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Africa Transportation Program: A major goal of the Department’s Africa program has been to assist Africa’s emergence into the global marketplace. Office of International Transportation and Trade manages the Department’s program and has been engaged in several activities to meet the goal.
APEC: The Transportation Working Group (TPT) of APEC (Asia Pacific Economic Cooperation) has a number of ongoing projects including road harmonization and aviation as well as maritime liberalization in which Office of International Transportation and Trade plays a leading role for the Department. The next meeting of APEC heads of State is scheduled for October 2003. The next meeting of transport ministers is Spring, 2004.
APEC Multilateral Open Skies Agreement: On May 1, 2001, the United States and Brunei, Chile, New Zealand and Singapore, four of the United States' partners in the 21-member Asia-Pacific Economic Cooperation (APEC) forum, signed a multilateral Open Skies aviation agreement. The Multilateral Agreement represents the first successful effort to expand the Open-Skies approach on a multinational basis. In addition to the typical Open Skies provisions, the multilateral APEC agreement substantially liberalizes the traditional airline ownership requirement, thus enhancing foreign carriers' access to outside investment. Peru became a party to the agreement on May 17, 2002. We will continue to urge additional APEC countries, especially those with which we have bilateral Open Skies agreements (Korea, Malaysia, Peru, and Taiwan), to accede to the multilateral agreement. For further information, contact the Office of International Aviation.
Bilateral Aviation Agreements: The Office of International Aviation, together with counterparts at the U.S. Department of State, represents the United States in negotiating rights for U.S. airlines to serve foreign markets. The agreements reached between the United States and each foreign country outline services and doing business practices that will govern operations by airlines of each country. Such agreements normally include provisions regarding the cities that can be served by carriers of each country, the number of flights that they can operate for both passenger and cargo scheduled services, as well as charter services, and various doing business rules that will govern the services of each country’s carriers. The United States has bilateral aviation agreements with 97 countries. It is the policy of the United States that fully open airline markets will provide the most competitive and price-sensitive service for consumers. As a result, it is the Department’s policy in international negotiations to seek agreements that do not limit the number of carriers that may serve, the capacity that they offer, or the prices that they charge. The United States has signed such “open-skies” agreements with 59 countries. The Office of International Aviation maintains a list of all aviation agreements between the United States and its foreign trading partners. (List of the Open-Skies agreement).
Canadian Air Taxi Operators: Most airlines from foreign countries that seek to serve the United States must obtain economic authority in the form of a foreign air carrier permit from the Department of Transportation. To obtain such authorization, the carrier must provide information about its officers and directors, ownership, finances, and compliance disposition. Canadian operators of small aircraft (fewer than 60 seats) that want to operate transborder services between the United States and Canada must register with the Department under Part 294 of the Department’s economic regulations, 14 CFR Part 294 and provide evidence of insurance coverage for their operations under Part 205 of the Department’s regulations, 14 CFR Part 205. The Department has simplified the economic licensing process for these carriers, similar to the process for U.S. air taxi operators, because of the limited scope of services by these carriers and the smaller size aircraft that they operate. However, Canadian charter air taxi operators (as do U.S. air taxi operators) must also obtain operating authority from the Federal Aviation Administration to comply with the U.S. Government’s safety regulations (14 CFR 129). To apply, Canadian Charter Air Taxi Operators must submit an application on OST Forms 4523 and 4505 with the Special Authorities Division of the Office of International Aviation. Those applications are listed in the Department’s Weekly List of Undocketed Applications. Interested parties have 28 days to file comments with the Department. The Department approves such registrations if the applicant complies with Part 294, has received its FAA Part 129 authorization and has demonstrated that it is properly owned and controlled by citizens of Canada. The Department generally acts on such applications within 60 days of the filing of the registration application. The Special Authorities Division in the Office of International Aviation maintains a list of all properly registered Canadian Charter Air Taxi Operators. For further information, contact the Office of International Aviation.
