skies agreements with countries beyond a 5 000 km radius of Delhi. It also plans to liberalize the existing rules that require domestic airlines to have a minimum of five years experience and at least 20 aircraft before being eligible to fly international routes, and to allow carriers the flexibility to withdraw capacity on unviable routes.ICAO Aviation Law Library (ALL) with (WASA) databaseICAO Aviation Law Library (ALL) brings together virtually all of ICAO's aviation legal content in one secure portal. Users have access to a searchable database of Air Services Agreements (based on 90 criteria) plus convenient access to aviation law conventions and related acts, treaties, multilateral agreements and the ICAO Annexes plus air traffic tools and maps to facilitate route planning and development. In addition to WASA (ICAO's unique analytical tool for air services negotiations and consultations) three different levels of ALL are available to satisfy the needs of different groups of customers. The original product has been enhanced with a redesigned website with interactive maps and will ultimately be linked to the ICAN platform to facilitate negotiation of ASAs.ALL provides the entire aviation legal framework for:!Resolution of aviation legal issues;!Disputes and claims;!Negotiation of air services agreements;!Providing legal advice or consulting services;!Route development;!Research and analysis;!Aviation legal references.ALL is most useful for CAA air services negotiators and regulators. However, the new enhanced features are designed to appeal also to airline route planners, insurers, law firms, aviation analysts, consultants and academics.These products can be obtained from the ICAO Store - https://store1.icao.int/ICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION.....................................................................................................................................................................55.............................................................................................................................................................................Consolidation of the IndustryAlong with the trend towards liberalization, the airline industry has continued to undergo major structural transformation to adjust to a dynamic marketplace. Airline strategy and planning has been focusing more on alliances, consolidation, and cross-border equity investments to exploit network-based economies of scale and scope. The full-service network model of traditional major airlines has come under scrutiny in an increasingly competitive environment. In addition, e-commerce is now a firmly established facility, which has been used extensively by the industry in marketing and selling its products. For airports and air navigation services providers, the anticipated demand growth and the new types of traffic generated in large part by liberalization are increasing business opportunities but require significant investments in an efficient and timely manner.Airline alliancesOne of the strong global trends is the formation by airlines of alliances: voluntary unions of airlines held together by various commercial cooperative arrangements. The phenomenon has been evolving since 1997 when Star Alliance was created by five major airlines. The expansion of alliances is a consequence of the airlines' response to, inter alia, perceived regulatory constraints (such as bilateral restrictions on market access, ownership, and control), a need to reduce their costs, and economic incentives to restructure into larger networks as markets become more competitive. Forms of cooperation between carriers within alliances vary greatly, from limited marketing agreements governing the provision of frequent flyer points to fully integrated cooperative arrangements which involve coordination of prices, capacity, schedules as well as revenue, cost and profit pooling and sharing. From an antitrust perspective, arrangements with limited cooperation such as interline agreements pose no concern. The highest degree of cooperation can be observed in metal-neutral joint ventures where carriers engage in revenue, cost and profit sharing; jointly determine prices, capacity and frequency of flights; and cooperate in marketing and sales. It is the latter form of cooperation that has attracted the close scrutiny of antitrust agencies around the world. Common Types of Airline AlliancesSource: United States Department of Transportation and European Commission, “Transatlantic Airline Alliances: Competitive Issues and Regulatory Approaches”, November 2010.ICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION...................................................................................................................................................................56.............................................................................................................................................................................While numerous agreements concern cooperation on a limited scale (for example, code sharing on certain routes), the number of wide-ranging strategic alliances has been on the rise. Most notable were the three “global alliances” – Star Alliance, OneWorld, and SkyTeam. The three main alliances continued to grow with the introduction of new members. Each global alliance group remains unstable with partnership relations becoming intertwined and complex. Global AlliancesAir Canada, Lufthansa, SAS, Thai Airways International, and United Airlines (founded the Alliance in May 1997), Air New Zealand (March 1999), All