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Europe Daily Bulletin No. 10023
Contents Publication in full By article 26 / 35
GENERAL NEWS / (eu) eu/transport

IATA promotes standardisation of air sector

Brussels, 19/11/2009 (Agence Europe) - Shortly after the end of the fifth round of “Open Skies” talks (9-11 November) between the EU and the USA, the latter signed, on Monday 16 November, an international declaration to support standardisation and liberalisation in the air sector, especially with regard to capital market access and freedom of enterprise. The European Commission sees this as a positive sign for continued talks. It is adamant there should be equitable competition conditions in the field of aviation, and approved the declaration.

Signed in Montebello (Canada) by the United States, Chile, Singapore, Switzerland, Panama, the United Arab Emirates, and Malaysia in the context of the Agenda For Freedom initiative launched by the IATA (International Air Transport Association), it aims to promote in a non-binding manner the fight against restrictions existing in bilateral air agreements, that prevent free market access to investment in accordance with sound competition conditions. “We should generally respect the policies of other countries that seek to encourage foreign investment in their airlines.”, signatories say, adding: “Accordingly, on the basis of reciprocity, and in the absence of valid social or public policy concerns, we should waive, where our legal systems permit us to do so, or otherwise refrain from exercising rights under existing bilateral air services agreements to disallow service by an airline of the other party to that agreement on the grounds that it is not owned and controlled by nationals or the government of that other party”. In the same way, the declaration calls for the replacement or reduction of the negative effects of traditional nationality clauses existing in bilateral agreements and to facilitate market access. “Restrictions on market access in international civil aviation should be the exception, not the rule”, the declaration stresses. It goes on to specify that, on the basis of reciprocity, and independently of infrastructure needs, signatory states should take into consideration the lifting of restrictions on the number of airlines allowed to operate. Such restrictions should also be eliminated during conclusion of new air agreements. The declaration also calls for reciprocal lifting of provisions that impose additional tariffs or prevent airlines from taking decisions concerning prices. “Airlines should generally have the freedom to set prices for international air transportation in accordance with their assessment of the market”, the declaration reads, suggesting that restrictive provisions on tariffs should be replaced by liberal provisions. Signature of the text comes one week after the fifth round of EU-US talks on the second stage of the “Open Skies” agreement, which should allow transatlantic air traffic to be liberalised. According to the communiqué from the American delegation, both parties held in-depth discussions on the elements of the second stage of the agreement as on market access, cooperation on environmental issues and the social dimension of the agreement. The next negotiation round is foreseen in the week of 11 January, in Washington. According to IATA, the opening up to competition generally increases air traffic and the liberalisation of about one third (320) of the 2,000 existing bilateral air agreements would represent an additional $490 billion (€329 billion) to the GNPs, and allow 24.1 million full time jobs to be created. (A.By./transl.jl)

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THE DAY IN POLITICS
GENERAL NEWS
19 NOVEMBER 2009