Economic Liberalization

A series of major aircraft accidents that occurred last August and
September — claiming almost 500 lives — has once again focused the spotlight
on aviation. With tremendous growth in air travel and the rapid expansion of the
airline industry, how well is the global aviation safety regulatory system functioning?
Can States adequately ensure safety and security in an industry being transformed
by globalization, liberalization and privatization? A recent study conducted by ICAO
provided some insight into these matters. The study reviewed various situations
arising from regulatory liberalization and the evolution of business and operating practices
in the air transport industry to identify areas that could have implications for safety and
security. The purpose was to determine whether any gaps exist in the current ICAO
provisions for safety and security, and to ensure that the global regulatory system,
including the relevant ICAO standards and recommended practices (SARPs), remains
capable of addressing changes and developments in international civil aviation.
ICAO’s examination of the safety and security aspects of economic liberalization
was recently disseminated to its member States and may be found at ICAO’s website
(www.icao.int/icao/en/atb/ecp/index.html). The study features a summary of specific
situations and their relevant ICAO provisions and guidance material, as well as a
summary of the responsibilities of States.
The impact of liberalization on safety and security, and their interrelationship,
is not a new issue. The subject has been debated in many aviation forums, including
the last two worldwide air transport conferences convened by ICAO in 1994 and 2003.
While the latter conference in particular produced a consensus in favour of
liberalization, describing it as a desirable goal, there was also concern expressed
over liberalization’s potential impact on safety and security. Conference delegates
agreed that aviation safety and security must remain of paramount importance.
Liberalization should be accompanied by appropriate safeguards, including safety
and security safeguards. The challenge for States, in brief, is to capture the benefits
of economic liberalization without compromising safety and security.…