New EU Transport Policy - "Keep Europe Moving"
On 22nd June 2006 the European Commission adopted the outlines for a future EU transport policy – including aviation..
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Airport capacity, efficiency and safety in Europe
As part of an exploration of possible measures to address current and future airport capacity shortages across Europe the European Commission in September 2005 launched a Consultation Paper on “Airport capacity, efficiency and safety”. The paper was aimed at the airlines, airports, air navigation providers and all other stakeholders of the air transport industry.
In an accompanying press release Vice-President for Transport, Jacques Barrot, said “We are working on Air Traffic Management and the Single European Sky to increase capacity in the sky. But if we do not address airport problems, this effort would be meaningless. We should both plan the construction of new airports, and make every effort to better utilise the existing infrastructure”. Stakeholders were asked to submit written contributions by 30th November 2005.
On 24th January 2007 the Commission published a Communication entitled "An action plan for airport capacity, efficiency and safety in Europe". According to the related press release this "provides a comprehensive action plan detailing a coherent strategy for responsibly tackling congestion at European airports". The measures described in the Communication aim to accommodate traffic growth in an environmentally sustainable manner as follows:
- 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
The Full Impact Assessment is also available on the Commission's website along with a useful summary assessment.
Early in October 2007 the EU Council reviewed the Commission's Communication and their conclusions were recorded in a press release issued at the end of the meeting - see extract attached. The ACI Europe was not wholly impressed - this is clear from the press release they issued the same day.
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European Common Aviation Area (ECAA)
In October 1996, the European Council granted the Commission a mandate to negotiate a
multilateral agreement with the then candidate countries as well as Iceland and
Norway. The object of the mandate was to open up markets between Europe and
its neighbours, so that within a new, wider, European Common Aviation Area (ECAA) there would be:
* An open market in terms of access, capacity and fares and freedom of
establishment without nationality clauses (on a reciprocal basis),
* Alignment with Community legislation on issues such as safety, security and
air traffic management.
The negotiations with the then candidate countries were discontinued in 2002, in view
of impending accession. However in December 2004, the Council of Ministers authorised the European Commission to start negotiations with eight south-east European partners (Albania, Bosnia and Hercegovina, Bulgaria, Croatia, the Former Yugoslav Republic of Macedonia, Romania, Serbia and Montenegro and the U.N. Mission in Kosovo) on a European Common Aviation Area (ECAA) agreement. The objective was to integrate the EU's neighbours in south-east Europe in the EU's internal aviation market, with open market access and full application of the EC aviation law.
The negotiations opened on 31 March 2005 with a multilateral high-level meeting, at which all negotiating parties expressed support for reaching an ECAA Agreement as quickly as possible. In order to give the ECAA partners time to prepare for the full application of EC aviation law, the EU developed a country-specific gradual approach: Once ECAA partners have fully implemented EC aviation law, ECAA airlines will have open access to the EU market. The transitional arrangements were negotiated in October and November 2005 with each ECAA partner individually. After only nine months of negotiations, the text of the ECAA agreement was agreed between all parties in December 2005.
The ECAA creates an integrated aviation market of 35 countries and more than 500 million people. The European airline industry has welcomed the new market opportunities created by the ECAA. The ECAA Agreement will extend the application of EC aviation law to ECAA partners, including issues such as economic regulation, aviation security, airport security, air traffic management, environmental protection, passenger protection and competition rules. In consequence, the Agreement will lead to equally high standards in term of safety and security across Europe.
On 14th March 2006 the Commission issued a proposal for a multilateral agreement (COM 2006/113) for approval by the European Council. The Commission's document explains the proposal in full detail.
At its meeting on 8th/9th June 2006 the Transport Council of the EU adopted a decision approving the signature and provisional application of the agreement [see Report of Meeting] and the Agreement was published in the EC's Official Journal on 16th October 2006
The new agreement supersedes all air service agreements between the Member States and the ECAA Partners.
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Aviation and climate change
The growing impact of aviation emissions on climate change is another matter on the agenda of the European Commission. In a letter to the Liaison Group in March 2005 the Vice President of the Commission, Jacques Barrot, said the Commision agreed that there is a need to consider the introduction of economic incentives designed to internalise external costs (including environmental costs) and to encourage the industry to limit its emissions.
One way to do this would be to extend the EU Emissions Trading Scheme (EU-ETS) to include emissions from the aviation sector. In December 2004 the Commission asked a small consortium of environmental consultants to study and advise on the feasibility of doing this. Their report, published in July 2005, can be seen on the Commission's website 2005 Study on the inclusion of aviatiopn in the EU-ETS"along with the related attached EU Press Release on 2005 Study
Later, in March 2005, the Commission launched an internet consultation exercise aimed at seeking the views of the public and organisations on possible ways of limiting the effect which aviation has on climate change. The Report of the Survey, published in July 2005, can be seen by clicking hereReport of 2005 Survey along with the covering press releaseEC Press about 2005 Survey.
These reports culminated in a Communication EC Communication on EU-ETS 09/05 of the Commission published on 27th September 2005 recommending that aviation emissions should be included in the EU Emissions Trading Scheme. This was part of a comprehensive approach which includes research into cleaner air transport, better air traffic management and the removal of legal barriers to taxing aircraft fuel.
Meanwhile the recommendation that that aviation emissions should be included in the EU Emissions Trading Scheme was debated at a meeting of the EU's Council (Environment) on 2nd December 2005 and their conclusions are to be found on pages 7-9 of the attached EC press release
The European Climate Change Panel (ECCP) set up by the Commission to take forward the proposal
delivered its final report at the end of April 2006 and on 20th December 2006 the Commission published its proposal for legislation accompanied by a press releaseEU Press Release on proposal for legislation.
The proposals allowed for aviation to be brought into the EU ETS in two steps. From the start of 2011, emissions from all domestic and international flights between EU airports would be covered. One year later, at the start of 2012, the scope would be expanded to cover emissions from all international flights – from or to anywhere in the world – that arrive at or depart from an EU airport. The intention was for the EU ETS to serve as a model for other countries considering similar national or regional schemes, and to link these to the EU scheme over time. Therefore, the EU ETS could form the basis for wider, global action.
On 30th March 2007 the UK Government launched a consultation on the Commission's proposals and on the Government’s initial analysis of the changes required to them. The comments received will guide the UK Government’s negotiating position. Details of the consultation are to be found in the DfT's press releaseDFT Press Release on consultation to include aviation in EU-ETS. The consultation document and associated papers can be seen on The Department's website. The closing date for comments was 1st June 2007.
On 20th December 2007 the EU's Environment Council reached political agreement on the proposals. The Council's position is close to the Commission's original proposal and most of the changes are technical improvements. There are, however, some changes of a more political nature, including:
- The one-year introductory phase for intra-EU flights proposed by the Commission has been dropped, and the scheme will now become operational in a single phase, starting in 2012.
- Emissions will be capped at 100 percent of the average level for the years 2004-2006.
- The level of auctioning has been increased to 10 percent, and revenue from the auctioned allowances should be used to combat climate change.
- An exemption has been introduced for operators with very low traffic levels on routes to, from or within the EU. Under this mechanism many operators from developing countries with only limited air traffic links with the EU will be exempt. This will not have a significant effect on the emissions covered by the scheme.
