There are different types of traffic rights that are involved in the bilateral agreement between Australia and Vietnam through a memorandum of association signed on 11th February increasing the capacity available to Australian and Vietnamese airlines to operate between the two countries. The first traffic right includes the freedom which gives an airline the right to carry to carry traffic from the country where it is registered to another country (Allen 2001).

Thus from this freedom there arises a traffic right to carry traffic from nation A to another nation B. This third freedom which is simply the right to carry cargo from one’s own country to another country was the first commercial freedom of the Chicago convention (Havel 2009). This is obvious as the bilateral agreement will be giving the airlines from either Australia or Vietnam to carry traffic from their countries to the other country. This means an Australian company can carry passengers and cargo from its country to Vietnam and also a Vietnam company can carry passengers and cargo from its own country to Australia.

The second right that is involved in the bilateral agreement between Vietnam and Australia in the 14th February memorandum of association is the fourth freedom. Under the fourth freedom an airline has the right to carry traffic from another country to its country of origin where it is registered. This happens when the Australian company carrying passenger and cargo from Australia lands in Vietnam and on its return journey to Australia carries cargo from Vietnam. The Vietnam Company also landing in Australia has the right to carry passengers and cargo from Australia on its return journey to Vietnam its country of registry. The third agreement in the memorandum of association which allows airlines from both Australia and Vietnam to stop over Hong Kong to drop off and pick up passengers between Australia and Vietnam entails the fifth freedom. This freedom is also known as beyond rights. It allows an airline to carry traffic between foreign nations as part of the services that connect the airline to a third country. In simpler terms it entails the right to carry cargo and passengers from a company’s country of registry to a second country and then from that second country into a third country. In our case study an Australian company would have the right to stop over Hong Kong pick up and drop passenger and cargo and then head to Vietnam. On the return journey the Australian company airline has the right to fly from Vietnam, drop and pick passengers and cargo at Hong Kong and they fly back home to Australia its country of registry. The same case would apply to the Vietnam airline company under this fifth freedom.

These traffic rights have a general importance as a set of the commercial aviation which allows a particular country’s air companies the privilege of entering and landing in the airspace of another country. This stems from the fundamental concept of sovereignty of a country which gives it the rights legally and nationally to maintain its identity and national pride. As a consequence of the sovereignty concept and principle free flight of a foreign airline is subject to the permission of the state which that airline what to operate, hence the freedom of the air traffic rights (Wylie 2003). The freedoms of the air came up as a consequence of the disagreements regarding the extent of liberalization of aviation in the Chicago convention which is the convention of international civil aviation of the year 1944. These freedoms have economically promote freedom of the air to the airline of the different nations and removes the restrictions to the air travel to a foreign country which are imposed by the absolute air sovereignty. The fifth freedom which allows the Vietnam and Australian airlines to stop over at Hong Kong and pick passenger and cargo was specifically instrumental for the economic viability of the long –haul flights until the early 1980s when there was technological advancement. In our case study the increases in the volume of passengers allows more stop services as the passenger could be from the more countries. Hong Kong was important as a strategic to the location of Australia and Vietnam. Through the fifth freedom the flights from both countries can also make stop over at Hong Kong for technical problems of the aircraft as it can be sought by airlines which wish to take up undeserved and served routes or those airlines whose flight can already make technical stops at locations allowed by the second freedom (Hattie 2009) .

As the representative the Australian government in the negotiations I would look into the future of the demands of people. First and foremost I would consider the point of capacity expansion to be reviewed after every six months in consideration of the weather patterns whereby there are less people travelling during winter and more people travelling during the summer. For this reason I would consider that the flight capacity to Vietnam during summer be reviewed at least 16 services a week to and from the major gateway destinations which are Melbourne, Sydney, Brisbane and Perth. As for winter the fly services can remain to 14 services a week which is about 4200 seats from the major gateway destination. If the flights stops over at non gateway Australian airports such Adelaide Darwin or Cairns they should increased to ten fly services during summer but during the winter they can remain 8 fly services which translates to about 2100 seats. I would also consider a stop over in china to drop off and pick passenger between Australia, Hong Kong and china. This would be governed by the fifth freedom also referred to as beyond rights. This freedom it allows an airline to carry traffic between foreign nations as part of the services that connect the airline to a third country even to a fourth country. Thus it will allow flights from Australia to land in Hong Kong drop and pick passenger and cargo there and then move to china where it drops and picks passengers and cargo and then head to the destination point at Vietnam. The Australian airline after picking passenger and cargo from Vietnam would then go through the same route on its return journey. The same case would apply to the Vietnam. In simpler terms it entails the right to carry cargo and passengers from a company’s country of registry to a second country and then from that second country into a third country or a fourth in this order (Mondey 1998). China just like Hong Kong is a strategic point between Australia and Vietnam and would serve as stop over point.

