13 Civil aviation policy
| (28281)
5277/07
COM(06) 871
| Commission Communication: Developing a Community civil aviation policy towards Canada
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| Legal base | — |
| Document originated | 9 January 2007
|
| Deposited in Parliament | 22 January 2007
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| Department | Transport |
| Basis of consideration | EM of 7 February 2007
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| Previous Committee Report | None
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| To be discussed in Council | Not known
|
| Committee's assessment | Politically important
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| Committee's decision | Cleared
|
Background
13.1 International aviation relations between Member States and
third countries have traditionally been governed by bilateral
air services agreements. However, these have been found by the
European Court of Justice to be contrary to Article 43 EC where
they deny market access to carriers owned and controlled by nationals
of another Member State. This in practice marked the start of
a Community external aviation policy and an important response
from the Commission has been to develop an overall policy for
civil aviation relations with third countries.
13.2 This policy was laid out by the Commission in
March 2005 in its Communication Developing the agenda for the
Community's external aviation policy, which amongst other
things proposed that the Commission negotiate with third countries
comprehensive agreements on so-called Open Aviation Areas "combining
market opening with a parallel process of regulatory co-operation
and/or convergence notably in priority areas such as aviation
safety, security, environmental protection, research and technology
and application of competition rules ensuring a level playing
field and fair and equal conditions for competition".[55]
The document
13.3 In this Communication the Commission seeks a
mandate from the Council to negotiate an agreement to create an
Open Aviation Area between the Community and Canada. The agreement
would not only cover access to the air transport markets of the
Community and Canada but also the extensive alignment of legislation
in key areas including safety, economic regulation, competition
laws, environment, air traffic management and consumer protection.
The bilateral air services agreements between Member States and
Canada would be superseded by the agreement. The agreement would
essentially take the form of a bilateral air services agreement
with a number of articles and probably including a number of annexes
describing, for instance, applicable European legislation and
the scope of the agreement.
13.4 Amongst the points the Commission makes in support
of initiating a negotiation with Canada are:
- with its market-oriented economic
and transport policy and high regulatory standards Canada is a
strong candidate for an agreement with the Community;
- air traffic between the Community and Canada
has doubled between 2000 and 2005 and Canada is a leading aviation
partner of the Community. In 2005 8.5 million passengers travelled
between the Community and Canada;
- the new Canadian government has declared its
readiness to enter into negotiations with the Community with a
view to liberalising aviation relations that are currently based
on bilateral air services agreements with Member States; and
- an agreement on the liberalisation of air transport
with Canada would bring economic benefits to air carriers, airports,
passengers, shippers, the tourism industry and the wider economy
both within the Community and in Canada.
The Government's view
13.5 The Parliamentary Under Secretary of State,
Department for Transport (Gillian Merron) says that the UK-Canada
aviation market is second only in size to the UK-US market. In
2005 3.6 million passengers travelled from the UK to Canada, 42%
of the Community total. UK originating passengers amounted to
more than twice those from the next two Member States (Germany
and France) combined. The Minister tells us that the UK has a
very liberal air services agreement with Canada, negotiated in
2006, in which there:
- are no restrictions on frequencies
or routes;
- is provision for open fifth freedom rights,[56]
with the exception of routes via the US, which are subject to
liberalisation of the US market and for open seventh freedom rights
for all-cargo services;[57]
and
- is provision for freedom from government interference
in the setting of fares (subject to the usual fair competition
requirements).
The Minister comments that the UK/Canada agreement
therefore meets the Government's current policy aspirations.
13.6 The Minister continues that the Government,
nevertheless, supports in principle the development of a Community
level policy towards Canada, particularly if a Community-wide
agreement would add value to what the UK already has, by reducing
or eliminating any remaining restrictions, for example, on ownership
and control. She says the Government will take an active part
in the Community-Canada negotiations if the Council grants the
negotiating mandate.
13.7 In relation to the financial implications of
the Commission's proposal the Minister says that there are none
that would affect Government. But she adds that the Commission
estimates that a Community-Canada Open Aviation Area could produce
consumer benefits in the Community of €72 million and create
3,700 jobs in the first year. However, it would be expected that
a relatively small amount of these benefits would accrue to the
UK as the UK-Canada market is relatively mature.
Conclusion
13.8 As we have said previously we can see the
potential utility of Community-level air services agreements.[58]
Such an agreement with Canada would be an important development
and we will in due course scrutinise it, should it emerge. Meanwhile
we clear this document.
55 (26436) 7214/05 + ADD1: see HC 34-i (2005-06), para
15 (4 July 2005) and HC 34-xv (2005-06), para 13 (18 January 2006). Back
56
That is UK airlines have the right to carry traffic to Canada
from a third country or from Canada to a third country as part
of a route beginning or ending in the UK. Back
57 That is the
right of UK all-cargo airlines to carry traffic to or from Canada
to or from a third country on a route that does not include the
UK. Back
58
See footnote 55. Back
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