Code Shares (Authorization, Safety and Report): Code sharing is a marketing arrangement in which an airline places its designator code on a flight operated by another airline, and sells tickets for that flight. Airlines throughout the world continue to form code-share arrangements to strengthen or expand their market presence and competitive ability. U.S. and foreign air carriers that want to operate code-shared services, must first obtain authorization from the Department in the form of a Statement of Authorization under Part 212 of the Department’s economic regulations, 14 CFR Part 212. The Department approves the application if it determines that it is in the public interest. In assessing the public interest benefits, the Department considers whether the code-share operations are provided for in a bilateral agreement between the United States and the homeland government of the foreign air carrier(s) involved, the benefits to the public from expansion of services and fare options, and the the impact the code share would have on airline competition. Before any code-shared operations can be implemented, the U.S. carrier must conduct a safety audit of its foreign carrier code-share partner to ensure that the operations meet acceptable international standards and submit the results of that audit for review by the Federal Aviation Administration. The U.S. Air Carrier Licensing Division in the Office of International Aviation maintains a list of all code shares involving U.S. and foreign air carriers.
Competitive Impact of International Code Sharing and Alliances: U.S. carrier relationships with foreign airlines play a major role in the U.S. aviation industry's participation and competitive position in the "global" marketplace. A study by the Office of Aviation Analysis served as the economic basis for development of the Department's international aviation policy to encourage international alliances and spread deregulation's benefits to world markets. As a result, there has been considerable growth in U.S. carrier code-sharing arrangements with foreign airlines as well as growth in the more comprehensive U.S. carrier alliances (cooperative service and marketing agreements) with foreign airlines. The alliance agreements, which nearly always include a code-sharing component, are frequently accompanied by requests for relief from the antitrust laws, which otherwise might prevent the carriers from cooperating on certain aspects of their joint services, such as fares and capacity, as though they were a single airline. Major code-sharing and alliance arrangements require careful examination in terms of their impact on competition in both domestic and international markets. The Office of International Aviation processes U.S./foreign carrier code-share applications and maintains a list of code-share arrangements between U.S. and foreign carriers. The Office of Aviation Analysis is responsible for processing applications for anti-trust immunity and maintains a list of all immunized alliances. Two major studies by the Office of Aviation Analysis have been instrumental in developing the Department's ongoing policies regarding international alliances: Global Deregulation Takes Off (1999) and Transatlantic Deregulation-The Alliance Network Effect (2000).
Complaints by U.S. carriers against foreign governments and/or foreign airlines: 49 U.S.C. 41310 provides that the Department may take action in response to anti-competitive, discriminatory, predatory or unjustifiable activities by a foreign government or foreign carrier against a U.S. carrier. The Department may take such action upon a complaint by a U.S. carrier or on its own initiative. The Department has up to 180 days from the date that the complaint is filed to take action to resolve the issues raised, dismiss the complaint, or resolve it through diplomatic channels without taking any retaliatory action. There are, however, specific criteria that the Department must meet to take the full period available under the statute for acting on the complaint. Specifically, within 60 days, the Department must approve, deny, or dismiss the complaint. It can extend the action deadline for 30 days if it determines that the issues raised in the complaint can be resolved through discussions with the foreign country involved. It can continue to extend the action deadline for up to 90 additional days if it determines that negotiations with the foreign country have progressed to the point that a resolution is imminent. Procedurally, upon the filing of a complaint, the Department issues an order soliciting comments from interested parties. After receipt of those comments, the Department either extends the action deadline, or acts on the complaint. If the Department acts on the complaint, it may propose a sanction to redress the actions against the U.S. carrier(s), or defer action on what sanction would be appropriate while it continues its intergovernmental discussions with the foreign government. If the Department proposes a sanction, then all parties are afforded an opportunity to comment before the Department takes final action. Generally speaking, the intergovernmental process has been very successful in resolving complaints filed by U.S. carriers. Action on all complaints is coordinated with the Department of State, the Department of Commerce, and the U.S. Trade Representative. These complaints are processed by the U.S. Air Carrier Licensing Division in the Office of International Aviation.
