THE CHICAGO CONFERENCE 1944

Dr. V. Balakista Reddy1

The Chicago Conference called by the United States at the time of World War II. The

Conference at Chicago lasted for 37 days from 1st November to 7th December, 1944. Among the

major achievements of the Conference were the drafting, adoption and opening for signature of

one major convention, three Agreements, a standard form of bilateral for provisional air routes

and the text of 12 technical Annexes. The Convention was intended to formulate certain agreed

principles and agreements to ensure safe and orderly development of international civil aviation

on the basis of equality of opportunity and to ensure that the air transport service might operate

“Soundly and economically”. In fact, the Chicago constitution became a viable constitution for

post-war global air world.

The Final Act of the Chicago Conference was adopted and signed by 52 States. The Final

Act contained 12 Resolutions and the following five appendices.

i) the interim agreement on the international Civil Aviation

ii) the convention on the international Civil Aviation

iii) the international air service transit agreement (Two Freedoms Agreement)

iv) the international air transport agreement (Five Freedoms Agreement)

v) drafts of Technical Annexes

vi) a standard form of Bilateral Agreement

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Author holds Ph.D. in Aerospace Law from Jawaharlal Nehru University, New Delhi. He is currently Professor in
International Law and also Head, Centre for Air & Space Law, NALSAR University of Law, Justice City,
Hyderabad. A.P. INDIA.

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i. The Interim Agreement on the International Civil Aviation

The interim agreement on international civil aviation mentioned above provided for the

salting up of a Provisional International Civil Aviation Organization (PICAO) and established

rules for international aviation in the period before the commencement of ICAO. It became

effective on 6th June 1945 and expired on 4th April 1947. PICAO had organs similar to those of

ICAO: the interim Assembly, the interim Council, the Secretary-General and the Canadian

Headquarters.

ii. The Convention on International Civil Aviation

The convention on International Civil Aviation is the substantial result of the Conference

and generally referred to as the Chicago Convention 1944. The most significant result of the

conference was the drafting and adoption of the convention, signed by 35 states participating in

the conference on 7th December, 1944. The Convention came into force on 4th April 1947, after

ratification of 26 states. At present there are 185 parties to the Chicago Convention and these

states also form the membership of the ICAO. The Convention has been one of the most widely

ratified international multilateral instruments.

The Chicago Convention, 1944 has been divided into four parts through 22 chapters and

96 articles. Part I on air navigation, Part II, is devoted to the International Civil Aviation

Organization, Part III on International Air Transport and Part IV devoted to the Final Provisions.

Part I on Air Navigation has sub divided into 6 chapters from article 1-42.

Chapter I General Principles and Application of the Convention (From 1-4) discussed

above the state sovereignty, territory, civil and state aircraft and use of civil aviation. Whole air

law is developed on the concept of state sovereignty in civil aviation. According to Article I the

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contracting states recognises that every state has complete and exclusive sovereignty over

airspace above its territory.

Chapter II Flight over territory of contracting states Article (5-16) discussed issues

relating to the scheduled and non-scheduled air services, cabotage, pilotless aircraft, prohibited

areas, landing at custom airports, air rules and regulations, airport charges etc. According to

Article 6 “No scheduled international air services may be operated over or into the territory of a

contracting state, except with the special permission or authorization of that state, and in

accordance with the terms of such permission or authorization.”

Nationality of the Aircraft is important issue in international civil aviation, which is

covered in Chapter III from articles 17-21 of the convention. According to Article 17 Aircraft

have the nationality of the state in which they are registered. Other important provisions of

nationality of the aircraft include dual registration, national laws governing registrations, display

of marks and Reports of registration.

Chapter IV from articles 22-26 of the Chicago Convention deals with the measures to

facilitate air navigation. Provisions were made for facilitating the flight of aircraft engaged in

international air navigation, including simplification of customs requirements, giving assistance

to aircraft in distress, aiding investigation of accidents, exempting aircraft from seizure by reason

of patent claims or infringements, and by the adoption of Standards and Recommended Practices

(SARPs) in respect of airports, radio services, meteorological services and other air navigation

facilities, standard communication procedures, codes, markings, signals, lighting and publication

of charts & maps.

