Aviation Intelligence Reporter – February 2009


The Environment: think global, act local (or at least regionally)
CANSO one step forward, one step back
Economists ask the question: Are airports natural monopolies?
Industry consolidation and the freedom to invest
Nothing extraordinary about technical problems in aviation – ECJ
2009 – The year of the passenger right
The new man at the US DoT: the name is the give away


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The Environment: think global, act local (or at least regionally)

TThe beginning of the new year allows us to look back on 2008 with some perspective. For most of last year the development of the aviation part of the European emission trading scheme seemed to dominate European aviation. Finally, what was the first final outcome of the year was the agreement (in the middle of the year) on the basic structure for the aviation sector’s entry into the broader European Union Emission Trading Scheme (EU ETS).

CANSO one step forward, one step back

It is probably fair to say that if one were to put the world’s air navigation service providers’ safety directors in a room, one would have a significant percentage of the world’s expertise on the subject in one place. It is not clear that the same would be said if one were to put all of the ANSPs’ customer service directors in the one room. Indeed, judging by their recent respective outputs, it would be very hard to put these two groups in the same school, let alone the same class.

Economists ask the question: Are airports natural monopolies?

In the last month there has been academic support for the notion, long advocated by this Reporter, that airports are in fact competitive entities, not natural monopolies. This concept is not without controversy. Readers may recall that IATA last year set out that airports are natural monopolies, and thus they called for three of the most dreaded words in English: direct regulatory oversight.

Industry consolidation and the freedom to invest

It is clear that the airline industry is keen to consolidate. Indeed, arguably for many airlines consolidation is one of the few viable strategies the board can think of. But two very major hurdles stand in their way. IATA is working on one. We all need to start thinking about the other.

Nothing extraordinary about technical problems in aviation – ECJ

The European Court of Justice has ruled that cancellation of a scheduled flight due to technical problems does not generally fall within the ‘extraordinary circumstances’ exemption under regulation (EC) No. 261/2004. Consequently, technical issues will not relieve a carrier of its obligation to pay compensation to passengers.

2009 – The year of the passenger right

As we foreshadowed last year, the Commission announced a complete review of the application of passenger rights legislation by Member States. It has also announced that it intends making passenger rights one of its focus points for 2009. This is in response to an announcement by the European Ombudsman that he has opened an investigation into whether the European Commission is fulfilling its responsibility to ensure that EU rules on air passenger rights are properly applied in the Member States.

The new man at the US DoT: the name is the give away

It is true that often, people’s names run with their profession. Mr. Lamb the butcher, Ms. Green the gardener, and so on. Sometimes the names are also a big hint of how things are going to go. Could Bernie Madoff have had a better name if Dickens was writing the story? Or the UK businessman Asil Nadir (of Polly Peck infamy)? BA had some of its best ever years lead by a King and a Marshall. Qantas went from strength to strength under a man called Strong.