Recommendation ATRP/ 9 -3

1. that States which are moving toward the liberalization of international air services should consider using measures to ensure effective and sustained participation in international air transport; the following being an indicative list of potential measures:
    
1. capacity - sharing capacity in terms of equal opportunity, to include matching a greater capacity of a competing airline or airlines; progressively allowing the traditional 50/50 exercise of capacity shares up to, for example, 70/30, in stages; allowing mutually agreed incremental capacity increases; using load factor or other general market criteria to trigger automatic increases in capacity; applying a system whereby an airline offering greater capacity may only increase this capacity by the same amount as an airline offering lesser capacity; allowing all-cargo capacity to be operated on the basis of forecasts of demand; setting seasonal capacity according to market forecasts and reassessing the appropriateness of the capacity so established after the fact based on the experience of the air carriers; allowing airlines to shift capacity between passenger and cargo operations; providing for exceptions to agreed capacity limits for new aircraft introduction and for seasonal service; treating codesharing differently than own-aircraft flights for purposes of capacity;
    
2. tariffs - implementing flexible tariff systems to enhance fair and effective competition by allowing air carriers to respond to air transport markets; allowing tariff flexibility within pricing zones (recognizing that implementation is complicated); moving in stages from dual approval, to country of origin, to dual disapproval concepts; not regulating certain tariffs, such as cargo rates, non-scheduled (charter), premium and certain discount fares; allowing a fixed variation in fare levels;
    
3. market access - increasing the number of airlines designated; moving from single to multiple designation; granting of multilateral 3rd, 4th and 5th freedom traffic rights in a regional arrangement; using forms of market access such as codesharing, alliances, wet leasing of aircraft; providing a "head start" with respect to certain critical traffic points when market access restrictions are removed; having a protected start-up period for new entry; applying aircraft size restrictions only to regional services; allowing unilateral operation of airlines of foreign countries without any operation by national air carrier(s); removing restrictions on regional services; excluding cargo rights from all restrictions;
    
4. other - facilitating nonscheduled flights for inbound tourists (subject to the national regulations of the receiving State); permitting non-reciprocal, extra-bilateral service (including cabotage and 5th freedom) to underserved cities or on underserved routes; phasing in more flexible regulation in key commercial areas in a coordinated fashion; assessing the economic results of bilateral agreements on a quantitative basis in view of market circumstances to enhance cooperation such as alliances between and among airlines serving the territory; and waiving the usual bilateral ownership and control provisions; and
    
2. that ICAO should, drawing on the experience of States, keep the list of participation measures current and analyze, where possible, examples of their use by States.