Select Committee on European Scrutiny First Report


15 Aviation policy

(a)

(26436)

7214/05

+ ADD1

COM(05) 79

(b)

(26438)

7369/05

COM(05) 77


Commission Communication: Developing the agenda for the Community's external aviation policy and Commission staff working paper: Annex to the Commission Communication


Commission Communication: A framework for developing relations with the Russian Federation in the field of air transport

Legal base
Documents originated(a) 11 March 2005

(b) 14 March 2005

Deposited in Parliament21 March 2005
DepartmentTransport
Basis of considerationEMs of 8 April 2005
Previous Committee ReportNone; but see (24384) 7047/03: HC 63-xxii (2002-03), para 9 (21 May 2003)
To be discussed in CouncilNot known
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information requested

Background

Section 1.105  15.1 A judgment of the European Court of Justice in November 2002 found that Member States' bilateral air service agreements infringed EC law — principally by discriminating on grounds of nationality, so limiting freedom of establishment — and identified areas in which the Community has competence in respect of air service agreements. This effectively marked the start of a Community external aviation policy and since then the Commission has been mandated to negotiate a comprehensive air services agreement with the US Government and so-called "horizontal agreements" with all third countries to bring Member States' bilateral agreements with those countries into line with Community law.

The documents

Section 1.106  15.2 In its Communication at document (a) the Commission sets out its proposals for developing future external aviation policy as part of the Community's wider external policies. The Commission argues that the best way to promote new opportunities for opening markets and investment by airlines, benefits for users, fair competition, environmental and safety regulation would be to move increasingly from bilateral agreements with third countries towards agreements between the Community and those countries. It suggests that such agreements should be based on the twin objectives of opening up markets and ensuring fair competition.

Section 1.107  15.3 The Commission proposes to take forward an external aviation policy that would:

·  continue to bring existing air services agreements into compliance with the European Court of Justice ruling;

·  create by 2010 a common aviation area comprising the Community and southern and eastern neighbours; and

·  secure comprehensive regional agreements, especially with the US, China and Russia.

Section 1.108  15.4 The Commission staff working document at document (a) contains an annex with background information on the Community aviation industry and a second annex with information about a model horizontal agreement. The latter contains some misrepresentation of the function of the European Aviation Safety Agency (EASA) implying incorrectly that the EASA, rather than Member States, oversees all safety matters in the Community and is responsible for the issue of aircraft airworthiness certificates, air operators' certificates and pilots' licences.

Section 1.109  15.5 In its Communication at document (b) the Commission sets out its case for a comprehensive air service agreement with the Russian Federation and recommends that the Council authorise it to negotiate a comprehensive air transport agreement between the Community and the Federation.

Section 1.110  15.6 The Commission notes that the aviation sector is significant in the transport links between the Community and Russia and represents an important element in developing relations between the two parties. It argues that the growing economic and political partnership, under the framework of the Partnership and Cooperation Agreement and the four "Common Spaces"[51] agreed at the EU-Russia St Petersburg summit in May 2003, provides a good foundation from which to pursue a comprehensive air transport agreement.

Section 1.111  15.7 The Commission envisages the possibility of cooperation in a number of areas, including modernisation of airport infrastructure, the aerospace industry, alignment of safety, security and environmental standards, training and research, and the growth of air transport markets. It says one aim of a comprehensive agreement would be to resolve outstanding legal issues in relation to existing bilateral agreements between Russia and the Member States. The Commission also proposes to address broader issues, including opening up the EU-Russia aviation market and current problem areas such as Siberian overflight royalty payments and compliance with Community noise and safety standards.

The Government's view

Section 1.112  15.8 The then Minister of State, Department of Transport (Mr Tony McNulty) says:

·  the Government accepts that traditional designation clauses in existing bilateral air services agreements are potentially discriminatory and supports negotiating horizontal agreements with third countries;

·  expansion of liberalised arrangements with neighbouring countries would be consistent with the Government's general policy, giving UK airlines opportunities to operate services from any country that is party to a horizontal agreement or that is part of a common aviation area; and

·  the Government will consult stakeholders and other Member States before forming a view on the Commission's proposals to negotiate comprehensive agreements with other third countries such as Russia and China.

The Minister adds, in relation to the proposed negotiation with Russia and its consultations with stakeholders and other Member States, that the Government broadly supports the Commission's overall objectives of liberalisation and de-restriction of air services markets between Russia and the Community, securing economic benefits, promotion of co-operation, and resolution of particular problems that have arisen in aviation relations between Member States and the Russian Federation.

Conclusion

Section 1.113  15.9 These documents may have important implications for the development of the Community's aviation sector. Before considering them further we should like to have from the Government an account of the outcome of its consultations with stakeholders and other Member States. We should also like to know what response the Commission has made to the comments we presume the Government has made to it about the inaccurate description of the role of the European Aviation Safety Agency.

Section 1.114  15.10 Meanwhile we do not clear the documents.


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