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Report to the ALPA Board of Directors. Capt. Dennis J. Dolan First Vice President. Globalization. Once the favorite “buzz word” of the 90s, Globalization is a reality in the new decade !. What do these “terms” mean?. NOTAM – VORTAC – ILS – ACARS – PIREP. AEA APEC ECA OECD TCAA.
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Report to the ALPA Board of Directors Capt. Dennis J. Dolan First Vice President October 16, 2000
Globalization Once the favorite “buzz word” of the 90s, Globalization is a reality in the new decade ! October 16, 2000
What do these “terms” mean? • NOTAM – VORTAC – ILS – ACARS – PIREP AEA APEC ECA OECD TCAA October 16, 2000
Here’s What They Mean! • AEA (Association of European Airlines) • APEC (Asian Pacific Economic Cooperation) • ECA (European Cockpit Association) • OECD (Organization of Economic Cooperation & Development) • TCAA (Transatlantic Common Aviation Area) October 16, 2000
Cabotage Foreign Ownership Wet Leasing Flags of Convenience These Organizations/Proposals, in some way, support these principles October 16, 2000
Organizations Working To Assure Pilot Interests Are Protected ALPA ! October 16, 2000
The Evolution of Globalization 1988 • First foreign codeshare agreement approved (United/BA) 1992 • First Open Skies Agreement – US/Netherlands 1993 • First antitrust immunity granted – Northwest/KLM 1995 • World Trade Organization (WTO) established • 8 more Open Skies agreements signed (Austria, Denmark, Finland, Iceland, Luxembourg, Sweden, Switzerland) October 16, 2000
The Evolution of Globalization(cont.) 1996 • First large Open Skies agreement (Germany) • Antitrust immunity granted to American, Delta & United 1997 • First Asian Open Skies agreement (Singapore) • First Open Skies agreement in Central America (6 countries) • U.S. signs its 25th Open Skies Agreement 1999 • Association of European Airlines proposes Transatlantic Common Aviation Area (TCAA); European Commission endorses TCAA concept October 16, 2000
The Evolution of Globalization(cont.) 2000 • First round of multilateral negotiations at APEC (US–Brunei–Chile–New Zealand--Singapore) • OECD discusses multilateral cargo services agreement • US signs its 50th Open Skies agreement 2001 ??????????????? October 16, 2000
ALPA’s Response to Globalization • Partially through our interface with IFALPA • Actively through ALPA’s Government Affairs Dept. • Mainly through our International Issues specialist October 16, 2000
Where did ALPA’s Globalization Strategy Come From? • Global Pilot Strategy (GPS) developed in early ‘90s • Strategic Planning Committee reports through ’90s • Input through pilot Alliances/IFALPA contacts • Formation of Global Aviation Strategy Group October 16, 2000
Globalization Issue,Example 1 APEC (Asian Pacific Economic Cooperation) – 20 Pacific rim countries that meet to exchange ideas about economic development, including aviation issues. • Recently, 5 countries (US-Brunei-Chile-New Zealand-Singapore) have been negotiating a multilateral air services agreement which: • includes 7th freedom cargo operations • proposes 7th freedom passenger rights • proposes a change to ownership & control rules (designation rights), which would result in a “flag of convenience” agreement October 16, 2000
Globalization Issue,Example 2 OECD (Organization of Economic Cooperation & Development) – 30 developed countries, including most Western European Countries, U.S., and Canada • In June of 2000, OECD circulated a document proposing to “liberalize” cargo issues and draft a multilateral agreement for cargo services • Some of the proposals included provisions to: • drop ownership and control limitations • drop restrictions on wet-leasing • drop restrictions on cabotage October 16, 2000
Organizations Working To Assure Pilot Interests Are Protected ALPA ! The Pilots Union October 16, 2000