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Aviation History
1946
1946 - 0365.PDF
FEBRUARY ?IST, 1946 FLIGHT 193 Bermuda Agreemeot International Control of Airline Rates : Basis for Acceptance of "Fifth Freedom" Principles THE Bermuda talks have ended satisfactorily. OnFebruary 11, the British and United States dele-gates signed three documents which they regard as the foundation of International Civil Aviation. The first document deals with fares, frequency of services, scheduled routes and traffic rights generally. The second document forms a basis for agreement to the civil use of military air bases leased by Britain to America. The third, and final act of the Conference outlines machinery for close collaboration, and for the settlement of disputes between the two Governments. It indicates that the principles agreed upon aim deliberately at encour- aging the use of air transport, and stimulating air travel at economic rates. At the same time, these principles allow fair and equal opportunity for the various airlines of the two nations to operate between the U.K. and the U.S.A., and also to provide air transport facilities equal to the public demand. It also contains a basis of agreement on "fifth freedom" traffic. This was one of the bones of contention at the Chicago Conference in 1944, and it is clear that there has been a modification of the British atti- tude to this controversial question, for the right to pick up and set down passengers anywhere on international routes has now been recognised with certain provisos. This "fair and equal-opportunity " does not imply that the two countries have agreed upon a definite allocation of sendee frequencies. Rather, it gives each-nation the right to offer whatever services it believes to be justified under the principles already agreed. Special consideration will be given to safeguarding the rightful interests of both countries, and to bridging any period during which diffi- culties resulting from the war might react to the prejudice of either country. Fares and Fifth Freedom Traffic The terms of the agreement are broadly as follows: In order to ensure economic operation, and to prevent "rate wars" resulting from unfair and uneconomic rates, the two countries have agreed on the regulation of fares. All rates charged by airlines operating between the two countries will be subject to review by the aeronautical authorities of both Governments, Proposals for new rates are to be notified to both Governments 30 days before their effective dates, and, if jointly agreed, the new rates can be adopted. If at the end of the 30-day period the two Governments cannot agree on the rates proposed, they may, nevertheless, be put into force at the discretion of the Government concerned pending a final settlement. If a final settlement cannot be reached, the matter will be referred to the P.I.C.A.O. for a report by its advisory com- mittee. The United States is to recognise, for a period of one year, the status of the International Air Transport Association as a rate-fixing body, acting through the " JA.T.A.'s various route conferences. An undertaking has also been given that legislation will be sought from Congress to empower the Civil Aeronautics Board to control rates for U.S. airlines on international routes. Each country will have complete freedom to determine the frequency of operation of its own airlines. The right to pick up and set down passengers anywhere on international routes in accordance with defined prin "iples has been recognised. It is subject, however, to adjustment as necessary in particular cases in the light oi experience. The privilege continues so long as this form °f traffic does not defeat the primary objective of agreed international air services, which is to provide adequate air transport for the traffic between the home country and rt« country of destination. In order to regulate " fifth freedom'' traffic, the general principles have been adopted that capacity should be directly related to: (a) Traffic requirements between country of origin andcountry of destination (b) Requirements of through-airline operation.(c) Traffic requirements of the area through which the air- lines pass after taking into account local and regionalservices. Common Air Routes An initial schedule of world-wide air routes of mutual interest to the U.K. and U.S.A. has been agreed. This does not, however, touch Dominion or Indian territory. The proposed air routes include some already in operation. Changes of route by one nation in the other's territory will be made only after consultation and agreement between the two aeronautical authorities concerned. Route changes in "third" countries may be made any time, provided that prompt notice is given. The conference has recog- nised that, from key points on the routes, it may be more economical to handle onward carriage of traffic in smaller aircraft than those used on the route itself. Such " feeder " services will operate only in relation to the larger aircraft arriving at the junction point so as to provide a connecting service, and the smaller aircraft will, there fore, normally await the arrival of the trunk route aircraft, Air bases leased by the United Kingdom to the U.S.A. for military purposes under the Bases Agreement of 194 r will be opened for civil use whenever such use contributes to the overall development of civil aviation on sound economic lines. This means, in effect, that the leased bases in Bermuda, Antigua, St. Lucia and British Guiana will be available for civil use, and that other bases will become available as bad-weather alternatives to existing airports America's approval to this is subject to the working-out of a satisfactory agreement covering similar arrangements for airfields in Labrador and Newfoundland. Complicated legal problems still have to be sorted out, but these will form the .subject of further discussions. Traffic Rights The terms of the agreement safeguard the position oi the traffic rights of the two countries on these bases. The United States will maintain the airfields for military pur- poses and she will have "most favoured nation" treat- ment in regard to the traffic rights. No other civil air- line, including U.K. airlines, will be granted traffic rights greater than, or different from, those granted to America, except for certain instances of U.K. traffic between two points under U.K. jurisdiction. Other provisions of the agreement cover the right ot either Government to suspend, for military reasons, com- mercial operations at a base airfield, and the right of the U.S. military authorities to ensure that no steps are taken in connection with commercial air operations which would prejudice the military use of the bases. Further, if the U.S. wish at any time to relinquish responsibility for main- taining base airfields, the British or the Colonial Govern- ments concerned would have the right to take over that responsibility. There is provision for regular and frequent consultation between the two Governments to ensure close collaboration on all the principles agreed, and to provide a solution to tiew problems. Any dispute between the two nations relating to interpretation of the agreement, which cannot be settled by consultation, is to be referred to the P.I.C.A.O., or its successor, for an advisory report. It is emphasised that such a report would indeed be advisory and not mandatory.
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