Aviation and the Environment, EU-Arab Relations, and the Tunis Convention for the reciprocal exemption from taxes on aviation between Arab states, were highlighted today at AACO’s 44thAnnual General Meeting that gathered more than 300 delegates including AACO member airlines’ chief executive officers, in addition to representatives from AACO’s Industry Partners and Partner Airlines, with the participation of international and regional associations and industry experts, as well as a number of media representatives.
AACO’s 44th AGM working sessions were held today at the “Fairmont Bab Al Bahr” hotel in Abu Dhabi – U.A.E, under the Chairmanship of Mr. James Hogan, Chief Executive Officer of Etihad Airways.
The issue of Aviation and the Environment and how to deal with aviation’scarbon footprint in a fair and balanced way, has been highlighted at the last two AACO AGMs as a pressing issue that is of global concern to relevant parties, and that it should be addressed globally within the framework of ICAO taking into consideration the special situation of airlines in developing countries, and earlier investments done by airlines in improving their environmental performance. At the 44th AGM, AACO members stressed the importance of adopting a set of principles when governments of the world are addressing aviation’s impact on the environment, mainly objecting to unilateral approaches that won’t solve the environmental concern,citing in particular the unilateral EU Emissions Trading Scheme, a call to respect states’ sovereignty over their airspace, and a call for the Arab Civil Aviation Commission to constitute an Arab position with regards to the extra territoriality of applying the EU ETS on non-EU airlines. AACO’s AGM agreed as well to the comprehensive Arab approach to emissions mitigation that was prepared by AACO’s Environmental Policy Group.
The full text of AACO’s 44th AGM Resolution on Aviation and the Environment is listed below.
The second important topic that received the attention of AACO member airlines is the aviation relations between the EU and the Arab world. The AGM called upon the Arab Civil Aviation Commission and relevant stakeholders in the Arab League of States to launch a dialogue with the relevant European parties to realize an Arab-European aviation framework in order to reach a set of principles that guarantees a balanced relation between the two regions.
The full text of AACO’s 44th AGM Resolution on EU-Arab Relations is listed below.
In difficult times like those currently faced by the aviation industry as a result of consecutive crises, natural disasters and political instability, AACO’s 44th AGM called for reviving an initiative that was launched by Arab states in 1979, that being the Tunis Convention for the reciprocal exemption of taxes for the Arab aviation stakeholders between Arab countries.
The full text of AACO’s 44th AGM resolution on the Tunis Convention is listed below.
Delegates at the AGM received AACO’s Annual Report,the yearly harvest of all AACO achievements, developments, industry challenges and joint projects’ results, in addition to AACO’s Annual Arab Air Transport Statistics publication that highlights the major operational developments related to the Arab airlines, airports and partner airlines as well as a synopsis on the world air transport developments at large. It also includes some vital statistics on general economic trends with a particular emphasis on the ones which are more related to Arab Travel & Tourism sector.
AACO Secretary General, Mr. Abdul WahabTeffaha, presented his report about the State of the Industry to the AGM during the first working session. The Secretary General’s report highlighted burdens faced by the industry in general, the changes that the Arab world and consequently the Arab air transport industry witnessed this year, the state of the Arab airlines amidst these changes and how these airlines maintained their global competitiveness, in addition tothe main challenges which the Arab aviation sector will need to deal with in the foreseeable future.
Following Mr. Teffaha’s report, Mr. Omar Bin Ghaleb, Deputy Director General of the UAE GCAA, presented a keynote address about common issues between AACO and ACAC, on behalf of Mr. Mohamed El Alj, Director General of ACAC.
A keynote address by Mr. Tony Tyler, Director General and CEO of IATA was delivered as well which focuses on the global issues of the industry. This address was followed by signing a cooperation agreement on training between the two associations.
Furthermore, AACO Secretary General, Mr. Abdul WahabTeffaha, and Sabre Airline Solutions’ CEO, Mr. Hugh Jones, signed an agreement, whereby Sabre will be providing AACO member airlines with regular management information reports highlighting the opportunities and threats.
