Open Skies - Key Open Skies Provisions

Key Open Skies Provisions

Most of the existing civil agreements include:

1. Free market competition:

   No restrictions on international route rights; number of designated airlines; capacity; frequencies; and types of aircraft.

2. Pricing determined by market forces:

   A fare can be disallowed only if both governments concur — "double-disapproval pricing" — and only for certain, specified reasons intended to ensure competition.

3. Fair and equal opportunity to compete:

   For example:

   • All carriers—designated and non-designated—of both countries may establish sales offices in the other country, and convert earnings and remit them in hard currency promptly and without restrictions. Designated carriers are free to provide their own ground-handling services—i.e., "self-handling"—or choose among competing providers. Airlines and cargo consolidators may arrange ground transport of air cargo and are guaranteed access to customs services.
   • User charges are non-discriminatory and based on costs; computer reservation system displays are transparent and non-discriminatory.

4. Cooperative marketing arrangements

   Designated airlines may enter into code-sharing or leasing arrangements with airlines of either country, or with those of third countries, subject to usual regulations. An optional provision authorizes code-sharing between airlines and surface transportation companies.

5. Provisions for dispute settlement and consultation

   Model text includes procedures for resolving differences that arise under the agreement.

6. Liberal charter arrangements

   Carriers may choose to operate under the charter regulations of either country.

7. Safety and security

   Each government agrees to observe high standards of aviation safety and security, and to render assistance to the other in certain circumstances.

8. Optional seventh freedom all-cargo rights

   Provide authority for an airline of one country to operate all-cargo services between the other country and a third country, via flights that are not linked to its homeland.