- A special reserve of free allowances for new entrants or very fast-growing airlines has been added. While this was not contained in the original Commission, it was found to be acceptable as the reserve is taken from within the overall cap and does not therefore affect the environmental effect of the scheme.
- A new mechanism to ensure consistent and robust enforcement throughout the EU has been introduced. As a last resort, Member States could ask for an operator to be banned from operating in the EU if it persistently has failed to comply with the scheme and other enforcement measures have proven ineffective.
The next stage is for the political agreement to be formally adopted as a "common position" and the proposal will then be sent to the European Parliament for a second reading. The impact of aviation on climate change is already an issue in the UK - visit our UK Issues page for details.
There is more information on the EU-ETS on the DEFRA website which includes a page on Aviation. See also:
- the ICF Consulting Report commissioned by DEFRA which examines the impact on EU ETS allowance prices of the inclusion of aviation into the EU Emissions Trading Scheme; this was published in February 2006.
- ACI Europe's press release of 20th December 2006 welcoming the proposed legislation to include aviation emissions in the EU-ETS
- the progress report on climate change (.pdf 533kb) considered at the ACCs Annual Liaison Meeting held at Stansted Airport in June 2007.
- European Low Fares Airline Association (ELFAA) press release giving
a cautious welcome to EU Council of Environment Ministers decision on Emissions Trading Scheme (ETS) (21 December 2007).
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European Directive 2002/49/EC - Assessment and Management of Environmental Noise
This Directive, often known as the Environmental Noise Directive (END), came into effect in June 2002.
The aim of the END is to define a common approach across the European Union with the intention of avoiding, preventing or reducing on a prioritised basis the harmful effects, including annoyance, due to exposure to environmental noise. This involves:
- informing the public about environmental noise and its effects;
- the preparation of strategic noise maps for large urban areas (known as 'agglomerations' ), major roads, major railways and major airports as defined in the END; and
- preparing action plans based on the results of the noise mapping exercise.
Such plans will aim to manage and reduce environmental noise where necessary, and preserve environmental noise quality where it is good.
Late in February 2005 the Government launched a consultation exercise on its proposals to transpose and implement the END. The consultation paper has now been removed from DEFRA's website but it is still possible to see the separate consultation paper for Scotland. The consultation covered proposals for the noise mapping of airports and for preparing action plans based on the results of the noise mapping exercise. It was proposed that these functions should be the responsibility of the airport operator although in the case of airports designated under s.78 of the Civil Aviation Act 1982 (Heathrow, Gatwick and Stansted) the noise mapping part of the work (but not the actions plans) would be the responsibility of the Secretary of State. In November 2005 DEFRA also asked for technical comments on the drafting of the new Regulations .
To assist in the implementation of the END, and also the proposed National Ambient Noise Strategy (NANS), DEFRA in March 2004 published the report of a research study on Aircraft Noise Mapping at Heathrow Airport carried out by the CAA's Environmental Research and Consultancy Department.
The END should have been transposed into law by the Member States of the EU by 18 July 2004. However, because of the large number of complex technical details which had to be resolved, DEFRA found it impossible to comply with this deadline in the UK and it was not until September 2006 that
the Environmental Noise (England) Regulations 2006 (SI 2006/2238) were laid before Parliament. They came into force on 1 October 2006. See also:
Airport technical guidance has been produced for for operators of civil airports likely to be affected by the Regulations. This guidance does not apply to those airports that have been designated under section 80 for the purposes of section 78 of the Civil Aviation Act 1982 ( Heathrow, Gatwick and Stansted) .
In December 2007 DEFRA published the noise maps for 18 airports in England - these can be seen on the Department's website
The next stage is the preparation by airport operators of Noise Action Plans (NAPS) . Defra is said to be preparing guidance on how these Plans should be prepared. It is understood there will be consultation on a draft of this guidance but thus far nothing has been heard. It had been hoped that the Guidance would be finalised and issued in time for the NAPs to be ready by the end of the original date of April 2008. However, the delay in issuing the guidance will result in considerable slippage, probably to the end of the year. It is understood that the DfT is expecting the NAPs will reflect the measures already in place at Airports for the mitigation of noise.
The EU Directive requires the NAPs to be prepared in consultation with local communities. The DfT's expectation is that this will be through the local airport consultative committee but this will be a matter for airports to arrange. The DfT will only seek to involve itself if representations are made as to the adequacy of the local consultation. The END is being separately implemented in Scotland and Wales
See also the paper on the END (.pdf 40kb) prepared for the ACCs Annual Liaison Meeting at Stansted on 13/14th June 2007.
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Air Quality
In September 2005, the Commission presented a thematic strategy on air pollution (COM 2005/446) and a proposal for a new air quality directive (COM 2005/447). The draft Directive would revise the current ambient air quality legislation:
- by merging five legal instruments into a single directive.
- introducing air quality standards for fine particulate matter (PM2.5) in the air, because of the large health benefits to be obtained.
At the same time, more flexibility would be given to the Member States. Where they can demonstrate that they have taken all reasonable measures to implement the legislation but still need more time to comply with air quality standards in certain places, it is proposed to allow them to request a time limited extension to the compliance deadline in the affected zones under certain conditions.
Since then the proposed Directive has been working its way through the EU's legislative procedures. At its plenary session of 11 December 2007, the European Parliament adopted a compromise package of 26 amendments which had been agreed with the European Council with a view to reaching a second reading agreement. In April 2008 the EC accepted the 26 amendments. The conclusion of the compromise package was
facilitated by the adoption of a declaration by the Commission on Community
measures necessary for reducing emissions at source.
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Rules and Procedures for Introducing Noise Related Operating Restrictions
EU Directive 2002/30, which came into effect on 28th March 2002, prescribes rules and procedures for introducing noise related operating restrictions at Community Airports. Members states were given 18 months in which to implement the directive. Following a consultation exercise between July and October 2002, the Government in July 2003 made the Aerodromes (Noise Restrictions) (Rules and Procedures) Regulations 2003 (SI 2003/1742). These came into effect on 6th August 2003 and provide that the responsibility for undertaking the assessments required by the Directive, and for reaching any consequent decision about operating restrictions (which may include prohibiting the noisiest aircraft from the airport either at certain times or completely), should rest with:
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the Secretary of State for Transport, in the case of airports designated for the purposes of Section 78 of the Civil Aviation Act 1982 (currently the three London airports - Heathrow, Gatwick and Stansted)
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the airport operator, in the case of all other (ie. non-designated) airports to which the Directive applies.
and that these bodies would be "competent authorities" under Article 3 of the Directive.
For more information see the DfT's Press Release, the Regulatory Impact Assessment and the Summary of Responses to the 2002 Consultation Exercise
 The Regulations give rise to interesting procedural issues where it is proposed at a non-designated airport to impose noise restrictions as a condition of planning permission, or by agreement under s.106 of the Town and Country Planning Act 1990, or significantly to alter existing restrictions imposed originally in that way. How are the new procedures to be dovetailed with the planning procedures and decision making processes which involve the local planning authority in a leading role?
