1 Directorate-General Energy and Transport / Air Transport Directorate Market Opening & Corollary...

1Directorate-General Energy and Transport / Air Transport Directorate

Market Opening & Corollary issuesTowards a Common Aviation Area

EUROMED AVIATION PROJECTAIR TRANSPORT SEMINAR

Amman (Jordan), 17–18 October 2007


Euro Mediterranean Aviation Agreements

Areas of cooperation Areas of cooperation

under a possible EUROMED global under a possible EUROMED global aviation agreementaviation agreement


Economic regulationEconomic regulation

Traffic rights:Traffic rights:- First and second - First and second

- Third and fourth- Third and fourth- Fifth- Fifth- Other rights?- Other rights?

Scheduled/Non-ScheduledScheduled/Non-ScheduledPassenger/cargoPassenger/cargo


• Ownership and control: Ownership and control: increased possibilities for increased possibilities for investment in air carriersinvestment in air carriers

Economic regulationEconomic regulation


• Competition Competition - Mergers- Anti-trust- Exemption of airline alliances

• State aidState aid - Regulatory convergence: principles,

procedures, consultation- Security costs

Economic RegulationEconomic Regulation


• Highest possible standardsHighest possible standards

• Mutual recognition (certificates, Mutual recognition (certificates, crew licences, maintenance)crew licences, maintenance)

• Exchange of data on Exchange of data on accidents/incidents/SAFAaccidents/incidents/SAFA

Aviation SafetyAviation Safety


• Cooperation with EASACooperation with EASA

• List of unsafe airlinesList of unsafe airlines

Aviation SafetyAviation Safety


• Regulatory convergenceRegulatory convergence

• Eventually Mutual recognition Eventually Mutual recognition leading toleading to „one-stop” security „one-stop” security

• Cooperation in developing Cooperation in developing technology and researchtechnology and research

• Cooperation towards other Cooperation towards other countriescountries

Aviation SecurityAviation Security


• Single Sky frameworkSingle Sky framework

• Single Sky CommitteeSingle Sky Committee

• Functional Airspace BlockFunctional Airspace Block

• InteroperabilityInteroperability

• EurocontrolEurocontrol

Air Traffic ManagementAir Traffic Management


• SESARSESAR

• MaintenanceMaintenance

• ResearchResearch

Industrial cooperationIndustrial cooperation


International organisationsInternational organisations

Cooperation in international Cooperation in international organisationsorganisations

ICAO: safety, security, economic ICAO: safety, security, economic regulation, cooperation projects etc.regulation, cooperation projects etc.

ECACECAC

WTOWTO

etc.etc.


Phased approach Duration and milestones agreed by the

Parties Agreed Calendar must be complied with

(phases are not optional)(phases are not optional) Safeguard clausesSafeguard clauses

Phases


Technical co-operation important:Ensure level playing fieldPromote common high regulatory standardsEU industrial interests – all EU stakeholders should

work together (as “EU Inc.”) Technical co-operation/assistance should:

Drive and support general policySupport regulatory convergence and removal of

obstacles ATM, safety, security, “doing business”, airports

Lead towards mutual recognition of practices and standards

Technical Co-Operation An Important Tool


Corollary Issues

Other Areas of cooperation Other Areas of cooperation


10 years after the full entry into force of the “third package”, the Commission wished to take stock of the application of the package.

Some measures have become obsolete, while others are poorly applied or need to be clarified.

Simplify and consolidate legislation. Ensure homogeneous application of Community

legislation, especially with regard to the monitoring of the operating licence.

Ensure consistency between the internal aviation market and its external dimension.

Revision of the “Third Package”


Proposal presented 18th July 2006

Council General Approach adopted 8th June 2007

European Parliament first lecture 11th July 2007

Proposal still under discussion

Revision of the “Third Package”


General Principle: freedom to combine air-services or General Principle: freedom to combine air-services or to enter into code-share arrangementsto enter into code-share arrangements

But under a strict principle of reciprocity: Member But under a strict principle of reciprocity: Member States can introduce restrictions if carriers licenced States can introduce restrictions if carriers licenced by them have no access to similar commercial by them have no access to similar commercial opportunitiesopportunities

Rev. 3rd Package:Code-sharing


Community air carriers should not be "excessively Community air carriers should not be "excessively dependent on using wet-leased aircraft".dependent on using wet-leased aircraft".

Lease agreements subject to prior approval by the Lease agreements subject to prior approval by the national civil aviation authority. national civil aviation authority.

Wet-leasing aircraft registered in a third county, Wet-leasing aircraft registered in a third county, conditions:conditions: a) meeting safety standards equivalent to Community and

national requirements; b) Three possibilities:

exceptional economic needs (7 months renewable once), seasonal capacity needs (renewable without restrictions), or operational problems (approval may be granted for limited duration).