Nippon Airways (October 1999), Austrian Airlines (with Lauda Air and Tyrolean Airways), (March 2000), Singapore Airlines (April 2000), Asiana Airlines (March 2003), LOT Polish Airlines (October 2003), Adria Airways (December 2004), Croatia Airlines (December 2004), TAP Portugal (March 2005), Swiss (April 2006), South African Airways (April 2006), Air China (December 2007), Turkish Airlines (April 2008), EgyptAir (July 2008), Brussels Airlines (December 2009), Aegean Airlines (June 2010), Avianca (June 2012), Ethiopian Airlines (Dec 2011), Shenzhen Airlines (November 2012), Copa Airlines (June 2012), EVA Air (June 2013), Air India (July 2014), Avianca Brazil (July 2015).American Airlines, British Airways, Cathay Pacific Airways, Qantas (founded the alliance in February 1999), Iberia (September 1999), Finnair (September 1999), Royal Jordanian (April 2007), Japan Airlines (April 2007), S7 Airlines (November 2010), Air Berlin (March 2012), Malaysian Airlines (February 2013), Qatar Airways (October 2012), SriLankan Airlines (May 2014), LATAM Airlines Group (March 2014).AeroMexico, Air France, Delta Airlines, Korean Air (founded the alliance in June 2000), CSA Czech Airlines (April 2001), Alitalia (July 2001), KLM Royal Dutch Airlines (September 2004), Aeroflot (April 2006), Air Europa (September 2007), Kenya Airways (September 2007), China Southern Airlines (November 2007), Vietnam Airlines (June 2010), Tarom (June 2010), China Airlines (September 2011), China Eastern Airlines (June 2011), Middle East Airlines (February 2011), Saudia (May 2012), Xiamen Airlines (November 2012), Aerolineas Argentinas (August 2012), Garuda Indonesia (March 2014).May 1997February 1999June 2000Star Alliance(28 member airlines)OneWorld(14 member airlines)SkyTeam(20 member airlines)AllianceLaunch DateMembersMergers and acquisitionsAirlines in many parts of the world have continued the pursuit of the perceived advantages brought by mergers, acquisitions or operational integration under a single holding company. The common motive for this trend is the need to remain competitive. A merger with a competitor may serve to hold and develop market presence, to gain access to new markets, to achieve cost savings especially in response to the sharp increase in fuel prices and low-fare competition, and to shield themselves from competition through the reduction of capacity on overlapping routes, thereby increasing yield.With a few notable exceptions, most mergers or acquisitions were achieved within the same State. Until the early 2000s, only a small number of attempts at cross-border mergers or acquisitions had been achieved owing to aero-political, economic and regulatory complexity. Nevertheless, the opportunity for cross-border mergers and acquisitions has been increasing as the economy has become globalized and many States have adopted new policies or rules on foreign investment in and control of national airlines and have relaxed conditions for the airline ownership and control ICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION.....................................................................................................................................................................57.............................................................................................................................................................................conditions in their Air Services Agreements (ASAs).Cross-border equity investments have been carried out often as part of a strategy to forge or strengthen alliances on a limited scale, rather than assuming a majority stake or pursuing a full-scale merger.The Sixth Worldwide Air Transport Conference held in March 2013 recommended that States continue to liberalize air carrier ownership and control and recommended that ICAO develop an international agreement involving all interested parties (experts, States, aviation stakeholders and organizations). Domestic mergers and acquisitions: major cases since 20002000 Acquisition of Canadian Airlines by Air Canada.2001 American Airlines’ bankruptcy buyout of Trans World Airlines.2002 Establishment of Alianza Summa by Avianca and Aces (dismantled in 2003).2002 Establishment of Japan Airlines Corporation by Japan Airlines and Japan Air System.2002- Creation of three Chinese airline groups headed by Air China, China Eastern Airlines, and2005 China Southern Airlines through mergers with other smaller state-owned airlines.2005 Merger of SN Brussels Airlines and Virgin Express (became Brussels Airlines in 2006).2005 Acquisition of US Airways by America West Airlines (operating as US Airways).2006 Acquisition of dba by Air Berlin.2007 Merger of Air India and Indian Airlines under National Aviation Company of India.2008 Merger of Delta Airlines and Northwest Airlines (operating as Delta, completed in 2010).2009 Merger of Vueling Airlines and Clickair (operating under the Vueling name).2010 Merger of China Eastern Airlines and Shanghai Airlines under common ownership.2010 Merger of Continental Airlines and United Airlines (operating under the United name).2010 Acquisition of Air Jamaica (Jamaica) by Air Caribbean (Trinidad and Tobago). 2011 Acquisition of Airtran Airway by Southwest Airlines. On March 1, 2012, the company was issued a single operating certificate, technically becoming one airline.2011 Merger of Iberia and British Airways which created the International Airlines Group (IAG). Both airlines continue to operate under their respective brands. 