The unintended consequences of liberalization are already hard to deal with and this agreement proposal lacks any impact assessment. For example, there is no examination of the potential consequences of the proposed replacement of O&C provisions with “principle place of business”, notably without providing a definition of this concept. The notorious case of "Norwegian" has just recently illustrated the limits of this concept and the ease of setting up "letter box companies" with all the related safety and social consequences. What would happen if this is possible worldwide?

“We’ve only recently heard two airline CEOs who bluntly say they do not ‘give a damn’ about ILO conventions and fundamental rights. Clearly, more than goodwill is necessary when it comes to such important labor and environmental safeguards,” says Jon Horne, ECA Vice-President.

“A balanced and fair multilateral air services agreement must contain at least the following: a robust social clause; strong fair competition provisions; strong provisions on ‘Principle Place of Business’ (including a clear definition) and ‘Ownership & Control’; and strong environmental sustainability provisions.”

If this worldwide Multilateral Agreement were to be signed and ratified as it stands it would replace hundreds of existing and carefully thought through bilateral agreements, and leave airline safety regulation to states chosen on the basis of vague and undefined notions of where an airline’s ‘Principle Place of Business’ might be declared. Such a radical change deserves more time and reflection.