The allows Member States to introduce at individual airports new operating restrictions, in particular on aircraft that are marginally compliant with ICAO Chapter 3, provided that they do so in accordance with the so-called “Balanced Approach” set out in ICAO Assembly Resolutions A33-7 and A35-5.
Article 14 of the Directive requires the Commission to report to the European Parliament and to the Council on the application of the Directive no later than five years after its entry into force. It specifies further that the Commission's report should be accompanied, if necessary, by proposals for revision of the Directive. Click here to see the Report
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Airport Charges
On 7 April 2006 the European Commission met representatives of the air transport industry to discuss airport charges.
Airport charges are paid by air carriers to an airport operator to cover the cost of the provision of airport facilities and services and, as a general rule, consist at least of (i) landing and take-off charges based on the maximum take-off weight of an aircraft; (ii) parking charges for parking of aircraft at an airport; and (iii) passenger charges for the use of the airport terminals. This is in contrast to airport taxes which in general have nothing to do with airport services but are levied by public authorities, mostly on air passengers, to raise revenue.
Over the past 15 years, many changes have occurred in airport and air carriers markets:
Traditional airlines are subject to increased competition in the EU and global markets, in a difficult environment after the 11 September 2001. They talk of the need to reduce the cost of aviation infrastructure which is a considerable component of operational costs.
The emergence of low cost carriers on the European Market has led to new practices, not only in terms of new services (‘low cost services' and low cost terminals) but also in terms of airport charging and the application of rebates.
Competition between airports is increasing, not only between large hubs, but also between international and regional airports, as well as between publicly and privately managed airports.
Given the congestion of EU airports and EU skies, investment in airport infrastructure is crucial. Airport charges are an important issue in the context of the extension of airport capacity.
For these reasons, the regulation of airport charges at EU level is thought to be of critical importance to ensuring a level-playing field at air carrier and airport level.
This is the background to the Commission's draft Directive published on 7th January 2007. According to the Commission's press release this seeks "re-define the relationship between airport operators and airport users by requiring total transparency, user-consultation and the application of the principle of non-discrimination when calculating charges levied on users. Moreover, it will create a strong, independent national authority to arbitrate and settle disputes in order to achieve a speedy resolution."
The Full Impact Assessment is also available on the Commission's website along with a useful summary. See also the European Parliament's Procedure File
On 26th March 2007 the UK issued a consultation paper on the draft Directive seeking views which will inform the DfT position in European negotiations on the subject.
A copy of the draft Directive, and related documentation, can be seen on the Department's website by clicking the link. The closing date for comments was 18 June 2007.
See also the paper on the proposed Directive prepared for the ACCs Annual Liaison Meeting at Stansted on 13/14th June 2007 as well as the Liaison Group' consultation response which sent in after the meeting.
On 15th January 2008 the Department wrote to stakeholders describing the progress of negotiations on this proposed Directive. The letter said that current text agreed by Member States contains a number of key amendments to the original draft, which they believe improves the draft Directive:
- The scope of the Directive is now drafted to apply to airports with 5 million passengers per annum. This reduces the number of UK airports covered by the Directive from 20 to 11. Based on 2006 data, these are Heathrow, Gatwick, Stansted, Manchester, Luton, Birmingham, Glasgow, Edinburgh, Bristol, Newcastle and Belfast International.
- An amendment allows the UK 's current system of economic regulation under the Airports Act 1986 to continue in place of the Directive's provisions on right of appeal to the regulator in the event of disagreement over airport charges. The principle of establishing objective and transparent criteria for appeals to the regulator about airport charges in other Member States has also been incorporated into the text.
- The requirement for airports and users to consult over the level of charges is no longer a yearly obligation, but allows for multi-annual agreements. A greater degree of flexibility has also been introduced to the proposed timeframe for announcing changes in charges.
- The extent of information which airports need to provide to users when consulting over charges is now more proportionate. This has to be provided by all airports in the Directive's scope, including those which are in airport networks.
- There were also a number of other more minor changes about service level agreements (which are no longer a requirement), the treatment of airport networks and the length of the Directive's implementation period.
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 Aviation Security
Following the attacks in the US on 11th September 2001 the EU passed Regulation
(EC) No 2320/2002 of 16 December 2002 which established common rules for civil aviation security. This was followed by a series of implementing Regulations drawn up under the auspices of the Aviation Security Regulatory Committee (AVSEC) set up under the 2002 regulation to “ensure technical adoption of the Annex to Regulation 2320/2002 and development of the necessary implementation tools”. These Regulations cover such matters as quality control, inspections and defining the parts of Airports restricted for security purposes. While these are in
some respects more stringent than those previously applied in a number
of Member States, they are lower than those already applied in the
UK.
Regulation
(EC) 2320/2002 was seen by parts of the aviation industry as lacking
any clear policy as to the financing of the additional security. Because
the Rgulation was a technical regulation the Commission had no vires to determine
how Member States finance their compliance with it. However, at the
request of the European Parliament, the Commission commissioned the
Irish Aviation Authority (IAA) to carry out an urgent study to gain
a clear picture of the various security systems across and within
EU Member States, and to investigate the funding of civil aviation
security which is known to be an uneven playing field. The IAA report,
originally expected in September 2003, was finally made available
at the end of 2004 and the Commission issued a Report to the EC Council (COM 2006/431) on the matter in August 2006. This said that security costs in transport can be significant and are currently largely borne by users. The report gives some insight into the different financing mechanisms which exist in the Member States and warns that the heterogeneity of approach may distort competition. It concludes that more transparency of security taxes and charges would benefit the users of transport services and that, in general, public funding of anti-terrorist measures in transport does not constitute state aid.
An earlier study by ACI Europe indicates how
the responsibility for security measures differs from country to country,
and within any given country, from airport to airport. The study also
shows that security measures are mostly financed directly by the airport
operator and that there is a clear disparity in the funding of additional
post-11 September security measures among airport operators, governments
and airlines. The study, says ACI, highlights “the need for
governments to address, as a matter of urgency, their responsibility
for harmonising and financing European civil aviation security”. For more information see ACI Europe‘s press releases of 6/11/02ACI Europe Press Release, 27/11/03ACI Europe Press Release, 26/02/04ACI Europe Press Release and 9/12/04ACI Europe Press Release . See also their reaction to the EC's August 2006 Report
Meanwhile, in September 2005 the Commission issued a press release saying that it proposed to strengthen the common air security rules. The release says the proposal follows on from the Commission’s annual report on the implementation of the 2002 Regulation, which draws conclusions from the inspections carried out by the Commission since February 2004. Subsequently the Commission published draft Regulation (COM 2005/429) - which would replace Regulation (EC) 2320/2002. This was finally approved as
Regulation (EC) No 300/2008 of 11 March 2008.
For more on Aviation Security visit our UK Issues page. See also the Aviation Security report (MS Word 63kb) prepared for the ACCs Annual Liaison Meeting at Manchester Airport on 21/22 June 2006 and also the Airport Security paper (.pdf 238kb) prepared for the Annual Liaison Meeting at Stansted on 13/14th June 2007.