During the second working sessions, AACO members held closed discussions, whereby Mrs. GhaidaAbdullatif, Chairperson of AACO Executive Committee and CEO of Syrian Arab Airlines, presented a report about AACO’s Executive Committee work in supervising the overall work of AACO. Aviation and the Environment, EU-Arab Relations, and the Tunis Convention were at the forefront of these discussions which resulted in adopting the attached three resolutions, referred to above. AACO AGM as well set the dates for AACO’s 45th AGM to be held on 5 – 6 November 2012 in Algeria, and decided that the 46th AGM will be held in Doha-Qatar.
The third working session gathered distinguished panelists who shared their views about “Europe and the Arab World: Competition within Cooperation”. The Joint Aviation Forum panel was moderated by Mr. John McCulloch, Senior Principal at Seabury with the participation of Eng. Khalid Al Molhem/Director General/ Saudi Arabian Airlines, Mr. FilipCornelis/Head of Unit/ European Commission, Mr. Akbar Al Baker/Chief Executive Officer/ Qatar Airways, Mr. Philip Good/ Policy Advisor of DG Climate Action/ European Commission, and Mr. Ulrich Schulte-Strathaus/ Secretary General/ AEA.
At the end of the day, AACO member airlines thanked the Chairman of the AGM for his leadership of the 44th AGM and for Etihad Airways’ generous hospitality for all delegates present at the AGM.
AACO 44th AGM Resolutions
Resolution on Aviation and the Environment
With reference to AACO’s 43rd Annual General Meeting Resolution number 4/2010, and to AACO’s 42nd Annual General Meeting resolution number 5/2009, the 44th Annual General Meeting stresses on the importance of adopting the following principles when governments of the world are addressing aviation’s impact on the environment:
1. Unilateral approaches by a government or a region will not lead to solving the issue of the environment.
2. National or regional approaches that trespass national or regional borders of other governments do not comply with international agreements, especially the Chicago Convention and bilateral agreements between countries which granted each participating party sovereignty over its airspace.
3. AACO Annual General Meeting calls upon the European Union to retract from imposing a unilateral scheme for emissions trading and capping on non EU states’ airlines. AACO Annual General Meeting also calls upon the European Union to go back to the negotiations under the ICAO framework in order to reach a global deal regarding aviation and the environment, that is fair and balanced to all parties and that takes into consideration the special situation of airlines in developing countries, and investments done earlier by airlines for improving their environmental performance.
4. AACO Annual General Meeting also calls upon the Arab Civil Aviation Commission to constitute an Arab position with regards to the illegitimacy of applying the European Union scheme on non-EU airlines.
5. AACO Annual General Meeting agrees on the Comprehensive Arab approach to Emission Mitigation, that was prepared by AACO’s Environmental Policy Group and which adopts the four – pillars strategy endorsed by IATA, the Industry, and other global parties, and which was approved by AACO’s Executive Committee.
Resolution on EU- Arab Relations
Based on the regulatory developments in the relations between the Arab world and Europe, especially those related to Arab countries’ accession to Europe’s Single Aviation Market, and based on the Sharm El-Sheikh Declaration of 2008 signed between the European Commission, Arab Civil Aviation Commission, and Arab Air Carriers Organization, as well as the Muscat Declaration of 2009 signed between the Arab Civil Aviation Commission and the European Commission, AACO’s Annual General Meeting sees the importance of preparing a framework of principles between the Arab world and Europe that guarantees a balanced relationship between the two regions, and secures a parallel framework to that of the Euro- Mediterranean one that would include all Arab countries willing to join. For this purpose, AACO Annual General Meeting calls upon the Arab Civil Aviation Commission and relevant stakeholders in the Arab League of States to launch a dialogue with the relevant European parties with regards to realizing this Arab-European aviation framework in order to reach the desired Declaration of Principles.
Resolution on the Convention of Tunisia on Mutual TaxExemptions in between Arab countries for the benefit of Arab Airlines
In order to facilitate the work of Arab airlines and their employees and to prevent duplication of taxes and remove the complexities and difficulties faced by these airlines, and in order to alleviate their financial burdens and organize the processes of taxation amongst each other, the Arab governments in 1979 have formulated criteria to benefit from reciprocal tax exemptions between the Arab countries within the framework of the "Tunis Convention” for the reciprocal exemptions from taxes and charges on equipment and activities of the institutions of the Arab Air Transport.
AACO Annual General Meeting sees the need to develop and clarify this Convention to conform with developments in the air transport industry since 1979 until the present time.