PETER CONWAY LONDON
UK cargo airlines angry at a controversial government decision that grants new rights to US operators, hope to generate the consensus needed by the European Commission to negotiate broader cargo rights with the USA.In August, the UK Government granted fifth freedom rights out of Prestwick airport to Federal Express and other US cargo carriers, such as Polar Air Cargo. The British Cargo Airline Alliance (BCAA), which represents the four main all-cargo carriers in the UK, is furious at the decision and accuses the government of surrendering a bargaining chip in the ongoing UK-US open skies negotiations without gaining anything in return.
The BCAA was formed in 1998 to push for comparable cargo rights in the USA and Europe. These include cabotage rights for cargo within the USA and an end to US restrictions on the wet-leasing of foreign registered aircraft by its carriers, a restriction that does not exist in Europe.
In June it seemed to be making progress after a lobbying trip to Washington DC and meetings with the UK Government, with the latter promising to put cargo rights on the UK-US open skies agenda.
Following the Prestwick decision, the BCAA hopes to persuade the EC member states to separate cargo rights from the more contentious passenger rights and allow the EC to negotiate a block cargo agreement with the USA.
Calls in other parts of the world to separate cargo from passenger rights have frequently fallen on deaf ears.
The BCAA is backed by 20 European cargo airlines and independent cargo divisions which have agreed to lobby their governments in support of the BCAA's position. The Transatlantic Business Dialogue - a grouping of US and European companies formed in 1995 to promote trade liberalisation - has also drawn up a statement calling for Europe-US cargo aviation talks.
Both General Agreement on Trade and Tariffs (GATT) officials and the Organisation for Economic Cooperation and Development (OECD) have also indicated that transport should be included in the next round of world trade liberalisation.
Balanced by that, however, is the fact that cargo remains a poor second to passenger interests at most airlines. "I think there is a growing consensus that cargo should be separated, but when we lobby for support, airline cargo departments often say they like our ideas but can't support us too openly. It is still the passenger public affairs department that usually calls the shots," admits one TBD source.
GATT could also prove to be a double-edged sword for cargo carriers. Negotiating the next GATT round could take years and prove even more contentious than UK-US open skies. While the USA has said it is willing to include cargo services in GATT, it would exclude traffic rights.
Source: Airline Business
