Brussels, 17/07/2006 (Agence Europe) - Improving market efficiency, strengthening security and enhancing air passengers' rights - such is the ambition of the European Commission which is to present a proposal for a regulation on 18 July to update the third air package. It intends to strengthen rules on the granting of licences, the leasing of aircraft, public service obligations (PSO), the distribution of traffic rights and the price of air tickets. It is also suggested that the Commission should become the only authority competent to negotiate intra-Community traffic rights with third countries.
Adopted in July 1992 and implemented in January 1993, the third air package is the last stage in liberalisation of air transport in the EU. After the first two legislative packages (December 1997 and June 1990), the free provision of air services was gradually generalised within the EU resulting, in April 1997, in the liberalisation of cabotage (the possibility for an airline of one Member State to use a route within another State). It includes Regulation 2407/92 which opened the market to any company holding a Community air carrier licence, Regulation 2408/92 that, from January 1993, opened all international links within the EU to companies holding the Community licence, and Regulation 2409/92 on tariffs for passenger and freight air transport. Despite the progress made since implementation of this third package, some of its provisions are badly or insufficiently implemented by Member States, the Commission states, presenting a proposal aimed at revising and strengthening the three regulations that make up this third package and which will be henceforth integrated into a single document.
Operating licences: Not all States control the financial health of airlines in the same way, which means there is an unequal playing field on Community territory, the Commission deplores. It therefore suggests strengthening the conditions for granting operating licences: air transport companies requesting an operating licence must show proof of their ability to meet their obligations during 36 months from the start of operations (24 months at present). Any request for a licence must be accompanied by a business plan for the first three years of operation (two years at present). If a company does not meet all the requirements, and if the State concerned does not take action, the Commission may step in and revoke a licence.
Leasing: Here too, the way the rules are applied differs. The security specifications of aircraft leased out to third countries are not complied with as strictly in all States, the Commission regrets, also expressing concern about the social consequences of the sometimes regular use of “wet leasing” (i.e. with crews). The leasing of aircraft registered in third countries will no longer be authorised, therefore, except to “meet a temporary need or exceptional circumstance of more than six months in duration, although a waiver may be renewed once only for a second non-consecutive period of up to six months”.
Public Service Obligations (PSO): In order to lighten existing provisions and avoid excessive recourse to PSO by Member States, the Commission may call for an economic report explaining the context in which the PSO has been imposed on a route. The States keep the possibility of imposing PSOs on scheduled airline services to regional airports located on their territory if this link is vital for the economic development of the region, and to reserve a PSO link for a single carrier if no air carrier has begun scheduled air services on that route. The maximum concession period will be extended by three to four years and may be as much as five for ultra-peripheral regions. When a concession is renewed, the call for proposals should be launched six months in advance in order to have time to analyse the need to continue restricted access to a given airline.
Traffic rights: In order to ensure greater coherence between the internal market and its external aspects, the Commission becomes the only body competent to negotiate intra-Community traffic rights with third countries. All restrictions under existing bilateral agreements between Member States will be lifted, the proposal states, clarifying rules for the distribution of traffic rights between airports. Member States may divide out traffic rights between airports located in one and the same town, if transport infrastructure is adequate and if there is effective public transport into the town.
Price transparency: The publication of fares without taxes, charges and sometimes even the rise in the price of oil has become commonplace, the Commission deplores, believing that this leads to competition distortion and penalises air passengers who often pay prices higher than those announced. The Commission also notes cases of price discrimination depending on where the passengers live. Air fares should therefore include all taxes, rates and costs possible, and carriers should provide passengers all the information they require. Also, air fares should be practised without discrimination, whatever the place of residence or nationality of the person buying the air ticket.