2011 Merger of Olympic Air and Aegean Airlines.2012 Merger of LAN and TAM which created the LATAM Airlines Group.2012 Acquisition of Vueling by International Airlines Group (IAG).2013- Merger of US Airways and American Airlines. The American Airlines name remained in the OneWorld 2015 Alliance while US Airways left the Star Alliance Group.2013 Merger of Airlinair, Brit Air and Regional (France) within Air France Group to create HOP!2013 Acquisition of a 49 per cent stake in Virgin Atlantic by Delta Airlines.2013 Acquisition of 60 per cent stake in Tiger Airways (Singapore) by Virgin Australia (Australia).2013 Regulatory approval for acquisition of a 49 per cent stake in IAT Airways by Etihad (Abu Dhabi) IAT Airways will be rebranded as Air Serbia.2014 Acquisition of Aerounion by Avianca.2015 Acquisition of Aer Lingus by International Airlines Group (IAG).Source: ICAOICAO WORLD CIVIL AVIATION REPORTINTERNATIONAL CIVIL AVIATION ORGANIZATION.....................................................................................................................................................................59.............................................................................................................................................................................Consumer Protection PoliciesAlong with the continuing liberalization of air transport regulation, the protection, and improvement of airline passenger rights has gained greater importance, particularly but not exclusively in major markets. A significant number of States, in recent years, have adopted regulatory measures that address some of the issues such as denied boarding compensation; assistance to passengers in the event of delays and cancellation; price transparency; and access for disabled passengers. At the industry level, many airlines have adopted voluntary commitments (i.e. non-legally binding self-regulation) to clarify or improve their policies or practices with regard to certain customer services (such as fare offers, ticket refunds, denied boarding, flight delays and cancellations, baggage handling, response to complaints, and special passenger needs), often in response to public pressure.Consumers benefit from the availability of differentiated product options, and can switch to competing airlines if a carrier does not meet their expectations. In principle, consumers' comparison shopping should enhance service competition so that the marketplace itself generates better performance. However, in practice, different levels of interest and response to consumer issues have resulted in the emergence of regimes with similar aims and objectives on passenger rights but with differing regulatory, self-regulatory and contractual requirements in various States or regions.ICAO has done considerable work in this field, including the development of guidance material in such areas as conditions of carriage, fare guarantee, baggage, tariff disclosure, denied boarding and code sharing. This guidance can be found in Policy and Guidance Material on the Economic Regulation of International Air Transport (Doc 9587).ICAO Core Principles on Consumer ProtectionPassengers can benefit from a competitive air transport sector, which offers more choice in fare-service trade-offs and which may encourage carriers to improve their offerings. Passengers, including those with disabilities, can however also benefit from consumer protection regimes. It is important that consumer protection regimes strike an appropriate balance between protection of consumers and industry competitiveness while taking into account the needs of States for flexibility due to different social, political and economic characteristics, and without compromising the safety and security of aviation. With a view to introducing some convergence between different consumer protection regimes, ICAO has developed a set of high level non-prescriptive “Core Principles on Consumer Protection”. Recognizing the dynamic nature of the air transport industry, the Core Principles is a “living document”, which will be refined and improved upon from time to time throughout the process of implementation, based on experience gained and feedback received.The Core Principles stipulate that national and regional consumer protection regimes should reflect the principle of proportionality, allow for the consideration of the impact of massive disruptions, and be consistent with the international treaty regimes on air carrier liability (Warsaw Convention, 1929; Montréal Convention, 1999). In addition, efforts should be made to raise awareness of passenger rights in order to help them make informed choices. Passengers should have access to information on their rights and clear guidance on which legal or other protections apply to their specific situation, including the assistance expected, for example, in the case of service disruption.Policy and Guidance Material on the Economic Regulation of International Air Transport (Doc 9587)This document is a compendium of all the formal policies and guidance adopted by ICAO in this field (such as Assembly resolutions, Council decisions, and conclusions and recommendations of air transport conferences). The 4th edition with updated material is expected to become available in 2017.Manual on the Regulation of International Air Transport (Doc 9626)This Manual has been developed to meet an ever-increasing need for a comprehensive and objective source of information about the many facets of this dynamic activity. It both complements and supplements Doc 9587 shown above. The 3rd edition of this Manual is expected to become available in 2017.These publications can be obtained from the ICAO Store - https://store1.icao.int/Next >