Conditions to be fulfilled with respect to aircraft including documents carried in aircraft,

aircraft radio equipment, certificate of airworthiness, licences of personnel, recognition of

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certificates and licences, journey log books, cargo restriction and photographic apparatus are

covered in Chapter V from articles 29-36 of the convention.

Adoption and implementation of International Standards and Recommended Practices

(SARPs) in international civil aviation is very essential because of technical nature of civil

aviation. These international Standards and recommended practices are covered in Chapter VI

from articles 37 to 42 covered the adoption and departures of international standards, procedures,

endorsement of certificates and licences and their validity, recognition of airworthiness etc are

covered in this Chapter.

The Chicago Convention has also established principles, structures and procedures for the

International Civil Aviation Organization (ICAO) have been covered in Part II from Articles 43

to 66 of the Convention. The ICAO has been responsible for establishing guidelines and

standards for navigational aids, technical rules for landing areas, aircraft certification, licencing

of pilots and other specialized personnel.

As it already mentioned the Chicago Convention laid the foundation for the development

of international civil aviation and established principles, structures and procedures for the

working of the ICAO. Under Article 44 of the convention, the ICAO aims to develop the

principles and techniques for international air navigation and air transport so as to:

a) ensure a safe and orderly growth of international civil aviation throughout the world;

b) Encourage the arts of aircraft design and operation for peaceful purposes;

c) Encourage the development of airways, airports, and air navigation facilities for international

civil aviation;

d) Meet the needs of the peoples of the world for safe, regular, efficient and economical air

transport;

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e) Prevent economic waste caused by unreasonable competition;

f) Insure that the rights of contracting states are fully respected and that every contracting state

has a fair opportunity to operate international airlines;

g) Avoid discrimination between contracting states;

h) Promote safety of flight in international air navigation;

i) Promote generally the development of all aspects of international civil aeronautics.

The ICAO has Assembly, Council, the Secretariat, Air Navigation Commission, and

other organs to run day-to-day activities. The Assembly meets once in every three years. All

contracting states shall have an equal rights and each contracting state has one vote in the

Assembly. The Council is the permanent body responsible to the Assembly. It shall be composed

of 33 contracting states elected by the Assembly. In electing the members of the council, the

Assembly shall give adequate representation to (a) the states of chief importance in air transport

(b) the states which makes largest contribution to the international civil aviation and (c) the

major geographic areas of the world are to be represented.

Power and Duties of the Assembly

The powers and duties of the Assembly shall to be:

(a) Elect at each meeting its President and other officers;

(b) Elect the contracting States to be represented on the Council, in accordance with the

provisions of Chapter IX;

(c) Examine and take appropriate action on the reports of the Council and decide on any matter

referred to it by the Council;

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(d) Determine its own rules of procedure and establish such subsidiary commissions as it may

consider to be necessary or desirable;

(e) Vote annual budgets and determine the financial arrangements of the Organization, in

accordance with the provisions of Chapter XII;

(f) Review expenditures and approve the accounts of the Organization;

(g) Refer, at its discretion, to the Council, to subsidiary commissions, or to any other body any

matter within its sphere of action;

(h) Delegate to the Council the powers and authority necessary or desirable for the discharge of

the duties of the Organization and revoke or modify the delegations of authority at any time;

(i) Carry out the appropriate provisions of Chapter XIII;

(j) Consider proposals for the modification or amendment of the provisions of this Convention

and, if it approves of the proposals, recommend them to the contracting States in accordance

with the provisions of Chapter XXI;

(k) Deal with any matter within the sphere of action of the Organization not specifically assigned

to the Council.

