1. Outcome of the Sixth Worldwide Air Transport Conference (ATConf/6)
ICAO Strategic Objective:
Economic Development of Air Transport
Outcome of the Sixth Worldwide Air Transport Conference (ATConf/6)
Narjess Abdennebi
Chief, Economic Analysis and Policy Section
AIR TRANSPORT BUREAU

2. General overview
Theme: “Sustainability of air transport” provided a relevant platform for discussion
Objectives: Develop guidance and action plan for a global regulatory framework
Preliminary steps: Regional seminars provided a preliminary review of issues and proposals to be discussed
Documentation: Substantive documentation available on website
Attendance: Over 1000 participants from 131 States and 39 Observer organizations

3. Pre-Conference symposium
Symposium on 17 March 2013
Well attended: approximately 400 participants
Co-organized with major industry stakeholders
High-level moderators and panelists
Range of relevant discussions related to the ATConf/6 agenda
Live-stream videotaping allowed for viewing the panel discussions on internet
Objective: Provided useful background information
on key issues to be addressed by ATConf/6

4. Communication steps
ICAO Journal (Issue 6/2012): ATConf/6 feature article and interviews with key stakeholders
Media coverage:
Presence of six prominent aviation business journalists and series of interviews with high-level ICAO Officials
Two ICAO Press Releases
18 March 2013: Press release which covered the signing of the ICAO/UNWTO* Joint Statement on Aviation and Tourism
28 March 2013: Press release highlighting the major outcome of ATConf/6
ICAO Journal (Issue 3/2013): ATConf/6 outcomes article
*UNWTO:United Nation World Tourism Organization

5. ICAO/UNWTO – Joint Statement
Joint Statement on Aviation and Tourism signed by ICAO & UNWTO Secretaries General
Objectives:
Maximize air transport/tourism synergies
Work together on consumer protection
Increase connectivity (e.g. visas and travel ID documents; airport passenger flow management; essential service and tourism development route (ESTDR)
Reduce greenhouse gas emissions
Alleviate taxes, charges and levies on aviation and tourism
Cooperate on the implementation of ATConf/6 recommendations

6. ATConf/6 highlights
Adopted 64 recommendations, including 40 for ICAO action and 29 for States action
All documentation and Conference report on ICAO website ( )
Yellow cover report available in hard copy in all languages
ATConf/6 full report (Doc 10009) available in all languages

7. Agenda item 1 Item 1: GLOBAL OVERVIEW OF TRENDS AND DEVELOPMENTS
1.1 Industry and regulatory developments
1.2 Other areas of ICAO´s work that may have economic implications
(including the economic impact pertaining to the outcome of the High-level Conference on Aviation Security (HLCAS)

8. Milestone results
Stronger leadership role for ICAO in economic regulation
ICAO leadership role in forging new regulatory tools
Commitment of the global aviation community for increased international integration and harmonization
Cooperation between air transport stakeholders to avoid duplication of efforts
Implementation of a voluntary air transport fund in order to support the implementation of some recommendations that will not be funded by the regular budget

9. Agenda item 2
Item 2: EXAMINATION OF KEY ISSUES AND RELATED REGULATORY FRAMEWORK
2.1 Market access
2.2 Air carrier ownership and control
2.3 Consumer protection
2.4 Fair competition
2.5 Safeguards
2.6 Taxation & other levies on international air transport
2.7 Economics of airports and air navigation services
(including outcome pertaining to economic impact of the Twelfth Air Navigation Conference (ANConf/12)
2.8 Implementation of ICAO policies and guidance

10. Market access and fair competition
Main recommendations for ICAO (market access):
Develop international agreement to liberalize market access
Develop international agreement to liberalize air cargo services
Continue providing ICAN facility for further liberalization
Main recommendations for ICAO (fair competition):
Develop a compendium of competition policies and practices by States and regional bodies
Provide an exchange forum for States for more compatible regulatory approaches

11. Air carrier ownership and control
Main recommendation for ICAO:
Develop international agreement to liberalize air carrier ownership and control, taking into account:
safety and security concerns
principle of reciprocity
gradual and progressive adaptation with safeguards
regional experiences & requirements of various States’ domestic laws & effects on all stakeholders (including labour)

12. Consumer protection Main recommendation for ICAO:
ICAO should develop high-level, non-prescriptive core principles on consumer protection
appropriate balance between consumers/industry competitiveness
need for States flexibility (different social, political and economic characteristics)
consistency with Montréal Convention of 1999

13. Taxation Main recommendations for ICAO:
collaborate with relevant industry associations to develop analysis and guidance for use by States on the impact of taxes and other levies on air transport
continue to take the necessary measures to enhance States’ awareness of ICAO policies on taxation and vigorously promote application

14. Economics of airports and air navigation services (ANS)
Main recommendations for ICAO:
multidisciplinary group to develop principles on incentives in the implementation of the Aviation System Block Upgrades (ASBUs) modules
new mechanisms for sustainable funding of oversight functions at State level and development of related guidance material