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Passenger Name Record (PNR)
This proposal
for a Council framework decision, adopted on 6th November 2007,
suggests that air carriers should make available Passenger Name Record (PNR) data for flights entering or departing from the EU to a Passenger Information Unit which will be designated in each Member State. The proposal is made in the context of the fight against terrorism and transnational organised crime.
The data will be processed for the purpose of carrying out a risk assessment of the threat level of unknown passengers. Thus, the competent authorities of the Member States will receive the data in electronic form and well in advance of a flight's arrival.
Arrangements for the transmission of PNR data have been concluded with the United States and Canada. The EC believes it can be anticipated that more third countries are likely to request the provision of PNR data from air carriers operating flights from the EU.
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European Aviation Safety Agency
At its meeting in Brussels on 11 July 2003, the Administrative
Board of the new European Aviation Safety Agency appointed Mr Patrick
Goudou as the Agency's first Executive Director.
The Agency, established under Regulation
(EC) 1592/2002, became operational on 28 September 2003. At that stage is was responsible for:
- the certification of aeronautical products, parts and appliances;
- the approval of organisations and personnel engaged in the maintenance
of these products.
For more information on the transition to the new arrangements please
see the CAA's publication FODCOM
26/03**
It is the Commission's intention, however, progressively
to seek amendments to the Regulation to extend the scope of the Agency. In November 2005 they published a communication (COM/2005/578) and a proposed new regulation (COM/2005/579) which would:
(a) make EASA responsible for pilots' licences "to guarantee that they comply with common European rules on knowledge, skills and language proficiency".
(b) lay down the essential requirements that aircraft must observe when operating in the EU, whether they are EU or third country planes.These requirements will henceforward be the responsibility for EASA.
(c) make EASA responsible for certifying compliance of third country operators with the essential requirements for operating aircrafts in the EU.
This legislation – now known as Regulation (EC) No 216/2008 - was approved (with amendments) early in 2008.
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Directive on the Safety of Third Countries' Aircraft using Community
Airports
Directive
2004/36/CE - often known as the SAFA (Safety Assessment of Foreign Aircraft) Directive - aims to improve air safety in Europe by ensuring
that third-country aircraft using EU airports comply with
international safety standards contained in the annexes to the Chicago Convention.
Under the new legislation non-EU aircraft and their crews will face inspections if it is suspected that safety rules are not being met and standardised EU-wide inspection
procedures will prevent non-EU aircraft from diverting to different
airports within the Community as a way of evading safety checks.
The Commission is required to publish yearly
an aggregated information report available to the public, which will
indicate whether there exists an increased safety risk to air passengers.
The UK Government notes that the processes it has long had in place to carry out checks under the ECAC SAFA Programme meet the intentions of the Directive, which will be implemented formally by the Civil Aviation (Safety of Third-Country Aircraft) Regulations 2006, due to come into force on 30 June 2006.
Meanwhile, on 15th May 2006 the Central Flow Management Unit (CFMU) at EUROCONTROL launched an alerting
service aimed at those European states which are the departure or arrival point for an
aircraft deemed by national authorities to pose a safety risk according to the
Safety Assessment of Foreign Aircraft (SAFA) programme. This will allow those states to take appropriate action such as initiating an inspection, preventing the
aircraft from taking off (”grounding”) or even from entering their territory.
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Information for passengers on the identity of carriers and the sharing of safety information by Member States - Regulation (EC) No 2111/2005
This Regulation,
made in December 2005, gives air passengers the right to be informed of the identity of the air carrier which will operate the flight(s), for which they have made a reservation and, in parallel, provides for the establishment of a Community list of air carriers subject to operating bans within the Community
 The Regulation flows from a fatal air crash at Sharm-El-Sheikh on 3 January 2004 involving a passenger jet carrying 148 people to Paris. It emerged after the accident that the operating carrier was, at the time of the accident, banned from flying to Switzerland because of concerns about safety, but authorised in certain Member States. In the wake of this accident the Commission resolved to make proposals for reinforcing the current system of safety inspections based on the SAFA Directive 2004/36/EC – see above – and also to respond to public concerns that passengers should be informed of the precise identity of the company which actually transports them.
Because of code sharing or wet leasing this is not always clear to passengers.
It was felt that a higher degree of transparency would lead companies to strengthen their commitment to safety.
The Regulation establishes a process whereby the Commission, in consultation with Member States and using common safety criteria, will decide that air carriers should be refused permission to operate services within the Community. The Member States are responsible for enforcing the operating bans. There are provisions for a Member State to impose its own bans under exceptional circumstances, taking into account the common safety criteria, and these will be considered by the Commission for Community-wide action. In addition, a Member State may maintain a ban in its own territory when the Commission decides against Community wide action if there are safety problems specifically affecting the Member State .
The Directive provides for the Commission to publish a list of all airlines banned in this way. The list is published on the EU and both Member States and the Commission must facilitate public access to the list - see for example the DfT website. The list is updated from time to time. The October 2006 includes all air carriers certified by
the authorities in the Congo, Equatorial Guinea, Kyrgyz, Liberia, Sierra Leone and Swaziland as well as
Kenya's DAS Air Cargo and Uganda's Dairo Air Services. Altogether 140 airlines are listed. The popular airlines used for vacations by Europeans are noticeably absent from the list and the EU could not specify how many of the banned airlines had flown in European skies or used European airports. But some, such as Ariana Afghan Airlines, operate routes from Europe.
The Regulation also provides that an air carrier making a booking (“the contracting air carrier”) will need to ensure that the passenger is informed of the identity of the carrier(s) actually operating the flight(s). Where the precise identity of the carrier(s) is not yet known the contracting air carrier will need to tell the passenger the name or names of the air carrier(s) likely to provide the service(s) and subsequently to inform the passenger as soon as the precise identity of the carrier(s) is established. Where the operating carrier is changed after reservation the contracting air carrier will be expected to make all reasonable efforts to ensure that the passenger is informed of the change in good time and, in any case, by not later than check-in.
Article 13 of the EC Regulation requires all Member States, by 16 January 2007, to ensure compliance with these rules and to lay down effective, proportionate and dissuasive penalties for their infringement. On 2nd August 2006 the DfT began a consultation exercise on the required enforcement mechanisms. The closing date for comments was 20 October 2006. On 12th December 2006 the Secretary of State made the Civil Aviation (Provision of Information to Passengers)
Regulations 2006 (SI 2006/33030) which can be seen of the Department's website along with a Note of the Responses to the Consultation and a Regulatory Impact Assessment. The new Regulations took effect on 16 January 2007
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Voluntary
Commitments on Air Passenger Service
In another part of its June 2000 communication on
the
"Protection of air passengers in the European Union" (COM
2000/365) the Commission said it would promote the preparation
and adoption of voluntary commitments by European airports to set
quality standards for services and to consider design standards for
terminals. Likewise there would voluntary commitments for adoption
by airlines covering the improvement of service quality, adequate
care for delayed passengers and simple procedures for lodging complaints
and mechanisms for settling disputes out-of-court. These voluntary
codes should be ambitious, engage as many operators as possible and
include mechanisms for monitoring compliance.
Drawn up under the auspices of the European Civil
Aviation Conference (ECAC) the codes were unveiled in draft in May
2001:
Implementation finally got under way in 2002 and
in the UK more than twenty airports are now signed up to the Airport
Voluntary Commitments.
