TIACA calls for separate cargo, passenger air liberalization

The International Air Cargo Association is calling on countries that support separating air cargo and air passenger rights to develop a separate set of cargo regulations that would allow industry liberalization.

Essentially, air carriers are bound by the same restrictions for both cargo and passengers. But cargo carriers have said that for their industry to compete effectively with other modes of transport, routes have to be liberalized to allow carriers to capitalize on growing markets.

The association supports liberalization of air cargo and express delivery services for unfettered market access and believes bilateral negotiations should be unrestricted as to the ability of air carriers to move air cargo in any international market between two points anywhere in the world, TIACA said in a statement Tuesday.

We believe that a separate cargo annex should be pursued as the first step towards market liberalization and openness, said Larry Coyne, a member of TIACA's industry affairs committee and chief executive officer of Coyne Airways. Often developing countries see the advantages of market openness for the movement of goods before they recognize the same advantages on the passenger side. Present bilateral negotiating structures often inhibit the growth of air cargo, due to political and structural resistance. It is TIACA's intent to make a modest shift in the current bilateral logjam, which might lead to a general application of open skies, based on a balance of benefits to both markets. This will encourage wider liberalization. Under the approach TIACA suggests, a generic agreement for cargo flights would grant the same rights and privileges, on a reciprocal basis, to all signatories to such an agreement.

TIACA said it realizes cabotage still might not be open for discussion in some countries and would therefore accept to exclude it where it may present a negotiation obstacle at this stage. 

Source: American Shipper