Harmonising Regulatory and Antitrust Regimes for International Air Transport

283 Pages·2018·3.797 MB·English

by  Jan Walulik (editor)

Harmonising Regulatory and
Antitrust Regimes for International
Air Transport
Harmonising Regulatory and Antitrust Regimes for International Air Transport
addressesthetimelyandproblematicissueoflackofuniformityinlegalstandards
for international civil aviation. The book focuses on discrepancies within the
regulatory and antitrust framework, comprehensively reveals the major legal
limitations and conflicts, and presents possible solutions thereto. It discusses
potential strategies for multilateralisation and defragmentation of air law, and
for international harmonisation of airline economic regulation with fair competi-
tion standards. This discussion extends to competition between air transport law
and other legal regimes as well as to specific regulatory problems related to air
transport.Theuniquefeatureofthebookisthatitreconcilesdistinctperspectives
on these issues presented by renowned aviation and aerospace experts who
represent the world’s key air transport markets and air law academic centres.
By providing unbiased solutions that could serve as a base for future interna-
tionalarrangements,thisbookwillbeinvaluableforaviationprofessionals,aswell
asstudentsandscholarswithaninterestinairlaw,economicregulation,antitrust
studies, international relations, transportation policy and airline management.
Jan Walulik has a PhD in law; Head, Civil Aviation Laboratory, Centre for
AntitrustandRegulatoryStudies,FacultyofManagement,UniversityofWarsaw;
corporate attorney (Warsaw bar).
Routledge Research in Competition Law
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Antitrust Federalism in the EU and the US
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Forthcoming titles in this series include:
Merger Control in Post-Communist Countries
EC Merger Regulation in Small Market Economies
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Merger Control in Europe
The Gap In The ECMR And National Merger Legislations
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Harmonising Regulatory and Antitrust Regimes for International Air
Transport
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Collective Redress and EU Competition Law
Eda Şahin
Competition Policy and Network Industries
Structural Separation in the Telecommunications Sector
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Harmonising Regulatory and
Antitrust Regimes for
International Air Transport
Edited by Jan Walulik
Firstpublished2019
byRoutledge
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BritishLibraryCataloguing-in-PublicationData
AcataloguerecordforthisbookisavailablefromtheBritishLibrary
LibraryofCongressCataloging-in-PublicationData
Names:Walulik,Jan,editor.
Title:Harmonisingregulatoryandantitrustregimesforinternational
airtransport/JanWalulik.
Description:Abingdon,Oxon;NewYork,NY:Routledge,2019.|
Series:Routledgeresearchincompetitionlaw
Identifiers:LCCN2018037228|ISBN9780815353867(hbk)
Subjects:LCSH:Aeronautics,Commercial—Lawandlegislation.|
Antitrustlaw.
Classification:LCCK4095.H3562019|DDC343.09/7—dc23
LCrecordavailableathttps://lccn.loc.gov/2018037228
ISBN:978-0-815-35386-7(hbk)
ISBN:978-1-351-13491-0(ebk)
TypesetinGalliard
bySwales&WillisLtd,Exeter,Devon,UK
Contents
Listoftables xi
Listofabbreviations xii
Listoflegalacts xiv
Listofcourtrulings xxii
Listofadministrativedecisions xxiv
Forewordfromtheeditor xxvi
Listofcontributors xxviii
PART1
Multilateralisationofinternationalcivilaviation
relationsanddefragmentationofinternationalairlaw 1
1 Thesevendecadesofscatteredskies 3
MAREKŻYLICZ
2 Multilateralizationofinternationalcivilaviationrelationsand
defragmentationofinternationalairlaw 5
PETERP.C.HAANAPPEL
2.1 Introduction 5
2.2 History 6
2.2.1 1919–1944:theinterbellum 6
2.2.2 1945–1975:theregulatoryperiod 7
2.2.3 1975–today:deregulationandliberalization 9
2.3 Economictheoryandpractice 10
2.4 Airlineprivatizationandmultilateralization 11
2.5 Intergovernmentalmultilateralization 13
2.5.1 TheUnitedStates 13
2.5.2 TheEuropeanUnion 14
2.5.3 Elsewhere 15
2.6 Ownershipandcontrolofairlines 16
vi Contents
2.7 Globalreform 17
2.7.1 TheInternationalCivilAviationOrganization(ICAO) 17
2.7.2 TheWorldTradeOrganization(WTO) 18
2.8 Conclusionsandprospectsformultilateralizationand
defragmentation 19
PART2
Balancingairpolicyandfaircompetitionininternational
airtransport 21
3 Airlinesasallies:Howtomanagethemarket? 23
PABLOMENDESDELEON
3.1 Thetrendtowardsinternationalalliances 23
3.2 Thefirstsignificantcase:KLM–Northwestairlines 24
3.3 Competitionandtradeinairtransport 25
3.4 Airlinebehaviouraffectingcompetition 26
3.5 Competitionregimesinairtransport 27
3.5.1 TheUSlawandpolicy 27
