Facilitating Air Transport Liberalization And Broader Economic Development Yuanzheng Wang Chief, Economic Regulatory Framework Section Air Transport Bureau, ICAO

Focus on: Action plan for implementing ATConf/6 recommendations ICAO long-term vision for liberalization Developing international agreements for liberalization Guidance on consumer protection Addressing competition and safeguards issues Support and assistance to States

ICAO’s air transport policy and regulation programme is designed to: reduce State’s costs in performing its economic regulatory functions increase consumer’s benefits and choices; improve air connectivity; and create more competitive business opportunities in the marketplace; Sustainable Economic Development Trade and Tourism.

Mandate for the current work Recommendations of ATConf/6 Council’s action plan for implementation with prioritization, endorsed by Assembly Assembly Resolution A38-14 on continuing ICAO policies in the air transport field

ICAO Long-term Vision for Liberalization (adopted by Council in June 2015) We, the Member States of the International Civil Aviation Organization, resolve to actively pursue the continuous liberalization of international air transport to the benefit of all stakeholders and the economy at large. We will be guided by the need to ensure respect for the highest levels of safety and security and the principle of fair and equal opportunity for all States and their stakeholders.

ICAO Long-term Vision: follow-up action Disseminated to all Member States in July 2015 States to give regard to the Vision in policy-making and regulatory practice; provide feedback on experience gained or issues encountered ICAO to promote, monitor implementation; provide support and assistance Will be reflected in A39 Assembly resolution

Develop international agreement for liberalization Covering: Market access, Air cargo, and Air carrier ownership and control, for Willing and Ready States Draft being developed by ATRP (WG) Process: prepare draft text; consult States; report to governing bodies; finalize agreement; States to sign (2015, 2016 to 2017)

Core Principles on Consumer Protection Guidance developed by ICAO Secretariat and ATRP; States consulted; adopted by Council in June 2015 Aimed at providing guidance to States and industry stakeholders; fostering convergence and compatibility Follow-up action: Disseminated to States/stakeholders in July 2015 States to follow and apply; provide feedback ICAO to promote implementation and monitor developments ATRP will review and update guidance as “living document” (2017)

Guidance available on ICAO website, covering: Core Principles Guidance available on ICAO website, covering: Before the travel Balance passenger rights/industry competitiveness  Pre-travel information, including price transparency During the travel Assistance/compensation, as provided by regulations or contract  Coordination between stakeholders to address "massive disruptions" After the Travel Efficient complaint handling procedures The core principles address 3 different phases of the passenger’s relationship with the carrier: Before the travel The principle of balance between passengers rights and industry competitiveness is emphasized, as per ATConf/6. Besides, the passenger should benefit from accurate and complete pre-travel information, incl. transparency on the different elements included in the price (such as fare, taxes, charges, surcharges, fees). During the travel The passenger should receive adequate assistance, care and/or compensation, as provided by regulations or contract of carriage, especially in cases of disruptions. To address instances of "massive disruptions“, the principle is established that coordination should take place between stakeholders (airlines, airports, government authorities) to plan contingency mechanisms After the travel The passenger should be in a position to rely on efficient complaint handling procedures. It is very important to point out that these core principles – as requested by ATConf/6 -- are a first high-level foundation for the development of more precise and comprehensive guidance to address consumer protection issues. Additional guidance could be developed (i) to further refine the definition of “massive disruptions”, (ii) with respect to contingency mechanisms to address situations of massive disruptions, in cooperation with all stakeholders involved, (iii) to take into account scheduled and non-scheduled traffic. Further work: (i) definition of “massive disruptions”; (ii) principle of proportionality.

Work on Competition and Safeguards Issues Liberalization to be accompanied with safeguards Issues: Application of competition laws; Fair competition; State aid/subsidies; Labour concerns; Essential services Examined by ATConf/6, and ATRP/12, ATRP/13 meetings ICAO’s work: Compendium on States competition policies and practice, developed and made available online (help transparency on various regimes) States encouraged to provide input to the Compendium Forum for exchanges (e.g. ICANs, IATS on competition-March 2016) ATRP to further examine safeguards (fair competition, labour provisions) in context of draft international agreement for liberalization ICAO to monitor developments and update guidance material

Competition Practices Compendium on Competition Policies Competition Practices Practices emanating from Regional competition networks: European Union (EU); Common Market for Eastern and Southern Africa (COMESA)- East Africa Community (EAC) - Southern African Development Community (SADC), Association of Southeast Asian Nations (ASEAN) Practices emanating from International Organizations: ICAO policy guidance; Organization for Economic Co-operation and Development (OECD); United Nations Conference on Trade and Development (UNCTAD), World Trade Organization (WTO) Competition Policies Topics: Anticompetitive behaviors; abuse of dominance/monopoly; merger control; State aid Regional Organizations: COMESA-EAC-SADC; ACAC; ASEAN; EU; etc. The Compendium website: http://www.icao.int/sustainability/compendium/Pages/default.aspx Compendium on national and regional competition policies and practices. It covers: competition policies, including anticompetitive behaviors; abuse of dominance/monopoly; merger control; State aid (each of these topics are reviewed by region, therefore covering policies developed by the work of regional entities) competition practices, including the insertion of fair competition provisions in bilateral air services agreements; the establishment of regional competition networks; and relevant material produced by international organizations (ICAO, OECD, UNCTAD, WTO). To be noted: an enhanced version of the compendium has been developed by ICAO, following survey of States competition practices and policies (June 2015): this new online tool provides details and documents, on a State-by-State basis, on competition policies and practices. It is available at the link above, or simply by Googling: “ICAO COMPENDIUM”.

Support and assistance to States Facilitate liberalization and help capacity building Assist States with local issues and developmental needs, for example: Air Cargo Development in Africa (Togo meeting action plan 2014) Co-development of LCCs and legacy airlines in China (symposiums in 2013 and 2014) Air transport development in the Caribbean and South America (Jamaica conference 2014)

Other activities for Economic Development Updating ICAO policies and guidance ICAN facilities (new features: country profile re ASAs and traffic data) Info, data and guidance material available online: http://www.icao.int/sustainability/Pages/default.aspx Preparation for A39: A39 takes place at ICAO Headquarters in Montreal, 27 Sep. to 6 Oct. 2016 Council reviews reports(WPs) on achievements, policy proposals and future work plans for presentation to A39 (4Q 2015 to June 2016)