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Europe Daily Bulletin No. 11917
SECTORAL POLICIES / Transport

Estonian Presidency of Council proposes compromises on unfair competition in aviation

In a confidential Estonian Presidency of the Council of the European Union document dated 27 November, about which EUROPE has obtained information, there is a proposal for several amendments to be adopted at the Council on the draft revision of regulation 868/2004. This was presented by the European Commission on 8 June last, in the fight against unfair competition from airlines established in third countries (see EUROPE 11804).

It should be pointed out that the Commission proposed new instruments in this text as a means of providing effective sanctions, particularly financial, against third country airlines receiving subsidies or operating unfair tariff prices, despite the fact that regulation 868/2004 has never been used.

The aviation working group began work on this text on 5 July and differences between the member states rapidly appeared. Although Germany, Austria, Belgium, France, the Netherlands and Romania shared the observations made by the European Commission in its impact study, 15 national delegations expressed misgivings and expressed doubts about possibilities for tackling the question of unfair competition at a European Union level.

Ten of them therefore therefore addressed a document to the Committee of Permanent Representatives to the EU (Coreper) on 6 October last, in which they point out that the proposals do not take into sufficient account regional connectivity or the impact of this kind of text involving bilateral agreements between member states and third countries. They are also concerned by the lack of a clear definition on the scope and challenges involving the Union’s interest in taking action.

Following further work from group discussions, the Estonian Presidency proposed several compromises in an effort to respond to these concerns. It suggests, for example, a new article involving the scope and interest of the Union in taking action, as well as strengthening the role of the member states involved in the investigations carried out by the Commission. The Presidency is also recommending clarifications on the potential application of flying rights restrictions.

It should be recalled that Transport Ministers will tackle the revision of regulation 868/2004 during the meeting of the Transport Council on Tuesday 5 December (see EUROPE 11916).  (Original version in French by Lucas Tripoteau)

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