Memorandum by the Airport Operators Association
(EU 17)
EUROPEAN UNION COMPETENCE AND TRANSPORT
INTRODUCTION
1. This submission is made by the Airport
Operators Association (AOA). AOA is the trade body that speaks
and acts for British airports and counts among its members all
of the nation's international hub and major regional airports
together with a large number of airports engaged in business,
community and leisure aviation.
A listing of AOA member airports is attached
at Appendix 1.
2. AOA would wish to submit evidence in
three specific areas:
(a) general EU competence in respect of air
transport matters;
(b) emissions trading; and
(c) competence in air service negotiations.
GENERAL EU COMPETENCE
IN AIR
TRANSPORT MATTERS
3. Aviation is a global industry and as
such requires international regulations, standards, processes
and procedures. It should also be recognised that aviation has
local/national requirements which need consideration at the appropriate
national or regional level and as such it is essential that the
ability to address these matters is retained at this appropriate
level.
4. In areas where regulations, standards,
processes and procedures extend beyond national boundaries it
is appropriate for the European Union to assume a leading role
for the Member States. This process has been seen to produce benefits
in a number of areas including the packages that liberalised air
transport within the EU, and the development of aircraft noise
and emissions standards.
5. AOA also believes that the benefits that
have come from EU involvement in air transport issues can be extended
further with particular emphasis on key initiatives such as the
development of the Single European Sky, and integration of intra—EU
air transport in the European Emissions Trading Scheme.
6. However, AOA also believes that the
UK must retain certain areas of competence exclusive from intervention
at the EU level. Specifically we strongly support the continuation
of the UK to determine major decisions on the provision and delivery
of additional airport capacity. We also strongly support the overall
concept of "local solutions to local problems" in the
areas of addressing the environmental and social impacts of aviation
and, following on from the recent publication of "The Future
of Aviation White Paper", the development of appropriate
national, regional and local initiatives on matters including
noise mitigation, local air quality improvement, airport and infrastructure
planning, and local compensation issues addressing those most
severely affected by the impact of aviation.
7. AOA believes that it is essential that
appropriate competence in addressing specific national, regional
and local aviation issues is retained at these levels. These matters
should not be subsumed within an EU structure.
8. Indeed, we believe that there have been
a number of issues where the EU has assumed competence without
a comprehensive consideration of the impact of its actions. Perhaps
the best recent example of this issue is given by reference to
the introduction of denied boarding compensation that airlines
must pay to passengers when flights are delayed and which in many
cases grossly exceed the fares paid for the flight in question.
Despite the well intentioned objective behind this initiative
its delivery has not addressed the legitimate concerns of the
airlines that are providing low cost travel to an increasing number
of travellers, nor appear to have considered the unintended impact
that it might have on those travellers.
9. AOA would also submit the following general
concerns.
9.1 The trend towards reviewing and "tinkering"
with regulations and Directives by the Commission. A good example
of this is given by the current review of the Ground Handling
Directive where there will be costs incurred by industry in participating
with the review and with no certainty that any benefit will be
delivered to consumers.
9.2 A broad "one size fits all"
approach to legislation. This is inappropriate in many cases—see
our comments on denied boarding compensation at paragraph 8 above.
9.3 The tendency for legislation to be highly
detailed rather than creating an enabling framework which allows
the development of specific national or sub-national responses
addressing impacts of the particular issue being legislated upon
at the appropriate level.
EMISSIONS TRADING
10. AOA advocates the inclusion of intra-EU
aviation into the European Emissions Trading Scheme as a precursor
to the development of a global scheme through ICAO.
11. AOA firmly believes that emissions trading
represents a viable approach that will incentivise manufacturers
to develop new technologies in aircraft and engine design that
will, over time, reduce the impact that aircraft make on higher
atmosphere emissions.
12. AOA fully supports the UK government's
position as stated in the recent White Paper and it's intention
to " . . .press for the inclusion of intra-EU air services
in the forthcoming EU emissions trading scheme, and to make this
a priority for the UK Presidency of the EU in 2005, with a view
to aviation joining the scheme from 2008, or as soon as possible
thereafter."
13. The development of this initiative is
an area where the EU must take a leading position in the development
of a sustainable future for aviation.
COMPETENCE IN
AIR SERVICES
NEGOTIATIONS
14. AOA fully supports the principle of
liberalising international air services and has been consistent
in pressing for a comprehensive "open skies" approach
to these matters. We believe that the liberalisation of such services
would significantly enhance consumer choice and create more dynamic
and competitive markets in air transport.
15. AOA also fully supports the views of
other major UK airport operators in that there will be significant
benefits to UK consumers, UK industry and UK plc in the liberalisation
of air services between Europe and the USA. It therefore follows
that AOA welcomes the mandate given to the Commission to negotiate
with the USA as this appears the most likely vehicle to achieving
a fully liberalised air service agreement between the world's
most significant economies.
16. The issue relating to EU competence
in negotiating air service agreements with third countries other
than the USA must also be considered. The Commission has produced
a draft regulation that effectively enabled Member States to continue
to negotiate such services with the recognition that it (the Commission)
did not have either the resource or mandate to negotiate with
other third countries, other than the USA.
17. In the event, however, Commission officials
have cited the continuing draft status of this regulation as reason
for not establishing the body that is therein tasked with endorsing
any agreements which may be negotiated by individual Member States
in accordance with it. Nor have they permitted any such agreements
to be ratified in the absence of this body. A current specific
example is the impasse reached in finalisation of a much-desired
extension to the UK/Hong Kong air services agreement. There appear
to be no early indications of the regulation being formally adopted
or the ensuing difficulties resolved.
18 AOA believes that there are questions
around whether the Commission should assume competence in negotiating
air service agreements with third countries other than the USA
and that until these are resolved the UK government should continue
to take a leading role in the allocation of traffic rights between
the UK and non-EU States. More specifically, AOA asserts that
draft regulation should not in the meantime be used by the Commission
as an apparent blocking mechanism for preventing the effective
exercise of individual Member State's agreed competence in this
regard.
19. AOA would be pleased to submit oral
evidence to the Committee if required.
January 2004
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