Rev. 3rd Package: Aircraft Leasing


The approval for wet-leasing non-EU aircraft may be The approval for wet-leasing non-EU aircraft may be refused if the third country where the aircraft is refused if the third country where the aircraft is registered does not provide reciprocity as regards wet registered does not provide reciprocity as regards wet leasing.leasing.

Member States concerned by operations of wet-leased Member States concerned by operations of wet-leased non-EU aircraft must be informed.non-EU aircraft must be informed.

Rev. 3rd Package: Aircraft Leasing


Community law applicable to Airports already exists (slots, groung-handling, SES/SESAR)

Context is evolving: Rapid growth of traffic; Capacity v. Demand; Economic changes (Airlines / Airports)

Facing the ”capacity crunch”: 2025 could see up to 2.5 times the 2003 traffic In 2025, 60 airports could be heavily congested, and the top 20

airports could be constrained 8-10 hrs. per day Only 25% of airport would have a possibility to add new

runways in the next 20 years

Airport Charges


Air Carriers complain about: High airport charges Monopolistic airports Lack of transparency Lack of consultation “Take-it-or-leave-it” attitude

Competition rules of EU Treaty difficult to apply: difficult to establish proper cost basis for every EU airport.

Commission proposals in 1990 and 1997 were not successful.

Airport Charges


Airport Charges

Communication: An action plan for airport capacity, efficiency and safety in Europe

Five principal measures to accommodate traffic growth in an environmentally sustainable manner to optimise the use of existing capacity; to provide a coherent approach to air safety operations at

aerodromes; to promote "co-modality"; to improve the environmental capacity of airports and the

planning framework of new airport infrastructure; and to develop and implement cost efficient technological

solutions. 2007 Proposal for a directive on airport charges


Council Directive 96/67/EC of 15 October 1996Council Directive 96/67/EC of 15 October 1996 First step in gradual opening of access to First step in gradual opening of access to

groundhandling marketsgroundhandling markets Opens up groundhandling services unless specific Opens up groundhandling services unless specific

constraints of space or capacity exist in an airportconstraints of space or capacity exist in an airport At the larger EU airports access to the market by suppliers of

groundhandling services is free for certain categories of services the number of suppliers may

be no fewer than two for each category of service At least one of these suppliers should be entirely independent

of the airport or the dominant air carrier at that airport Similar provisions exist with regard to self-handling,

Groundhandling


The Commission is engaging in a revision process of The Commission is engaging in a revision process of the Directivethe Directive

Stakeholders expressed the need for:Stakeholders expressed the need for: Simplification Clarification

Possibility to further market opening and some Possibility to further market opening and some regulation (insurance, quality standards)regulation (insurance, quality standards)

Groundhandling


Regulation (EEC) 95/93 as amended by Regulation 794/2004: technical modifications.

2004: Study by NERA on “Commercial slot allocation mechanisms”.

2004: Consultation paper by the EC - Responses by stakeholders.

Options: Secondary trading between air carriers Primary trading of new slots Primary trading of withdrawn slots

Aim: More efficient use of airport capacity – not higher costs for air

carriers.

Revision of the Slots Regulation


State Aid

financing of airports and start-up aid financing of airports and start-up aid to airlines departing from regional to airlines departing from regional airportsairports

2005 Guidelines (not legally binding, 2005 Guidelines (not legally binding, but explain how State Aid rules are but explain how State Aid rules are applied to Airports)applied to Airports)

Aids limited in time, targeted, for Aids limited in time, targeted, for smaller airportssmaller airports


Environmental issues:Environmental issues:The EU ApproachThe EU Approach

To fight against climate change is on the top of To fight against climate change is on the top of political agendapolitical agenda

Need for a comprehensive approach including:Need for a comprehensive approach including:

Better use of existing infrastructure Research & Development ATM / SES Market-based measures (ETS)

Within a global frameworkWithin a global framework


Technical AssistanceTechnical Assistance

The EC is willing to provide any technical The EC is willing to provide any technical assistance that may be neededassistance that may be needed

The assistance is generally provided on The assistance is generally provided on bilateral basisbilateral basis

But assistance of regional basis also existsBut assistance of regional basis also exists Importance of the Neighbourhood Importance of the Neighbourhood

frameworkframework The contents can be agreed, initiative on The contents can be agreed, initiative on

the part of the MEDA Countrythe part of the MEDA Country Key objective in air transport: Key objective in air transport:

Reinforcement of the capacities of the CAAReinforcement of the capacities of the CAA

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