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House of Lords
Session 2002-03
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European Union Committee Publications

European Union - Seventeenth Report

Here you can browse the report which was ordered by the House of Lords to be printed 8 April 2003.




CHAPTER 1:background

Origin of Air Service Agreements (ASAs)

Liberalisation of Aviation in the EU

US Domestic De-regulation

Current Restrictions on Air Services Between the USA and the EU

EU Competition Policy and US Anti-Trust Legislation

Other Aspects of Air Transport Already Covered by European Community

Legislation and Where the Community has Extensive External Competence

Slot Allocation at Community Airports

Ground Handling at Airports

Safety Issues

Customs Duties, Taxes and (User) Charges

Restrictions on Aircraft for Environmental Reasons

The Application of Community Competition Law to Aviation

What this Report Addresses

Wider Economic Background


CHAPTER 2:dealing with the European Court of Justice Judgments of 5 November 2002

The Commission's View of the Judgments

The United States Response

Position of EU Member States

Position of the United Kingdom

Views of the Airlines

British Airways

Virgin Atlantic

BMI British Midland

KLM Royal Dutch Airlines

Association of European Airlines

A Second Communication from the Commission

The Committee's Views

Denouncing Existing ASAs with the USA

CHAPTER 3: a wider mandate for the Commission?

Does the Commission Have the Capacity to Conduct Such Negotiations and what Benefits Would a Successful Negotiation Bring?

Advantages in a Community Approach

State Aid for the Airlines

Benefits of Liberalisation

CHAPTER 4: position of the united states

Intra-EU Route Pricing and Computer Reservation Systems

"Nationality" Clause

EU Denunciation of Bilateral ASAs

Limits on Foreign Ownership and Control

Fly America Requirements

Civil Reserve Air Fleet (CRAF)

Anti-Trust Immunity

The Brattle Report

US Attitudes to an EU/US Agreement

The Committee's Views

CHAPTER 5: Cargo And Wet Leasing

An Uneven Market

Bermuda 2 and its Effect on the Competitiveness of United Kingdom Exporters

A "Mini Deal"

A Mandate for the Commission?


The Department for Transport's Response

CHAPTER 6: conclusions of the Committee

The ECJ Judgments

A "First" Mandate for the Commission

A Wider Mandate



Denouncing Existing ASAs

An Opportunity

Appendix 1 Membership of Sub-Committee B

Appendix 2 Call for Evidence

Appendix 3 List of Witnesses

APPENDIX 4 Glossary of Terms


Appendix 6 The Exclusive External Competence of the Community

Appendix 7 US Official Comments on EU "Open Skies" Ruling

Box 1: Original Standard Designation of the Ownership and Control—"nationality"—clause prior to the ECJ Judgments of 5 November 2002

Box 2: Third EU Aviation Package—Summary

Box 3: Salient Features of an "open skies" agreement that distinguish such agreements from Bermuda 2

Box 4: Revised Ownership and Control—"nationality"—Clause to Take Account of the ECJ Judgments of 5 November 2002

Box 5: Airport Capacity: Heathrow and the Question of Slots

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