3.5.2 TheEUregime 28
3.5.3 Othercountries 31
3.6 FrictionsbetweencompetitionlawandbilateralASAs 31
3.7 Implicationsofcross-borderserviceprovision 33
3.7.1 The‘effects’doctrine 33
3.7.2 TheAirCargoFuelChargescases 34
3.7.3 Multilateraleffortsinharmonisingcompetitionlaws 36
3.7.4 Achievementsonconvergenceofcompetitionlawandpolicy 37
3.8 Conclusionsandrecommendations 38
4 Regulatoryschizophrenia:Mergers,alliances,metal-neutral
jointventuresandtheemergenceofaglobalaviationcartel 41
PAULS.DEMPSEY
4.1 Introduction 41
4.2 Themetamorphosisofairtransportagreements 43
4.3 Airlinealliances 48
4.3.1 Antitrustandcompetition:asuccinctsummaryof
USandEUlaws 48
4.3.2 Restraintoftrade 51
4.3.3 Mergersandconsolidations 53
4.3.4 Airlinealliancesandantitrustimmunity 59
4.4 Analysis 70
Contents vii
5 Airlinealliances:Permittedandprohibitedpracticesin
viewoftheEUlaw 74
AGNIESZKAKUNERT-DIALLO
5.1 Introduction 74
5.2 Diversityofairlinealliances 75
5.3 AirlinealliancesinviewoftheEUcompetitionlaw 77
5.4 Airlinealliancesinviewofmarketaccessregulations 80
5.4.1 Combiningservicesandcode-sharing 80
5.4.2 Aircraftleasing 82
5.4.3 Franchisingandcommonbranding 84
5.4.4 Otherinter-airlineagreements 85
5.5 Conclusions 86
6 Competitionininternationalairtransport:Anoverview
ofEUpolicydevelopments 88
PAWEŁZAGRAJEK
6.1 Competitioninairtransport 88
6.2 Internationallegalframeworkforcompetitioninairtransport 89
6.3 DevelopmentoftheEUcompetitionpolicyininternationalair
transport 93
6.4 PillarsoftheEUcompetitionpolicyininternationalairtransport 96
6.4.1 ImplementationoffaircompetitionprovisionsinASAs 96
6.4.2 Thedefenceinstrument–Regulation868/2004 97
6.4.3 PromotingregulationofcompetitionattheICAO 102
6.5 Conclusions 104
PART3
Competitionbetweenairtransportlawandother
regulatoryregimes 105
7 Citius,Altius,Fortius:Regulatingcommercialspaceflight
underairlaworspacelaw? 107
FRANSG.VONDERDUNK
7.1 Privatecommercialhumanspaceflight–thecontext 107
7.2 Thebasictenetsofairlaw 108
7.3 Thebasictenetsofspacelaw 110
7.4 Privatemannedspaceflightprojectsandthelegalconundrum 113
7.5 TheUSapproach–stressingthe‘space’in‘spaceflight’ 115
7.6 TheEuropeanapproach–stressingthe‘flight’in‘spaceflight’ 118
7.7 Findingthebestmix 122
viii Contents
8 Betweenglobalclimategovernanceandunilateralaction:
TheestablishmentoftheCarbonOffsettingandReduction
SchemeforInternationalAviation(CORSIA) 125
ELENACARPANELLI
8.1 Introduction 125
8.2 Ataleoftwostories:theICAO–EU‘dialogue’onthereduction
ofaviationemissions 126
8.3 AfterCORSIA:unilateralismreloadedortheendofthegame? 132
8.3.1 EffectivenessofCORSIA 132
8.3.2 Intersectionbetween‘legalorders’andtheriskofaresurgence
ofunilateraldrifts 133
8.3.3 Interplaywithotherinternationalnorms 137
8.4 CORSIAandmarketdistortions 139
8.5 Conclusions 140
9 Airlinenon-commercialadvantagesandfaircompetition:
Theissueoflabourconditions 142
ANDREATRIMARCHI
9.1 Introduction 142
9.2 Faircompetitioninaviation 143
9.2.1 Apatchworkofregulatoryregimes 143
9.2.2 Theroleofbilateralism 144
9.3 Thenotionof‘non-commercialadvantages’ 145
9.3.1 TradelawandWTO 146
9.3.2 EURegulation868/2004 147
9.4 Labourstandardsasnon-commercialadvantages 148
9.5 Theregulationoflabourintheaviationindustry 150
9.5.1 Thechoiceofinternationalforum 150
9.5.2 Thechoiceoflegalinstrument 151
9.6 Concludingremarks 152
PART4
Regulation,deregulationornon-regulationofaerospace
activities 155
10 Cheapliberalisation:Cuttingregulatorycornersinair
transportorcuttingone’sownthroat? 157
JANWALULIK
10.1 Introduction 157
10.2 Airpolicyandregulation 157
Contents ix
10.3 Liberalisationtrendsanddrivers 158
10.4 Safetyoversightchallenges 164
10.5 Risksandsafeguards 169
10.6 Regulatoryalternatives 171
10.7 Summary 175
11 Airlinenationality:AreconstructionoftheEUownership
andcontrolrules 177
ELMARM.GIEMULLA
11.1 Introduction 177
11.2 Ownershipandcontrolaslegalrequirements 177
11.3 Reviewofairlineownershipandcontrol 179
11.4 Interpretativeguidelines 180
11.4.1 Thenotionof‘nationality’ 181
11.4.2 EUregulationsoncontrol 182
11.4.3 FormercasesintheEU 182
11.4.4 Nationalguidelinesonownershipandcontrol 184
11.4.5 EUguidelinesonownershipandcontrol 185
11.5 Ownershipandcontrolassessmentprocess 186
11.5.1 Germantwostepapproachforlicensing 186
11.5.2 Ongoingcompliance 187
11.6 Conclusions 188
12 Sub-orbitaltraffic:Anewregulatoryornon-regulatory
discipline 189
MAŁGORZATAPOLKOWSKA
12.1 Introduction 189
12.2 Regulatorychallengesinouterspacecommercialization 190
12.2.1 Statusofsub-orbitalflights 190
12.2.2 Transitissues 191
12.2.3 Registrationofobjectsandoperations 192
12.2.4 Safetyandsecurity 193
12.2.5 Passengerstatus 194
12.2.6 Civilliabilityandinsurance 194
12.2.7 Ownershipinspace 196
12.2.8 Criminaljurisdiction 197
12.3 Resultsofthedebateonspacetransportregulation 197
12.4 Summary 200