Founded in 1926, FIATA is a non-governmental organisation that represents some 40,000 forwarding and logistics firms that employ between 8-10 million people in 150 countries.
In letters to Norman Y. Mineta, the US Secretary of Transportation, and Jacques Barrot, Vice President of the European Commission with responsibility for transport, TIACA asked both governments to look upon air cargo as the natural 'first step' in the process towards the full realisation of a single open market for aviation between and within both the EU and the US.
Supporting TIACA's initiative, Mr Issa Baluch, President of FIATA, commented, 'The opening up of the skies for freighter operations between the EU and USA will effectively eradicate the last hurdles in fostering a new area of economic opportunities not only for the freight logistics industry but a liberalized competitive environment for shippers and consumers. Such a historic agreement between the EU and USA, being the largest aviation markets will, undoubtedly, set the example for other regional blocks and other countries to follow suit.'
Daniel Fernandez, Secretary General of TIACA, said, 'We welcome FIATA's support. With its large global membership, the Association understands the importance of bringing the US and EU regulators back around the negotiating table and the significant and positive impact for the world economy that would result from greater all-cargo liberalization.'
In its previous statement, TIACA commented: 'Removing or reducing the constraints imposed on all-cargo airlines by the current regime of bilateral agreements is an urgent requirement for the air cargo industry - and is in the best interests of its customers worldwide. Bilateral negotiations between the EU and US have stalled because of the complexity of liberalizing passenger movements. This is holding the air cargo industry back.
'Forty percent of world trade by value moves by air cargo and the industry is projected to grow at 6.5% per annum for the next 20 years, two percent faster than passenger traffic. Air cargo liberalization should be independent of proposals to liberalize passenger movements and is ready to be fast tracked. TIACA believes that the case we have proposed for the liberalization of all-cargo flights provides a template for the future liberalization of combination traffic rights.'
The Association's case is based on the importance of air cargo to world trade. The industry plays a vital role in the global supply chains of manufacturers around the world and ensures consumer demand is satisfied for a diverse range of products such as high tech equipment, healthcare products, textiles and high fashion goods, spare parts for the automobile industry and fresh produce, include exotic fruits and vegetables, meat and fish.
Fernandez added, 'There is a fundamental difference between the two parts of the airline industry. Passengers usually return to their starting point, providing two-way business for airlines. However, for freight, there is no guarantee of any back load and many carriers find themselves flying to a third destination to find a load to reduce empty legs. With the current bilateral system, this is very difficult for all-cargo operators and this is why TIACA is calling for the separation of traffic rights.
'A successful air cargo industry is vital to the continued growth and vitality of world trade. The current system allocates traffic rights primarily on the needs of the passenger industry and is inconsistent with the needs of the air cargo industry. The separation of passenger and all-cargo traffic rights opens worldwide opportunities for economic development, creates op