In the UK the monitoring of the Airport Commitments
is the responsibility of the Department for Transport. In 2003
they did this on the basis of the consumer reports which signatory
airports are expected to produce at least once a year. In order to
build in a measure of independent validation, the Airport Consultative
Committee for each airport was given an opportunity to comment on
the document before it was sent to the Department.
In November 2003 the Department published its first
annual report on the implementation of these Commitments:
 On
2nd February 2004 the Department said that in the UK they had found
that the airport authorities which had signed up to the Commitments
were generally meeting the undertakings, often going much further,
and in the relatively few cases where there were shortcomings the
airports concerned were working hard on remedies. They were particularly
pleased to note the interest and engagement of the airports’
Consultative Committees, and regard the Commitments as a helpful benchmark
against which airports and their Consultative Committees can continue
to assess performance. Against this background they had taken the
view that the Department should now cease active monitoring, although
they would be grateful to continue to receive copies of the passenger
service reports required under Commitment No. 11. They would not,
however, use these to compile progress reports, nor to pass on information
about individual operators.
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Compensation for denied boarding or the cancellation
or long delay of flights
To fill perceived shortcomings in the present European
rules on compensation and assistance for air passengers in the event
of denied boarding, cancellation or delay the European Commission
in December 2001 put forward a proposal for a new regulation. This
was finally approved early in 2004 with the signing of the new Regulation
(EC) 261/2004 which came into force on 17th February 2005.
The new Regulation updates and replaces Regulation
(EEC) 295/91 which deals solely with compensation and assistance in
the event of denied boarding. However, the new Regulation goes further
and extends its scope to cover cancellations and delays.
[Summary of the Regulation].
The regulation did not have an easy passage and there
continues to be opposition from the industry.
The EU Regulation requires Member States to ensure and supervise compliance
by their air carriers and to impose sanctions for infringements
that are effective, proportionate and dissuasive. In August 2004
the UK Government issued for consultation draft UK Regulations and at the end of March 2005 they issued the Civil Aviation (Denied Boarding, Compensation and Assistance) Regulations 2005 (2005/975) which came into operation on 23 April 2005.
The EU continue to be very keen to publicise the new arrangements and to ensure that there is proper enforcement across Europe.
In the UK , enforcement is a two-stage process. First, the Air Transport Users Council (AUC) filters complaints from passengers, bringing to the attention of the CAA any patterns of non-compliance or suspected deliberate misapplication of the Regulation. Second, on the basis of such information, the CAA decides on the appropriate enforcement action to take, whether persuasion or legal proceedings.
On 4th April 2007 the European Commission presented a report which evaluates the results of the Regulation so far. The Report can be seen on the EC website. In an accompanying press releaseCommission report on working of the Regulation the Commission says: ”Although there is no doubt that air passengers enjoy better protection today, we must make sure that airlines and Member States fully comply with their obligations. The Commission will give them six months to make the air passengers regulation work and will provide them with full support in that process".
Top of Page
The Montreal Convention
The Montreal Convention on the Unification of
Certain Rules for International Air Carriage was adopted at a
Diplomatic Conference in Montreal in May 1999. It was ratified by
the countries of the EU on 29 April 2004 and took effect across Europe
on 28 June 2004.
The Convention consolidates, updates and will eventually
replace all previous international agreements on air carrier liability,
including the 1929 Warsaw Convention. Each passenger will be able
to claim up to £850 (or the sterling equivalent of 1,000 Special
Drawing Rights (SDR) for lost, damaged or delayed luggage but they
must provide evidence. If agreement cannot be reached the claimant
has the right to sue the airline for the alleged damages.
The Convention also establishes a regime of unlimited
airline liability for death or bodily injury in the event of an accident,
putting it in line with current rules applicable to EU airlines. It
will apply to flights between the UK and countries that have also
ratified the Convention, such as the United States. It establishes
strict liability up to 100,000 SDR (approximately £85,000),
irrespective of a carrier's fault. The second tier is based on presumption
of fault of a carrier and has no limit of liability. The Convention
also establishes a limit of about £3525 per claim for passengers
who have incurred costs resulting from a delay, where the airline
is held to be at fault.
The Montreal Convention also states:
In cases of death or injury to passengers,
the Convention allows contracting parties to require air carriers
to make prompt advance payments to assist entitled persons in meeting
immediate economic needs;
Air carriers must be adequately insured, thereby ensuring the availability
of financial resources for purposes of compensation;
Legal action for damage resulting from the death or injury of a passenger
may be filed in the country where, at the time of the accident, the
passenger had his or her principal and permanent residence, subject
to certain conditions; and
Simplification and modernisation of documentation related to the carriage
of cargo.
The coming into force of the Montreal Convention
brought into effect Regulation
(EC) No 889/2002 which amends Council Regulation
(EC) No. 2027/97 on air carrier liability in the event of accidents,
thereby creating a uniform system of liability within the Community.
This Regulation applies many of the provisions of the Convention to
Community airlines whether they are operating within the EU or internationally.
[Consolidated text of Regulation 2027/97 - .pdf format]
Top of Page
 People
with Reduced Mobility
ECAC Code of Good Conduct
The ECAC Facilitation Group has adopted Guidelines on Awareness and Disability Equality for all Airport and Airline Personnel dealing with the Travelling Public. In October 2006 these became a new Annex N to ECAC Doc. 30 on Facilitation. The new Guidelines provide practical guidance on best practice in meeting the needs of PRMs travelling through airports and sets targets for service delivery. They will serve as guidance for airport staff training. The Guidelines are also referred to in the new EU Regulation referred to below.
EU Regulation (EC) No 1107/2006
Following its consultation in 2002/03
on Airlines’ Contracts with Passengers the European Commission drew up legislative proposals
on the transport of PRMs - COM (2005)47. These were finally
issued in mid February 2005.
There were two essential goals: first, preventing unfair treatment, that is refusal of carriage on the basis of reduced mobility and, second, guaranteeing the provision, free of charge, of the assistance that passengers with reduced mobility need to have for air travel.
When the proposed Regulation came before the European Council there was intensive discussion of the proposals and this led eventually to a revised text of the proposed Regulation which was agreed on 6th October 2005. The most difficult issue was the question of who should be responsible for providing the assistance to disabled persons and persons with reduced mobility at airports. It was finally agreed that the managing bodies of airports should have the overall responsibility for providing such assistance.
The proposed Regulation was subsequently approved by the European Parliament following a debate in Plenary session in mid December 2005 and following its approval by the Transport Council on 9th June 2006 it was published in the Community's Official Journal on 26th July 2006
The new Regulation takes effect on 26 July 2008, except Articles 3 and 4, which take effect on 26 July 2007 - Article 3 makes it illegal to refuse carriage on grounds of disability except on the grounds specified in Article 4.
On 2nd April 2007 the UK Department for Transport
launched a consultation seeking the views of UK stakeholders on the enforcement of the EC Regulation 1107/2006.
The Consultation Document and associated papers (including the EC Regulation, Impact Assessment and Proposed Enforcement Regulations) can be found on the Department's website.
