Air Traffic Management Concept Baseline Definition - The Boeing ...

years, air transport authorities have become increasingly concerned about the interest
shown by anti-trust and competition law authorities in the regulation of international air
transport. The establishment of unified regional economic markets has also invoked
concerns about possible adverse effects on the national airlines of non-participating states.
[Ref., page 2-135] (S), (E)
Issue # 3: Changing International Relationships
• Conscious of the pressures for change, ICAO held a major worldwide air transport
conference in Montreal from November 23 to 6 December 1994...attended by more than
800 delegates from 137 ICAO contracting states and from close to 50 interested
international and national aviation organizations, the conference was the biggest and most
important international aviation meeting for 50 years...the most significant decision
emerging was on the controversial issue of multilateralism versus bilateralism. The
meeting accepted that those two concepts ‘can and do co-exist, and can each
accommodate different approaches to international air transport regulation’. But it also
affirmed that ‘in view of the disparities in economic and competitive situations there is no
prospect in the near future for a global multilateral agreement in the exchange of traffic
rights’. [Ref. 4, page 47-49] (S), (E)
• Sub-issues include:
Market Access: It was agreed that full global market access (‘open skies’) is not
feasible at this time, but the meeting supported the principle of ‘gradual,
progressive, orderly and safeguarded change’, with preferential treatment for
developing nations [Ref. 4, page 50]. (E)
Slot Allocations: Despite many criticisms, the existing voluntary airline system of
slot allocations was recognised as the only tried and tested system offering the
assurance of efficient utilisation of the limited resources available: until a better
system can be devised internationally, it seems likely to remain in operation, but
ICAO will continue to study the situation closely [Ref. 4, page 50]. (O), (E)
Airline Ownership and Control: For 50 years the industry has lived with the rule
that a country’s airlines must be owned or effectively controlled by interests based
in that country: there are pressures for this to be changed, so as to allow increased
foreign investment, but this will in turn raise questions concerning sovereignty and
international traffic rights. there was no consensus on this topic at the meeting, but
it was agreed that ICAO should study the situation, with a view of finding ways of
broadening the present criteria [Ref. 4, page 50]. (E), (S)
Taxation: With over 900 different taxes worldwide imposed on the industry, the
burden runs into many millions of dollars annually and is increasing, with the
industry now regarded by governments as a ‘cash cow’ for revenues unrelated to
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