CREATING a liberalised air cargo industry will create "new economy highways in the sky" and provide countries with quick and efficient global supply chains and market accessibility, according to The International Air Cargo Association (TIACA).

    Speaking at Asia-Pacific Economic Cooperation (APEC) USA 2011 conference in San Francisco, TIACA secretary general Daniel Fernandez said: "Under a fully liberalised aviation environment, numerous new international highways in the sky are possible which would markedly improve the speed and accessibility of a nation's businesses to their global suppliers and customers.

    "Unfortunately, the transportation of air cargo is still regulated by rules established over 60 years ago in the 1944 Chicago Convention when almost all airlines were national flag carriers and the air cargo industry was still in its infancy. Change is overdue," said Mr Fernandez.

    "Airlines are competing in the 21st century but the bilateral system is still stuck in the past. It does not offer airlines the freedom to sell their products where there is demand and to merge operations where it makes financial sense. Bilateral agreements, as important as they are, ignore the needs of the emerging fast and flexible supply chain practices," he said

    The flow of air freight is geographically unbalanced, said the TIACA chief. "Increased governmental liberalisation would allow the more efficient use of air carrier resources."

    Where air traffic rights have been liberalised, it has resulted in more capacity in the market, lower rates, and increased commercial opportunities and economic development, giving examples of the US domestic market, the EU's Common Aviation Market and Dubai.

    Mr Fernandez proposed the establishment of a multilateral group of countries that would permit full cargo freedom.

(source:http://www.shippingonline.cn/news/newsList.asp?page=1&classname=News)