In this connection the Department held two symposiums on the proposals - one for Aviation stakeholders and another for Disability group stakeholders. That for Aviation stakeholders was held at the Department's offices in London on 15 May 200. A copy of the Department's note of the meeting is attached.
Comments were required by 25th June 2007and a copy of the response sent on behalf of the Liaison Group is attached. The Department's response to the points made in consultation is also on their website.
On 3rd July 2007 the Department made the The Civil Aviation (Access to Air Travel for Disabled Persons
and Persons with Reduced Mobility) Regulations 2007(SI 2007/1895). These incorporate some changes in response to the points made in consultation but not those made by the Liaison Group.
In August the CAA issued guidance for UK carriers (CAA Document FODCOM 18/07) on the
circumstance in which they might refuse carriage for a PRM pursuant to Article 4(1) of this Regulation, e.g. on safety grounds.
The new Regulation establishes a specific requirement for training airport and airline staff in disability awareness and in this connection the ECAC Guidelines adopted in October 2006 will be important.
Meanwhile......
The Directive on Compensation
and Assistance to Air Passengers in the event of Denied Boarding and
of Cancellation or Long Delay of Flights includes provision which
protects PRMs, those who accompany them and unaccompanied children
from being denied boarding.
The question of air travel for the disabled is already
high on the agenda in the UK - see our UK Issues
page. See also the updating report (MS Word 91kb)UKACCs 2006 report on access to air travel for people with reduced mobility" on access to air travel for people with reduced mobility prepared for the ACCs Annual Liaison Meeting at Manchester Airport on 21/22 June 2006 and also the paper (.pdf 115kb)UKACCs 2007 report on access to air travel for people with reduced mobility" prepared for the Annual Liaison Meeting at Stansted on 13/14th June 2007.
Top of Page
EU rules on airport slot allocation
As long ago as June 2001 the European Commission
adopted proposals to amend Regulation
(EEC) No 95/93 so as to modernise the current allocation system
for landing and take-off slots at EU airports with a view to clarifying
some of its provisions and enhancing its efficiency. At the same time
the Commission announced a fundamental review of the slot allocation
system involving an in-depth study followed by a broad consultation
with Member States and the aviation industry.
Progress has been slow and it was not until the
end of April 2004 that amending Regulation
(EC) No 793/2004 was signed
giving more clarity and transparency to the current rules notably by taking away any ambiguity in relation to the principles and the procedures of slot allocation, the status of the slot coordinator and the imposition of sanctions to prevent any abuse of slots that would further worsen the scarcity of slot capacity at congested Community airports.
The amendments
also included clarification of the definition of a slot as a ‘permission’
rather than ‘entitlement’, thus eliminating any risk of
a slot being interpreted by airlines as a property right.
These changes
took effect at the end of July 2004. The sanctions to be imposed in cases of abuse are a matter for the member states and in July 2005 the UK Department for Transport launched a consultation on
the sanctions to be applied in cases of repeated and intentional misuse of slots by airlines. The consultation closed on 7th October 2005. In the light of the responses, and some work on the sanctions scheme done by Airports Coordination Limited (ACL) on behalf of the DfT, the Department in October 2006 made the Airport Slot Allocation Regulations 2006 (SI 2006/2665) which took effect on 1st January 2007. The Regulations provide for the introduction of "dissuasive sanctions" to deal with repeated and intentional slot misuse at coordinated airports. It nominates the airport coordinator as the body responsible for enforcing the sanctions scheme. In the event of any dispute over sanctions, air carriers will have recourse to an independent reviewer, and ultimately to the Court by way of judicial review. The Regulations are available on the OPSI website.
The 2004 Regulation required the Commission to submit a Communication to the European Parliament and the
Council on the operation of this Regulation within three years of its entry into force. The
Communication shall address in particular the functioning of Articles 8, 8a and 10. This
Communication was issued on 15th November 2007 - see also the Commission's press release.
Meanwhile, the Commission in the autumn of 2002 appointed
the National Economic Research Associates (NERA) to carry
out the in-depth study which was intended as the basis for the more fundamental
review. Their 402 page report was completed in January 2004. The report assesses
the effects of different types of slot allocation scheme. All are
market-oriented -
- slot trading,
- attaching posted prices to slots and
- auctioning slots.
(Note: The copy of the NERA study previously posted on the Commission's website has now disappeared. The Commission's explanation is that the NERA study was "updated" by the 2006 Mott MacDonald & Oxera study referred to below.)
In September 2004 the Commission issued a Staff
Working Document setting out ideas and seeking the views of Member
States. The Response of the UK Government can be seen on the
DfT's
website. It is worth noting that this included support for the Commission's proposal that parties other than air carriers could participate in slot trading. In theory, this proposal would allow regional bodies to buy slots to protect regional services.
In preparing for further amendments to European slots legislation the Commission engaged a consortium consisting of Mott MacDonald & Oxera to undertake a study on the secondary trading of slots. The report of the study was published in December 2006.
On 29 January 2008 the Commission organised a stakeholder hearing on the functioning of the slots Regulation. A report of hearing can be seen on Commission's website - the key conclusions are:
- The Commission will concentrate on ensuring better implementation of the existing
Regulation. In addition, the Commission will shortly issue a Communication that will clarify a number of provisions that may not be uniformly applied across Member States, in particular with respect to the secondary trading of slots.
- At a second stage, the Commission may consider reviewing a number of provisions of
the Regulation if ultimately this proved to be necessary. In any case, the Commission
will facilitate the involvement of stakeholders and Member States in further
developments regarding slot allocation. In this respect, the Community Observatory on airports, which will be set up in the coming months, may be a forum in which all qualified parties will be in a position to effectively tackle slot issues.
The UK Government supports secondary trading, and last year it commissioned a study by DotEcon Ltd to help inform its position on the use of alternative market mechanisms (e.g. auctions) to allocate new capacity. The study was published in October 2006. The UK 's position on all slots matters is of course subject to the details of the Commission's proposals when they emerge. Top of Page
Revision of the third package for liberalisation
of air transport
During 2003 the Commission carried out a consultation
about the revision of Regulations (EEC) 2407/92Regulation (EEC) 2407/92, 2408/92Regulation (EEC) 2408/92
and 2409/92Regulation (EEC) 2409/92
of 23 July 1992, together known as "the third package" for
liberalisation of air transport. The Consultation Paper, and the responses, can be accessed on the the EC website.
 Many of the matters covered by the consultation lie
outside the ordinary remit of Airport Consultative Committees but
Part B (para 33-45) of the consultation paper will be of interest
to some. For example, there was a suggestion that the procedures for
public service obligations should be revised. PSOs allow member states
to arrange air services to isolated or developing areas where these
appear vital and to provide financial support. Modification
was also suggested to the right of member states to establish non-discriminatory
rules for the distribution of air traffic between airports within
the same "airport system" - Heathrow, Gatwick and Stansted
is defined in the 1992 Regulation as one such system. It was
suggested that the definition of an airport system could be tightened
up by adding the criterion that sufficient links must be provided
between the airports and the centre of the conurbation they serve
(e.g. a public transport system).