15. Continuous work on policies and guidance
Main recommendations for ICAO:
Update and keep current ICAO policy and guidance on:
Regulation of international air transport (Docs 9587 & 9626), Template Air Services Agreements (TASAs) and databases
Supplement to Doc 9082 to include changes in airport & ANSP commercialization/privatization
Supplement to Doc 8632 – taxation policies

16. Continuous work on monitoring and analyzing
Main recommendations for ICAO:
Monitor developments related to:
Air transport industry
Areas of market access, consumer protection, competition and safeguards
Impediments to sustainable air transport system
Changes in airport and ANSPs commercialization & privatization
Economic oversight funding situations

17. Promotion, awareness and implementation
Main recommendations for ICAO:
Promote & increase awareness of ICAO policies and guidance material on:
Air transport regulation and liberalization
Funding of infrastructure
Policies on taxation, user charges
Governance, management of airports & ANSPs, aviation security related charges
Ratification of Montréal Convention of 1999
Consider additional ways by which to enhance their implementation

18. Prioritization of the tasks
Further work has been recommended:
Conduct of studies on major issues of global importance
Develop guidance as liberalization progresses (e.g. business aviation)
Undertake work on cost-benefit analysis related to air transport connectivity
Council has approved ATConf/6 recommendations and defined priorities based on the budget and resources available for the triennium

19. Priority A (to initiate without delay)
Tasks by priority (1)
Priority A (to initiate without delay)
Establish a voluntary air transport fund
Provide enhanced ICAN facility
Develop and provide exchange forum for States to promote compatible regulatory approaches
Develop a long-term vision for international air transport liberalization, including an international agreement for market access liberalization
Develop a compendium of competition policies and practices
Develop an international agreement to liberalize air carrier ownership and control

20. Priority A (continued)
Tasks by priority (2)
Priority A (continued)
Keep ICAO policy guidance current and responsive to changes and needs of States, where required, develop further guidance to facilitate liberalization
Develop a set of core principles on consumer protection
Establish a multi-disciplinary group to consider establishment of operational and economic incentives for ASBUs
Raise awareness of ICAO policies and guidance on funding of infrastructure; develop guidance on safety, security oversight funding; monitor economic oversight funding situation
Explore new mechanisms sustainable funding of oversight functions at State and regional levels
Cooperate with other organizations, including UNWTO, in areas of common interest

21. Priority B (medium priority in delivery)
Tasks by priority (3)
Priority B (medium priority in delivery)
Update policy and guidance material on regulation of air transport (Doc 9587, Doc 9626, TASAs and WASA, liberalization indicators, cases studies)
Develop an international agreement to liberalize air cargo services
Monitor developments in market access, consumer protection, competition and safeguards
Promote use by States of ICAO policy guidance; assist liberalization through training and seminars

22. Priority B (continued)
Tasks by priority (4)
Priority B (continued)
Raise awareness of ICAO policies on taxation and user charges, and guidance material
Monitor changes in airport and ANSP commercialization and privatization; collect information on implementation
Develop analysis and guidance on impact of taxes and other levies imposed on air transport
Monitor developments in air transport industry, conduct studies on major issues of global interest
Cooperate with other organization and the industry, define strategies to overcome impediments

23. Tasks by priority (5)
Priority C (to be undertaken in accordance with additional resources provided through voluntary contributions from Member States)
Consider additional ways and means to enhance the status of ICAO policies, access the value of a possible new Annex or other solutions
Undertake work on cost-benefit analysis related to air transport connectivity
Develop guidance on important issues arising from liberalization, including on business aviation
Promote and assist with ratification of Montréal convention of 1999

24. Accomplishing the tasks
Resources required for future tasks include:
Current ICAO Secretariat resources
Secondment provided by States
Use of panels of experts
Air Transport Regulation Panel (ATRP)
Airport Economics Panel/Air Navigation Services Panel (AEP/ANSEP) and other relevant ICAO panels
Cooperation on some tasks with:
Regional bodies/organizations
Industry stakeholders (IATA, ACI, CANSO, TIACA, IBAC, etc..)

25. Follow-up actions
State letter (SL 13/63) sent on 26 July 2013 to disseminate outcome and action required by States
Use of ICAN platform and other seminars: ICAN2013 (Durban, 9-13 December 2013) seminar to facilitate dialogue/cooperation between competition authorities
1st Meeting on 20 August 2013 of the Multidisciplinary Group on economics of the implementation of the ASBUs
Regular monitoring and updating of relevant ICAO databases
Dissemination of information using ICAO e-learning and training courses and the ICAO website

26. © ICAO All rights reserved.
This document and all information contained herein is the sole property of ICAO. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without prior permission of ICAO. This document and its content shall not be used for any purpose other than that for which it is supplied.
The statements made herein are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, ICAO will be pleased to explain the basis thereof.