By Ruwantissa Abeyratne
This publication embarks on a latest research of the interplay of economics and legislations when it comes to air delivery, delving into the key concerns that plague the undefined. It exhibits how the various thorny and problematic matters can be approached sensibly. one of the matters mentioned are the paradox of exponential progress of air shipping which makes airline profitability stay bad; the legislative impediments in so much international locations that avoid direct overseas funding within the undefined; the confounding and muddled mess in the back of the economics of plane engine emissions; and the inexplicable fact that, even though civil aviation is basically intended to satisfy the desires of the folks of the realm, nation regulators have upended the equation and given precedence to nationwide pursuits over the pursuits of the passenger. The e-book should be of curiosity to economists and attorneys alike who care for air delivery matters, and in addition to lecturers and scholars within the sector of transportation in addition to regulators and airlines.
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Additional info for Aeronomics and Law: Fixing Anomalies
In the discussions to follow, this chapter discusses FDI in air transport and examines the need for encouraging FDI in the industry. It also addresses the legal safeguards that would be available to foreign investors in the instance of such liberalization and concludes that the international community should take a serious look at this anomaly from a consumer-protection perspective. FDI in Air Transport One could well argue that the trouble with air transport has been that it has always been about State policy and interests of States and not about the rights of the consumer.
Thus, the concept of a “national” carrier continues to this day and when the “national” carrier has a dominant traffic share and holds, or is closely associated with, a country’s name, then an emotional card often comes into play. A second reason why flag carriers are effectively protected is that, apart from operations within Europe, the air transport regulatory process is driven by a network of bilateral agreements based on reciprocity of operations. This concept takes precedence in many countries over a more rational assessment of air services, one which goes beyond narrow sectoral interests of an air carrier and provides the optimum overall benefits from tourism, trade and investment for the economy, protection of consumer interests and enhancement of competition21 Caps on FDI serve to obviate the need for governments to invest, particularly when they have to protect ownership and control of nationals in designated airlines.
See UNCLOS, supra note 69, Article 99. 74 Supra, note 70 in this chapter. 75 United Nations Convention on Conditions for Registration of Ships Id, Preamble. 76 See the Geneva Convention, supra note 70 Article 5 (1). 77 This principle was formally adopted in 1975 by the International Law Commission (ILC) in its Articles of State Responsibility which affirms in Article 1 that there is a general rule of public international law, widely supported by practice that every intentionally wrongful act of a State entails responsibility.