Firm proposals for the revision of the third package - COM(2006) 396 - were finally issued on 18th July 2006 - see the Commissions 's detailed proposals as well as their press releaseEC Press Release on revision of Third Package and questions and answers sheet. Among other things the proposed Regulation would change the rules
applicable to public service obligations (PSO's) "to diminish red tape" . The new rules "will avoid excessive recourse by Member States to PSOs as a pretext for closing certain markets from competition."
On 25th October 2006 the UK Department for Transport launched a consultation exercise with the aim of ensuring that the final regulation would benefit consumers and operators. The closing date for responses was 19 January 2007. The Department's summary of the responses was published in May 2007. These documents can be seen on the Department's website.
The EC's proposals are still working their way through the EU's legislative procedures. In November 2007 agreement was reached between the Council and the European Parliament on the shape of the new Regulation - see press release and this was the subject of a Communication from the Commission to the Parliment on 21st April 2008. The next steps are awaited.
Top of Page
Ground Handling
In December 2001, the European Commission appointed
the SH&E consultancy group to study the impact of Council
Directive 96/67/EC on the liberalisation of the ground handling
market at Community airports.
The study concerned the number of handlers at the
airport, the criteria for selecting them and the consequences of the
opening up of the market, especially in terms of employment, prices
and ‘quality services’. The study involved visits to 33
airports and a postal survey of another 48. SH&E's
Final Report** was submitted in October 2002.
A central finding of the report was that quality
standards at European airports are falling and that urgent action
to address this issue is required. Rather than targeting a further
liberalisation of the ground handling market, any new legislation
must address these problems as a first priority.
In the light of the report the Commission said it intended to issue a proposal
for the revision of Directive 96/67/EC. In preparation for this the
Directorate-General Energy and Transport invited Member States and
stakeholders to comment on a Consultation
Paper. The closing date was 1st June 2003.
There followed long period of silence and it was not until January 2007 that the Commission, as part of its ‘Airport Package',
published a report on the implementation of the 1996 ground handling directive . According to the Commission's press release this "demonstrates the positive effects that the initial phase of liberalisation has had on opening up access to ground handling markets at European airports to competition and opens the door for a debate as to the next steps that need to be taken".
See also ACI Europe's thoughtful article on Ground Handling in its February 2006 e-Communique
Top of Page Proposed Regulation against subsidisation and unfair
pricing practices in providing airline services from non-EU countries
Regulation
(EC) No 868/2004, which came into force in May 2004, authorises
action against unfair competition from non-Community carriers on routes
to and from the Community brought about by trade-distorting third
country subsidies. It also provides remedies against unfair pricing
practices by state-controlled air carriers.
Top of Page Computerised Reservation Systems
Computerised Reservation Systems (CRSs) provide customers with instantaneous
information about the availability of air transport services and the fares for such
services. They permit travel agents, whether brick and mortar or on-line, to make
immediate confirmed reservations on behalf of the consumer.
The Code of Conduct for Computerised Reservation Systems (“the Code of
Conduct”) was first established in 1989 with the adoption of Regulation 2299/89 on
24 July. Given that the vast majority of airline bookings were made through CRSs
and that most CRSs were owned and controlled by airlines, it was felt that, in order
to deal with the competition concerns arising in the supply chain of air transport
products, it would be more efficient in terms of transport policy and market
efficiency to develop an ad hoc regulatory framework than merely rely on the
generally applicable provisions of competition law.
The Code of Conduct recognised that Computerised Reservation Systems required a
certain degree of regulation in order to ensure that all airlines enjoy the same level of
access to travel agents and consumers. It was established with the aim of improving
transparency and preventing discriminatory behaviour both by the system vendors
themselves and also by airlines, especially those which have a stake in the ownership
and control of a CRS. On the one hand, system vendors were required to deal in an
even-handed manner with all carriers and travel agents, while, on the other, carriers
with a financial stake in a CRS were required not to favour that system over the
others. The code also imposed obligations in terms of neutral display in order to
avoid discriminatory treatment of airlines on the system’s principal display.
The Code of Conduct has been revised twice since 1989. Each refinement of the
Code has been intended to further clarify the principles contained in the original, to
address problems that have arisen subsequently and to anticipate potential
difficulties. The most recent revision also established rules for the treatment of rail
transport in CRSs.
Since the last change to the Code of Conduct, the airline distribution market has
known important developments: most airlines have divested from their participation
in CRSs – although some airlines still hold minority ownerships - and alternative
distribution channels are gaining ground, mainly due to the development of direct
Internet sales.
Early in 2007 the Commission embarked on a new round of consultation in relation to this Regulation. The consultation period closed on 27th April 2007 and the responses can be see on the Commission's website. In November 2007 the Commission issued new proposals to
simplify and modernise the rules - see also the Commission's press release. Top of Page
European Single Sky
Air Traffic Management (ATM) in Europe has traditionally been fragmented along the lines of national borders. A great deal of variation persists between neighbouring states in terms of the nature and sophistication of their ATM systems, and their procedures, equipment and training standards. This lack of uniformity has led to inefficiencies in terms of cost and and performance of the European ATM system as a whole, in the face of ever increasing air traffic growth.
In the last several decades there have been harmonisation and integration programmes launched by Eurocontrol and other international organisations aimed at making the system more uniform and seamless but lack of enforcement powers have tended to cause programme slippage and lack of consistency in implementation. This has meant that capacity-enhancements of the system have struggled to keep pace with traffic growth leading to an increasing problem of delays.
The European Commission, recognising the worsening ATM delay situation, launched its Single European Sky initiative in late 1999. Reaching agreement was very time consuming and
there have been many problems to overcome, not least in matters of
civil-military co-operation. It was not until March 2003 that agreement
was reached in the European Council and it was only in January 2004
that the objections of the European Parliament were finally resolved
through a compromise. This cleared the way for a package of four new
foundation Regulations which came into force in April 2004. They are Regulation EC
549 /2004, Regulation EC
550 /2004, Regulation EC
551 /2004 and Regulation EC
552 /2004 which deal with
Framework, Air Navigation Service Provision, Airspace Design and Management, and Interoperability.
Further implementation measures are flowing from these.
The objects of the package are to :
- improve and reinforce safety,
- support the concept of a more integrated operating airspace within
the context of the common transport policy,
- establish common requirements for the safe and efficient provision
of air navigation services in the Community, and
- achieve interoperability between the different systems, constituents
and associated procedures of the European air traffic management
network.
The EC's February 2004 press
release gives a more detailed outline of the four regulations
As a prelude to this the European Commission had become a member of Eurocontrol and in 2003 a Memorandum of Co-operation was agreed between the two bodies - see Eurocontrol Press Release**. This aimed at enhancing co-operation in five areas, including the implementation of the Single European Sky. The European Commission also mandated Eurocontrol to implement functions and define operational concepts on its behalf
In March 2007 the Commission published two progress reports:
(a) State of progress with the project to implement the new generation European air traffic management system (SESAR)(COM(2007) 103) - 15/03/07
(b) Building the Single European Sky through functional airspace blocks: a mid-term status report(COM(2007) 101) - 15/03/07
Top of Page High Level Group
Following a conference in September 2006, Vice-President Barrot created a high-level group to develop recommendations for the future of aviation regulation in Europe. Their Report was published in July 2007 - a copy of the report, and the Commision's press release about it, can be seen on the Commission's website Top of Page
SESAR (Single European Sky ATM Research)
The Single European Sky initiative will mean a fundamental change in air traffic management in Europe. Working together the EC and Eurocontrol are aiming for a single European Air Traffic Management (ATM) infrastructure, called SESAR (formerly SESAME). This will “fully coordinate airspace users, operators and the supply industry and bring together the regulatory framework, funding sources, and implementing actors across Europe ”.
The European Commission's envisaged governance structure to run the SESAR project is a Joint Undertaking under Article 171 of the EC Treaty and a Council Regulation is proposed to set-up a SESAR JU to manage the project, and defining its objectives and constitution. The DfT consulted aviation stakeholders about this in February 2006 - the consultation paper can be seen on the Department's website. The closing date for comments was 15th May 2006. The Transport Council of the EU subsequently agreed a general approach for the JU at its meeting on 8th/9th June 2006 [see Report of Meeting]
Meanwhile, the Definition Phase of SESAR was launched in June 2005. [Press Release on launch] The aim is to produce an ATM Master Plan for Europe which “will formulate operational concepts and propose new systems, as well as define the road map for their implementation”. This will require “a collective effort bringing together the full range of stakeholders including the manufacturing industry, airports, airlines and air navigation service providers”.
Research has also been commissioned. [Press Release on research]
The next phase will be the development phase (2008-2013). This will produce the required new generation of technological systems and components as defined in the definition phase. For this phase the Commission has proposed the creation of a joint undertaking, based on the GALILEO model, which will "federate public and private funds (Community, Eurocontrol, industry and third countries) and guarantee a single management structure for the project, as well as a governance model associating all actors involved (public and private)".
The final phase will be the Deployment Phase (2013-2020). This will seek to build the new infrastructure at a wide scale both in Europe and in partner countries. This will be carried out under the responsibility of the industry without further public funding.
Airspace Classification In May 2006 the Commission adopted an Airspace Classification Regulation which introduces a common classification for all airspace above 19,500 feet and clear rules for access to this airspace. The aim is to create a transparent framework for flights operating over European borders and facilitates access for “Visual Flight Rules” flights. The rules will also make the airspace system more understandable for foreign pilots.
Top of Page
 Insurance
for Air Carriers and Aircraft Operators
The absence of legislation requiring private aircraft
to have third party insurance was one of the issues raised at the
2002 Annual Meeting of ACCs at London Gatwick.
The following year in Birmingham the Annual Meeting
received a paper noting that in the wake of the terrorist attacks
in New York on 11th September 2001, the question of the insurance
requirements for air carriers and aircraft operators was already under
consideration by the European Commission [Copy of Liaison Meeting Report (MS Word 43kb)] . In September 2002 they had
published a draft regulation designed to clarify the Community rules
on insurance by introducing minimum insurance requirements for all
aircraft flying into and out of Community airports or overflying Community
territory. The proposed regulation would apply also to third-country
carriers.
The UK Government supported the proposal to harmonise
the insurance requirements for commercial air carriers but resisted
the inclusion of private flying on the grounds that it was unnecessary.
They were, however, alone in arguing for this exclusion and they were
unable to sustain it. Instead they argued for more realistic limits
and more sensible weight categories.
Regulation
EC 785/2004, which includes a sliding scale of cover of the kind
supported by the UK Government, took
effect the end of April 2005. In preparation for this there were discussions between the UK Government
and the CAA on the implementation and enforcement
of the new Regulation. On 29th November 2004 wrote to interested
bodies seeking their views on some draft UK Regulations. The
consultation document can be seen on the Department for Transport's website along with a summary of the consultation responses.
The Civil Aviation (Insurance) Regulations 2005 (SI 2005/1089) took effect on 30th April 2005 as planned.
Regulation EC 785/2004 requires the Commission to submit a report to the
European Parliament and the Council on the operation of this Regulation by 30 April 2008. In preparation for this the Commission in mid 2007 issued a consultation paper. The closing date for comments was 22nd November 2007
Top of Page 
Incentives to Airline Operators - the Charleroi
Case
In February 2004 the Commission announced its findings
on a complaint lodged in 2001 concerning the advantages granted to
the airline Ryanair at Charleroi airport by Brussels South Charleroi
Airport (BSCA), the airport's managing body, and the Walloon Region
(Belgium).
The Commission had to determine whether the measures
taken in favour of Ryanair by the Walloon Region and BSCA, a public
undertaking controlled by the Walloon Region, were compatible with
the "private market investor" principle. It concluded that
no private operator in the same circumstances as BSCA would have granted
the same advantages and accordingly that they constituted State Aid
which could distort competition in favour of Ryanair. The Commission
took the view, however, that some of the aid granted to Ryanair at
Charleroi might be compatible with the common market in the context
of transport policy, insofar as it permits the development and improved
use of secondary airport infrastructure which is currently underused
and represents a cost to the community as a whole. Its decision
might thus allow Ryanair to keep some of the aid already granted to
it. This was the aid intended for the launch of new air routes (marketing
and publicity), to which may be added "one-shot" incentives,
provided that the Belgian authorities complied with the conditions
imposed by the Commission.
The Commission was clear, however, that some forms
of aid could not be authorised and in particular:-
- the discounts on airport charges such as were granted at Charleroi,
which go beyond the discounts already foreseen in the Belgian legislation,
which are non-discriminatory and fully transparent,
- the reduced ground handling fees, which are not offset by possible
surpluses from other, purely commercial activities (parking, shops,
etc.),
- "one-shot" incentives paid when new routes were launched,
where no account was taken of the actual costs of launching such
routes, and
- the aid provided in respect of the Dublin-Charleroi route, which
is not new, because it was launched in 1997.
There is more information in the Commission's press
release on the issue and in those subsequently issued by Ryanair
on 3rd and 4th
February 2004. [Ryanair 030204 Release] [Ryanair 040204 Release]. See also ACI Europe's press
release**
Top of Page
Guidelines on financing of airports and start-up aid to airlines
departing from regional airports
Following its decision on the Charleroi
Airport case the Commission has adopted new rules which it says will encourage the development of regional airports [Memorandum to the Commission][Guidelines][EC Press Release].
The rules lay down the conditions under which start-up aid can be granted to airlines to operate new routes from regional airports - such services says the Commission will "encourage mobility in Europe and regional development". The Commission claims the new rules will guarantee equal treatment for public and private airports and ensure that airlines receiving aid are not unduly favoured. The Guidelines also give airports and Member States guidance on the public financing of airports.
Not everyone is impressed by the new Guidelines - see Ryanair's Press Release of 6th September 2005
The UK Government has been looking at the Guidelines with some interest not least because of the impact they might have on Route Development Funds - see paragraph 4.41 of the White Paper "The Future of Air Transport" and also the report (MS Word 91kb) prepared for the ACCs Annual Liaison Meeting at Manchester Airport on 21/22 June 2006 which includes a note up-dating members on Route Development Funds. On 30th June 2006 the UK Department for Transport published rules and principles governing the operation by devolved administrations and regional development agencies of funds to provide start-up aid. It will be noted that this UK scheme has state aid approval from the European Commission.
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