Mandatory Functions of the Council

The Council shall:

(a) Submit annual reports to the Assembly;

(b) Carry out the directions of the Assembly and discharge the duties and obligations which are

laid on it by this Convention;

(c) Determine its organization and rules of procedure;

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(d) Appoint and define the duties of an Air Transport Committee, which shall be chosen from

among the representatives of the members of the Council, and which shall be responsible to

it;

(e) Establish an Air Navigation Commission, in accordance with the provisions of Chapter X;

(f) Administer the finances of the Organization in accordance with the provisions of Chapters

XII and XV;

(g) Determine the emoluments of the President of the Council;

(h) Appoint a chief executive officer who shall be called the Secretary General, and make

provision for the appointment of such other personnel as may be necessary, in accordance

with the provisions of Chapter XI;

(i) Request, collect, examine and publish information relating to the advancement of air

navigation and the operation of international air services, including information about the

costs of operation and particulars of subsidies paid to airlines from public funds;

(j) Report to contracting States any infraction of this Convention, as well as any failure to carry

out recommendations or determinations of the Council;

(k) Report to the Assembly any infraction of this Convention where a contracting State has failed

to take appropriate action within a reasonable time after notice of the infraction;

(l) Adopt, in accordance with the provisions of Chapter VI of this Convention, international

standards and recommended practices; for convenience, designate them as Annexes to this

Convention; and notify all contracting States of the action taken;

(m) Consider recommendations of the Air Navigation Commission for amendment of the

Annexes and take action in accordance with the provisions of Chapter XX;

(n) Consider any matter relating to the Convention which any contracting State refers to it.

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Permissive functions of Council

The Council may:

(a) Where appropriate and as experience may mention relating to the advancement of air

transport commissions on a regional or other basis and define groups of states or airlines with

or through which it may deal to facilitate the carrying out of the aims of this Convention;

(b) Delegate to the Air Navigation Commission duties additional to those set forth in the

Convention and revoke or modify such delegations of authority at any time;

(c) Conduct research into all aspects of air transport and air navigation which are of international

importance, communicate the results of its research to the contracting States, and facilitate

the exchange of information between contracting States on air transport and air navigation

matters;

(d) Study any matters affecting the organization and operation of international air transport,

including the international ownership and operation of international air services on trunk

routes, and submit to the Assembly plans in relation thereto;

(e) Investigate, at the request of any contracting State, any situation which may appear to present

avoidable obstacles to the development of international air navigation; and, after such

investigation, issue such reports as may appear to it desirable.

Various Provisions relating to International air transport are covered in part III from articles

67 to 79 of the Chicago Convention. Under Chapter XIV, the contracting states have to file their

reports with council. Chapter XV covered various airport and air navigation facilities including

designation of routes and airports, financing & improvement of air navigation facilities,

acquisition and use of land, expenditure and assessment of revenues etc. Joint operating

organizations and pooled services are covered in Chapter XVI of the convention.

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 Part IV the Financial Provisions of the convention from articles 80-96 are covered other

aeronautical agreements and arrangements including the Paris and Habana Conventions,

registration of existing agreements, abrogation of inconsistent arrangements and registration of

new arrangements. Settlements of disputes through arbitration, etc are covered in XVIII of the

convention. Other provision relating to settlements of disputes including the appeals, penalty for

non-conformity of airlines and non-conformity states etc.

The adoption and Amendment of Annexes are covered in Chapter XX. The ICAO Annexes,

most of which aim to maintain and improve safety, security etc cover personnel licensing,

airworthiness of aircraft, air craft operations, ATS, aeronautical information,

telecommunications, meteorological services etc. They collectively ensure the highest degree of

air safety on a world wide basis. These technical specifications are kept up-to-data in the 18

annexes of the Chicago Conventions, cover all the specialized sectors of air navigation.

Chapter XXI of the convention covers the ratification, adherences, amendments, and

denunciation. Chapter XXII (Article 96) of the Chicago convention defines Air Services,

Airlines, International air services, stop for non-traffic purposes etc.

iii. The International Air Service Transit Agreement

This agreement is popularly known as the “two-freedom agreement”, which grants:

(a) The privilege to fly across the territory of a State without landing (right of transit), an

(b) The privilege to land for non-traffic purposes (right to stop for refueling, repairs, etc).

iv. The International Air Transport Agreement

This agreement is popularly known as “five freedoms agreement.

