The document discusses regulations pertaining to air freight, including those from the International Civil Aviation Organization (ICAO) and Thailand. It outlines ICAO's role in establishing global aviation rules and standards, Thailand's issues in achieving full compliance, and resulting restrictions placed on Thai airlines. Bilateral air traffic rights that govern international flights are also examined.

1. Air Freight Course III:
Regulatory Aspects
Dr Narudh Cheramakara
MAY16

2. Aviation Regulations
• Mostly compliance-based
• ICAO and Thailands problem
• EU-banned lists

3. International Civil Aviation
Organisation (ICAO)
• A specialised agency of the United
Nations
• Overseeing civil aviation affairs of the
UN member states
• Headquartered in Montreal, Canada
• Asia-Pacific office in Bangkok
• 191 UN members

4. Chicago Convention on International
Civil Aviation
• 191 members
• Effective from 1947
• Global rules for civil
aviation (e.g. safety,
standards, airspace,
etc.)
• No legal status
• Each member state
may interpret
differently

5. Annexes
• The Convention is supported by nineteen annexes containing standards and
recommended practices (SARPs). The annexes are amended regularly by ICAO and
are as follows:
• Annex 1 – Personnel Licensing
• Licensing of flight crews, air traffic controllers & aircraft maintenance personnel.
Including Chapter 6 containing medical standards.
• Annex 2 – Rules of the Air
• Annex 3 – Meteorological Service for International Air Navigation
• Vol I – Core SARPsVol II – Appendices and Attachments
• Annex 4 – Aeronautical Charts
• Annex 5 – Units of Measurement to be used in Air and Ground Operations
• Annex 6 – Operation of Aircraft
• Part I – International Commercial Air Transport – Aeroplanes
• Part II – International General Aviation – AeroplanesPart III – International
Operations – Helicopters
• Annex 7 – Aircraft Nationality and Registration Marks
• Annex 8 – Airworthiness of Aircraft
• Annex 9 – Facilitation (E.g. Air cargo electronic data)

6. Annexes
• Annex 10 – Aeronautical Telecommunications
• Annex 11 – Air Traffic Services – Air Traffic Control Service, Flight
Information Service and Alerting Service
• Annex 12 – Search and Rescue
• Annex 13 – Aircraft Accident and Incident Investigation
• Annex 14 – Aerodromes
• Annex 15 – Aeronautical Information Services
• Annex 16 – Environmental Protection
• Vol I – Aircraft Noise
• Vol II – Aircraft Engine Emissions
• Annex 17 – Security: Safeguarding International Civil Aviation
Against Acts of Unlawful Interference
• Annex 18 – The Safe Transport of Dangerous Goods by Air
• Annex 19 – Safety Management (Since 14 November 2013)

7. สำนักงำนกำรบินพลเรือนแห่งประเทศไทย
The Civil Aviation Authority of Thailand
• Licensing authority for airlines in Thailand
• Issuing AOC (Air Operator Certificate)
• Overseeing safety and operational standard of
Thai operators
• Recently restructured as an independent
governmental units.
• Formerly Department of Civil Aviation under
the Ministry of Transport

8. ICAO and Thailand Issue
• ICAO occasionally conduct audits with its member
states for compliance
• USOAP: Universal Safety Oversight Audit Programme
• USOAP assess the level of implementation of standards
of each member states
• Thailand’s verdict: Significant Safety Concern (SSC)
• SSC – Mostly concerned the lack of qualification of
licensing officers
• The aviation industry has been growing too fast to cope
• It has been used for money laundering operations

9. SSC Repercussions
• Various countries used it as an excuse for
refusing traffic rights to Thai airlines (Japan,
Korea)
• US FAA downgrade Thailand to Category II (TG
had to suspend its LAX service)
• May end up in the EU banned list
• These are seriously undermining the
competitiveness and opportunities of Thai
operators.

10. Economic Regulations
• Registered Capital (Currently 200 MB)
• Financially fit to operate (Depending on each
state) – Air transport operators are prone to
liquidity issues
• Foreign Ownerships (51% must be Thai share
holders)

11. Traffic Rights:
• Air carriers must obtain traffic rights before
commencing on a route.
• This is generally negotiated on a bi-lateral
basis through the governments.
• The traffic rights may be governed by number
of flights/week or number of seats.
• Cargo traffic rights are generally less
protective that passenger traffic.

12. Freedoms of the Air
Freedom Description Example
1st The right to fly over a foreign country without
landing
THAI Bangkok-Hanoi flying
over Laos
2nd The right to refuel or carry out maintenance
in a foreign country without embarking or
disembarking passengers or cargo (Technical
Stop)
Travel Service (Czech
Airlines) stop in Abu
Dhabhi on Bangkok-Prague
serive (Refuel)
3rd Right to fly from one’s own country to
another
THAI Bangkok-Hanoi
4th Right to fly from another country to one’s
own
Thai Hanoi-Bangkok
5th Right to fly bewteen two foreign countries
ona flight originating in one’s own country
THAI Bangkok-Tokyo-Los
Angeles
6th Right to fly between two foreign country to
another while stopping in one’s own country
for non-technical reason
Birmingham-Asgabat-
Amedhabad by
Turkmenistan Airlines

13. Freedoms of the Air
Freedom Description Example
7th Right to fly between two foreign countries
while not offering flights to one’s own
country
Cityjet (Ireland) London-
Paris
8th The right to fly inside a foreign country
continuing to one’s own destination
No example exist
9th The right to fly inside a foreign country
without continuing to one’s own country
(Cabotage)
EU only
Aer Lingus (Ireland)
London-Edinburgh

14. Deregulation/Liberalisation
• In the past, the governments around the
world favoured ‘Protectionism’ approach.
Where the airlines are heavily subsidised,
owned and operated by the government and
traffic rights are heavily protected.
• Recent trend suggest a move towards
privatisation of airline industries and the
liberalisation in traffic rights

15. Intra-ASEAN: Half-baked liberalisation
1) First Agreement
- 3rd, 4th, 5th, Freedoms to ASEAN capitals
Except Philippines and Indonesia
Philippines allows access to other cities as Manila is full in terms of Capacity
Indonesian is heavily lobbied by its carrier to stay out of it: This undermines the
purpose of openskies policy
2) 2nd Agreement
3rd, 4th, 5th, freedoms to all ASEAN cities
Except Brunei, Laos, Cambodia, Indonesia
-There remains the restriction on foreign ownership
-No 7th freedom or cabotage (where as these provisions are available in the EU
liberalisation)
ASEAN Liberalisation