Annex 4
Letter from the European Commission—Directorate-General
Transport Directorate C—Air Transport. Application of Community
Law and Operation of the Internal Market
I refer to your letter of 28 September, in which
you raise the possibility of the UK authorities granting rights
for airlines of non-EU Member States to operate cabotage or domestic
services wholly within the UK.
You will be aware that Council Regulation No
2408/92 provides for full market access, regarding services between
different Member States as well as within a single Member State,
but only to the benefit of Community air carriers.
As appears from the penultimate recital of that
Regulation ("deal with all matters of market access
in the same Regulation"—emphasis added), it leaves
no room for market access to be granted by Member States to non-Community
air carriers, regardless whether this is done autonomously or
on the basis of arrangements with third countries.
Community law allows for the extension of market
access to third country carriers, but only as a result of agreements
and conventions to which the Community is a contracting party
(Article 4(2) of Council Regulation No 2407/92). Indeed, this
is the position which the Commission is defending in a number
of cases before the European Court of Justice in relation to the
"open skies" bilaterals concluded by Member States.
I trust this clarifies the issue you have raised
in your letter.
4 October 1999
Mr Tony Davis, Director—Industry
& Government Affairs, British Midland
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