A U.S. carrier may seek redress for anti competitive practices, or the Department on its own initiative may seek such redress under Part 213 of the Department’s regulations, 14 CFR Part 213, rather than under 49 U.S.C. 41310 or it may seek use of Part 213 in conjunction with such a complaint. Under Part 213, the Department may require a foreign air carrier to seek approval of its schedules for all or a portion of its services involving the United States if it finds that such action is in the public interest and that the government of the foreign air carrier has, over the objections of the United States, (1) taken an action that impairs, limits, or denies operating rights to a U.S. carrier; or (2) otherwise denied a U.S. carrier a fair and equal opportunity to compete. This is often referred to as Phase 1 of the Part 213 process. The foreign air carrier may continue to operate the filed schedules unless and until the Department issues an order notifying the carrier that all or a portion of the schedules are contrary to the public interest or applicable law. This is often referred to as Phase 2 of the 213 process. A Department order limiting the operations of a foreign carrier under Part 213 is subject to Presidential approval before it becomes effective. The requirement to file schedules is an indication that the Department is concerned about actions that have or would be taken against a U.S. carrier by the foreign carrier’s government. An order that would require discontinuation of services or that would prevent implementation of proposed services is a retaliatory action taken only after objections by the United States has objected to the foreign carrier's homeland government and initial intergovernmental consultations have not resolved the issues involved. In most cases the Department has not had to progress to Phase 2 of the Part 213 process.
European Commission (EC): The U.S. has been exploring potential forums for expanding aviation opportunities beyond those available through the traditional system of bilateral agreements. Although EU Commission does not have full negotiating authority from the member states, we are continuing to hold informal, staff-level exploratory discussions with their transportation officials in anticipation of eventual Commission "competence" in international air transportation.
Foreign Air Carrier Intermodal Authority: Any foreign air carrier that wants to provide or control the surface portion of international cargo services beyond a 35-mile zone of the airport or city limits must have additional authority from the Department of Transportation under Part 222 (14 CFR Part 222) of the Department’s economic regulations. Once authorized, the foreign air carrier can either truck the cargo itself, provided that it has whatever regulating authority it needs from U.S. trucking authorities, or it can contract for the service from a properly authorized surface provider. The intermodal authority enables the airline to advertise through service to other U.S. cities as if it were flying there. The foreign air carrier does not need any additional authorization to provide pickup and delivery services within the 35-mile zone of the airport/city limits. If there is an intergovernmental agreement providing for the intermodal services, the authorization is generally routine, although a filing with the Department is still necessary. If there is no intergovernmental agreement, then a foreign carrier seeking to provide intermodal services must seek an exemption from Part 222 under 49 U.S.C. 40109. The Licensing Divisions in the Office of International Aviation have a complete list of those foreign air carriers that have been awarded intermodal authority. For further information contact the Office of International Aviation.
Foreign Air Freight Forwarders: Any person not a citizen of the United States that undertakes the indirect (not operating aircraft) transportation of property either within the United States or outbound from the United States must first register with the U.S. Department of Transportation. Part 297 of the Department’s economic regulations sets forth the registration requirements and the operating rules for these services. Foreign air freight forwarders do not operate aircraft, but legally serve as the principal (rather than an agent) with respect to the responsibility for arranging the transportation of property from the point of receipt to the point of destination and use for the whole or any part of the journey, the services of direct air carriers (airlines). Applicant foreign freight forwarders must apply by filing OST Form 4506 with the Office of International Aviation. These applications are published in a weekly list of undocketed applications filed. Comments with respect to any application must be filed with the Department (Special Authorities Division, Office of International Aviation) within 28 days of the date the application is filed. The Department will approve a registration if it determines that the foreign air freight forwarder is owned and controlled by citizens of the foreign country involved, that the foreign government provides reciprocity to U.S. citizen air freight forwarders for similar services, and the application otherwise complies with the regulations. The Department may reject an application if it fails to comply with the regulations, the government of the foreign freight forwarder does not provide reciprocal authorizations for U.S. freight forwarders, or such rejection is otherwise in the public interest. The Department may also impose conditions on the operations conducted by the foreign air freight forwarder. The Special Authorities Division maintains a list of all properly registered foreign air freight forwarders.
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Foreign
Carrier Licensing: Any
airline of a foreign country that wants to provide service to/from
the United States must obtain two authorizations from the Department
of Transportation—“economic” authority from the
Office of the Secretary of Transportation and “safety”
authority from the Federal
Aviation Administration.
49
USC 41301. The economic authority may be in the form of a foreign
air carrier permit or an exemption.
49
USC 41302 and
40109.
