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Implications of the Fifth Freedom Traffic Right for Air Cargo Transport in China

In: The International Air Cargo Industry

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  • Tao Li

Abstract

Recently, China has taken steps to open up its international air transport services at a higher level during its 14th Five-Year Period. As one step, a number of pilot free trade zones (PFTZs) have been launched with different tasks for foreign economic cooperation based on institutional innovation. Some cities in these zones have been chosen to develop airport economy by liberalization of the fifth freedom traffic right (FFTR). Considering the different economic situations between passenger and cargo market following the outbreak of the coronavirus, this chapter focuses on its implication of the FFTR for air cargo and airport economy in these cities. Some air service agreements (ASAs) between China and other countries have contained the arrangements on the FFTR. However, this study argues that such arrangements are too general and need further negotiation and policy support for practical utilization. FFTR liberalization may drive cargo growth and economic development in the cities which have gained such policy support, but it may also bring competitive pressure on Chinese airlines. Furthermore, the FFTR liberalization policies do not guarantee an immediate positive result in fostering airport economy, and much work is needed for better utilization of the FFTR in China.

Suggested Citation

  • Tao Li, 2022. "Implications of the Fifth Freedom Traffic Right for Air Cargo Transport in China," Advances in Airline Economics, in: The International Air Cargo Industry, volume 9, pages 263-281, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aiaezz:s2212-160920220000009011
    DOI: 10.1108/S2212-160920220000009011
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