Towards Open Skies

Air Service Agreements (ASAs) are the bilateral treaties that govern the commercial aviation relationships between governments.

The history of ASAs goes back to the 1940s when aviation was seen as both a national security issue and as an emerging industry, often in government ownership, which needed protection from conventional market forces. Over the last 50 years they have been used to regulate the availability of traffic rights and also the nature of the pricing regime.

As early as 1979, the USA began the process of deregulation, an approach that was adopted by the European Commission with its own liberalisation packages during the 1990s. It is now an accepted tenet that “Open Skies” is the way forward, but there are still fundamental differences about exactly how “Open Skies” should be interpreted. This is no better illustrated by the repeated failures of the USA and European Union to reach agreement on an Open Aviation Area for the North Atlantic area.

The MSP Solutions Approach

The MSP Solutions approach is based on practical experience. We have in depth knowledge of the key facets of the crucial topics such as slot allocation, the relative value of different markets, market access and pricing. 

MSP Solutions recognises that the direction of the aviation industry is towards open skies, much as free trade is accepted in other sectors of the world economy. At the same time it has to be accepted that even the most strident advocates of liberalisation have shown themselves to be capable of self protection when the case is in their own interests.

Also it is reasonable that progress towards liberalisation allows a progressive transition phase. This way the new participants in the global markets have a more realistic chance to develop their own niches whilst they are learning to handle the more aggressive market forces.

The Benefits to Our Clients

MSP Solutions people have practical experience of ASA negotiations and consequently are able to provide advice on tactics and to assist with negotiations at ASA discussions. MSP Solutions also has experience of working with airlines, governments and with the European Commission.

MSP Solutions is able to advise governments and airlines on the issues surrounding ASAs. In particular our expertise covers key issues such as slot allocation, the relative value of different markets, market access and pricing. We are therefore able to provide sound strategic advise on approaching ASA negotiations and understand the importance of relative bargaining positions.