Permit authority is longer in duration. Authority by exemption may
be awarded for a maximum of two years at any one time. To receive
authority from the Department, the foreign air carrier must file an
application that provides information about the ownership and the
management personnel of the airline, its financial condition, its
operating plan, and the ability of the company and its personnel to
comply with laws and regulations. In addition the airline must provide
evidence of its operating authority from its homeland government and,
in most cases, designation by its government to operate the proposed
services. The Foreign Air Carrier Licensing Division in the
Office
of International Aviation processes these applications and maintains
a list of licensed foreign air carriers. Foreign carriers must also
comply with the Accident Plan and
Passenger
Manifest requirements of the Statute. Due to the scope and size
aircraft operated by charter air taxi operators of Canada, the Department
has provided simplified licensing requirements for those carriers.
14
CFR Part 294. (Also see Canadian Air Taxi).
Some foreign companies want to operate aircraft to the United States on just an occasional basis and do not offer their services to the general public. Such companies are permitted to operate to/from and in some cases within the United States on a limited basis. 14 CFR Part 375 of the Department’s Economic Regulations sets forth the regulatory requirements for these services. The Foreign Air Carrier Licensing Division in the Office of International Aviation processes these applications and maintains records about these operations.
Foreign Dignitary Visitors: The Department hosts dignitaries from around the world. Office of International Transportation and Trade provides substantive and logistical support for Secretarial meetings with heads of state, ministers, ambassadors and others.
Foreign Travel: It is periodically necessary for the Secretary, Deputy Secretary, and Under Secretary for Policy to travel abroad. Office of International Transportation and Trade provides the logistical and substantive support for these international trips/missions.
FTAA: The Department is involved in the Free Trade Agreement of the Americas (FTAA) negotiations and Office of International Transportation and Trade plays an active role in the interagency process for developing USG proposals and negotiating positions.
FTA Negotiations: Office of International Transportation and Trade works with the U.S. transportation community and through the interagency process led by the U.S. Trade Representative to assure that U.S. transportation interests and policy positions are fully represented in on-going Free Trade Agreement talks with: 1) Australia, 2) Central America, 3) Morocco, and 4) Southern Africa Customs Union. Chile and Singapore FTA texts are undergoing final steps toward Presidential signature.
GATS: Office of International Transportation and Trade works with the U.S. transportation community and through the interagency process led by the U.S. Trade Representative to assure that U.S. transportation interests and policy positions are fully represented in on-going General Agreement on Trade in Services (GATS) negotiations.
ICAO Facilitation Committee: Office of International Transportation and Trade provides the leadership for an interagency working group that considers changes to international standards and recommended practices governing the facilitation of aircraft, passengers and cargo through the International Civil Aviation Organization.
ICAO's Proposed Noise Certification Standard: Many countries have separate regulations or rules regarding the type of aircraft that are operated in their countries due to environmental concerns for noise. International Civil Aviation Organization (ICAO) also issues standards for noise levels on a world-wide basis. Individual countries, however, are free to impose stricter standards. In 2001 the ICAO Council adopted a new Chapter 4 noise certification standard for commercial jet aircraft at 10 decibels below the existing Stage 3 standard and the ICAO Assembly adopted a resolution setting forth a comprehensive "balanced approach" to noise management at international airports. Together with the Federal Aviation Administration and the Departments of Commerce and State, DOT's Office of International Aviation worked to resolve implementation issues with European governments and the European Union. As a result, the EU rescinded its "hushkit" regulation, which imposed severe restrictions on aircraft modified with hushkits or new engines to meet the Chapter 3 noise standards.
Immunized International Alliances: (See Competitive Impact of International Code Sharing and Alliances)
Improving air links between the United States and Africa: In 1997, the Department launched the African Aviation Initiative to stimulate the dormant aviation relations between the U.S. and Africa. Concurrently with the economic initiative, but on a separate track, the Safe Skies for Africa Initiative was developed to assist African countries in improving air safety, security and air navigation. In November 1999, Tanzania initialed the first Open-Skies agreement between the U.S. and an African country, followed quickly in 2000 by Namibia, Burkina Faso, Ghana, The Gambia, Nigeria, Morocco, Rwanda, Benin, and Senegal. Cape Verde and Uganda signed on in 2002. Talks continue to be held with other countries that express interest in Open Skies. For further information, contact the Office of International Affairs.
