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25/01/2002 - The outlook for air cargo traffic appears to be improving after a weakening that began in autumn 2000 and was exacerbated by the events of 11 September, according to industry participants at the OECD Workshop on the Liberalisation of Air Cargo Transport . Participants also discussed prospects for the liberalisation of the air cargo sector and a number of proposals are to be the subject of further review by governments.
Since late 2001, according to most recent data, the trend in air cargo traffic in some regions has been positive and more growth is expected from now on. While the circumstances of individual carriers differ, most expect air cargo demand to increase slowly in the first half of 2002 (plus 1%) and accelerate in the second half (plus 3%). Stronger growth of up to 9% is expected in 2003, on the basis of projected increases in levels of economic activity around the world.
The workshop, which was attended by representatives from OECD countries, the air cargo industry and international organisations, in their personal capacity, also reviewed regulatory conditions in the air cargo sector, which is currently subject to controls similar to those covering air passenger services. Many of these create barriers to efficient air cargo services and are perceived by users as inappropriate to their needs. According to OECD studies, greater operational flexibility would allow air carriers to provide better services and respond quickly to shifts in market demand.
Participants in the workshop considered that relaxation of existing restrictions on international traffic rights would allow better market access and improve the industry's ability to meet user requirements. Removal of government controls over "ownership and control" of air carriers would allow the development of industry structures and services better suited to global and regional air cargo tasks. However, there was general agreement that liberalisation measures should only be undertaken if essential public interest regulatory controls over aviation safety and aviation security can be assured. Attention also needs to be given to environmental considerations and infrastructure constraints.
At the Workshop, participants considered two instruments prepared by the OECD Secretariat which could be useful in liberalising air cargo services :
- A Bilateral Protocol which focuses on the liberalisation of traffic rights for air cargo services, ancillary services and other specific air cargo transportation issues that can be dealt with separately under existing bilateral air service agreements.
- A possible Multilateral Agreement to facilitate early liberalisation of air cargo services without compromising essential safety and security aspects of civil aviation. Such an agreement could provide a means for liberalisation of existing market restrictions on a multilateral basis.
Following on from this meeting, OECD governments will be able to consider whether to draw on these approaches in order to progress towards air cargo market liberalisation, or alternatively whether to use selected provisions aimed at liberalising air cargo services.
For further information, journalists are invited to contact Wolfgang Hübner, OECD's Transport Division
(tel. [33] 1 45 24 91 32) or Nicholas Bray, OECD's Media Relations Division, (tel. [33] 1 45 24 80 90).
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