1. 1 Directorate-General Energy and Transport / Air Transport Directorate Market Opening & Corollary issues Towards a Common Aviation Area EUROMED AVIATION PROJECT AIR TRANSPORT SEMINAR Amman (Jordan), 17–18 October 2007

2. 2 Directorate-General Energy and Transport / Air Transport Directorate Euro Mediterranean Aviation Agreements Areas of cooperation under a possible EUROMED global aviation agreement

3. 3 Directorate-General Energy and Transport / Air Transport Directorate Economic regulation Traffic rights: - First and second - Third and fourth - Fifth - Other rights? Scheduled/Non-ScheduledPassenger/cargo

4. 4 Directorate-General Energy and Transport / Air Transport Directorate Ownership and control: increased possibilities for investment in air carriersOwnership and control: increased possibilities for investment in air carriers Economic regulation

5. 5 Directorate-General Energy and Transport / Air Transport Directorate CompetitionCompetition -Mergers -Anti-trust -Exemption of airline alliances State aidState aid -Regulatory convergence: principles, procedures, consultation -Security costs Economic Regulation

6. 6 Directorate-General Energy and Transport / Air Transport Directorate Highest possible standardsHighest possible standards Mutual recognition (certificates, crew licences, maintenance)Mutual recognition (certificates, crew licences, maintenance) Exchange of data on accidents/incidents/SAFAExchange of data on accidents/incidents/SAFA Aviation Safety

7. 7 Directorate-General Energy and Transport / Air Transport Directorate Cooperation with EASACooperation with EASA List of unsafe airlinesList of unsafe airlines Aviation Safety

8. 8 Directorate-General Energy and Transport / Air Transport Directorate Regulatory convergenceRegulatory convergence Eventually Mutual recognition leading to „one-stop” securityEventually Mutual recognition leading to „one-stop” security Cooperation in developing technology and researchCooperation in developing technology and research Cooperation towards other countriesCooperation towards other countries Aviation Security

9. 9 Directorate-General Energy and Transport / Air Transport Directorate Single Sky frameworkSingle Sky framework Single Sky CommitteeSingle Sky Committee Functional Airspace BlockFunctional Airspace Block InteroperabilityInteroperability EurocontrolEurocontrol Air Traffic Management

10. 10 Directorate-General Energy and Transport / Air Transport Directorate SESARSESAR MaintenanceMaintenance ResearchResearch Industrial cooperation

11. 11 Directorate-General Energy and Transport / Air Transport Directorate International organisations Cooperation in international organisations ICAO: safety, security, economic regulation, cooperation projects etc. ECACWTOetc.

12. 12 Directorate-General Energy and Transport / Air Transport Directorate   Phased approach   Duration and milestones agreed by the Parties  (phases are not optional)  Agreed Calendar must be complied with (phases are not optional)  Safeguard clauses Phases

13. 13 Directorate-General Energy and Transport / Air Transport Directorate   Technical co-operation important: Ensure level playing field Promote common high regulatory standards EU industrial interests – all EU stakeholders should work together (as “EU Inc.”)   Technical co-operation/assistance should: Drive and support general policy Support regulatory convergence and removal of obstacles  ATM, safety, security, “doing business”, airports Lead towards mutual recognition of practices and standards Technical Co-Operation An Important Tool

14. 14 Directorate-General Energy and Transport / Air Transport Directorate Corollary Issues Other Areas of cooperation

15. 15 Directorate-General Energy and Transport / Air Transport Directorate   10 years after the full entry into force of the “third package”, the Commission wished to take stock of the application of the package.   Some measures have become obsolete, while others are poorly applied or need to be clarified.   Simplify and consolidate legislation.   Ensure homogeneous application of Community legislation, especially with regard to the monitoring of the operating licence.   Ensure consistency between the internal aviation market and its external dimension. Revision of the “Third Package”

16. 16 Directorate-General Energy and Transport / Air Transport Directorate   Proposal presented 18 th July 2006   Council General Approach adopted 8 th June 2007   European Parliament first lecture 11 th July 2007   Proposal still under discussion Revision of the “Third Package”

17. 17 Directorate-General Energy and Transport / Air Transport Directorate  General Principle: freedom to combine air-services or to enter into code-share arrangements  But under a strict principle of reciprocity: Member States can introduce restrictions if carriers licenced by them have no access to similar commercial opportunities Rev. 3 rd Package: Code-sharing