The first two freedoms are the same as in the Air Transit Agreement. The other three freedoms

are:

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 (c) The right to discharge passengers, mail and cargo taken on the home ports,

(d) The right to pick up passengers, mail and cargo to be taken to the home ports, and

(e) The right to pick up and discharge passengers, mail and cargo to or from any other

contracting states.

v. The Drafts of Technical Annexes

The fifth appendix to the Final Act of the Chicago Convention contains the drafts of

technical Annexes. It did not require signature. It covers the different phases of technical fields

of aviation, being an exposition of suggested technical matters for further study in international

aviation. It contains numerous recommendations which when studied, revised and agreed upon,

have standardized the 18 technical aspects of aviation.

vi. The Economic Relevance of the Chicago Convention

The most contentious provision of the Chicago convention is Article 6 where a scheduled

international air service may not operate air services into the territory of a contracting state.

Except with the special permission or other authorization of the state, and in accordance of such

permission or authorization.

Article 10 of the convention grants authority to a state to compel an aircraft which flies

over its territory to land for customs purpose. Article 15 inter alia provides that airports will be

open for use by aircraft of contacting states and that no state shall impose charges on aircraft for

use of such airports on a discriminatory basis.

Article 24 permits the admission of aircraft free of import duties subject to the customs

regulation of a grantor state. The same provision allows an exemption from customs duties,

inspection fess, or similar national fees or local duties or charges fuel, lubricating oils, spare

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parts, regular equipment and aircraft stores on board an aircraft which arrives in the territory of a

state and which retains the above mentioned items at the time of leaving that state.

vii. Taxation of international air transport

In accordance with assembly resolution A26-15 which instructed the council to review

compliance with the 3 resolutions and one recommendation contained in section IV of Doc.

8632.

Section I

The resolution in section I relating to the taxation of fuel, lubricants and other

consumable technical supplies when an aircraft registered in one state arrive in or depart from a

customs territory of another state.

Section II

Taxation of fuel, lubrications and other consumable technical supplies when an aircraft

registered in one state makes successive stops at two or more airports in one customs territory

and other state.

Section III

Taxation of the income and aircraft of international air transport enterprise.

Section IV

Taxes related to the sale or use of international air transport.

Imposition of Taxes & charges on international Tourism

Type of taxes

1. Aviation fuel – the passenger facility charge is the most contentious current issues, taxes

imposed on aviation fuel are the most important in terms of economic consequences.

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2. Consumption taxes – taxes related to consumption by air transport enterprise and airlines.

3. Revenue taxes – income taxes whether it is based on gross receipts or any other evaluation

based primarily on sale or use of international transport air; business taxes; municipal taxes;

employee taxes; capital gains taxes etc.

4. Nuisance taxes – PFC, airport taxes, security taxes etc.

viii. Joint financing of Air Navigation Services

Joint financing of air navigation services under the convention is based on the

fundamental concept enunciated that the future development of civil aviation can greatly help to

create understanding among nations.

The operation of joint financing in civil aviation becomes necessary to coordinate non-step

transatlantic flights north of the 45th parallel, which are under the jurisdiction of the flights

information region (FIR) of Iceland.

The concept of joint financing is a technique to improve air navigation facilities and

airport throughout the world. The seminal provision that articulates the philosophy of the joint

financing is Article 70 of the convention. Article 70 provides that a contracting state may

arrange with the ICAO Council to implement the Council recommendations relating to the

improvement of air navigation facilities, either by bearing all coast involved or by jointly

financing such implementation process with the Council.

Article 75 permits a contacting state to discharge its obligation sunder the joint financing

agreements by taking over from the Council airports and other facilities that were handed over to

the Council pursuant to the join financing agreement. The state may then pay the council

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whatever monies that had been incurred in the development of air navigation on in the territory

of that state.

Sates obligation to provide air navigation services to the international community stem

from Article 28 of the Convention, which provides that each contracting state undertake to

provide, in its territory, such facilities as airports, radio and metrological services and other air

navigational facilities while adopting standards of communication and collaborating with a

unified communications methodology.

Assembly resolution A1-65 established the general policy of ICAO relating to the joint

support of air navigation services. The ensuring joint financing Agreement in 1948 has since

been replaced by the Agreements of 1956, which has been amended by the Montreal Protocol of

1982.

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