ICAO Air Services Negotiations (ICAN) 2017 Setting the Scene Mr - PowerPoint PPT Presentation

ICAO Air Services Negotiations (ICAN) 2017 Setting the Scene Mr Boubacar Djibo Director Air Transport Bureau ICAO

Chicago Convention Preamble THEREFORE, the undersigned governments having agreed on certain principles and arrangements in order that international civil aviation may be developed in a safe and orderly manner and that international air transport services may be establish on the basis of equality of opportunity and operated soundly and economically Article 44 d) Meet the needs of the peoples of the world for safe, regular, efficient and economical air transport

State of the Industry 2016: Latest Figures Overview Impact of Air Transport - Aviation Benefits Regulatory Development Role Of ICAO in the Sustainable Development of Air Transport 3

STATE OF THE INDUSTRY AS AT 2016 4

Growth of air transport World recession 8000 250 SARS Revenue Passenger-Kilometres 7000 Freight Tonne-Kilometres 9/11 terrorist attack 200 6000 Asian crisis 5000 (billion) 150 (billion) Gulf war 4000 Iran-Iraq war 100 crisis 3000 Oil +3.8% 205 billion FTK vs. 2015 2000 50 7.1 trillion RPK +7.4% 1000 growth rate vs. 2015 0 - 1944 1946 1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 Scheduled commercial traffic Source : ICAO Annual Report of the Council 5 Total (international and domestic) services

The size of the industry 2016  3.8 billion passengers  53 million tonnes of freight  Over 1 400 scheduled airlines  More than 28 000 aircraft  More than 4 130 airports  173 air navigation centres Traffic is for scheduled services 6

Air route network 2016 Source : ICAO 7

Centre of gravity Geographical centre of gravity of departing/arriving passengers Source : ICAO 8

International and Domestic Passenger Traffic Domestic and International Revenue Passenger-Kilometres (RPK) (in billion) International 5,000 4,500 +4.3% CAGR (2012-2022) 4,000 3,500 Domestic 3,000 2,500 +5.3% CAGR (2012-2022) 2,000 1,500 1,000 500 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 International RPK Domestic RPK Scheduled commercial traffic Source : ICAO Annual Report of the Council 9

Share of Revenue Tonne-Kilometres by region in 2016 Source : ICAO 10

Low-cost carriers (LCCs) stimulating traffic Share of passengers carried by Passenger number growth for LCCs LCCs in 2016 and other carriers 40% 34.6% 35% 32.2% 29.5% 2015 2016 28.8% 30% 26.8% LCCs 11.4% 10.5% 25% 20% Others 5.1% 4.2% 12.8% 12.7% 15% Total 7.2% 6.8% 10% 5% 0% Africa Asia and Europe Latin Middle North World LCCs growth has been consistently twice as Pacific America / East America Caribbean much as other carriers’ growth Source : ICAO 11

Financial Performance Share of Operating Profits - 2016 International departures as a % of total departures Africa 24.2% Asia-Pacific 80% 50.4% Europe 17.7% 70% Latin America 60% & Caribbean Middle East 50% North America Total operating profits - USD 65 billion in 2016 40% 30% Share of Total Departures - 2016 20% Africa 31.0% 30.0% 10% Asia-Pacific Europe 0% Africa Asia-Pacific Europe Latin Middle East North 24.4% Latin America & America & America Caribbean Middle East Caribbean North America Total departures - 35 million in 2016 12

E-commerce development Percentage of E-Commerce Parcels Mail Tonnes Kilometres (MTK) Breakdown Carried by Air 100% 90.0% 90% 80% 88.0% Proportion of Total MTK 70% 91% 60% 86.0% 50% 83% 84.0% 40% 30% 82.0% 20% 10% 16% 80.0% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 78.0% Air E-Commerce* OTHER 2010 2011 2012 2013 2014 2015 2016 • • Approximately 90% of e-commerce parcels were E-commerce share of MTKs grew from 16% to 83% between 2010 and 2016 and is carried by air in 2016 estimated to grow to 91% by 2025 * Air E-Commerce is estimated assuming parcels traveling a distance of above 1000 kilometres are delivered by air

Aviation Benefits IMPACT OF AIR TRANSPORT 14

Aviation benefits report 15

Value of aviation: Economic benefits Aviation’s global employment and GDP impact, 2014 SOURCE: AVIATION BENEFITS BEYOND BORDERS, 2016, ATAG 16

Air traffic will double by 2034 SOURCE: ICAO LONG-TERM TRAFFIC FORECASTS 17

Estimated economic benefits growth SOURCE: AVIATION BENEFITS BEYOND BORDERS, 2016, ATAG 18

Aviation Supports Tourism International tourists arrival - 2016 Inbound tourism by mode of transport in 2016 Tourism expansion relies heavily on air transport, providing substantial economic benefits for anyone involved in the value chain of tourism Source : World Tourism Organization (UNWTO) 19

Driver of global trade and e-commerce Air freight, as a proportion of global trade, by volume and by value, 2014 SOURCE: AVIATION BENEFITS BEYOND BORDERS, 2016, ATAG 20

Value of aviation: Social benefits 21

Maximizing aviation benefits: Check list 22

REGULATORY DEVELOPMENT 23

. Regu gula lato tory y De Develop elopmen ments ts Market Access is becoming more open Agreements. Web of Bilateral Air Services - Source : ICAO WASA Map Tool | ICAO UNITING AVIATION NO COUNTRY LEFT BEHIND 24

. Regu gula lato tory y De Develop elopmen ments ts Regional Liberalization: Most world regions have liberalization programs Full liberalization arrangements (ASEAN, CARICOM, EU, LACAC. Trans- Tasman cooperation) Gradual liberalization arrangements (AFCAC, Damascus Agreement signatory states, South Pacific Islands)

Bilateral Open Skies (by September 2016) States which signed open skies agreements with both the US and third countries States which signed open skies agreements with the US only States which signed open skies agreements with the third countries only ~300+ Open Skies Agreements involving 158 States

ROLE OF ICAO IN THE SUSTAINABLE DEVELOPMENT OF AIR TRANSPORT 27

Harmonizing global regulatory framework Harmonizing global regulatory framework by developing policies and guidance materials Doc 9587 Doc 8632 Doc 9626 28

Addressing Regulatory Challenges Assisting States in Addressing Regulatory Challenges Consumer onsumer Pr Prot otect ection ion Trad rade in Competition Servic rvices Addressing Regulatory Challenges Air r Carri rrier r Market Mark t Ow Owne ners rship hip Access ss & & Control trol 29

Enhancing transparency of States’ regulatory practices Enhancing transparency of States’ regulatory practices through dissemination and exchange of information Sur Surveys eys an and d Compendium WASA on Da Data ta S Sha haring ring Competition 30

Facilitating States’ air services negotiations Facilitating States’ air services negotiations and business to business networking through the ICAO Air Services Negotiation (ICAN) Events Air Services Negotiations Symposium ICAN EVENT Business to Business Workshops Meetings 31

THANK YOU! 32