Multilateral Aviation Agreements: Historically, the United States has negotiated air service rights for U.S. airlines on a bilateral basis. Given the global nature of the airline industry now and of the services provided, the United States is progressing beyond this approach and negotiating aviation agreements that encompass services involving more than one foreign trading partner. The first such agreement was with four of the countries in the Asia-Pacific Economic cooperation (APEC) forum. This multilateral aviation agreement represents the first successful effort to expand the Open-Skies provisions in a broader context. The European Union, comprising several European countries, has received a mandate to negotiate an aviation agreement with the United States. The Department, together with counterparts at the State Department, expects to begin such negotiations with the European Union in the near future.
NAFTA: Office of International Transportation and Trade chaired the NAFTA land transportation negotiations and leads the Department’s efforts to implement the Agreement’s land transportation provisions.
Nigeria Transportation Project: Office of International Transportation and Trade provides overall coordination for this turn-key project that encompasses improvements in aviation safety and security, assistance in privatizing port services, port training, and technical assistance to develop a multi-modal oversight system.
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Open
Skies Agreement: See
Bilateral
Agreements
Reports, Statistics, Studies, and Other Publications: The Office of Aviation and International Affairs publishes many reports, studies, and other publications that are directly related to domestic and international issues of interest or concern to the Department.
Passenger Manifests: The Department requires that U.S. and foreign airlines operating aircraft with more than 60 seats collect information on the name of each U.S. citizen on the aircraft and to request the name and phone number of a contact for that passenger for all flights that have either an origin or destination in the United States. 14 CFR Part 243. The purpose of this information is to ensure that the U.S. government has prompt and adequate information about the passengers on the aircraft in case of an aviation disaster. In the case of an aviation disaster, the carrier involved would be required to provide the information to the Department of State and, in certain instances, to the National Transportation Safety Board. These requirements apply not only to passenger carriers but also to all-cargo carriers, since they could transport cargo handlers and other persons on their aircraft. The Foreign Air Carrier Licensing Division in the Office of International Aviation maintains information regarding the passenger manifest requirements for foreign air carriers. The Department’s Office of Aviation Enforcement and Proceedings maintains this information with respect to U.S. carriers.
Safe Skies for Africa: See Africa Transportation Programs
Saint Lawrence Seaway Development Cooperation: Significantly different toll policies for shipping using this shared waterway is an on-going source of concern. Office of International Transportation and Trade, in cooperation with the SLSDC, monitors shipping on the Seaway and the effect of Canadian toll policies on U.S. Great Lakes interests, plus reform options and proposals.
Science and Technology (S&T) Cooperation Initiatives: The Assistant Secretary for Aviation and International Affairs serves as the lead representative for the United States to promote the interaction of government, academia, and industry in transportation S&T cooperation initiatives globally. Office of International Transportation and Trade provides staff leadership to this effort.
Teaming With Other USG Agencies: DOT, thru Office of International Transportation and Trade, participates with other Federal agencies at seminars and workshops sponsored to familiarize foreign officials with U.S. companies interested in pursuing international projects as well as affirm USG support for U.S. industries. The networking opportunities afforded by these seminars and workshops serve to familiarize U.S. companies with DOT efforts on their behalf and alert DOT officials to the many transport-related interests and goals of U.S. industry.
Trade Advocacy: Through direct government-to-government contacts, and in coordination with U.S. business and the Commerce Department’s Advocacy Center, Office of International Transportation and Trade spearheads the Department’s efforts to level the playing field for the broad spectrum of U.S. businesses seeking to export their transport related goods and services in a very competitive international market.
Trade Policy: Office of International Transportation and Trade works closely with and within the interagency trade policy mechanism that has been established by the U.S. Trade Representative to develop and coordinate transportation interests on trade and trade-related investment issues within the U.S. Government.
Trade Promotion Coordinating Committee (TPCC): The TPCC was established to coordinate Governmental efforts to increase U.S. exports. Office of International Transportation and Trade provides staff support to the working groups of the TPCC and actively participates in the drafting of the annual National Export Strategy, the TPCC’s report to Congress.
