US-Kazakhstan Aviation Pact Increases Flexibility For Airlines

U.S. all-cargo operators and airlines will have greater opportunity to do business in Kazakhstan when a new civil aviation agreement between the two nations kicks in. The amount of freight volume between the countries is limited and the primary beneficiaries a

Benzinga · 01/06/2020 19:45

U.S. all-cargo operators and airlines will have greater opportunity to do business in Kazakhstan when a new civil aviation agreement between the two nations kicks in.

The amount of freight volume between the countries is limited and the primary beneficiaries are likely to be charter operators that fly on an ad hoc basis. 

The tentative agreement includes unrestricted capacity and frequency of services, open route rights and open code-sharing opportunities.

The U.S. State Department announced Jan. 6 that the Open Skies agreement liberalizing commercial air transport with Kazakhstan will enter into force once the governments exchange diplomatic notes. 

The U.S. has reciprocal Open Skies agreements with more than 120 nations, dramatically increasing the number of direct intercontinental flights to many U.S. cities.

Open Skies agreements reduce costs for carriers and customers by allowing airlines to make commercial decisions based on market demand, without intervention by government regulators. U.S. carriers gain unlimited market access and the right to fly to all intermediate and beyond points, and maximum operational flexibility for airline alliances. The agreement commits both governments to high standards of aviation safety and security.

Under the deals, airlines have the right to sell transportation services at a price of their choosing, to perform their own ground-handling and (along with logistics providers) arrange for ground transportation to-and-from airport facilities for freight in their control. 

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