Memorandum by the General Aviation Manufacturers
and Traders Association (AS 20)
AIR SERVICE AGREEMENTS BETWEEN THE UNITED
KINGDOM AND THE UNITED STATES
1. INTRODUCTION
The General Aviation Manufacturers and Traders Association
(GAMTA) is the UK's national trade body representing the General
Aviation sector. The membership includes around 50 operators in
the business aviation (air taxi and corporate), freight and commercial
aerial work sectors.
2. FREIGHT OPERATIONS
We are told by member companies that the Americans
enjoy a potential strategic advantage. The fact that UK (and other
European) airlines cannot operate on a wet-leased basis in the
US, whilst US airlines have numerous wet leased operations in
Europe and the rest of the world, means that US airlines can expand
knowing that they have a world market. For example, a UK freight
operator cannot buy a DC10 freighter in the hope and expectation
that it can get a wet lease contract to operate in the USA, the
world's largest market, yet an equivalent American operator can
well take the gamble of buying a DC10 freighter, knowing that
BA, Lufthansa, DHL or a host of other companies might wet lease
it.
In other words, this is restricting our opportunity
for growth. It is true that there are more US airlines with aircraft
available for wet leasing, and it might be that there would always
be more US aircraft available than the rest of the world put together,
but the fact that the market for UK aircraft is restricted, actually
reduces the expansion prospects for the UK airlines.
We believe that the Americans should allow wet
leasing of UK aircraft in the USA.
3. AIR TAXI
OPERATIONS
Although the matter of air service agreements
relates in the main to major airlines, our air taxi community
have asked me to flag up their needs and concerns. In particular,
air taxi operators are anxious that fifth freedom procedures are
available equably both sides of the Atlantic and that UK operators
are not disadvantaged in the US.
Graham S Forbes
Chief Executive
April 2000
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