Select Committee on Transport Written Evidence


Memorandum submitted by Lane and Partners LLP

  I am writing with reference to the session on 11 January 2006 at which representatives of the CAA gave evidence to the Transport Committee. At Q76, Mr Lee Scott raised with Sir Roy McNulty the important question in relation to. the regulatory supervision of carriers not registered in this country but predominantly using our airports for flying to other European destinations....

  The question was answered by Sir Roy more in relation to safety and the opportunity that the UK has to carry out airport checks than in relation to the basic question of whether or not the CAA should have primary responsibility for the regulatory supervision of certain airlines.

  Council Regulation No 2407/92 on the Licensing of Air Carriers (Article 4) requires that:

    no undertaking shall be granted an operating licence by a Member State unless (a) its principal place of business and, if any, its registered office are located in that Member State...."

  In the recent case of EUjet, which collapsed in July 2005, it became apparent that, notwithstanding that the airline's network of 17 routes all emanated from Manston (Kent International) Airport, it was actually regulated by the Irish CAA.

  Other anomalies exist in this connection. They raise competition as well as safety issues. Obviously, there is a cost attached to regulation and it is fairer if airlines competing in the same market are regulated by the same authority. From the safety angle, long distance regulation can be argued to be less effective than regulation by the home licensing authority."

  In case it may be of assistance to the Committee, I am attaching a copy of our Aviation Law Bulletin for Winter 2005, which included on pages 1 and 2 an article about the above points. [8]

23 January 2006

8   Not printed. Back

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