18. 18 Directorate-General Energy and Transport / Air Transport Directorate  Community air carriers should not be "excessively dependent on using wet-leased aircraft".  Lease agreements subject to prior approval by the national civil aviation authority.  Wet-leasing aircraft registered in a third county, conditions:  a) meeting safety standards equivalent to Community and national requirements;  b) Three possibilities:  exceptional economic needs (7 months renewable once),  seasonal capacity needs (renewable without restrictions), or  operational problems (approval may be granted for limited duration). Rev. 3 rd Package: Aircraft Leasing

19. 19 Directorate-General Energy and Transport / Air Transport Directorate  The approval for wet-leasing non-EU aircraft may be refused if the third country where the aircraft is registered does not provide reciprocity as regards wet leasing.  Member States concerned by operations of wet-leased non-EU aircraft must be informed. Rev. 3 rd Package: Aircraft Leasing

20. 20 Directorate-General Energy and Transport / Air Transport Directorate   Community law applicable to Airports already exists (slots, groung-handling, SES/SESAR)   Context is evolving: Rapid growth of traffic; Capacity v. Demand; Economic changes (Airlines / Airports)   Facing the ”capacity crunch”:  2025 could see up to 2.5 times the 2003 traffic  In 2025, 60 airports could be heavily congested, and the top 20 airports could be constrained 8-10 hrs. per day  Only 25% of airport would have a possibility to add new runways in the next 20 years Airport Charges

21. 21 Directorate-General Energy and Transport / Air Transport Directorate   Air Carriers complain about:  High airport charges  Monopolistic airports  Lack of transparency  Lack of consultation  “Take-it-or-leave-it” attitude   Competition rules of EU Treaty difficult to apply: difficult to establish proper cost basis for every EU airport.   Commission proposals in 1990 and 1997 were not successful. Airport Charges

22. 22 Directorate-General Energy and Transport / Air Transport Directorate Airport Charges   Communication: An action plan for airport capacity, efficiency and safety in Europe   Five principal measures to accommodate traffic growth in an environmentally sustainable manner  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.   2007 Proposal for a directive on airport charges

23. 23 Directorate-General Energy and Transport / Air Transport Directorate  Council Directive 96/67/EC of 15 October 1996  First step in gradual opening of access to groundhandling markets  Opens up groundhandling services unless specific constraints of space or capacity exist in an airport  At the larger EU airports access to the market by suppliers of groundhandling services is free  for certain categories of services the number of suppliers may be no fewer than two for each category of service  At least one of these suppliers should be entirely independent of the airport or the dominant air carrier at that airport  Similar provisions exist with regard to self-handling, Groundhandling

24. 24 Directorate-General Energy and Transport / Air Transport Directorate  The Commission is engaging in a revision process of the Directive  Stakeholders expressed the need for:  Simplification  Clarification  Possibility to further market opening and some regulation (insurance, quality standards) Groundhandling

25. 25 Directorate-General Energy and Transport / Air Transport Directorate   Regulation (EEC) 95/93 as amended by Regulation 794/2004: technical modifications.   2004: Study by NERA on “Commercial slot allocation mechanisms”.   2004: Consultation paper by the EC - Responses by stakeholders.   Options:  Secondary trading between air carriers  Primary trading of new slots  Primary trading of withdrawn slots   Aim:  More efficient use of airport capacity – not higher costs for air carriers. Revision of the Slots Regulation

26. 26 Directorate-General Energy and Transport / Air Transport Directorate State Aid  financing of airports and start-up aid to airlines departing from regional airports  2005 Guidelines (not legally binding, but explain how State Aid rules are applied to Airports)  Aids limited in time, targeted, for smaller airports

27. 27 Directorate-General Energy and Transport / Air Transport Directorate Environmental issues: The EU Approach  To fight against climate change is on the top of political agenda  Need for a comprehensive approach including: Better use of existing infrastructure Research & Development ATM / SES Market-based measures (ETS)  Within a global framework

28. 28 Directorate-General Energy and Transport / Air Transport Directorate Technical Assistance  The EC is willing to provide any technical assistance that may be needed  The assistance is generally provided on bilateral basis  But assistance of regional basis also exists  Importance of the Neighbourhood framework  The contents can be agreed, initiative on the part of the MEDA Country  Key objective in air transport: Reinforcement of the capacities of the CAA