Use of Advanced Technologies at the Borders: Office of International Transportation and Trade has been participating as part of a multi–office, interagency effort to apply advanced technologies to the border for clearance and safety assurance. This effort, if successful, holds the promise for greatly expediting traffic flows by providing advanced information of vehicle, driver and cargo-related problems prior to arrival of the vehicle at the port of entry.
U.S. Air Carrier Charter Allocations: Some of the bilateral aviation agreements between the United States and foreign countries limit the number of passenger, combination, and/or all-cargo charters that U.S. carrier may operate. It has been the Department’s policy to distribute the available charters to interested U.S. airlines on a “first-come,” “first-served” basis unless and until it is demonstrated that there is greater demand than supply of charters. Under a “first-come,” “first-served” allocation, interested carriers apply by letter to the Department and the Department allocates the charters to the carrier by issuing a “Notice of Consistency” which describes the charters involved and the time-frame during which they would be performed, and notes that the award is “consistent” with the aviation agreement between the countries. That notice is transmitted to the carrier and the appropriate government officials in the foreign country. If carriers are interested in operating more charters than are available, then the Department must use comparative selection procedures to determine how the charters should be allocated among the interested carriers. Contact the U.S. Air Carrier Licensing Division in the Office of International Aviation for further information.
U.S. Air Carrier Frequency Allocations: Many of our aviation agreements restrict the level of scheduled services that U.S. carriers may provide between the United States and the foreign country involved or between the foreign country and third countries (fifth-freedom rights). The frequency restrictions may be on direct services; code-share services (same country (involving carriers of the same country), bilateral (involving a carrier from the U.S. and a carrier from the foreign country involved), or third-country (involving a U.S. carrier and a carrier from a third country); and/or overflights. Carriers apply for such allocations under 14 C.F.R. Part 302, Subpart C. If more U.S. carriers seek frequencies than are available, then the Department must allocate the frequencies among the U.S. carriers using comparative selection procedures. Under such procedures each applicant is afforded the opportunity to present written evidence as to why it should be allocated the frequencies it seeks and to file comments on the other carrier applications before the Department makes its selection(s). Where the frequencies are allocated using the comparative selection procedures described above, the Department first issues a tentative decision on the allocation, to which interested parties may comment, and after review of those comments, issues a final decision. Contact the U.S. Air Carrier Licensing Division within the Office of International Aviation for further information.
U.S. Carrier International Route Authority Licensing (Carrier) (Country): This report summarizes the route authority granted to U.S. air carriers in numerous certificates and exemptions issued by the Department by city-pair markets. While the information is substantially correct, this is a resource for internal use and an inadvertent error may occur. Moreover, certificate or exemption conditions may sometimes restrict the authority and these conditions are not reflected in the report. Thus, the order numbers or the notices of action taken are provided for reference. The U.S. Air Carrier Licensing Division of the Office of International Aviation maintains and updates the publication lists, which is available on the Department's web page. For information on obtaining U.S. air carrier economic authority, see "U.S. Air Carrier Economic Authority".
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U.S.
International Air Passenger and Freight Statistics: The
U.S. International Air Passenger and Freight
Statistics report has been developed to provide the public with
additional access to international aviation data relating to service
and traffic levels in specific international markets. The report is
restricted to nonstop commercial traffic traveling between international
points and U.S. airports.
U.S./Mexico Cross-Border Issues: Office of International Transportation and Trade both leads and participates in a number of forums that seek to address cross-border facilitation issues including taxation, licensing, bridge placement, border planning, and commercial disputes.
U.S./Mexico/Canada Safety Standards Compatibility: The Director of Office of International Transportation and Trade is the U.S. co-chair of the Land Transportation Standards Subcommittee (LTSS) established under the NAFTA to seek greater compatibility of safety standards among the three countries in a number of operational areas. This work has led to some important safety improvements. Monitoring modal-led activities in this area is an ongoing effort.
WHTI: The Secretary is a recognized leader in the Western Hemisphere Transportation Initiative (WHTI), a product of the Summit of the Americas process. Office of International Transportation and Trade co-chairs the WHTI Executive Committee, which will meet in May to conclude preparations for the upcoming Ministerial. The Deputy Secretary attended the Ministerial meeting hosted by Mexico on May 8-9, 2003.
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