The department of Australian carriers negotiates all capacity for the Australian carrier and is subject to allocation by an independent statutory authority which is the (IASC) or the international air services commission. This statutory body is charged with the duty of making determinations on allocation of the air route capacity that has been negotiated to the Australian airline carrier on the grounds of public benefit. Under the International Air services Commission Act of 1992, section 49 the department required to keep an up to date register regarding the capacity that is available. This register is made available for public inspection. This register contains information in relation to the capacity that is available in relation to the type of aircrafts permitted, particular routes available and whether the agreements with other countries allow single or multiple designations. The rights for the new routes and the provisions for multiple designations, as the department negotiates for capacity increases are up dated to reflect the changes.

In my job in the planning department of the Australian airline I am going route license from the government through an application for a license to the Australian department of international air services. In Australia any airlines foreign or Australian which are seeking to operate in the international scheduled services are required to make an application through the department of international air services for an international air license. This would be in pursuance of the subsection 12(1) of the 1920 air navigation act which provides that any international air shall not operate a scheduled air service which is international in Australian territory unless in with an international airline license. This license is issued by the Secretary as per the regulations of air navigation.

In pursuance of the air navigation regulations in sub regulation 15(2) which provides that an applicant for an international airline license should provide the information that the secretary requires for consideration of the application I would then give this information according to the powers bestowed on me by the company to act as such. Such information includes present corporate existence of the airline company. This includes the evidence of the company number, business name, a copy of any act of the company, the certificate of incorporation, the articles of association, the memorandum of association and other instruments from which the airline company obtains its functions and powers. Other information includes the place of business of the company. Before submitting the application I would ensure that it has been signed by the authorized persons of the airline company. I would also ensure that the general requirement for the application form has been followed. This includes a title on the application form which indicating it is an application for the international airline license by the company which I work for. I would also ensure that the general formatting of the license has been correctly followed. For the general formatting of the application form there should be consecutively numbered pages and paragraphs.

As required by the regulations I would forward the application to the department. The regulations require that the application be forwarded 60 days before the commencement of the intended proposed operation to the department of the international air services. I would then wait for 60 days after which period I expect for the department to be able to process the license. As per the regulation any applicant of the international airline license I would also ensure that I have a successfully obtained the clearances of the Civil Aviation Safety Authority.

The regulations require operators who wish to commence scheduled air services inside from Australia and to Australia to make applications for the air operator’s certificate to the civil aviation safety authority in respect of the carrier’s liability insurance (Singh 2003) . The department then arranges for the lodgment through the diplomatic relations with an appropriate partner who is designating the new airline. The bilateral partner is required to accept the designation with the delaying as little as possible based on Australia’s air services agreement. This is as far as the bilateral partner has satisfied that the new airline is qualified and fulfils the conditions which are prescribed under the laws and regulations applied by its aeronautical authorities. The bilateral partner also has to be satisfied that the airline has met the ownership and control provisions under the agreement. I would ensure that the company I work for has complied with ownership provisions and the control provisions before submitting the application for eligibility purposes. I would ensure the company’s compliance with the self assessment audit scheme as required of license holders so that the company can continue to conduct international air services in Australia. This is done by downloading, completion and lodging of the compliance declaration form with department of transport, infrastructure, local and regional development which is done after every six months.

I would also ensure to the company complies with the audit measures which are put in place by the department of the transport , infrastructure, local development and the regional development in order to ensure that the company maintains the international airline license and is thus able to continue conducting the scheduled international air services in Australia. I would see to it that 1947 air navigation regulations are followed and in specific regulation 24AA of the air navigation regulations of 1947 which provide that an airline company cant advertise an international air service either from or to Australia unless that airline company holds an international airline license or the advertisement is clear that the international air service are subject to regulatory approval. Lastly I would also ensure that the regulation which requires the airline company which wish to commence scheduled international air service to and from Australia make early contact with the border control agencies in Australia. This is to discuss their plans with the boarder control agencies. If this is not done in advance it might result to problems once the company acquires the international air license and wants to starts its operations (Singh 2003). Thus it’s important to negotiate with the border agencies as the company waits for the department to process the international air license.

References

HYPERLINK “http://www.google.co.ke/search?tbo=p&tbm=bks&q=+inauthor:%22John+Hattie%22&source=gbs_metadata_r&cad=7” Allen, R. (2001) Introduction to aviation management. United States. Wayne State University Press.

HYPERLINK “http://www.google.co.ke/search?tbo=p&tbm=bks&q=+inauthor:%22Brian+F.+Havel%22&source=gbs_metadata_r&cad=7” Havel, B (2009) Beyond Open Skies: A New Regime for International Aviation. United States. Kluwer Law International

Hattie, J.(2009) International air law. Michigan. Earlbaum Associates

Wylie, R. (2003) National interests and international air law. United States. Cenange learning.

Mondey. D (1998) The International Encyclopedia of Aviation. New York. Random House Value Publishing

Singh. P, Bureau of Transport Economics (2003) The legal framework of Australia’s international civil aviation policy. Australia. Bureau of Transport Economics

Raymond. S (2006) Fundamentals of Aviation Law. United States. McGraw-Hill Professional