Federal Express founder Fred Smith has an idea for loosening clogged-up aviation negotiations: break air cargo out of the larger talks.

Air cargo has different enough issues that it can achieve agreement when dealt with separately, he argues. "We are tired of seeing air cargo issues and rights traded off and used as bargaining chips in other areas. When they play politics, they usually start with all-cargo carriers. About all we have in common [with the rest of aviation] is that we use airplanes," says Smith.

Smith, in Washington in May to address the German-American Business Council, was not optimistic that the USA and Europe would reach agreement on a wide-ranging aviation liberalisation pact before the US elections this November: "That's the conventional wisdom going round and it's probably right. And that's unfortunate. Opponents fear losing ground under a truly liberal treaty."

An aide to Smith says that FedEx representatives urged separate consideration of all-cargo issues in the negotiations between the US and European Union (EU), as the company has done in other discussions, but did not carry the day.

On another issue, Smith told his German-American audience that extended night-time noise curfews proposed for the Frankfurt airport concerned him deeply. "There are already restrictions on that airport at night and extending these restrictions would affect 13 weekly flights for FedEx. Such a ban might curtail future investment by FedEx and other airlines in Frankfurt as a gateway city," he said. Coming as the European Union expands and creates a 25-nation trade zone allowing free circulation of shipments, the issue is all the more timely, Smith said.

Source: Airline Business