Strasbourg, 11/07/2007 (Agence Europe) - With the adoption in first reading, on 11 July, of the report by Lithuanian Liberal MEP Arunas Degutis (ALDE) on the proposal for a regulation establishing common rules on licensing, operating rights and pricing in the air transport sector, the European Parliament gave its opinion on the revised “third liberalisation package” of the internal aviation market presented by the Commission in July 2006. The way is therefore now open to adoption by the EU27 of a political agreement on this dossier during the Transport Council of 1-2 October 2007. The Parliament wants the price of air tickets to be more detailed and transparent than the Commission recommends and wants air companies to show proof of their financial viability. They must have at least €100,000 in own funds. It also wants on-board crew members to be subject to the national legislation of the country in which the airline is registered.
Presented by the Commission in July 2006 (see EUROPE 9234), this proposal for a regulation aims to recast into a single text the three regulations that form the 1992 third air package and to strengthen the rules for granting licenses and for leasing aircraft, to define the conditions for imposing public service obligations (PSO) and the distribution of traffic rights, and to lay the foundations of transparency in air tickets. The Parliament has taken on board most of these provisions but has considerably amended the rules regarding fares, calling for greater transparency. Fares applying to passengers and freight published in any form, including on the internet, should indicate all taxes applicable, non-avoidable charges, surcharges and fees known at the time of publication, so that the traveller may be aware of every detail concerning his/her ticket. Targeting the low-cost airline companies directly, the Parliament has suggested that the taxes and charges included in the price of the ticket should be presented according to the following categories: - taxes, duties and other charges levied by the states; - taxes or duties, fees and other costs for the benefit of the airlines; - and taxes, duties, fees and other costs levied for the benefit of the airport operators. In the same way, security taxes and charges, whether levied by member states or by air carriers, shall be transparent and shall be used exclusively to meet airport or onboard aircraft security costs. They must also be made known.
As far as the granting of licenses is concerned, the parliament comes into line with the Commission's proposals concerning arrangements to prove the capacity of airlines to carry out their obligations but hopes for more: - namely that the companies provide proof of sufficient financial coverage to be able to reimburse sums paid and to cover the cost of repatriating passengers should they be unable to take flights, in the case of bankruptcy or in the case of removal of a carrier's operating license. Own funds should amount to €100,000 at least. The Parliament also hopes that license issuance will be done depending on the main establishment of the operator and not, as the Commission suggested, depending on its activity. A new company could not therefore call for an operating license except from the state in which it is registered.
Giving its stance on social legislation and more specifically on the status of onboard personnel, the Parliament suggested that the work of the Parliament should be governed according to the legislation in force in the company's country of origin, wherever it may operate. Thus, the Lufthansa crew on an aircraft flying between Vienna and Helsinki would work in accordance with German legislation in this field. Finally, as far as jet leasing is concerned, the Parliament takes the view that the leasing period should not exceed a period of seven months (six according to the Commission), renewable once only in exceptional circumstances for a second seven month period.
Presenting the European Commission's opinion on the eve of the vote, the Commission vice-president for transport, Jaques Barrot, welcomed the proposals of the rapporteur despite some reservation about the clear presentation of taxes and fees. “We cannot use this regulation for defining every charge”, the commissioner said, commenting that this question comes under the “directive on airport charges” presented by the Commission in January. (aby)