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TRANSPORTATION SECTOROpen Sky Policy for Developing Countries with Emphasis on the Small Island Developing States (SIDS)

PEY SAMEDI SUMIITTED TO LEATURE TOCH PUHTEY

ROYAL UNIVERSITY OF PHNOM PENH

Contents

I. IntroductionII. Literature ReviewIII. The American ScenarioIV. The European ScenarioV. Consequences of DeregulationVI. Conclusion

INTRODUCTION The Aviation sector• Important sector• Policy maker Problem Statement• Developing country• Economic nature• Customer satisfaction • Competitions• Wait and see• Impacts of policy Small Island Developing States• Development challenges

LITERATURE REVIEW Air Deregulation• USA 1978• Done two stages• European liberalization Deregulation and Liberalization • Deregulation• Deregulation differentiation

liberalization International trade and Other

Fields • Adarm Smith ”Invisible hand” Aviation-Domestic and

International Airline• Liberalization • Commercial action.• Regulated industries.• International air transportation

deregulation was generally slower to emerge than domestic reform because of the need for a double coincidence of interests.

THE AMERICAN SCENARIOThe Chicago conference and the

Bermuda agreement had already set the base for some kind of cooperation based on the following rules of bilateral agreements :

• Intergovernmental exchange of air right• Equality of treatment and non-

discriminatory with respect to airport • The imposition of customers• The exemption of duties • Mutual recognition of airworthiness

certificates and personal • Compliance with laws and regulations• Regulation of pertaining to ownership

and control• Registration of pertinent agreements the

ICAO• Termination of agreements • Procedures for amending

THE AMERICAN SCENARIO (CON)The main objectives were:• To strengthen the competitive • To give air carries the freedom• To place the fewest possible on charter

air transport• To provide the maximum degree of multiple

and permissive international • To eliminate operational and marketing • To integrate domestic & international air

transportation• To increase the number of U.S gateway

cities • To provide opportunities for foreign • To eliminate discrimination & unfair

competitive• To promote, encourage & civil develop

aeronautics and a viable,

THE EUROPEAN SCENARIO Members of the European Communityhave been extremely cautious on the issue. Their strategy has been more or less a ”wait and see” position vis-à-vis the American initiatives.• Concepts within the private and publics

involvement of the public• Motivations for liberalization in

aviation • Customer focus , costs and fares - Market is substantial- Particular fears- Some airlines have gone bankrupt- Cost of airline

THE EUROPEAN SCENARIO ( CON)

• Mail factors driving airline operating costs

- Aviation fuel - Direct effects- Operating costs- Operational characteristics- Unit costs- Productivity • ControversyEconomic affects and engendered substantial controversy :- Creating a level playing field and ensuring

competition- Maintaining quality standards for services- Protecting consumers- Ensuring sufficient provision of information- Preventing environment deregulation - Guaranteeing wide access to services- Preventing financial instability and protecting

consumer saving

• Roles of stakeholder and how they change regulated environment to a deregulated one

- They achieved higher productivity and more flexible work practices - New airline were generally not unionized and

operated with labor costs were well below those open sky policy for developing countries with emphasis on the small island developing states Consequences of Deregulation

The macro economic condition of late 1970s

Strategy alliance

CONCLUSION Concept of deregulation liberalization and globalization in international air transport

Because of globalization, freedoms of the air, bilateral and multilateral agreements, all countries are on a level playing field