'Open Skies' agreement a boost for cargo industry<\/p>\n
Ken Torok, Hong Kong<\/p>\n
Two of the most potentially far-reaching events in aviation
\nliberalization in recent years have occurred in the Asia Pacific
\nregion, and we hope soon to celebrate a third one.<\/p>\n
In 2001, the first-ever multilateral air services agreement
\nwas completed by the U.S. and its partners Brunei, Chile, New
\nZealand and Singapore. Samoa and Tonga have joined and Indonesia
\ntoo has agreed to be part of this agreement, considering a great
\neconomic value for both countries.<\/p>\n
On the other hand, the 2004 protocol to the US-China air
\nservices agreement signed recently in Beijing has brought a great
\nimpact on the economies of both countries and other Asian
\neconomies as well.<\/p>\n
This new agreement afforded nearly open rights for air cargo
\ncarriers who invest in hubs. It will affect not only the US air
\ncarriers like UPS who seek the new authority, but also economic
\ninterests far beyond the borders of the two signatories.<\/p>\n
Indeed, the new US-China Air Services Agreement will also
\nserve these important goals. We at UPS describe the previous
\n(1999) U.S.-China agreement as a \"home run.\" Not surprising from
\nour perspective, since that agreement allowed UPS to become only
\nthe fourth US airline with the rights to serve China. But in
\ncomparison, for nearly all U.S. and Chinese carriers, shippers
\nand businesses, the new 2004 Protocol is a \"grand slam.\"<\/p>\n
It is a far-sighted deal that will accelerate the flow of
\ngoods into and out of China, providing substantial benefits to
\nworkers, businesses and consumers in both countries.<\/p>\n
The APEC Transport Ministerial Meeting in Bali late last month
\nprovided ways and means of reducing impediments to trade and
\ninvestment, while enhancing security and safety, including
\nprogressively liberalizing transportation services. Through the
\nSecure Trade in APEC Region (STAR) initiative, APEC economies are
\nbuilding a transport and trade system in Asian region that
\nstrengthens security while facilitating the movement of people
\nand goods.<\/p>\n
In light of this, an amendment of the multilateral agreement
\non liberalization of international air transportation or MALIAT
\nhave been agreed upon by a few countries, including Indonesia
\nwhich will bring benefits beyond the aviation industry to other
\neconomic sectors.<\/p>\n
Recognizing the great advantage of open-skies policy, we must
\nfocus to sustain a safe, secure, efficient, integrated and
\nenvironmentally-sound transportation system for the region to
\ncomply with the ever-growing demand for air cargo services.<\/p>\n
Hence, the emphasis now is to creating a safe and secure
\nsupply chain management that must be fully supported by other
\ndevelopments in human resources, infrastructure, trading facility
\nand favorable investments.<\/p>\n
By this time next year, we hope to celebrate a major step
\ntowards removing the limits that impede efficient air cargo
\nservice -- the key infrastructure of the global marketplace.<\/p>\n
As businesses continue to streamline their supply chains, the
\nseamless and efficient movement of goods becomes ever more
\ncritical. The ability to establish true cargo hubs - with the
\nfreedom to conduct unlimited flights to, from and beyond the hub
\npoint, including seventh freedom rights - will allow UPS and
\nother express carriers to ensure the speed, reliability, and
\ncost-effectiveness that global business has come to demand.<\/p>\n
In light of this important new China agreement, and the market
\nopenings by others like Thailand, Vietnam, and Indonesia, the
\nquestion remains: What about the rest of Asia? Will the great
\nincrease in flight activity in China be at the expense of
\nexisting flight activity elsewhere? While some countries in the
\nregion have \"open skies\" agreements, other key markets maintain
\nrelatively restrictive regimes with the United States.<\/p>\n
UPS and any global airline want the market to dictate the
\nservice we offer our customers, rather than have outmoded
\nbilateral restrictions require us to operate at less than maximum
\nefficiency. When airlines plan routes, we can not wait for the
\nrequired air rights. And when we invest in a route, we must
\ncommit ourselves to that route. An economic opportunity today can
\nbe lost by the time market access rights become available in the
\nfuture, to the detriment not only of the carriers, but their
\ncustomers and the communities they do not serve.<\/p>\n
UPS believes the future of global trade resides in what we
\ncall synchronized commerce. Synchronized commerce is about
\nmanaging and coordinating the flows of goods, information and
\nfunds to better balance supply and demand cycles among trading
\npartners.<\/p>\n
It requires tighter connections and a high degree of trust
\namong partners. To achieve this, the governments must step back
\nfrom old-fashioned market access constraints that impede the
\noptimization of global supply chains.<\/p>\n
The author is President of UPS, Asia Pacific.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/open-skies-agreement-a-boost-for-cargo-industry-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }