New UK Government
On 6th May 2010 there was a general election which resulted in a new Conservative/Liberal Democrat coalition government. All references to the Government on this page in relation to happenings before 6th May 2010 are references to the previous Labour Government first elected in 1997.
For more information see our Other UK Airport Issues page. As mentioned there the detail of the policy of the new Government towards aviation and airports remains to be seen but some idea of the direction of future policy can be gained from the note issued on 11th May 2010 of the agreements reached by the two parties in their coalition discussions and in the new Government's subsequent programme document The Coalition: our programme for government:.
It is likely the new UK Government will take a rather stronger line with the European Union (EU) than the last one did. In this connection see section 9 on page 5 of the note issued on 11th May 2010 and section 13 of programme document The Coalition: our programme for government: .
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New EU Transport Commissioner
In February 2010 Siim Kallas, an Estonian, was appointed as the new Vice-President of the European Commission in charge of transport.
Siim was appointed as the first Estonian member of the Commission in May 2004 working in the field of economic and monetary affairs. Later he served as Vice-President responsible for administration, audit and anti-fraud. A full profile of the new Commissioner has been posted to the EC website
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EU Transport Policy 
On 22nd June 2006 the European Commission adopted the outlines for a future EU transport policy – including aviation. And in 2007 they published a statement of the EU's air transport policy entitled "Flying Together"- .pdf (5mb)
More thinking on transport policy is in progress. On 9/10 March 2009 policy makers and top managers of the most important transport operators, manufacturers and logistic companies gathered in Brussels at a conference to discuss the future challenges for the transport sector and kick off the preparation of the 2010 White Paper on the Future of Transport Policy
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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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Community Observatory on Airport Capacity
The Community Observatory on Airport Capacity (COAC) was inaugurated on 4 November 2008. It will advise the Commission on developing measures to ameliorate the capacity of the European airport network and will play “an essential role in the implementation of the Commission's action plan for airport capacity, efficiency and safety in Europe”.
There is more about COAC on the Commission’s website.
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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 agreement supersedes all air service agreements between the Member States and the ECAA Partners.
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Aviation and climate change - the EU Emissions Trading Scheme
The growing impact of aviation emissions on climate change is another matter high 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 Commission 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. 
From the outset the EU noted that one way to secure this would be to extend the EU Emissions Trading Scheme (EU-ETS) to include emissions from the aviation sector.
You will find the rest of the story on our Climate Change page
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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.
For more about the implementation of this Directive in the UK visit our Noise Page
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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. For more information visit our Noise Page
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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 aimed to 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 was 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.
The proposal was finally approved as Directive 2008/50/EC dated 21st May 2008 which appeared in the European Journal on 11th June 2008.
Member States have until 11 June 2010 to bring into force the laws, regulations and administrative provisions necessary to comply with the Directive. On 9th November 2009 Defra launched a consultation on its approach to transposition. The closing date for comments was 29th January 2010. Having considered the responses the Department at the end of March 2010 made the Air Quality Standards Regulations 2010 (SI 2010/1001). The Directive obliges the Commission in 2013 to review the provisions related to PM2.5 and, as appropriate, other pollutants, and report to the European Parliament and the Council.
The new UK Government's programme document The Coalition: our programme for government: says (in section 11 on page 17) that the new government “will work towards full compliance with European Air Quality standards”
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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 (COM 2006/820). 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.
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.
In June 2008 the EU Council adopted a "common position" on the proposals and this was considered by the European Parliament when it gave the Directive a second reading in October 2008. The Parliament adopted a number of amendments and these were all adopted by the EU Council when it gave final approval to the the Directive on 19th February 2009.
The proposal was finally signed off as Directive 2009/12 dated 11th March 2009 and from the spring of 2011 airports across Europe with more than 5 million passengers will be required to comply with the provisions of the Directive.
Member states have until 15th March 2011 to bring into force the laws, regulations and administrative provisions necessary to comply with the Directive. In its consultation on Reforming the Framework for the Economic Regulation of Airports, the DfT explained that the Government intended to give permanent effect to the Directive through the proposed new licensing regime. In its decision document of December 2009, the Government said it felt the new airport licences would be an appropriate and straight forward way of implementing the other ACD requirements. However, there is uncertainty about when a Bill to implement the conclusions of the review of the regulatory framework will receive Royal Assent and also about when further work necessary to implement it in full will be completed. The DfT therefore plans, as an interim measure to meet the transposition deadline, to introduce secondary legislation to implement the Directive in Great Britain. Its aim is to consult on this legislation in draft in the summer of 2010.
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Aviation Security
Ever since the terrorist attacks in the US on 11th September 2001 the question of aviation security has been high on the EU's agenda and in particular common rules which apply throughoput Europe. For more on Aviation Security visit our Aviation Security page which includes at the end a section on the European dimension.
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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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Passenger Rights
The EU has been very active in the field of passenger rights. For more informationon the following EU initiatives visit our Passenger Rights page:
- Information for passengers on the identity of carriers and sharing safety information
- Voluntary Commitments on Air Passenger Service
- Compensation for denied boarding or the
cancellation or long delay of flights
- The Montreal Convention
- People with Reduced Mobility
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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. And on 30th April 2008 the Commission issued a further Communication dealing with a number of provisions which many stakeholders and Member States feel have not been fully or completely implemented
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.
On 30th April 2008 the European Commission adopted a Communication on the application of the slot allocation Regulation. The Communication seeks to clarify a number of issues in order to ensure a better implementation of the existing rules and to improve the efficient use of scarce capacity at congested Community airports. In particular, it signals the acceptance of "secondary trading" of airport slots between air carriers. The Commission also issued a press release
The UK Government supports secondary trading and in 2006 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.
Temporary Suspension of “use it or lose rule”.
In March 2009 the Commission submitted proposals (COM 121/200) temporarily to suspend the “use it or lose rule”. Currently rules force airlines to use the slots at busy airports at least 80 percent of the time or face losing them in the following season. But some airlines argued this obliges them to keep flying even when, because of the recession, this would be uneconomical. The Commission said this measure was for only one season. However, depending on how serious the situation appears as the 2009-2010 winter season approached, the Commission might decide to renew all or part of the scheme. The suspension of this rule stirred up a good deal of controversy with criticism from the low cost carriers and the ACI Europe. In the event the Commission did not put forward any proposals for the suspension of this rule during the 2009/2010 season but in response to the volcanic ash crisis the EC did propose to allow the airlines to retain take-off and landing slots which were left unused during the crisis.
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Revision of the third package for liberalisation
of air transport
During 2003 the EC carried out a consultation about the revision of Regulations (EEC) 2407/92Regulation (EEC) 2407/92, 2408/92 Regulation (EEC) 2408/92 and 2409/92Regulation (EEC) 2409/92 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.
Firm proposals for the revision of the third package were finally issued on 18th July 2006. Many of the matters covered by the proposed Regulation lie outside the ordinary remit of Airport Consultative Committees but there were proposals for the revision of public service obligations (PSOs) and also revisions 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.
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 and the Department's summary of the replies was published in May 2007. These documents can be seen on the Department's website.
In November 2007 it was reported that agreement had been reached between the Council and the European Parliament on the shape of the new Regulation and this was the subject of a Communication from the Commission to the Parliament on 21st April 2008.
The new Regulation 1008/08 came into force on 1st November 2008. Among other changes the new Regulation as expected revises the rules relating to:
(a) Public Service Obligations
The regulation recognizes the possible need for a PSO when the economic development of a remote region or an island depends on it. In addition:
The maximum “concession” period when the route is restricted to one single operator has been increased from three to four years and five years for "ultra-peripheral" regions. It is hoped this will attract more competitors to submit tenders given that depreciation costs of route-specific equipment will be reduced. At the same time, the longer concession periods reduce the administrative burden on the Member States.
- The regulation provides for an emergency procedure to appoint an alternative airline in situations of failure of the airline providing the PSO route.
- While recognizing the importance of PSOs, the regulation also aims to avoid abuse of the PSO system. It thus explicitly provides for proportionality between the obligations imposed and the economic development goals pursued. Furthermore, in case of doubt, it confers the right to the Commission to request a detailed economic report from the Member State concerned justifying the need for the PSO.
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(b) Traffic Distribution Rules
A Member State may regulate the distribution of air traffic between airports provided :
- they serve the same city or conurbation (e.g. the London Airports)
- they are served by adequate transport infrastructure, providing to the extent possible, a direct connection making it possible to arrive at the airport within 90 minutes, including when necessary, on a cross-border basis
- they are linked to one another and to the city or conurbation they serve by frequent, reliable and efficient public transport services.
- they offer necessary services to air carriers and do not unduly prejudice their commercial opportunities
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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".
In December 2009 the Commission launched a consultation to collect views on the current implementation of the Directive and possible options for revision. The consultation closed on 17 February 2010.
In a May 2010 update the Commjissions said that the process of assessment was on-going. It covered the enhancement of the “functioning of the ground handling market, to ensure a better quality of ground handling services while better taking into account the social, safety and security aspects”. Once the assessment is complete the EC would decide on the need for a revision of the Directive and, if so, on the “modalities of the revision”
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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
During 2008 the proposals worked their way through the EU approval machinery and Regulation 80/2009 finally came into force on 29 March 2009
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Integrated Air-Rail Ticketing
The issue of integrated ticketing arises when a passenger intends to travel using several
transport modes and/or several transport operators within the same mode. Such a service
requires the availability of easily accessible information on the various parts of the
journey as well as the adoption of interactive reservation systems which make it possible to make reservations for the whole journey. However, information is often
available only separately for each mode of transport and/or by operator. Consequently,
the introduction of integrated ticketing requires the development of integrated
information, reservation and sales systems.
Based on the hypothesis that integrated ticketing can be an important factor to generate
demand for intermodal air-rail services, the Commission wants to examine
the organisational and technical opportunities related to the sale and promotion of
such services and to open a debate on a voluntary engagement of the concerned
stakeholders for the development of integrated ticketing as announced in the
EC Communication on passenger rights and reaffirmed in the EC Communication on
airport capacity.
At the end of July 2008 the Commission launched a consultation - click here to see the consultation document.
The deadline for responses was 30 September 2008. The next steps are awaited.
In a May 2010 update the Commission said the consultation showed there was interest in integrated ticketing among stakeholders and in particular travellers. However, they said, “integrated ticketing is only one facet of air-rail inter-modality”. For instance the Community Observatory on Airport Capacity is “dedicated to inter-modality and considers all aspects including - for instance- the substitution effect between air and rail and the situation (and practices) of airports which are or are not connected to rail”. In particular, after the latest closure of airspace due to the volcanic ash cloud the EC “have given further attention to inter-modality so that transport modes become as interchangeable as possible”.
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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
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Single European Sky ATM Research (SESAR)
As noted above 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 known as 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 SESAR project has three phases:
The Definition Phase: The aim is to produce an ATM Master Plan for Europe defining the content, development and deployment plans of the next generation of ATM systems.
The Development Phase (2008-2013): This will produce the required new generation of technological systems and components as defined in the definition phase
The Deployment Phase (2013-2020): This will seek to build the new infrastructure both in Europe and in partner countries
The Definition Phase was launched in June 2005. It was “a collective effort, bringing together the full range of stakeholders including the manufacturing industry, airports, airlines and air navigation service providers”. The work brought about the publication November 2008 of the Air Traffic Management Master Plan which provides the roadmap for the development and deployment phases of the SESAR programme.
The Development Phase is now in progress. To give effect to the governance structure planned by the Commission to run the Development Phase - a Joint Undertaking under Article 171 of the EC Treaty – the Council on 27 February 2007 passed Regulation (EC) No 219/200
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SESII
On 25th June 2008 the EC unveiled
its second package of legislation for a Single European Sky (SES II). In publishing the proposals the Commission noted that the Single European Sky regulation adopted in 2004 (SES I) had not delivered the expected results in some important areas. The process of integration within functional airspace blocks (FABs), regardless of national borders, had encountered numerous hurdles. Air traffic control is mistakenly related to national sovereignty. This is a complex matter, but instead of prompting innovative solutions for exercising sovereignty, it has been used to block cross-border integration. Moreover, There has been “little progress in the overall efficiency of the design and use of the European air network”. The package is based on four pillars:
The first pillar introduces several enhancements to the original SES legislation (see IP/01/1398 ) , including binding performance targets for air navigation service providers, a European network management function to ensure convergence between national networks and a definitive date for Member States to improve performance ,initially through a cross border cooperative approach known as Functional Airspace Blocks.
The new package places environmental issues at the core of the Single European Sky and improved air traffic management should realise its potential to reduce greenhouse gas emissions from aviation. Prospective improvements are up to 10% per flight, which amounts to 16 million tons of CO 2 savings per year and a reduction of annual costs by €2.4 billion.
The technological pillar focuses on introducing better technology. The SESAR programme brings together all aviation stakeholders to develop and operate a new generation, Europe-wide air traffic management system. Its deployment will enable the safe, sustainable and cost-effective handling of twice the current traffic by 2020.
The safety pillar provides for increased responsibilities for the European Aviation Safety Agency. This would ensure precise, uniform and binding rules for airport safety, air traffic management and air navigation services, as well as sound oversight of their implementation by Member States.
Finally, the airport capacity pillar tackles the shortage of runways and airport facilities, which currently threatens to become a major bottleneck. The initiative seeks to co-ordinate better airport slots issued to aircraft operators with air traffic management measures as well as the establishment of an airport capacity observatory to fully integrate airports in the aviation network.
The second package was finally promulgated in Regulation (EC) No 1108/2009 dated 21 October 2009.
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
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.
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 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.
The Commission's 15 page report was issued on 24th April 2008. It concludes that in the three years since the Regulation came into force it "has been effective in ensuring
insurance coverage of all aircraft operators flying within, to or from the Community. There
have been very few cases of aircraft operators not complying with the insurance requirements.
Civil aviation authorities from Member States reported that some third-country carriers –
usually charter carriers from Central Asia – suspended their operations after the entry into
force of the Regulation. The insurance market provides all air carriers and aircraft operators
with the coverage required by the Regulation." The report mentions a number of issues “connected with the implementation of the Regulation which seem to need further clarification”. These are concerned mostly with insurance certificates.
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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 the ACI Europe's press
release**
Ryanair challenged the findings in the European Court of Justice and on 17th December 2008 the Court annulled the Commission’s decision -see the ECJ's press release
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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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The Volcanic Ash Crisis 2010
In April 2010 the Eyjafjallajökull volcano in Iceland erupted and the prevailing weather conditions meant that clouds of volcanic ash blew towards the UK and large areas of continental Europe. This led to the closure of huge areas of European airspace, and thus of airports, giving rise to huge disruption and thousands of stranded passengers. Following discussions, notably with the manufacturers of aircraft engines new guidelines were agreed and after several days the skies were re-opened. In early May 2010 another cloud of volcanic ash drifted south-eastwards and this was dense enough to close some Irish and UK airspace.
Of course it was not long before there was speculation in the press that the original closure of air space in April had been an overreaction and anyway that aircraft could have been allowed to fly at lower levels. It is certain that the impact on the finances of airlines and airports was huge – press reports said that the crisis cost BAA £28m and Newcastle more than £1m - and there were soon demands for compensation from the Government and/or the EU. And there were reports that a large rise in air fares could be expected. Passengers, too, were out of pocket and demanded compensation from the airlines and controversy soon arose about the Regulation (EC) 261/2004 (Compensation for denied boarding or the cancellation or long delay of flights) - see our Passenger Rights page.
It is estimated that the April crisis led to the cancellation of 10,000 flights across Europe affecting 10 million passengers and that the cost to the industry might be as much as £2.2 billion. On 27th April the responsible EU Commissioner, Siim Kallas, issued a statement which talked about:
- relaxing the state aid rules to allow countries to make loans and guarantees to airlines at market conditions.
- allowing airlines to retain take off and landing slots which were left unused during the crisis.
- deferring en-route charges for a defined period of time.
- maintaining air passenger rights provided by EU law.
- ensuring the regulations are applied in a consistent way across Europe.
- maintaining a level playing field so that one company does not get unfair advantage over another by failing to fully meet its obligations.
- ensuring the crisis is not used to allow unfair assistance to companies which is not directly related to the crisis.
Apart from these practical measures to provide relief to the air transport sector so that they would be better able to weather the crisis the Commission said it would be working with member states and stakeholders on structural changes “to ensure we do not face this situation again”.
In early May there was a meeting of EU Transport Ministers who agreed to work on four priority areas:
- The EC would lead work to present new EU proposals for managing risk from volcanic activity to the ICAO in September this year.
- The EC wouldfast track the Single European Sky package. We need a single European regulator for a single European sky. This would not solve every problem. But it would mean a much faster co-ordinated response in a crisis. Major elements of the Single Sky Package (see paras 44-47 above) will be in place by the end of 2010, including a crisis cell.
- The EC would work with national authorities to draw up guidance to ensure uniform application of the rules for passengers.
- Member States supported the EC's approach on the need for flexible measures to ease the pressure on airlines. The EC also stood ready to draw up European guidelines so that that if Member States decidd to grant state aid undue distortions to competition would be avoided.
The Ministers also said that the crisis had exposed structural weaknesses in the ability of different European transport modes to substitute for each other. Europe needed now to:
- remove transport bottlenecks;
- build pan-European networks;
- put in place pan-European mobility planning.
On 21st May the Eurpoean Commission issued new Guidelines which it says will help to minimise airspace closures in the event of volcanic ash reaching Europe without compromising safety standards - please see the EC Press release for details.
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